Money Laundering
Money Laundering Charges in NSW: How We Can Help You
Money laundering refers to any conduct that conceals, disguises, or deals with the proceeds of crime or facilitates the movement of illegally obtained funds in a way that makes them appear legitimate. It often involves:
- Transferring money between multiple bank accounts
- Converting cash into assets like real estate or luxury goods
- Using third parties or "fronts" to hold assets
- Sending funds overseas to avoid detection
- Structuring transactions to avoid reporting thresholds (also known as "smurfing")
Our team has extensive experience handling money laundering cases in New South Wales and across Australia. We guide clients through the legal process, assess the evidence against them, and develop strong defence strategies to protect their rights. Contact us for confidential advice if you are facing money laundering allegations.
Money laundering is prosecuted under Division 400 of the Criminal Code Act 1995 (Cth) (Commonwealth law) and also under sections of the Crimes Act 1900 (NSW) for state-based offences, depending on the nature and scale of the alleged conduct.
Money laundering refers to any conduct that:
- Conceals, disguises, or deals with the proceeds of crime, or
- Facilitates the movement of illegally obtained funds in a way that makes them appear legitimate.
Under Commonwealth law (s 400.3 to s 400.9 of the Criminal Code), it is an offence to:
- Deal with money or property that is the proceeds of crime, and
- Do so knowing, believing, or being reckless as to whether it was derived from criminal activity
The seriousness of the offence, and the maximum penalty, depends on the value of the property and the accused’s state of mind (intent, knowledge, recklessness, or negligence).
Elements the Prosecution Must Prove
For a conviction, the prosecution must establish beyond a reasonable doubt that:
- The accused engaged in a financial transaction – This includes depositing, withdrawing, transferring, or converting funds.
- The money or assets were derived from criminal activities – The funds must have originated from unlawful sources.
- The accused knew or was reckless about the illicit nature of the funds – Awareness or wilful blindness to the origins of the money is critical to the case.
- The transaction was intended to conceal, disguise, or process illicit funds – The prosecution must demonstrate an intent to legitimise proceeds of crime.
Possible Defences
Defences that may apply in money laundering cases include:
- Lack of Knowledge – The accused was unaware that the funds were connected to criminal activity.
- No Criminal Intent – The transaction was conducted without the intent to disguise illicit funds.
- Duress – The accused was forced or coerced into engaging in the transaction.
- Mistaken Identity – The accused was falsely implicated in the financial dealings.
A skilled defence lawyer can challenge the prosecution’s case and present a strong defence.
Potential Penalties
Money laundering offences carry severe penalties, reflecting the seriousness of financial crime and its links to organised criminal activity.
- Fine – A monetary penalty imposed by the court
- Community Correction Order (CCO) – A supervised order with conditions
- Intensive Correction Order (ICO) – A strict alternative to imprisonment
- Imprisonment – Sentences can range up to 20 years for serious offences
Under Commonwealth law, the maximum penalties include:
- 25 years’ imprisonment and/or fines up to $315,000 for laundering amounts of $10 million or more
- 20 years’ imprisonment for laundering amounts of $1 million or more
- Lesser penalties for smaller amounts, depending on the value and the mental state of the accused
- Under NSW law, a person who knowingly deals with proceeds of crime may face up to 15 years’ imprisonment (Crimes Act 1900 (NSW), s 193B).
* Reporting and Regulatory Obligations
Businesses in industries vulnerable to money laundering such as banks, real estate agencies, casinos, and accountants, are subject to strict reporting obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth). Failure to report suspicious activity or large cash transactions can also result in criminal liability.
Legal Process
& Options
The legal process for money laundering charges involves an investigation and charge by authorities, an initial court appearance where the accused enters a plea, a trial if pleading not guilty, and sentencing if found guilty, with legal representation being crucial at each stage.
Pleading
Not Guilty
If you deny the allegations, you may plead not guilty. Your lawyer can contest the prosecution’s evidence by:
- Demonstrating a lack of intent or knowledge
- Proving the funds were legally acquired
- Identifying procedural errors or unlawful evidence collection
If the prosecution fails to prove its case beyond a reasonable doubt, you will be acquitted.
Pleading
Guilty
Pleading guilty can sometimes lead to a reduced sentence, as it indicates remorse and cooperation. Factors the court may consider include:
- The scale and severity of the offence
- The accused’s criminal history and character references
- Any mitigating circumstances, such as acting under duress
Depending on the case, the court may impose a lesser penalty in exchange for an early guilty plea.
Money laundering is the process of disguising the origin of money or assets that were obtained illegally, to make them appear legitimate.
- It commonly involves:
- Transferring funds through bank accounts
- Buying property or assets with illegal money
- Using third parties (“money mules”) to move funds
It includes:
- Receiving, possessing, concealing, using, or disposing of money or property
- Moving funds through accounts
- Giving or accepting property in a transaction
- Penalties depend on the amount of money and theoffender’s state of mind (knowing, reckless, negligent). Maximum penaltiesinclude:
- Even low-level involvement (e.g. handling a few thousand dollars) can result in criminal charges.
Not necessarily. There are tiers of liability:
- Knowing: You’re aware the money is from crime
- Reckless: You suspect but ignore the risk
- Negligent: You should have known, but didn’t take care to check
- Yes, if you should have known or were reckless about its origin. For example:
- Letting someone transfer funds through your bank account
- Collecting or delivering cash for someone without asking why
You could be charged even if you didn’t receive a benefit.
A money mule is someone who transfers or moves illegal funds on behalf of others — often unknowingly. Criminals often recruit them via:
- Job scams
- Online friendships or relationships
- Fake “investment” schemes
Being a money mule is a criminal offence, even if you didn’t know the full story.
- Yes. Cryptocurrency is often used to hide illegal money trails. Using crypto to:
- Move proceeds of crime
- Avoid detection
- Convert illegal cash into digital assets
…can lead to money laundering charges.
Businesses like banks, casinos, and remitters must report suspicious activity to AUSTRAC, including:
- Large or unusual transactions
- Structured deposits
- Customers who avoid identification checks
Failure to comply with anti-money laundering (AML) laws can result in civil or criminal penalties for those businesses.
Money laundering is the process of disguising the origin of money or assets that were obtained illegally, to make them appear legitimate.
- It commonly involves:
- Transferring funds through bank accounts
- Buying property or assets with illegal money
- Using third parties (“money mules”) to move funds
It includes:
- Receiving, possessing, concealing, using, or disposing of money or property
- Moving funds through accounts
- Giving or accepting property in a transaction
- Penalties depend on the amount of money and theoffender’s state of mind (knowing, reckless, negligent). Maximum penaltiesinclude:
- Even low-level involvement (e.g. handling a few thousand dollars) can result in criminal charges.
Not necessarily. There are tiers of liability:
- Knowing: You’re aware the money is from crime
- Reckless: You suspect but ignore the risk
- Negligent: You should have known, but didn’t take care to check
- Yes, if you should have known or were reckless about its origin. For example:
- Letting someone transfer funds through your bank account
- Collecting or delivering cash for someone without asking why
You could be charged even if you didn’t receive a benefit.
A money mule is someone who transfers or moves illegal funds on behalf of others — often unknowingly. Criminals often recruit them via:
- Job scams
- Online friendships or relationships
- Fake “investment” schemes
Being a money mule is a criminal offence, even if you didn’t know the full story.
- Yes. Cryptocurrency is often used to hide illegal money trails. Using crypto to:
- Move proceeds of crime
- Avoid detection
- Convert illegal cash into digital assets
…can lead to money laundering charges.
Businesses like banks, casinos, and remitters must report suspicious activity to AUSTRAC, including:
- Large or unusual transactions
- Structured deposits
- Customers who avoid identification checks
Failure to comply with anti-money laundering (AML) laws can result in civil or criminal penalties for those businesses.
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