The AFP has finalised a foreign bribery investigation into SMEC International Pty Ltd (SMEC), after SMEC and the AFP agreed to a settlement payment totalling $9 million (pecuniary penalty) under the provisions of the Proceeds of Crime Act 2002 (Cth) (POCA).
The settlement does not involve any admission of liability by SMEC.
The AFP investigation, which is part of Operation Amorce, examined conduct involving SMEC across several jurisdictions, including Sri Lanka and Vietnam.
The AFP initially commenced Operation Amorce in 2013 and executed search warrants in 2015 and 2018.
Following careful consideration of all matters and relevant public interest factors, AFP investigators determined it would not refer SMEC to the Commonwealth Director of Public Prosecutions (CDPP).
This decision is consistent with the principles outlined in the AFP's recently published guideline Optimal investigation outcomes for self-reporting and cooperating corporations which is not applicable to individuals.
In reaching its decision, the AFP had regard to significant public interest factors, including:
- subsequent to execution of search warrants in 2015 and 2018, and to internal investigation reports commissioned by SMEC, SMEC self-reported further conduct by individuals that was ultimately investigated by the AFP;
- SMEC cooperated with the AFP and voluntarily produced large volumes of evidential material;
- SMEC provided the AFP with detailed internal investigation reports and waived legal professional privilege over certain materials pertinent to the investigation;
- key individuals alleged to have been involved in the conduct are no longer with the company;
- SMEC has enhanced its antibribery and compliance procedures since the alleged conduct and has confirmed that it continues to regularly review and update those procedures as required; and
- the age of the alleged conduct and the length of time that has elapsed since the investigation commenced.
The AFP-led Criminal Assets Confiscation Taskforce (CACT) engaged in consideration of civil recovery under the POCA, resulting in a settlement agreement in respect of alleged benefits which may have been derived from the conduct investigated.
In addition to a pecuniary penalty, SMEC also agreed to:
- make a contribution to the AFP's external legal costs associated with the investigation; and
- make a voluntary contribution to an anticorruption non-governmental organisation.
Commander Criminal Assets, Fraud and Corruption Andrea Quinn said the AFP was committed to holding companies to account for conduct that presents a foreign bribery risk.
"The AFP - through Taskforce Solaris and the Criminal Assets Confiscation Taskforce - is using all available legal avenues to deliver strong enforcement outcomes," Commander Quinn said.
"This result demonstrates significant financial consequences will follow foreign bribery investigations, regardless of whether a matter proceeds to prosecution.
"Noting the cooperation of SMEC throughout the investigation, companies identifying potential misconduct and engaging early, transparently and constructively with the AFP place themselves in a materially different position to those who do not.
"The AFP is committed to detecting, disrupting and deterring foreign bribery and any related criminal activity."
AFP General Counsel, Criminal Assets Litigation - South, Andrew Hanger, said the CACT would ensure that parties cannot retain benefits that may be linked to unlawful conduct.
"We are using civil asset recovery powers to pursue financial outcomes that reflect the potential value of those benefits and reinforce objects of the POCA to undermine the profitability of unlawful conduct.
"The CACT's use of non-conviction-based pathways to achieve objectives under the POCA is another mechanism that CACT uses to create impact on the criminal economy.
"The AFP has recently published guidance - Optimal investigation outcomes for self-reporting and cooperating corporations - which outlines how self-reporting, cooperation and remediation may be considered when determining appropriate investigation outcomes.
"The guidance is intended to promote transparency and encourage companies to engage early and constructively with law enforcement where potential foreign bribery or related conduct is identified."
BACKGROUND
As of 20 October, 2025, the AFP's response to foreign bribery is managed by Taskforce Solaris, a multidisciplinary capability focused on preventing, detecting, and investigating foreign bribery and grand corruption.
Taskforce Solaris targets conduct involving Australian citizens, residents, and companies, as well as foreign entities where conduct occurs wholly or partly in Australia.
Taskforce Solaris works closely with domestic and international partners to support international corruption enforcement, including foreign bribery and related offences under the Commonwealth Criminal Code. Since the passage of the Crimes Legislation Amendment (Combatting Foreign Bribery) Act 2024 (Cth), this includes offences relating to non-business advantages and bribery connected to broader criminal activity.
Foreign bribery undermines institutions, distorts markets and poses a threat to national and global security.
The Criminal Assets Confiscation Taskforce (CACT) brings together the AFP, Australian Taxation Office, Australian Criminal Intelligence Commission, AUSTRAC and Australian Border Force to trace, restrain and confiscate proceeds of crime.
The CACT's model of Australia-wide, co-located teams of police, litigation lawyers, financial investigators, forensic accountants and partner agency specialists, is a world-leading model of criminal asset confiscation.
Funds paid, or the proceeds of property confiscated pursuant to orders made, under the POCA are realised by the Australian Financial Security Authority and placed in the Commonwealth Confiscated Assets Account and may be reinvested in community programs.
