Federal Bureau of Investigation and NSW Police officers raided a house at Kellyville last Thursday, as part of an ongoing trafficking and money laundering investigation which has uncovered information relating to the alleged importation of 300kg of cocaine from Mexico to Australia, via the United States.
Organised Crime Squad detectives arrested three men on September 10, at Kellyville, Miranda and in the Sydney CBD.
During a search warrant at the Kellyville home, detectives arrested a 32-year-old man who was charged with two counts of money laundering.
As James Martin, a criminologist at the Macquarie University Centre for Policing, Intelligence and Counter-Terrorism, says, money laundering is a huge problem because ‘‘it’s really the life line of organised crime’’.
‘‘The making of profit is actually quite easy really; the big difficulty for serious organised criminals is making that money useful,’’ Dr Martin said.
‘‘If you pulled in $100,000 from selling illegal drugs, you you can buy yourself a flash car or a house but if the authorities are looking at you, you can eventaully get done for tax evasion. That’s how they got [American gangster] Al Capone in the end.’’
State Crime Command’s Organised Crime Squad, together with the Australian Crime Commission and the NSW Crime Commission, have been investigating alleged money laundering activities following the seizure of $702,000 from a man at a Sydney hotel by City Central police in August 2011.
Legal action was taken against the NSW Police Force for the return of the money, with claims it was deposit for a tour of American band ZZ Top. However, the Supreme Court found in favour of the NSW Police Commissioner and investigations continued.
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In late 2014, Organised Crime Squad detectives executed search warrants in Sylvania, Potts Point and Luddenham, with warrants also taking place in Richmond and Balnarring, Victoria.
Since then, NSW Police officers have been working closely with the San Diego Field Office of the FBI to investigate the alleged drug trafficking between Mexico, the United States and Australia, and associated money laundering offences.
Following extensive inquiries, Organised Crime Squad detectives arrested three men at Kellyville, Miranda, and Sydney CBD on Thursday. A fourth man – a 54-year-old music promoter – was arrested with the assistance of Victoria Police, in Melbourne.
The arrests coincided with the arrest of a man in the United States by the FBI for drug offences and money laundering.
Recent investigations have shown it is now clear organised syndicates impacting NSW are often transnational in nature.
‘‘While organised criminals are increasingly taking advantage of globalisation, law enforcement agencies are really being forced into more and more international collaborations,’’ Dr Martin said.
‘‘The internet is a big part of it, and increases in global trade. It’s challenging the ability to control things in our own borders.’’
Commander of the Organised Crime Squad, Detective Superintendent Scott Cook, said: ‘‘Whilst this presents us with challenges, those who undertake these activities need to understand that being outside the jurisdiction will not save you.
‘‘The Organised Crime Squad will take the guns, the drugs, the proceeds of crime, and prosecute those people who engage in and with organised crime activities that impact community of NSW.”
Detectives are currently in San Diego, California, working with the FBI.
Australian Crime Commission state manager NSW, Warren Gray, said profit is the primary motivator of organised crime and money laundering is carried out by most, if not all, organised crime groups.
As the Australian Crime Commission website points out, ‘‘If criminals want to use that money it needs to appear to have come from legitimate sources. This means they need to ‘clean’ or ‘launder’ it.’’
Strategies criminals may use to launder money:
■ Breaking up large amounts of cash and depositing it into bank accounts, or buying money orders or cheques and depositing them into other accounts in an effort to place money in the financial system without arousing suspicion;
■ Moving money around to create complex money trails, making it difficult to identify its original source—usually through a series of quick transactions, or through businesses in other countries;
■ Integrating money within the financial system for end use so it appears as legitimate funds or assets, and can include buying real estate and luxury assets, or investing in businesses;
■ Using a number of people to carry out small transactions or smuggle cash into or out of the country; and
■ Using online gambling platforms, placing illegal proceeds of crime into gaming machines or purchasing casino chips and cashing them out shortly afterwards.
