2.1m illicit cigarettes seized, 4 men charged following police raids

Earlier this week, police charged four NSW men in connection with a money laundering syndicate responsible for washing over $150 million in criminal funds, a joint media release between the Australian Federal Police and AUSTRAC said on Tuesday (9 December).

In court proceedings, police will allege that the money laundering operation recruited people to open bank accounts and register fake businesses. These accounts were used for ‘layering,’ complex transactions used to obscure the true origin of dirty money.

The illicit funds were sent to overseas accounts before being remitted back to Australia from different accounts and companies to contrive an appearance of legitimate business payments.

“It will be alleged financial records from these accounts show little or no legitimate business expenses, such as rental payments, insurance, or tax payments,” the joint release noted.

Multiple bank accounts identified as being linked to the syndicate had been frozen, the AFP said. This was done with the assistance of the Fintel Alliance, a partnership including public and private institutions such as AUSTRAC, the ATO, banks and casinos.

From mid-next year, accounting firms that provide designated services will also be required to act as money laundering watchdogs and assist authorities in cracking down on dirty money. Those who help set up company structures would need to register with Australia’s financial intelligence unit, AUSTRAC, and fulfil other obligations.

Captured entities will see new responsibilities, including an obligation to enrol and register with AUSTRAC, develop and maintain an AML/CTF program, conduct customer due diligence and report suspicious transactions and activities.

In this case, investigations into the money laundering syndicate linked it to a Sydney-based crime group allegedly importing illicit tobacco.

One alleged high-ranking syndicate member, 38, was arrested on Monday (8 December) from a Dundas Valley home, and multiple phones were seized. The police allege the man managed multiple straw directors and laundered approximately $23 million in criminal proceeds.

A second syndicate member, 29, was charged in November for allegedly laundering over $7.8 million in dirty money. A raid on his house retrieved four mobile phones, bank cards and a pistol.

During police raids on 8 December, officers charged an additional two men and seized $108,000 in cash, approximately 1.1 million illicit cigarettes, 2kg of loose-leaf tobacco, a Rolex watch and electronics.

Police also stopped a truck allegedly carrying an additional 1 million illicit cigarettes, bringing the total amount to 2.1 million with a street value of $2.1 million, the joint release said.