Australia’s financial crime watchdog AUSTRAC is expanding its Fintel Alliance initiative after the public-private partnership delivered significant results in tackling financial crime through collaborative intelligence sharing.

Established in 2017, Fintel Alliance brings together major banks, remittance and gambling service providers, and law enforcement agencies to share data and insights in real time.

AUSTRAC CEO Brendan Thomas said the collaboration has proven so effective that the agency will now make its data analytics hub a central function of its operations.

By working together, members of the alliance have been able to identify and act on serious crimes such as money laundering, child exploitation, domestic violence, tax evasion, fraud, and illegal phoenixing.

One recent effort involved analysing over 50 million cash deposit transactions under A$10,000 from Australia’s four largest banks.

The combined analysis revealed criminal networks that are now under law enforcement scrutiny.

To support further growth, AUSTRAC is increasing staff capacity and enhancing the analytics hub.

A senior manager from ANZ Bank has been seconded to help co-lead the expansion, which includes engaging more industry partners, especially those expected to join under upcoming regulatory changes known as tranche 2.

Fintel Alliance has also been active in identifying trends like micro-laundering and launching public awareness campaigns, including one on “scambling,” where unlicensed online gambling platforms deceive users through social media ads.

This scam has affected vulnerable communities, prompting coordinated efforts between banks, law enforcement, and regulators.

Paul Jevtovic, Chief Financial Crime Risk Officer at NAB, said the alliance’s ability to detect suspicious low-value transactions has led to faster responses and better protection for customers.

Cassandra Hewett, ANZ’s Group Head of Financial Crime Risk, added that the collaborative approach allows members to develop tools that respond to crime in real time.

AUSTRAC Deputy CEO Intelligence John Moss said the expansion will play a critical role in tackling organised crime, especially as more industries come under AUSTRAC regulation.

“Building even stronger partnerships is going to extend our ability to weed out criminal abuse of the financial system and hit organised crime where it hurts.

As AUSTRAC prepares to welcome tranche 2 industries to our regulated population, the expansion will no doubt continue to play an even bigger part in disrupting criminal activity,”

Moss said.

Featured image: Edited by Fintech News Singapore, based on image by Freepik