Australian tax advisers and their wealthy clients with links to the Panama Papers could be hit with criminal charges following raids this week, Tax Commissioner Chris Jordan says.

All up 1000 entities, involving hundreds of taxpayers - many of which include high-wealth individuals and their lawyers and accountants - are under investigation by the Australian Taxation Office.

The ATO raids this week come after AUSTRAC identified suspicious cross-border movement of funds between Australia and other countries involving $2.5 billion linked to over 1000 Australian entities identified in the Panama Papers.

The papers, released by the International Consortium of Investigative Journalists in April - listed more than 200,000 secret offshore entities and named hundreds of wealthy clients of Panama-based law firm Mossack Fonseca.