The AFP has restrained two bank accounts with a combined balance of more than $1 million suspected to be the proceeds of crime from illicit vaping goods sales in Sydney and online.
The restraint resulted from a joint investigation with the Therapeutic Goods Administration (TGA), which is responsible for leading the enforcement of illegal supply and advertising of vapes under the Therapeutic Goods Act 1989 (Cth). Additional support was provided from the NSW Crime Commission and AUSTRAC.
The restraint followed a successful application by the AFP-led Criminal Assets Confiscation Taskforce (CACT) to the Supreme Court of NSW, which ruled under the Proceeds of Crime Act 2002 (Cth).
Operation Smokestorm began in May, 2025, after the AFP received intelligence from the Australia New Zealand Banking Group Limited (ANZ) and Westpac Banking Corporation through AUSTRAC regarding an account receiving proceeds of vape supply.
On 27 June, 2025, AFP and TGA officers executed search warrants on storage units in Waterloo and Auburn and served a restraining order on a Rosebery man believed to be the controller of the bank accounts.
Items seized from the units included a small amount of the online branded vapes and handwritten inventories documenting vape flavours and quantities.
It is believed the vapes were sold online to Australian retail consumers and supplied to Sydney-based tobacco outlets.
The money in the two restrained bank accounts may be forfeited to the Commonwealth.
The TGA's investigation into the activity remains ongoing.
AFP Commander Jason Kennedy said removing ill-gotten gains was key to crippling the criminal environment and stymied funding for further illegal schemes.
"The AFP and its partners will use every tool in our arsenal to ensure that crime does not receive a pay day," Commander Kennedy said.
"The ability to restrain property suspected to be the proceeds of crime sends a clear message to criminals - if you commit crime, you not only risk a term of imprisonment, but we will also target your ill-gotten assets.
"If these funds are forfeited to the Commonwealth, they will be redirected to crime prevention and diversionary programs which benefit the community."
Acting Head of the TGA, Chris Bedford, said the joint action with the AFP demonstrated the continued and shared commitment to disrupting the illegal supply and advertising of vaping products.
"By targeting both the illicit products and the financial infrastructure behind these unlawful operations, we're protecting the health of Australians and sending a clear message that we are focused on stamping out illicit vaping operations," Mr Bedford said.
AUSTRAC Acting National Manager, Law Enforcement, Markus Erikson, said AUSTRAC was able to provide crucial financial intelligence to detect these types of crimes.
"AUSTRAC's intelligence is used to identify criminal behaviour and thanks to the information we receive from banks and our other reporting entities, we have a bird's eye view of suspect transactions," Mr Erikson said.
"By pooling our expertise, another alleged criminal has been deprived of their illicit profits."
The CACT brings together the resources and expertise of the AFP, Australian Border Force, Australian Taxation Office, the Australian Criminal Intelligence Commission and AUSTRAC. Together these agencies trace, restrain and ultimately confiscate criminal assets.
The AFP-led CACT will receive $33.5 million over the next two years to increase its capacity to target the profits and proceeds of illicit tobacco. $17 million of this funding will be provided to state and territory police to partner with the CACT.
