Nine people have been arrested and millions of dollars' worth of Sydney homes, cryptocurrency and luxury items seized after federal police crushed a syndicate allegedly offering money laundering at an "industrial scale".
The Australian Federal Police (AFP) says the group, headed by a 43-year-old Vaucluse man, acted as an "underground bank" allowing organised crime gangs in Australia and abroad to access funds held around the world.
The group allegedly exploited daigous, casino junkets and the informal value transfer system to make money movements seem legitimate.
It will be alleged in court the syndicate laundered $150 million in its own profits, gained from the movement of cash between 2018 and 2022.
AFP Assistant Commissioner Kirsty Schofield said the investigation, titled Operation Avarus-Midas, was "one of the largest and most complex money laundering investigations in the AFP's history".
Officers raided 13 locations across the Harbour City yesterday, seizing $29 million in cryptocurrency, dozens of designer watches, handbags and items of jewellery, cars worth $1 million and four firearms.
"We will allege the money laundering organisation used their profit to live large," Assistant Commissioner 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."
The AFP's Criminal Assets Team has also restrained 20 properties across the city — including two homes in the eastern suburbs worth a combined $19 million — and a $47 million block of land near the future Western Sydney Airport.
It's alleged the group circumvented laws preventing people in Australia transferring money out of China by using a broker linked to the syndicate to obtain funds in Australia.
The group allegedly charged a 10 per cent fee and required customers to deposit the value of the money obtained by the syndicate into a Chinese bank account it controlled.
Nine people have been charged with money laundering and proceeds of crime offences, allegedly carried out in support of the organisation's extensive activities.
They include the Vaucluse man who allegedly directed the group, a Vaucluse woman, 41, a Bellevue Hill man, 45, and others from Epping, Drummoyne, Crows Nest, Mays Hill, Yagoona and Burwood.
Eight of the accused appeared in court on Thursday, while the woman from Burwood will appear at a later date.
The AFP worked with financial transaction monitor AUSTRAC, the National Australia Bank and overseas law enforcement agencies during its investigation.
It will be alleged in court the Sydney syndicate was working on behalf of "multiple organised crime groups".
Assistant Commissioner Schofield said money laundering organisations were the lifeblood of organised crime and enabled crime in Australia and internationally.
She did not rule out further arrests as part of Operation Avarus-Midas and said this week's action should send a message to organised crime: "you are on our radar".
