Authorities suspect the store in Victoria's Dandenong is one of six shops in the same street being used to send money to people smugglers overseas.
Federal police and members of the local community believe the store is owned by relatives of convicted people smuggler Haji Sakhi, who was deported from custody in Indonesia to Pakistan earlier this year, according to the report.
One of the store's owners, Ali Ashgar, reportedly denies both the relationship with Mr Sakhi and any involvement in people smuggling.
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