Dealing with Property Suspected of Being Proceeds of Crime

In NSW, it is an offence to deal with property if there are reasonable grounds to suspect that the property is proceeds of crime. The offence carries a maximum penalty of three years imprisonment if the value of the property is under $100,000 or 5 years if it is over.

Legislation

The offence of dealing with property suspected of being proceeds of crime is contained in section 193C of the Crimes Act 1900 which states:

1. A person is guilty of an offence if:
   1. the person deals with property, and
   2. there are reasonable grounds to suspect that the property is proceeds of crime, and
   3. at the time of the dealing, the value of the property is $100,000 or more.

Maximum penalty: Imprisonment for 5 years.

1. A person is guilty of an offence if:
   1. the person deals with property, and
   2. there are reasonable grounds to suspect that the property is proceeds of crime, and
   3. at the time of the dealing, the value of the property is less than $100,000.

Maximum penalty: Imprisonment for 3 years.

What Actions Might Constitute an Offence?

The following acts could give rise to a charge of dealing with property suspected of being proceeds of crime:

• Having in your possession $5000 in $100 notes when you have just been arrested for drug supply;
• Depositing a large sum into your own bank account from a friend who has asked you to deposit it and transfer it to them electronically
• Your brother asks to store some items for him which includes a lot of second hand expensive power tools. Your brother doesn’t use power tools. You think it’s a bit suspicious but you decide not to ask where he got them from.

What the Police Must Prove

To convict you of dealing with property suspected of being proceeds of crime, the prosecution must prove each of the following matters beyond a reasonable doubt:

• That you dealt with property;
• There were reasonable grounds to suspect the property was proceeds of crime.

“deal with” includes:

1. receive, possess, conceal or dispose of, or
2. bring or cause to be brought into New South Wales, including transfer or cause to be transferred by electronic communication, or
3. engage directly or indirectly in a transaction, including receiving or making a gift.

“proceeds of crime” means any property that is substantially derived or realised, directly or indirectly, by any person from the commission of a serious offence.

Possible Defences

Possible defences to dealing with property suspected of being proceeds of crime include:

• That the offence was committed under duress;
• If the accused had no reasonable grounds for suspecting that the property was substantially derived or realised, directly or indirectly, from an act or omission constituting an offence.

Which Court Will Hear the Matter?

If the property is valued below $100,000 the matter is a Table 2 offence which means that the DPP can elect to have the matter dealt with in the District Court. If no election is made it will be dealt with in the Local Court.

If the property is valued about $100,000 the matter is a Table 1 offence which means that either the DPP or an accused can elect to have the matter dealt with in the District Court. If no election is made it will be dealt with in the Local Court.

If you require legal advice or representation in any legal matter, please contact Armstrong Legal.