Money laundering and use of virtual currencies
Investigations concerning the use of digital/virtual currencies such as Bitcoin tend to involve international / transnational criminal law investigations and prosecutions.
This often involves different legal institutions working with each other at a formal level, via Mutual Assistance law or informally, via police to police co operation, to detect, investigate and prosecute offences.
When different law enforcement agencies across the globe are working together questions concerning privacy, human rights and nation based legal rights are often difficult to protect.
Individuals however who are the subject of such investigations and prosecutions face significant legal problems which may involve potential extradition and the sharing of information without any consideration of the legal and human rights of the individual.
In these instances it is essential that you have an experienced criminal defence lawyer on your side who not only understands digital currency such as bitcoin but the procedural and legal framework within which transnational crime can be legally investigated.
Below are examples of where international co operation has been used by AUSTRAC to identify and investigate instance of money laundering.
AUSTRAC was part of an investigation which led to the arrest of an individual who used digital currency to purchase, import and sell prohibited drugs through a black market website.
AUSTRAC uncovered multiple international funds transfers made by the suspect to a digital currency exchange in order to purchase a digital currency. The funds were transferred via banks to an online digital currency exchange based overseas, allowing the suspect to purchase an amount of digital currency. The use of digital currencies provides a degree of anonymity for users.
The suspect was successfully charged and convicted with drug importation and trafficking offences.
Digital currencies and the regulated anti-money laundering (AML)/combating terrorism funding (CTF) sector
Financial activity relating to the use of digital currencies may be indirectly visible to AUSTRAC via the regulated sector.
For example, when digital currency-related transactions intersect with the mainstream regulated AML/CTF sector they can generate reportable transactions such as:
• Reports of IFTIs between Australian accounts and foreign accounts for the purchase/sale of digital currencies,
• Threshold transaction reports (TTRs) for cash deposits/withdrawals of AUD10,000 or more involving the bank accounts of digital currency exchange providers,
• Suspicious matter reports (SMRs) submitted where reporting entities consider financial activity involving a digital currency exchange to be suspicious.
Nyman Gibson Miralis are experts in advising individuals and companies under investigation in Australia and elsewhere of their rights.
Nyman Gibson Miralis have experience in conducting cases with a transnational criminal law component including having worked on cases involving the USA, Cyprus, Hong Kong, Macau, Singapore, Russia, South Korea, U.K, Mexico and others.
How can Nyman Gibson Miralis help?
Nyman Gibson Miralis are experts in assisting companies and individuals who are the subject of investigations by AUSTRAC, the AFP, the ATO (Australian Taxation Office) and the Australian Criminal Intelligence Commission (ACIC) for suspected money laundering activities.
Nyman Gibson Miralis has specialised knowledge of the substantive laws under which these agencies operate and the practice and procedure of investigations and prosecutions.
Our unique point of difference from other law firms is that we have been involved in most of the significant litigation in relation to money laundering allegations in Australia and have acquired expertise as litigators and trusted legal advisors concerning money laundering investigations and prosecutions.
We are widely recognised as being experts in transnational money laundering investigations and have been involved in advising in investigations involving the USA, Hong Kong, Singapore, China, Cambodia, Cyprus, Russia, New Zealand, South Korea and Europe, where there has been an Australian connection.
We are a criminal defence law firm working from Sydney and Parramatta offices. We can assist you with any type of criminal charges. If you need advice from a criminal defence lawyer, contact one of our criminal law specialists immediately at either our Sydney or our Parramatta offices. Call 1800 NOT GUILTY 24 hours per day, 7 days per week, or send the contact form on this page, and arrange a free conference with a criminal defence solicitor today.
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