The Australian Federal Police expects it will take years to seize up to $300 million in alleged proceeds of crime following a High Court decision, which could affect funding for several crime prevention projects.
The High Court last month unanimously ruled that the AFP could not start civil proceedings to seize a Melbourne man's property until after his criminal trial for aiding and abetting dealing in proceeds of crime. The judges said allowing the police to go ahead with the civil case risked prejudicing Xing Jin's criminal case because the offences and circumstances relevant to both were "substantially identical".
While Jin and his wife Qing Zhao – who is not charged – are restrained from selling the properties, believed to be worth more than $1 million, the court's decision means police will be delayed from trying to forfeit and ultimately sell them till after his criminal case is decided. Jin is charged with aiding and abetting dealing in at least $100,000 of illegal sex workers' earnings, which are alleged to be proceeds of crime. He denies the charge and faces a criminal trial in August.
David Gray, manager of the AFP's proceeds of crime litigation unit, said in court documents the decision is expected to similarly delay 43 other cases in which federal police are seeking to seize assets ahead of a related criminal trial. About six of the 43 people have filed applications to stall forfeiture proceedings since the High Court's ruling.
Fairfax Media understands the assets involved in these cases – including bank accounts and property – are estimated to be worth between $200 million and $300 million. Their value is likely to change over time.
Attorney-General George Brandis' department uses proceeds of crime to fund grants to a range of crime prevention programs across Australia, including installing CCTV cameras and anti-graffiti programs.
The largest grant ever awarded from proceeds of crime was more than $11 million for additional resourcing over three years to the AFP's Criminal Assets Confiscation Taskforce, including 13 litigators and two forensic accountants, "to enhance proceeds of crime as a significant organised crime disruption and dismantling tool".
The AFP was also given $5.9 million in proceeds of crime for a project to collect and interrogate data on the illegal drug market indicators such as production methods and purity. About $5 million has been given to fund non-profit group Youth off the Streets outreach services in NSW and Queensland in 2013.
The AFP's latest annual report says it seized $76.1 million and restrained $134 million in criminal assets in the last financial year. Most forfeited proceeds of crime are understood to not be based on criminal convictions.
A spokeswoman for Federal Justice Minister Michael Keenan has said the government was aware of the High Court's decision.
