In Australia, dealing with the proceeds of crime is a serious legal matter. These laws aim to prevent individuals or organisations from benefiting from criminal activities, such as drug trafficking, fraud, tax evasion, or organised crime. Here’s an overview of the key laws and processes that govern proceeds of crime matters in Australia.

What Are the Proceeds of Crime?

The term “proceeds of crime” refers to any money, property, or assets obtained—directly or indirectly—through illegal activity. This can include:

•Cash or bank accounts with funds derived from crime

•Real estate purchased with criminal proceeds

•Vehicles, jewellery, or other luxury items bought with illicit funds

•Investments, shares, or cryptocurrency connected to unlawful activities

Federal Laws: The Proceeds of Crime Act 2002 (Cth)

At the Commonwealth level, the Proceeds of Crime Act 2002 (Cth) is the primary legislation addressing proceeds of crime matters. This Act empowers Australian authorities to:

1.Identify and restrain assets suspected of being connected to criminal activities.

2.Confiscate assets proven to be proceeds or instruments of crime.

3.Prevent money laundering and disrupt criminal enterprises.

Key Features of the Act

•Civil Confiscation Regime: Allows authorities to seize property without requiring a criminal conviction if it’s proven, on the balance of probabilities, to be connected to crime.

•Unexplained Wealth Orders: Targets individuals who cannot reasonably explain their wealth relative to their lawful income.

•Freezing and Forfeiture Orders: Enables the freezing of assets during investigations and their forfeiture upon proof of criminal origins.

The Act applies to serious Commonwealth offences, such as drug importation, human trafficking, and terrorism financing.

State and Territory Laws

Each Australian state and territory also has laws governing proceeds of crime matters. While they align with federal principles, these laws address crimes committed within local jurisdictions.

New South Wales (NSW)

•Confiscation of Proceeds of Crime Act 1989 (NSW)

•Focuses on recovering assets linked to drug trafficking, organised crime, and serious fraud.

•Includes similar provisions for freezing and forfeiture orders.

Victoria (VIC)

•Confiscation Act 1997 (VIC)

•Introduces automatic forfeiture for serious offences, requiring the accused to prove their assets are not crime-related.

Queensland (QLD)

•Crime and Corruption Act 2001 (QLD) and Criminal Proceeds Confiscation Act 2002 (QLD)

•Targets organised crime groups and individuals benefiting from illicit activities.

Western Australia (WA)

•Criminal Property Confiscation Act 2000 (WA)

•Notably broad in scope, allowing confiscation even in the absence of criminal charges.

South Australia (SA)

•Criminal Assets Confiscation Act 2005 (SA)

•Incorporates provisions for restraining, freezing, and forfeiting crime-linked assets.

Tasmania (TAS)

•Crime (Confiscation of Profits) Act 1993 (TAS)

Australian Capital Territory (ACT)

•Confiscation of Criminal Assets Act 2003 (ACT)

Northern Territory (NT)

•Criminal Property Forfeiture Act 2002 (NT)

International Cooperation

Australia collaborates with other nations to combat transnational crime. The Mutual Assistance in Criminal Matters Act 1987 (Cth) enables asset tracking and confiscation requests across borders, helping to dismantle international criminal networks

Money Laundering and the Role of AUSTRAC

Australia’s anti-money laundering laws, governed by the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth), work in tandem with proceeds of crime legislation. The Australian Transaction Reports and Analysis Centre (AUSTRAC) monitors financial transactions to detect and report suspicious activity, playing a critical role in identifying and intercepting criminal funds.

Why These Laws Matter

Proceeds of crime laws:

•Deter criminal activity by removing the financial incentives of crime.

•Disrupt organised crime networks by targeting their financial foundations.

•Ensure justice by returning stolen assets to victims or directing confiscated funds towards community programs.

About Post Author

Brian Walker

B.Acc., GradDipLegPrac, Juris Dr
Barrister & Accountant.
Former Criminal Defence Solicitor. Former Federal Prosecutor for the Commonwealth Director of Public Prosecutions prosecuting Commonwealth crimes relating to drugs and child exploitation. Former Australian Federal Police member litigating proceeds of crime matters. Former Australian Taxation Office employee investigating offshore tax evasion matters.

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