Wine, cars and homes seized in Melbourne, Sydney and Gold Coast in AFP money laundering probe

Australian Federal Police have swooped on properties in three states, seizing $8.5 million in cash, cars, jewellery and fine wine after a covert two-year investigation on a Chinese money laundering syndicate.

Australian Federal Police have swooped on properties in Melbourne, Sydney and the Gold Coast seizing $8.5 million in cash, cars, jewellery and fine wine after a covert two-year investigation on a Chinese money laundering syndicate.

Two Chinese nationals travelled to Australia in 2015 to allegedly set up a string of shelf companies to transfer proceeds of crime from other criminal activity, including defrauding investors in China.

The AFP’s Operation Balandin has seized goods including cars. Picture: AFP

The Chinese Ministry of Public Security (MPS) came across the scam a year later and formally requested AFP assistance. Following a lengthy investigation dubbed Operation Balandin, AFP officers moved in on residential and development properties bought by the syndicate in a bid to allegedly hide their monies.

Yesterday and today AFP investigators on simultaneous search warrants seized an estimated $8.5 million worth of properties, vehicles and luxury items in the Melbourne suburbs of Lower Plenty, Hawthorn and Melbourne CBD as well as in the Sydney suburb of Waterloo/Zetland and the Gold Coast in Queensland.

This home in Lower Plenty, Victoria, is one of those seized. Picture: AFP

AFP Acting National Manager Organised Crime Commander Bruce Hill said the investigation into those behind the scheme was continuing.

The AFP declined to comment on how many if any arrests had been made in this country or abroad.

“As people attempt to evade foreign governments and police agencies, the AFP is committed to working with our international counterparts to stop proceeds of crime being laundered in Australia,” Commander Hill said.

“This kind of activity — where significant criminal proceeds are moved into Australian assets — can erode the level playing field for Australian homebuyers and small business owners. This ripple effect impacts our whole community; it is far from a victimless crime.

Cases of wine were also seized in the raids. Picture: AFP

“Our message to people thinking about laundering proceeds of crime in Australia is clear — your money and assets are not hidden from the AFP and our international partners. We will catch you.”

As well as homes, police seized under proceeds of crime legislation jewellery, cars including a Mercedes Benz and Land Rover, and several cases of fine wine, including Penfolds St Henri Shiraz which retails for more than $100 a bottle.

This is the third separate investigation since October 2018 involving Chinese nationals allegedly creating shell companies, laundering money and evading tax. Last month the AFP seized three residential properties and two bank accounts relating to proceeds of crime with an estimated value of $2 million. Police declined to say where these properties were.

Investigations are continuing after the co-ordinated raids across three states. Picture: AFP

Cmdr Hill said the AFP had a “long and productive relationship with the MPS” and ongoing close collaboration under the Joint Agency Arrangement on economic crime co-operation.

“The AFP will continue to disrupt transnational money laundering groups and demonstrate that Australia is a hostile environment for criminals seeking to hide their illegally-obtained assets,” he said.