The two Sydney women who have been charged with $5.7 million childcare fraud.

Two Sydney women have been arrested over an alleged $5.7 million family daycare rort after claiming the enrolment of more than 1600 kids during a one-month period last year.

Raids were carried out by the AFP overnight at five properties in Kellyville and Lakemba, in the city’s west, with the women aged 28 and 31 accused of money laundering.

The 31-year-old has been charged with dealing with more than $1 million in proceeds of crime, while the 28-year-old is accused of handling more than $100,000 of the same.

One of the properties raided has previously been investigated in a separate police operation into possible terrorism financing from claimed funds, according to Fairfax Media, with two men before the courts on fraud charges.

The Out Loud crew discuss the workplace that’s now offering an on-site childcare centre for its staff. Post continues after audio…

The women, from Kellyville, are due to face Central Local Court on Friday.

“We will allege in court that this group methodically went about enrolling more than 1600 children for the maximum amount of family day care available, and then claiming full benefits for each of these children,” said Acting Commander Kate Ferry, AFP Manager Criminal Assets, Fraud and Anti-Corruption.

The group made a blatant attempt to defraud the government of money meant for legitimate child care providers, Ms Ferry said.

The women face 20 and 25 years in prison if found guilty.