Lordianto v Commissioner of the Australian Federal Police

The appeal in *Lordianto v Commissioner of the Australian Federal Police* concerned the Commissioner's application for forfeiture of certain bank accounts under the *Proceeds of Crime Act 2002* (Cth). The appellants, Mr. and Mrs. Lordianto, sought an exclusion order in respect of their interests in these accounts, arguing they were third parties who had acquired their interests for sufficient consideration and without reasonable suspicion that the accounts were derived from an offence. The matter came before the Full Federal Court of Australia.

The primary legal issues before the Full Court were whether the appellants acquired an "interest" in "property" each time a deposit was made into their bank accounts within the meaning of the Act, and whether they qualified as "third parties" under section 330(4)(a) of the Act. Further, the Court had to determine if the appellants acquired their interests for sufficient consideration and if the circumstances would have aroused a reasonable suspicion that their interests in the bank accounts were proceeds of an offence.

The Full Court held that the appellants did not acquire a new "interest" in the property each time a deposit was made into their bank accounts. Instead, their interest was in the account as a whole, which represented a chose in action. The Court found that the appellants had not acquired their interests for sufficient consideration, as the deposits were made by a third party and the appellants had not provided any reciprocal value. Furthermore, the Court concluded that the circumstances surrounding the deposits would have aroused a reasonable suspicion in the minds of the appellants that their interests in the bank accounts were proceeds of an offence. Consequently, the appeal was dismissed with costs.