Detectives from the Cybercrime Squad have charged a woman allegedly acting as an unlawful digital currency provider exchanging cash for cryptocurrency across NSW.
In November 2018, detectives from the State Crime Command's Cybercrime Squad established Strike Force Kerriwah to investigate an online money laundering syndicate operating across NSW, unlawfully exchanging cash for cryptocurrency.
Strike force investigators were also assisted throughout the investigation by AUSTRAC (Australian Transaction Reports and Analysis Centre) and the Australian Criminal Intelligence Commission (ACIC).
Following extensive inquiries, detectives arrested a 52-year-old woman at a shopping centre at Burwood about 1pm yesterday (Thursday 14 May 2020).
In a subsequent search of the woman's handbag and vehicle, officers seized $60,000 cash, 3.8 Bitcoin valued at more than $55,000, and a mobile phone.
A short time later, strike force investigators, with assistance from the Criminal Groups Squad's Strike Force Raptor, executed a search warrant at a residential unit at Hurstville.
During the search, officers seized mobile phones, computers, electronic storage devices and documentation.
Officers also seized digital currency wallets and a further $18,200 worth of Bitcoin.
All items seized will undergo forensic examination.
The woman was taken to Burwood Police Station and charged with three counts of knowingly deal with proceeds of crime and breach requirement re digital currency exchange services.
It will be alleged in court that the woman operated an unlawful online money laundering syndicate exchanging cash for cryptocurrency.
It will be further alleged the woman has transacted Bitcoin valued at more than $5 million since 2017.
She was granted strict conditional bail to appear at Burwood Local Court on Monday 20 July 2020.
Cybercrime Squad Commander, Detective Superintendent Matt Craft, said the vast majority of digital currency exchange providers do the right thing, however this arrest is a timely reminder to operators to ensure they are meeting their legal obligations.
"This is the first arrest executed by Cybercrime Squad detectives relating to non-compliant digital currency providers in New South Wales – and is believed to be the first of its kind across Australia," Det Supt Craft said.
"While cash is still 'king', digital currencies are fast becoming the preferred choice for organised criminal networks involved in money laundering, funding terrorism, and cybercrimes.
"It is concerning that when this kind of online exchange goes unregulated, it can allow criminals to move currency and launder funds seemingly undetected.
"Let this arrest be a warning to digital currency exchange providers – if you fail to comply with your obligations, your actions will not go unnoticed.
"Any information about illicit activity by digital currency exchange providers that is provided to Cybercrime Squad detectives will be actively pursued in partnership with AUSTRAC and ACIC," Det Supt Craft said.
The arrest follows an announcement by the NSW Police Force and AUSTRAC in March last year, reminding digital currency exchange operators to be aware of their obligations following amendments to Commonwealth legislation.
In April 2018, amendments to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 were introduced, which included expanding the scope of the Act to include regulation of digital currency exchange providers.
AUSTRAC has cancelled associated digital currency exchange registrations as a result of investigations under Strike Force Kerriwah and will continue conducting assessments as inquiries by the Cybercrime Squad continue.
Anyone with information about non-compliant digital currency exchanges or the facilitation of serious and organised crime is urged to contact Crime Stoppers: 1800 333 000 or https://nsw.crimestoppers.com.au. Information is treated in strict confidence. The public is reminded not to report crime via NSW Police Force social media pages.
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