Key Moments:
- AUSTRAC intelligence initiated a probe that exposed gold laundering tied to a gambling addiction.
- A NSW police officer sold over $1,300,000 in family gold bars, using falsified forms and misleading claims.
- The officer resigned and has been referred to the Department of Public Prosecutions after Operation Dartmoor’s findings.
Investigation Initiated by AUSTRAC
AUSTRAC’s monitoring identified suspicious activity after transactions involving significant gold sales raised concerns. Some of these sales were traced to a bullion dealer flagged for reported money-laundering connections, leading to the launch of Operation Dartmoor.
Law Enforcement Conduct Commission Uncovers Misconduct
The Law Enforcement Conduct Commission (LECC) determined that a New South Wales police officer engaged in grave misconduct. The officer took twelve family gold bars, each weighing fifty ounces and stored at his mother’s residence, and sold them to two dealers for more than $1.3 million. He submitted falsified know your customer (KYC) forms, misrepresenting the gold’s origin as either a birthday gift or inheritance. The proceeds were spent on sports betting platforms, and the officer later admitted to providing false information as he “needed the money”.
Consequences and Industry Implications
The officer subsequently resigned from the NSW Police Force and was referred to the Department of Public Prosecutions. The case, revealed in full by Operation Dartmoor, underlines the vulnerabilities within the bullion sector to money laundering schemes fueled by gambling harm.
AUSTRAC’s Industry Warning
AUSTRAC CEO Brendan Thomas said the case highlights the risks facing the bullion sector.
“Gambling harm doesn’t just drain bank accounts, it can drive desperate people into crime,” Mr Thomas said.
“When gambling turns to addiction, people often look for fast money and that can mean stealing, fraud or money laundering.
“Bullion is portable, valuable and attractive to people wanting to use it illegitimately.
“If you trade in bullion, you are part of the front line in stopping its exploitation.
“Your AML/CTF controls are the difference between being a trusted dealer or a weak link for crime.
“Every transaction is a potential red flag – it’s your responsibility to look twice, and if needed, report it.”
Summary Table
| Event | Details |
|---|---|
| Source of Initiation | AUSTRAC intelligence flagged suspicious gold transactions |
| Amount Laundered | Over $1,300,000 in gold bars sold |
| Misconduct Uncovered | Falsification of KYC forms and misuse of family assets |
| Outcome | Resignation of officer and referral to prosecution authorities |
- Author
Daniel Williams
