New South Wales Crime Commission v Zhi

In this case, the New South Wales Crime Commission sought to establish the source of certain funds held by Zhi, which were suspected to be proceeds of crime. The dispute was heard by the Supreme Court of New South Wales. The Commission argued that the funds were derived from unlawful activities and sought orders to restrain Zhi from dealing with the assets and to compel disclosure of their source. Zhi contested these claims, arguing that the funds were legitimate earnings and denied any connection to criminal activity.

The legal issues before the court were primarily centred on the interpretation and application of the Proceeds of Crime Act 2002 (NSW). The court had to determine whether the funds were indeed proceeds of crime and, if so, whether the Commission was entitled to the relief sought. Key considerations included the burden of proof required by the Commission and the extent to which Zhi could be compelled to disclose information about the source of the funds.

The court found that the Commission had met the burden of proof in establishing that the funds were reasonably suspected to be proceeds of crime. The evidence presented was sufficient to warrant the issuance of restraining orders. The court emphasised the importance of the proceeds of crime regime in disrupting and deterring criminal activity, and ruled that Zhi must disclose the source of the funds. The court ordered that the funds be restrained and that Zhi provide detailed information about their origin, including bank statements and other relevant documentation.

The court ordered Zhi to provide full disclosure of the source of the funds and restrained them from dealing with the assets in question. The orders also required Zhi to cooperate with the Commission’s investigation and to provide any further information as directed. The court emphasised that the orders were interim and subject to further review, depending on the outcome of the Commission's investigation.