The Australian Border Force (ABF) and Australian Federal Police (AFP), with support from AUSTRAC financial analysts, have foiled a sophisticated criminal operation by seizing 4,010,000 illicit cigarettes and over AUD $24 million in proceeds of crime, including two residential properties, a commercial factory, AUD $2million in cash, luxury handbags and a Toyota Hilux.
An AFP-led Criminal Assets Confiscation Taskforce (CACT) investigation began in early July 2025, with support from AUSTRAC and the Fintel Alliance, which identified a suspected money laundering methodology where offenders funnelled proceeds of crime into Australian property.
A separate ABF investigation began after ABF officers seized more than four million illicit cigarettes concealed behind a wall of bricks in a sea container which arrived into Fremantle, Western Australia, on 8 August 2025.
It was later identified the shipment was an alleged 'piggyback' operation by a crime syndicate, with the illicit cigarettes added to a legitimate import unbeknown to the importer. Further investigations revealed the container was being on-forwarded to an address in NSW.
CACT partner AUSTRAC identified the convergence of the two investigations, leading to the establishment of Operation SMOKEHAZE.
On 3 September 2025, officers from the ABF Illicit Tobacco Taskforce (ITTF), and the AFP-led CACT, executed a warrant at a residence in St Ives, NSW, where ABF officers seized over $2 million in cash and several designer handbags valued at $100 thousand.
The following day, officers executed an additional warrant at a premises in Auburn, NSW, and seized electronic devices allegedly used by the criminal syndicate.
Prior to the execution of the warrant, the CACT also obtained orders in the Supreme Court of NSW restraining two residential properties, a commercial factory, bank accounts and a vehicle, linked to the suspects, with an estimated value of $22 million.
Customs Enforcement Commander Graeme Campbell said the information sharing and strong collaboration between partner agencies had significantly disrupted the criminal network's ability to operate within Australia.
"This is a prime example of how criminal groups operating in the illicit tobacco trade re-invest their profits to fund other serious criminal activities" Commander Campbell said
"With the help of our law enforcement partners, we have successfully demonstrated ABFs capability at both our international border and across state borders to bring down criminals seeking to exploit and harm our community."
AFP CACT Commander Jason Kennedy said seizing the assets of offenders driven by greed, law enforcement struck at the heart of their motivation - personal profit.
"When law enforcement recovers illicit gains, it removes the incentive that fuels such crimes and sends a strong deterrent message to others," Commander Kennedy said.
"Offenders consider the confiscation of their assets to be as much, or more, of a punishment than a prison sentence, and removing the profit from the offending will demonstrate that crime does not pay, thereby significantly diminishing the lure of financial gain from the equation."
AUSTRAC National Manager Law Enforcement, Anthony Helmond said financial intelligence plays a critical role in tracking down the proceeds of crime.
"This is a great example of the capability our Public Private Partnership, Fintel Alliance, can deliver in looking across large datasets to identify suspicious activity that can be shared with law enforcement partners to aid in the detection of criminal networks," Mr Helmond said.
"Criminals are interested in one thing - making money. Outcomes like this one hit them where it hurts. AUSTRAC is proud to work alongside our law enforcement partners to restrain the profits of these criminals who do so much harm to the community."
Investigations into the alleged illicit tobacco network are ongoing.
Anyone with information about the importation of illicit tobacco or cigarettes should contact Border Watch at abf.gov.au/borderwatch
By reporting suspicious activities, you help protect Australia's border and the community. Information can be provided anonymously.
