SYDNEY: Australia’s financial crimes agency identifies coordinated mortgage fraud that could reach into the hundreds of millions of dollars following a review of the country’s major banks.
The Australian Transaction Reports and Analysis Centre found inflated incomes, misrepresented employment and fabricated business activity were used to support loan applications, the agency, known as Austrac, said in a statement yesterday.
The analysis spanned 10 banks and found cases where offshore funds were used to complete property settlements and make mortgage payments.
The findings point to vulnerabilities in Australia’s A$2.5 trillion (US$1.8 trillion) home lending market. Austrac urged greater vigilance among the country’s banks, and said it wants mortgage lenders to examine their books for signs of fraud and implement strong controls.
“While this project did not identify evidence of widespread money laundering, the weaknesses it exposed could be exploited by criminals,” said Brendan Thomas, chief executive officer of Austrac. — Bloomberg
