A sophisticated money laundering syndicate accused of washing more than $150 million of criminal cash, with links to the large-scale importation and distribution of illicit tobacco, has been dismantled following a joint AFP and NSW Police Force investigation.
Four men have been charged following a day of coordinated AFP and NSW Police Force (NSWPF) activity across western Sydney, with assistance from AUSTRAC and the Australian Border Force-led Illicit Tobacco Taskforce.
Fourteen search warrants were executed at homes and storage sheds, with items seized including 10 tonnes of illicit tobacco, a money counting machine and more than $200,000 cash.
The joint AFP and NSW Police investigation was launched in May, 2025, to target a money laundering syndicate and the organised crime groups believed to be using its services.
Inquiries identified the money laundering syndicate had links to the importation and distribution of illicit tobacco.
Police will allege the money laundering operation recruited people to open bank accounts and register fake businesses. These people are known as 'straw directors' - they are a company director in name only as the relevant accounts were later taken over by a syndicate member and used to receive large amounts of criminal proceeds.
These accounts were used for layering, which means multiple, complex and high-volume transactions were allegedly moved through many of these accounts in an attempt obscure the origin of the illicit funds. The illicit funds were then sent to overseas accounts, before being remitted back to Australia from different accounts and companies to give the appearance of legitimate business payments.
It will be alleged financial records from these accounts show little or no legitimate business expenses, such as rental payments, insurance, or tax payments.
Investigations into the money laundering syndicate identified a Sydney-based crime group allegedly engaged in the importation of illicit tobacco.
An alleged high-ranking member of the syndicate, 38, was arrested at a Dundas Valley home about 8.30am yesterday (8 December, 2025). A search warrant was executed on the home and a number of phones were seized.
Police will allege the man managed multiple straw directors for the money laundering syndicate. It will be alleged he laundered about $23 million of criminal proceeds through the syndicate.
He has been charged with three counts of dealing with proceeds of crime, money or property worth $1,000,000 or more, contrary to section 400.3(2B) of the Criminal Code (Cth).
He was refused bail to appear before NSW Bail Division Court today (9 December, 2025).
A second syndicate member, 29, from Merrylands, was charged on 14 November, 2025, for allegedly laundering more than $7.8 million of criminal proceeds.
A search warrant was executed at a Merrylands home and four mobile phones, bank cards, a pistol revolver, 15 rounds of ammunition and paper documentation were seized.
The man was charged with:
- One count of dealing with proceeds of crime, money or property worth $1,000,000 or more, contrary to the Criminal Code (Cth);
- Two counts of contravening a section 3LA order, contrary to section 3LA(6) of the Crimes Act 1914 (Cth);
- Two counts of possessing an unauthorised weapon, contrary to section 7 of the Firearms Act 1996 (NSW);
- One count of not taking all reasonable precautions to keep a firearm safely, contrary to the Firearms Act 1996 (NSW); and
- One count of possessing ammunition for a firearm without holding a licence or permit for a firearm, contrary to section 65 of the Firearms Act 1996 (NSW).
The man appeared in Parramatta Local Court on 15 November, 2025, where he was refused bail. He will return to the same court on 23 January, 2025.
NSWPF officers also charged two men on 9 December, 2025, following search warrants in Burwood, Auburn and Wentworth.
Across the various locations, police located and seized $108,000 in cash, approximately 1.1million illicit cigarettes, 2kg of loose-leaf tobacco, a Rolex watch and electronics.
About 8.40am the same day, police stopped a truck on Christina Road in Chester Hill allegedly carrying an additional 1 million illicit cigarettes, bringing the total amount of cigarettes seized to 2.1 million with a street value of $2.1million.
A man, 32, was charged with:
- One count of possessing tobacco 50 times more the commercial quantity; and
- One count of dealing with proceeds of time, money or property worth <$100,000 & >$5000.
The man was refused bail to appear in Bankstown Local Court today (Tuesday 9 December 2025).
Another man, 26, was charged with:
- One count of knowingly deal with proceeds of crime; and
- One count of failure to comply with digital evidence access order and direct criminal group.
The man was refused bail to appear in Burwood Local Court today (10 December, 2025).
Through the assistance of the Fintel Alliance, the AUSTRAC-led public-private-partnership, multiple bank accounts identified as being linked to the money laundering syndicate have been frozen. The AFP-led Criminal Assets Confiscation Taskforce (CACT) will investigate opportunities to restrain and seize the assets, as proceeds of crime.
