Explosive home loan claims by financial crimes regulator AUSTRAC | The Business | ABC NEWS
Australia’s financial crimes regulator AUSTRAC has uncovered mortgage fraud worth hundreds of millions of dollars at 10 major banks. The regulator said Operation Claw has exposed “systemic weaknesses” across the lending sector, with properties, mainly in Sydney, being bought in a way that does not comply with laws meant to ensure responsible lending and cut down on dirty cash. AUSTRAC said the suspected fraud or ‘liar loans’ involved people submitting inflated incomes, misrepresenting employment and using shell companies to fabricate income to support loan applications. There were also cases in which “offshore or third-party funds” were used to finalise settlements and make home loan repayments. The agency said this demonstrated how false income streams and complex funding arrangements can wash money through the Australian property market. AUSTRAC chief executive Brendan Thomas said the fraud involves both owner-occupier and investor loans and Operation Claw had already made referrals to appropriate authorities. “The scale of this activity should be a wake-up call for every lender,” he said. Operation Claw involved AUSTRAC working closely with banks, the ATO, NSW Police, the NSW Crime Commission, the Australian Criminal Intelligence Commission and financial regulators APRA and ASIC. Mr Bendan also says the agency has seen money laundering coming into the Australia property market quite significantly and we want the mortgage lending businesses to tighten controls against that. #ABCBusiness
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Read more here: https://www.abc.net.au/news/2026-08-19/coordinated-mortgage-fraud-uncovered-austrac-banks-on-notice/107053710
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