Multinational financial services provider Westpac Bank has been reportedly caught in an international money laundering sting, termed the biggest ever, with American prosecutors seizing 45 bank accounts worth six billion dollars.
According to the Sydney Morning Herald, 36.9 million dollars from the seized amount has been deposited in three accounts of the bank, which is one of the Australia's biggest banks.
According to the report, the trail was allegedly left by Costa Rica-based Liberty Reserve, a currency-transfer and payment-processing company that allowed customers to move money anonymously from one account to another through 17 countries including Australia, via the internet with almost no questions asked.
However, a Westpac spokeswoman said the bank has measures in place to combat money laundering, and has been working closely with regulators and law enforcement agencies.
Describing Liberty Reserve as a 'financial hub of the cyber-crime world', prosecutors have said that cyber criminals across the world use the company to distribute, store and launder illegal activity proceedings such as credit card fraud, identity theft, investment fraud, computer hacking, child pornography and narcotics trafficking.
The report said that Liberty Reserve has processed 55 million illicit transactions worldwide for one million users as it allegedly did not require users to validate their identities and allowed users to open accounts using fictitious names.
The company operated one of the world's most widely used digital currencies, allowing users to send and receive 'instant, real-time currency', according to the indictment in U.S. federal court in Manhattan.
A U.S. attorney said the alleged crimes involved only Liberty Reserve and its operators, and not any other digital currency.
A notice pasted across Liberty Reserve's website said that the domain 'has been seized by the United States Global Illicit Financial Team.' The website is no longer accessible and attempts to reach Liberty Reserve by phone and mail have not been rendered immediate success.
The seven defendants charged in the case have been slapped with one count of conspiracy to commit money laundering, which carries a maximum term of 20 years jail.
They have also been charged with one count of conspiracy to operate an unlicensed money transmitting business and of operation of an unlicensed money transmitting business, where both the charges carry a maximum jail term of five years, the report added.
