AUSTRAC supported a major Multi Agency Strike Team (MAST) operation that dismantled an alleged criminal network involved in the importation and distribution of illicit tobacco and vapes across Australia.

Last week’s operation targeted alleged trusted insiders who investigators believe used legitimate freight and logistics businesses to move illicit goods through Australia's supply chains, generating millions of dollars in criminal profits.

MAST targets serious organised crime. It brings together officers and specialists from the NSW Police Force, Australian Federal Police, Australian Border Force, NSW Crime Commission, Australian Criminal Intelligence Commission, AUSTRAC and the Australian Taxation Office.

As part of the investigation, authorities arrested seven people and executed search warrants across New South Wales, Victoria and Queensland. Authorities seized high value assets, including cash, gold bullion, luxury watches, luxury handbags, firearms, illicit tobacco and more than 280,000 vapes.

The NSW Crime Commission also restrained more than $25 million in assets, including properties, bank accounts and shareholdings linked to the alleged criminal networks.

Australian Border Force issued the immediate suspension of depot licences in Sydney and Brisbane, with a notice of intent to cancel in Melbourne for the national freight forwarding company.

AUSTRAC supported the operation with an embedded senior intelligence analyst and by providing financial intelligence and specialist analysis. This helped investigators identify financial relationships, trace the movement of funds and better understand the structure and activities of the alleged criminal groups.

AUSTRAC CEO Brendan Thomas said financial intelligence plays a critical role in exposing the people and networks seeking to profit from organised crime.

“Criminal networks rely on access to legitimate businesses, financial systems and supply chains to operate at scale. AUSTRAC's role is to help uncover those financial connections so law enforcement can disrupt the people, businesses and money flows supporting organised crime,” Mr Thomas said.

"This operation demonstrates the value of financial intelligence in supporting investigations into serious criminal offending, including importation and distribution of illicit goods that harm Australian communities."

AUSTRAC contributed multiple intelligence products throughout the investigation, including financial summaries, analysis of AUSTRAC holdings and information obtained through the agency's intelligence-gathering powers under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. 

The agency also provided intelligence reporting to support referrals to the Therapeutic Goods Administration during the investigation.

The operation shows partnerships in action across government and law enforcement agencies effectively disrupting and removing the financial incentives that drive serious organised crime