Property and money restricted while charging the group with money laundering

Editor's note: A view of the operation is available via Hightail.

The Australian Federal Police (AFP) has charged nine members of an international money laundering organization and restrained more than $150 million in real estate, cash and luxury goods in Sydney.

The AFP said the group allowed several transnational criminal groups to launder the proceeds of criminal activity. The group is alleged to have laundered more than $150 million in profits from the venture between 2018 and 2022.

Yesterday (February 1, 2023), the AFP arrested the alleged head of the money laundering organization at his home in the Vaucluse area. It is alleged that the 43-year-old man was''founder of the group and directed its global operations. Eight others were also arrested and charged with several counts of money laundering and illegal use of criminal proceeds allegedly committed in support of the organization's extensive activities. Among those charged: A 41-year-old woman from Vaucluse, a 45-year-old man from Bellevue Hill, a 35-year-old man from Epping, a 54-year-old man from Drummoyne, a 41-year-old man from Crouse Nest, a 33-year-old man from Mace Hill and a 56-year-old man from Yagoon. A 69-year-old woman from Burwood has been presented in court as a witness. The Berwood woman is scheduled to appear in court at a later date. The remaining eight people are expected to appear at Downing Center Local Court today (February 2, 2023).

In the course of the operation'' Avarus-Midas identified criminal groups in Australia and overseas that allegedly used a money laundering organization to ensure that their money passed through legitimate systems and their criminal activities remained hidden from law enforcement. The money laundering organization is believed to have been an international operation, headquartered in Sydney, that moved illicit money through multiple jurisdictions using a variety of methods, including the exploitation of daigou, casinos and informal value transfer systems that typically operate outside the banking system. The syndicate is believed to have operated as an unregulated international bank capable of utilizing cash held''in several countries around the world, to provide transactions for criminal clients. Criminal groups in Australia and overseas allegedly used the organization's services to make their money appear to pass through legitimate systems while their criminal activities were concealed from law enforcement.

The AFP yesterday searched 13 locations in Sydney and seized more than $29 million in cryptocurrency, 18 designer watches, 17 designer handbags, at least 46 precious metal items and four licensed guns that were illegally stored. The group is believed to have provided services on an industrial scale to organized crime groups based in Australia, enabling them to move and access''illicit money in various international jurisdictions, avoiding anti-money laundering obligations.

The AFP-led Criminal Asset Forfeiture Unit has also obtained restraint orders under the Anti-Money Laundering Act 2002 (Cth). The orders relate to more than 20 properties in Sydney, including several commercial buildings in and around the city center, two expensive homes in Sydney's eastern suburbs worth more than $19 million combined, a 360-hectare parcel of land near the site of Sydney's second international airport worth $47 million, 66 bank accounts, cash and more than $1 million in luxury cars.'''The Criminal Asset Forfeiture Unit worked closely with criminal investigators to identify and restrain more than $150 million of assets suspected of being involved in criminal activity.

Operation Avarus-Midas began in early 2022 after information was uncovered in the Todorka money laundering operation. That investigation led to charges being brought against members of the syndicate laundering money for Australian criminal figures. Eastern Command Assistant Police Commissioner Kirsty Schofield said money laundering organizations were a vital link in organized crime and an important catalyst for criminal activity in Australia and overseas. "This was a complex,''a sophisticated syndicate set up to ensure funds are moved regardless of their origin, purpose or harm to the Australian community,' Assistant Commissioner Schofield said." "Money laundering is a global threat that no single agency can tackle on its own.

Violations

Men from Bellevue Hill, Epping and Mace Hill were charged with conspiracy to possess money worth $1 million or more, with intent to use the money as an instrumentality of a crime in violation of Section 400.3(1), Penal Code 1995 (Cth). The offense carries a maximum penalty of 25 years in prison.

The women of Vaucluse and Burwood, as well as''The Drummoyne, Burwood and Crouse Nesta men were charged with conspiracy with proceeds of a common offense of $1 million or more, in violation of Section 400.3(1A) of the Criminal Code of 1995 (Cth). This offense carries a maximum penalty of 25 years in prison.

A43-year-old man from Vaucluse has been charged with both of the above offenses.

A man from Jaguna has been charged with aiding, abetting or procuring the commission of an offense under s. 39(1) of the Crimes Act 1914 (Cth) and obstruction of justice against the Commonwealth judiciary, contrary to s. 11.4(1) of the Criminal Code 1995 (Cth), punishable by five years imprisonment.

How'. 'Avarus-Midas syndicate worksAG/h3>

A person in Australia wants to buy real estate, goods or services. This person has legitimate funds in an overseas bank account in China, but the laws in China prohibit importing large amounts of cash from the country. This person goes to a manifibroker operating in Australia to get the money for the purchase. This broker is part of a money laundering organization that operates illegally in Australia because they are not registered money transmitters.

The money laundering organization agrees to obtain money for a person, but charges a fee of up to 10 percent of the amount of money provided. The person then receives the money in Australia to purchase real estate,''(derived from fees and related profits from international currency trading) to purchase valuable assets, including private and commercial real estate in New South Wales.

AFP media: (02) 5126 9297