AUSTRAC intelligence has helped the Australian Border Force (ABF) and Northern Territory Police identify an individual and uncover more than $9 million in alleged criminal proceeds linked to the illicit tobacco and vaping trade.
Last week a 33-year-old Darwin man was charged with money laundering offences.
Operation Teton was triggered after AUSTRAC analysed and identified suspicious financial activity through reports submitted by a payment platform regulated under Australia's anti-money laundering and counter-terrorism financing regime.
The activity raised concerns that a number of Northern Territory based businesses were generating revenue inconsistent with their apparent business model and may be involved in illicit tobacco sales.
The intelligence prompted engagement with the ABF and Northern Territory Police and helped support an investigation into the businesses allegedly gaining significant profits from illicit tobacco and vape sales.
Northern Territory Police allege businesses linked to the investigation generated around $12.1 million in sales across the 2024-25 and 2025-26 financial years, including around $9.36 million directly attributable to illicit tobacco and vaping products.
As part of the investigation, the ABF and Northern Territory Police executed 11 warrants across business premises, a commercial storage facility and residential properties in Darwin.
Authorities seized more than 5,500 vapes, 16,500 nicotine products, $73,600 in cash, digital devices and business records.
AUSTRAC CEO Brendan Thomas said the operation highlights the critical role financial intelligence plays in identifying criminal activity and helping law enforcement agencies follow the money.
"Financial intelligence gives us visibility into criminal activity that would otherwise remain hidden,” Mr Thomas said.
“In this case, information reported to AUSTRAC helped identify unusual transaction patterns that pointed to potential criminal conduct and ultimately supported a significant law enforcement investigation."
Mr Thomas said reports submitted by reporting entities are a vital source of intelligence for AUSTRAC and its partners.
"Every transaction report helps us build a picture of criminal behaviour in Australia's financial system,” Mr Thomas said.
“The information reported by industry enables AUSTRAC to detect emerging threats, identify potential criminal networks and provide actionable intelligence to our law enforcement partners."
AUSTRAC worked closely with Northern Territory Police throughout the investigation, providing financial intelligence and ongoing support to help investigators better understand financial flows and entities linked to the alleged activity.
Mr Thomas said trusted partnerships between AUSTRAC and law enforcement agencies are essential to disrupting financially motivated crime.
"Criminals are motivated by profit,” Mr Thomas said.
“By working closely with our partners and sharing timely financial intelligence, we can help trace illicit funds, disrupt criminal business models and ensure those seeking to profit from crime are held to account.
"Operation Teton demonstrates the value of strong relationships between AUSTRAC and law enforcement agencies.
“When intelligence is shared and acted on quickly, it can lead to real operational outcomes that protect the Australian community."
ABF Superintendent Amanda Coppleman said the ABF works closely with partner agencies across Australia to target the criminal networks responsible for importing, distributing and profiting from illicit tobacco products.
“By combining our respective capabilities, intelligence and enforcement powers, we are disrupting criminal business models and protecting Australia's border and economic interests,” she said
“Our collective efforts are focused on reducing the harm caused by organised crime operating in the illicit tobacco market and ensuring those who seek to profit from illegal activity are held accountable.”
The investigation remains ongoing.
Here’s what the NT Police reported on Operation Teton.