Police have smashed an organised Chinese-Australian crime syndicate and seized a record $150 million (US$107 million) of assets, including mansions, property, cash, cryptocurrency, designer handbags, and other luxury items.
The Australian Federal Police (AFP) alleged the group, a global operation headquartered in Sydney, enabled multiple transnational organised crime groups to launder funds derived from criminal activities.
It is alleged that the group facilitated the movement of illicit money through multiple jurisdictions.
They used a range of means including exploiting “dai gou” shopping, a common way of shopping by overseas Chinese where goods (normally health products) are purchased and sent back to China.
Another method is via casino junkets, and underground banking or remittance systems, to send over $150 million between 2018 to 2022.
The alleged head of the gang, a 43-year-old man, was arrested from his home in Vaucluse, one of Sydney’s most exclusive suburbs, on Feb. 1.
Eight other people (six men and two women), aged 33 to 69 and from Epping, Drummoyne, Crows Nest, Mays Hill, Yagoona and Burwood, were also arrested and charged with multiple money laundering and proceeds of crime offences.
Code named Operation Avarus-Midas, Australian federal police said it was “one of the largest and most complex money laundering investigations in the AFP’s history,” with officers raiding 13 locations across the Harbour City on Feb. 1, and seizing over $29 million in cryptocurrency, 18 designer watches, 17 designer handbags, at least 46 items of luxury jewellery and four licenced firearms that were unlawfully stored.
The AFP also restrained 20 properties across Sydney, including multiple commercial buildings in the CBD and surrounds, two high-value houses in Sydney’s eastern suburbs worth over $19 million combined, a 360-hectare tract of land near the western Sydney Airport worth $47 million, 66 bank accounts, cash, and over $1 million in luxury vehicles.
“We will allege the money laundering organisation used their profit to live large,” AFP Assistant Commissioner Eastern Command Kirsty Schofield said. “They bought high-end jewellery, high-end watches, and some of these watches cost more than what an individual would earn in a lifetime.”
Schofield said money laundering organisations were the lifeblood of organised crime and a major enabler of criminal activity in Australia and internationally.
“This was a sophisticated, complex syndicate established to facilitate the movement of funds regardless of their origin, purpose or harm caused to the Australian community,” she said.
Eight of the nine suspects are expected to face Downing Centre Local Court on Feb. 2, while the 43-year-old Burwood woman is scheduled to face court at a later date.
How the Syndicate Works
The group is alleged to circumvent laws preventing people in Australia from transferring large amounts of cash out of China by using an unlawful broker in Australia to obtain funds.The group allegedly asked customers to deposit the value of the money obtained into a Chinese bank account it controlled and charged the individual a 10 percent fee.
The AFP worked with the financial transaction monitor Australian Transaction Reports and Analysis Centre (AUSTRAC), National Australia Bank, the Royal Malaysia Police, and the Hong Kong Police Force for their support during its investigation.
“We have not ruled out further arrests in Australia or internationally. We are working closely with our international partners and sharing intelligence to ensure all members of this alleged money laundering organisation are held accountable for their actions,” said Assistant Commissioner Schofield.
“We know today’s details may be infuriating for many Australians, especially given the overwhelming majority of Australians who work very hard to earn their money.”
“Today, I’m sending a warning to organised crime groups involved in money laundering activities – you are on our radar.”
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