Procedural impediments to effective unexplained wealth legislation in Australia

Abstract

Australia’s unexplained wealth laws form part of a range of measures introduced in response to growing concern about the prevalence and impact of organised crime. The confiscation of criminal assets, including through the use of unexplained wealth legislation, seeks to undermine the business model of organised crime by removing its financial return, punishing offenders, compensating society, preventing the improper use of assets and deterring participation in crime (Bartels 2010a). The Australian Crime Commission has conservatively estimated that serious and organised crime cost Australia $36b in 2013–14 (ACC 2015). According to published national statistics, the total value of assets confiscated in Australian jurisdictions between 1995–96 and 2013–14 was approximately $800m, averaging around $44m annually. The discrepancy between these two amounts clearly shows more needs to be done to target the profits of organised crime. This paper reviews Australia’s current approaches to confiscating unexplained wealth and aims to identify any barriers to their implementation, to inform effective procedural reforms to the laws and better target the proceeds of crime of Australia’s most serious criminals.

References

All URLs correct at September 2024

Australian Competition and Consumer Commission (ACCC) 2016. The costs of serious and organised crime in Australia 2013–14. Canberra: ACCC. https://www.acic.gov.au/publications/unclassified-intelligence-reports/costs-serious-and-organised-crime-australia

Australian Crime Commission (ACC) 2013. Organised crime in Australia 2013. https://webarchive.nla.gov.au/awa/20150312125225/https://crimecommission.gov.au/publications/intelligence-products/organised-crime-australia/organised-crime-australia-2013

Bartels L 2010a. A review of confiscation schemes in Australia. Technical & background paper no. 36. Canberra:  AIC. https://www.aic.gov.au/publications/tbp/tbp36

Bartels L 2010b. Unexplained wealth laws in Australia. Trends & issues in crime and criminal justice no. 395. Canberra: AIC. https://doi.org/10.52922/ti287021

Booz Allen Hamilton 2012. Comparative Evaluation of Unexplained Wealth Orders. Washington: US Department of Justice. https://www.ncjrs.gov/pdffiles1/nij/grants/237163.pdf

Brown R & Gillespie S 2015. Overseas Financial Investigation of Organised Crime: Examining the Barriers to Effective Implementation. Journal of Money Laundering Control, Vol. 18 (3): 371–381

Croke C 2010. Civil forfeiture: Forfeiting civil liberties? A critical analysis of the Crimes Legislation Amendments Act 2010 (Cth). Current Issues in Criminal Justice 22(1): 149–158

Goldsmith A, Gray D & Smith R 2014. Criminal asset recovery in Australia, in King C and Walker C (eds), Dirty Assets. Burlington, VA: Ashgate: 115–140

Hidding R & Goodwin V 2016. Unexplained wealth unit proving its worth. Media release 9 June. https://webarchive.nla.gov.au/awa/20170226082221/http://vanessagoodwin.com.au/unexplained-wealth-unit-proving-its-worth

Parliamentary Joint Committee on Law Enforcement (PJCLE) 2012. Final Report on the Inquiry into Commonwealth unexplained wealth legislation and arrangement. Canberra: Commonwealth of Australia. https://www.aph.gov.au/Parliamentary_Business/%20Committees/Joint/Law_Enforcement/Completed_inquiries/2010-13/unexplained_wealth/report/index

Smith RG, Jorna P, Sweeney J & Fuller G 2014. Counting the costs of crime in Australia: A 2011 estimate. Research and public policy no. 129. Canberra: AIC. https://www.aic.gov.au/publications/rpp/rpp129