The AFP has charged four men and dismantled an organised crime syndicate suspected of laundering more than $10 million of criminal proceeds.
AFP investigators attached to Taskforce Avarus - an AFP-led multi-agency initiative combatting criminal networks laundering money in Australia - began an investigation in October, 2024 following a referral from the ANZ Financial Crime Team.
The AFP will allege a man, 36, attempted to deposit $1 million cash in a Brisbane bank and was subsequently arrested and charged with dealing with money believed to be proceeds of crime, contrary to section 400.9(1AB) of the Criminal Code (Cth). This offence carries a maximum penalty of four years' imprisonment.
He was released on bail to appear before Brisbane Magistrates Court on 6 December, 2024.
Inquiries by the AFP, with the assistance of AUSTRAC, led to the identification of other members of the money laundering syndicate, which has links to Sydney-based Korean and Middle Eastern organised crime figures.
The syndicate is suspected of coordinating the collection of criminal proceeds through 'dead drops' of cash. The cash would be deposited into online banking accounts linked to the syndicate, then swiftly transferred into cryptocurrency.
Two men, aged 51 and 38, were arrested on 17 November, 2024 and charged with recklessly dealing in proceeds of crime worth $1 million or more, contrary to section 400.3(2B) of the Criminal Code (Cth) This offence has a maximum penalty of 12 years' imprisonment.
The AFP will allege the 51-year-old man has received more than $5 million in cash deposits, suspected to be proceeds of crime. It will also be alleged the 38-year-old man had dealt with more than $1 million in criminal proceeds.
Both men appeared before the Downing Centre Local Court on 18 November, 2024 and were formally refused bail. They are expected to appear before the Downing Centre Local Court on 15 January, 2025.
Search warrants were executed on five properties at Milsons Point, Concord, Strathfield and Rhodes on 17 November 2024. Investigators located and seized cash counting machines, two luxury watches, cash deposit receipts, electronic devices and cigarette manufacturing equipment.
Further inquiries by the AFP resulted in a man, 34, being arrested on 25 November, 2024 and charged with recklessly dealing in proceeds of crime worth $1 million or more, contrary to section 400.3(2B) of the Criminal Code (Cth) This offence has a maximum penalty of 12 years' imprisonment.
The man appeared in the Downing Centre Local Court on 26 November, 2024 and was formally refused bail. He is expected to appear before the same court on 15 January, 2025.
Following further inquiries by the AFP, the 36-year-old man, arrested in Brisbane in October 2024, was re-arrested at Sydney Airport on 26 November, 2024 and charged with an additional count of recklessly dealing in proceeds of crime worth $1 million or more, contrary to section 400.3(2B) of the Criminal Code (Cth).
This offence has a maximum penalty of 12 years' imprisonment. The man appeared at Downing Centre Local Court yesterday (27 November, 2024) and was formally refused bail. He is expected to appear before the same court on 15 January, 2025.
AFP Detective Acting Superintendent Luke Needham said the AFP was focused on prosecuting those laundering criminal proceeds in Australia.
"The AFP is relentless in tracking down highly-organised and sophisticated criminal networks which launder dirty money through Australian financial systems," Det A/Supt Needham said.
"This criminal activity is not only bankrolling high-flying lifestyles, but it is often funding future criminal activity by offshore and Australian syndicates.
"The dedicated work of Taskforce Avarus means those who engage in money laundering and financial crime should be aware the AFP is working to track them down and prosecute to the full extent of the law."
ANZ's Head of Financial Crime Threat Management Milan Gigovic said: "Through our partnerships with the AFP and AUSTRAC, we are committed to safeguarding the financial system from criminal exploitation.
"ANZ's Financial Crime team designs and deploys cutting-edge algorithms and intelligence tools to swiftly detect criminal threats. With zero tolerance for criminal activity, we leverage analytics to proactively work with law enforcement and government partners to disrupt and prevent financial crime, while supporting investigations, prosecutions and the recovery of illicit assets."
AUSTRAC Law Enforcement and Industry Acting National Manager Anthony Helmond said AUSTRAC and its partners were determined to disrupt the flow of funds.
"As Australia's financial intelligence unit, we're well placed to analyse financial data, identify suspicious money movements and help law enforcement build a picture of a criminal operation," Mr Helmond said.
"While money launderers continue to exploit channels that have historically been used to launder funds, AUSTRAC is aware of the money laundering vulnerabilities associated with cryptocurrency.
"Criminal use of digital currency is increasing and posing greater risks, which is why AUSTRAC works with our partners to ensure the sector is hardened against misuse."
Taskforce Avarus is using the firepower of the AFP, AUSTRAC, Australian Criminal Intelligence Commission, Australian Border Force and the major Australian banks to unravel the complex structures and methods criminals adopt to hide their illicit money.
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