What Is Money Laundering?

The Crimes Act 1900 NSW (New South Wales) does not expressly define what money laundering is. However, the Australian Federal Police (AFP) defines money laundering as:

“a process of moving money or property through the economy in a way that hides its illegal origins or intended criminal purpose.”

The Crimes Act provisions pertaining to money laundering are found under Part 4AC (Sections 193A to 193G). This article will discuss only the preliminary portion of Part 4AC: Sections 193A to 193C.

Money Laundering: Definition of Terms 

To properly understand these provisions on money laundering, here are some terms (s193A) that you will commonly encounter later on:

1. Cause – direct or facilitate
2. Deal with – means to:
   • receive, possess, conceal or dispose of, or
   • bring or cause to be brought into NSW. this includes transfer or cause to be transferred by electronic communication, or
   • send or cause to be sent out of NSW, including transfer or cause to be transferred by electronic communication, or
   • engage directly or indirectly in a transaction, including receiving or making a gift.
3. Instrument of crime. Property that is used in the commission of, or to facilitate the commission of, a serious offence.
4. Proceeds of crime. Any property that is substantially derived or realised, directly or indirectly, by any person from the commission of a serious offence.
5. Proceeds of general crime. Means money or other property that is wholly or partly derived or realised, directly or indirectly, by a person from the commission of an offence against a law of the State, or the Commonwealth, another State or a Territory, or another country.
6. Serious offence – this term can mean any of the following:
   • an offence (including a common law offence) against the laws of New South Wales, being an offence that may be prosecuted on indictment, or
   • an offence against a law of the Commonwealth that may be prosecuted on indictment, or
   • the offence of supplying any restricted substance prescribed for the purposes of section 16 of the Poisons and Therapeutic Goods Act 1966 that arises under section 18A (1) of that Act, or
   • an offence committed outside New South Wales (including outside Australia) that would be an offence under the state’s laws if it had been committed within the state.

Money Laundering: Proceeds of Crime

Section 193B of the Act provides that any person who deals with proceeds of crime may face a 20-year imprisonment. To be guilty of such offence, that person must:

1. have knowledge that it is proceeds of crime and
2. intend to conceal that it is proceeds of crime.

However, the duration of imprisonment will be lower (15 years) if such person commits the offence knowing that it is proceeds of crime without the intent of concealing the same. Moreover, if in the dealing of proceeds of crime and there is recklessness as to whether it is proceeds of crime, the penalty is a 10-year imprisonment.

To summarise:

Money Laundering: Proceeds of General Crime

Based on the definition, proceeds of general crime means money or other property that is:

• wholly or partly derived or realised, 
• directly or indirectly, 
• by a person from the commission of an offence against a law of the State, or the Commonwealth, another State or a Territory, or another country.

Section 193BA of the Act punishes an offender who deals with proceeds of general crime with a value of $100,000 or more with a 15-year imprisonment. Such person must:

1. be reckless as to whether it is proceeds of general crime and
2. intends to conceal or disguise features of the property.

This section also enumerates the relevant aspects as to the intention of the offender to conceal the property’s features:

1. the nature of the money or other property,
2. the value of the money or other property,
3. the source of the money or other property,
4. the location of the money or other property,
5. any disposition of the money or other property,
6. any movement of the money or other property,
7. any rights in relation to the money or other property,
8. the identity of a person who has rights in relation to the money or other property,
9. the identity of a person who has effective control of the money or other property.

Note that if there is only dealing with proceeds of general crime with a value of $100,000 or more or being reckless as to whether it is proceeds of general crime, the penalty is 10 years imprisonment.

What’s the defence?

If the defendant proves that they deal with the proceeds of crime to support the execution of a law (Commonwealth or State law).

Money Laundering: Dealing With Property Suspected of Being Proceeds of Crime

Simply dealing with property suspected of being proceeds of crime is a criminal offence under NSW’s Crimes Act 1900 (Section 193C). For easy reference, here’s a table of the types of crimes under this provision and its penalties:

Defence to the prosecution:

If the defendant proves to the court that there were no reasonable grounds to suspect that the property was:

1. substantially derived or realised, 
2. either directly or indirectly, 
3. from an act or omission constituting an offense against a law that is in effect in the Commonwealth, a State, a Territory, or another country.

Schedule a Consultation with JB Solicitors

JB Solicitors offers a wide range of legal services. We can provide legal advice, and court representation. Our team can also conduct negotiation with the other party. If you have questions and clarifications regarding money laundering in NSW, Australia, please don’t hesitate to reach out to us.

Contact us here and let’s talk about your situation.