Proceeds of crime law is founded on the principle that a person should not be permitted to benefit financially from criminal activity. In the past 20 years issues concerning the recovery of proceeds of crime have received increased attention in Australia and internationally. It is recognised that organised criminal syndicates have developed innovative and sophisticated strategies to conceal assets that have been obtained through the proceeds of crime. These strategies have made it increasingly difficult for police and other law enforcement agencies to track and detect the profits of crime.

Confiscation of assets has become an important priority. By confiscating the proceeds of crime, law enforcement agencies send a clear message that they are equipped with the resources to monitor and prosecute offenders for illegal activity such as money laundering and that ultimately crime does not pay.

Proceeds of crime include money a person makes as a result of any criminal activities. Often these crimes involve drugs, money laundering or fraud. Aeroplanes, vehicles and other vessels are often involved in the importation of illegal drugs. Property will be forfeited to the government where prosecutors can establish that it has been:

• used in the commission of an offence;
• obtained as a result of illegal activity; or
• wherethe owner of the property cannot adequately explain how the property was legally obtained.

Proceeds of crime laws apply to property that has been obtained directly or indirectly through criminal activity. These rules also extend to property that is partly derived from a crime. A court will order the forfeiture of an entire item of property to the government even if that item was only partially obtained with illegal funds. The assets recovered by the government are then sold.

Money and property derived from crime can be recovered in one of two ways. Where an offender has been convicted of a crime the court can order that any profits generated by that crime be handed over to the government. Alternatively assets may be recovered that are suspected of being ‘unclean’ irrespective of whether or not their owner has been charged or convicted of a criminal offence. Many Australian states and territories have proceeds of crime laws. They differ significantly between jurisdictions.

This Legal Guide on Proceeds of Crime Law provides information about what may happen during an investigation or litigation where there is an allegation that assets have been obtained through illegal means. Before making important decisions it is advisable to obtain legal advice specific to your situation. LegalEagle’s™ free directory profiles all lawyers in Australia. You can use it to Find a Lawyer near you.

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Warning: Information provided through LegalEagle™ is for general guidance. It is not legal advice. Laws and procedures referred to may change and differ between states, territories and nationally. There may also be important exceptions or qualifications. Only a lawyer providing formal legal advice can assess your particular circumstances to determine how the law will apply.