The Australian Federal Police has specifically warned international students preparing to leave Australia not to sell or rent out their bank accounts or identity documents. Criminal groups often use these legitimately opened, identity-verified accounts to receive and transfer proceeds of fraud.
Why do police still investigate the account holder first after a bank card has been handed to someone else?
Banking systems can directly identify whose name an account is registered in, but do not directly show who held the physical bank card when a particular transaction took place.
If an account originally used for wages, tuition fees or living expenses suddenly receives multiple unfamiliar transfers, and the funds are quickly withdrawn as cash, transferred to other accounts or used to buy cryptocurrency, the bank and police will usually contact the account holder first.
Investigators may ask the account holder to explain where the money came from, who was operating the account, why the transactions occurred and whether the account holder had authorised anyone else to use it.
The investigation is not limited to the physical bank card.
If you also handed over online banking passwords, SMS verification codes, the linked mobile number, photographs of identity documents or information used to verify your identity, the other person may have gained control of the entire account.
Once police begin investigating, saying “I did not transfer that money” will therefore usually not bring the matter to an immediate close.
Police may also examine your conversations with the other person, the terms on which the account was sold or rented out, whether you received payment, and whether you received bank notifications after unusual transactions occurred but continued to let someone else use the account.
You may face a criminal investigation even without personally taking part in fraud
Criminal liability cannot be determined solely by whether a person personally contacted the victims or carried out the fraud.
In NSW, receiving, holding, transferring or participating in dealing with proceeds of crime may all fall within the scope of an investigation into money laundering or offences involving proceeds of crime.
Different offences do not all have the same requirements concerning a person’s state of mind. These may involve whether they knew the property was the proceeds of crime, were reckless as to the relevant risks, or whether there were already reasonable grounds in the circumstances to suspect a problem with the source of the funds.
An account having received proceeds of fraud does not, therefore, necessarily mean its holder is guilty. However, police will usually not stop investigating simply because the person says “I knew nothing about it”.
If a stranger offers payment or commission in exchange for an account and also asks for the bank card, online banking password, SIM card or identity documents, police may focus on why the person considered the arrangement normal.
Similarly, continuing to allow the other person to operate an account after it has received numerous unfamiliar transfers or transaction alerts may be important context in assessing what the account holder knew at the time.
The investigation may expand further if accounts were sold or rented out repeatedly, or if other students were introduced to the arrangement.
Whether an offence has ultimately been committed must still be assessed against the complete conversation records, movement of funds, arrangements between the parties and information available to the person at the time.
What should you do if you discover your account has been used for suspicious transactions?
If you discover that someone else may have taken control of your account or used it for suspicious transactions, report this through the bank’s official channels as soon as possible and follow its instructions on account access and security.
If you no longer need an Australian bank account, close it through the formal process rather than leaving it available for someone else to operate.
At the same time, preserve as complete a record as possible. This includes conversations between you and the other person, their initial recruitment messages, agreements about payment and the purpose of the account, bank statements, transaction notifications, account login alerts, and the approximate time you handed over the bank card, SIM card or other account information.
If you had already left Australia at the time, flight tickets, entry and departure dates, and other travel details may also help establish what happened.
It is not advisable to delete conversation records out of fear of being investigated, and do not contact other people involved to coordinate your accounts of events.
If funds of uncertain origin remain in the account, you should not withdraw them, transfer them or privately return them to someone yourself. Report the situation to the bank first and obtain legal advice based on the circumstances.
Can an Australian investigation continue after you have returned to your home country?
Possibly.
Leaving Australia does not make bank transaction records, account login records or the trail of funds disappear.
Police may still contact the person by telephone, email or other means. If the person later re-enters Australia, an unfinished investigation may also continue.
If a case ultimately involves fraud, money laundering, dealing with proceeds of crime or misuse of identity information, and leads to prosecution or conviction, it may also affect visas, future entry or character assessments.
The specific migration consequences depend on the offence, the outcome of the case and the person’s circumstances. Suspicious transactions in an account do not automatically result in visa cancellation.
If Australian police contact you while you are overseas, you can first verify the officer’s name, police station and relevant case details.
Before you understand the scope of the investigation, the complete bank records and the transaction timeline, it is not advisable to rush into a lengthy explanation over the telephone or to guess from memory how particular funds came about.
Organising bank documents and conversation records first, then obtaining legal advice based on the facts, can help avoid additional problems caused by mistaken recollections or inaccurate statements.
A frozen bank account does not mean you have been found guilty
If a bank identifies unusual transactions, it may freeze, restrict or even close an account as part of its anti-fraud, anti-money laundering or internal risk controls.
An account being frozen does not, by itself, mean police have determined that the account holder committed a crime. However, it often indicates that the transactions have come to the bank’s attention.
If police also contact you, it is particularly important to distinguish the issues involved in the bank’s internal risk investigation from those involved in the criminal investigation.
Account holders should preserve bank notices, account statements, the date the account was frozen and records of communications with bank staff wherever possible, so the full sequence of events can later be reconstructed.
What should you consider after police contact you?
If police simply contact you by telephone or email, you can first confirm their identity and the basic case details.
However, if police ask you to attend a formal interview, explain account transactions in detail or provide documents, first establish your status in the investigation and exactly what conduct police are investigating.
In particular, if you no longer clearly remember transaction times, how the bank card was handed over or the conversations, explaining events hastily from memory may produce an account inconsistent with objective bank records.
Organising bank statements, conversation records and a complete timeline in advance can help you explain events more accurately.
NS Legal’s closing remarks
Selling, renting out or handing an Australian bank account to someone else is more than simply “getting rid of a bank card you will no longer use”.
If the account is then used to receive proceeds of fraud, transfer proceeds of crime or conduct other unusual transactions, its holder is very likely to be investigated first by the bank and police.
If you have handed your bank card, online banking account, mobile number or identity information to someone else and the account has since been frozen, unfamiliar transactions have appeared or police have begun contacting you, NS Legal’s criminal law team can help clarify who controlled the account, review conversation records and trace the funds, and assess whether the investigation may involve fraud, money laundering or dealing with proceeds of crime.
Even if you have already left Australia, you can begin organising documents and a timeline that explain what happened, and find out how a criminal investigation may affect a future return to Australia, visa applications or entry.
Frequently asked questions
Could I still be investigated if I only handed over my bank card, not my online banking password?
It is still possible. A physical bank card may itself be used for purchases, cash withdrawals or other transactions. Police will assess your involvement by considering how the account was actually used, the arrangements between the parties and what you knew at the time.
Have I committed an offence if I only received a single fixed payment and never touched the money in the account?
Receiving payment does not, by itself, necessarily constitute an offence, but it may be important context for a police investigation. Police will usually consider why you were willing to hand the account to someone else and whether you were already aware of potential problems with the arrangement.
Can closing the account immediately after discovering unusual activity prove I was not involved?
Closing the account helps prevent further transactions, but it does not erase the movement of funds that has already occurred. You should still retain conversation records, bank statements and details of when you allowed someone else to use the account.
I have returned to my home country and police have only called to ask about what happened. Can I explain straight away?
You can first verify the officer’s identity and the subject of the investigation. However, if detailed transaction histories or a formal statement are involved, it is best to first understand the complete account records and your legal position, to avoid unnecessary problems caused by inaccurate recollections or incomplete explanations.
Disclaimer: this information provides general legal information only and does not constitute legal advice for any individual’s circumstances.
