Proceeds of Crime Amendment (Proceeds and Other Matters) Act 2018

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Legislation au C2018A00021 In force Act

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Proceeds of Crime Amendment (Proceeds and Other Matters) Act 2018

No. 21, 2018

An Act to amend the Proceeds of Crime Act 2002, and for related purposes

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Enhancements to the proceeds of crime regime

Proceeds of Crime Act 2002

Proceeds of Crime Amendment (Proceeds and Other Matters) Act 2018

No. 21, 2018

An Act to amend the Proceeds of Crime Act 2002, and for related purposes

[Assented to 28 March 2018]

The Parliament of Australia enacts:

1 Short title

This Act is the Proceeds of Crime Amendment (Proceeds and Other Matters) Act 2018.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information
Column 1	Column 2	Column 3
Provisions	Commencement	Date/Details
1. The whole of this Act	The day after this Act receives the Royal Assent.	29 March 2018

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3 Schedules

Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Enhancements to the proceeds of crime regime

Proceeds of Crime Act 2002

1 Paragraph 5(ba)

After “derived”, insert “or realised, directly or indirectly,”.

2 Subparagraphs 20A(1)(g)(ii) and (3)(c)(ii)

After “derived”, insert “or realised, directly or indirectly,”.

3 Section 179A

After “derived”, insert “or realised, directly or indirectly,”.

4 Paragraphs 179E(1)(b) and (2)(b)

After “derived”, insert “or realised, directly or indirectly,”.

5 Subsection 179E(3)

After “derived”, insert “or realised, directly or indirectly,”.

6 Subsections 330(1) and (2)

Repeal the subsections, substitute:

(1) Property becomes proceeds of an offence if:

(a) the property is wholly or partly derived or realised from a disposal or other dealing with *proceeds of the offence; or

(b) the property is wholly or partly acquired using proceeds of the offence; or

(c) an *encumbrance or a security on, or a liability incurred to acquire, retain, maintain or make *improvements to, the property is wholly or partly discharged using proceeds of the offence; or

(d) the costs of retaining, maintaining or making improvements to the property are wholly or partly met using proceeds of the offence; or

(e) the property is improved using proceeds of the offence;

including because of one or more previous applications of this section.

(2) Property becomes an instrument of an offence if:

(a) the property is wholly or partly derived or realised from the disposal or other dealing with an *instrument of the offence; or

(b) the property is wholly or partly acquired using an instrument of the offence; or

(c) an *encumbrance or a security on, or a liability incurred to acquire, retain, maintain or make *improvements to, the property is wholly or partly discharged using an instrument of the offence; or

(d) the costs of retaining, maintaining or making improvements to the property are wholly or partly met using an instrument of the offence; or

(e) the property is improved using an instrument of the offence;

including because of one or more previous applications of this section.

7 Subsection 330(3)

Omit “*proceeds of an offence or an *instrument”, substitute “proceeds of an offence or an instrument”.

8 Subsection 330(4)

Omit “*proceeds of an offence or an *instrument”, substitute “proceeds of an offence or an instrument”.

9 Subsection 330(5)

Omit “becomes proceeds of an offence or an instrument”, substitute “becomes proceeds of an offence or an instrument”.

10 Subsection 330(6)

Omit “*proceeds of an *unlawful activity, or an *instrument”, substitute “proceeds of an *unlawful activity, or an instrument”.

11 At the end of section 330

Add:

(7) Paragraphs (1)(a) to (e) and (2)(a) to (e) do not limit each other.

(8) This section does not limit section 329.

12 Paragraph 336A(c)

Repeal the paragraph (including the note), substitute:

(c) the property or wealth is not *proceeds or an *instrument of an offence.

13 Section 338

Insert:

improvements to property or *wealth includes additions to, altering, repairing, restoring, structuring, restructuring, or any other change to the whole or part of the property or *wealth (whether or not it results in an increase in value of the property or wealth).

14 Application of amendments

(1) The amendments made by items 1 to 5 of this Schedule apply after the commencement of this Schedule in relation to property derived or realised, before or after that commencement, from the commission of an offence occurring before or after that commencement.

(2) The amendments made by items 6 to 11 and 13 of this Schedule apply after the commencement of this Schedule in relation to:

(a) property that is wholly or partly derived or realised from a disposal or other dealing, before or after that commencement, with property that is proceeds or an instrument of an offence (within the meaning of the Proceeds of Crime Act 2002 as amended by those items); and

(b) property that is wholly or partly acquired, before or after that commencement, using property that is proceeds or an instrument of an offence (within the meaning of that Act as amended by those items); and

(c) property for which an encumbrance, security or liability is wholly or partly discharged, before or after that commencement, using property that is proceeds or an instrument of an offence (within the meaning of that Act as amended by those items); and

(d) property for which the costs of wholly or partly retaining, maintaining or improving are met, before or after that commencement, using property that is proceeds or an instrument of an offence (within the meaning of that Act as amended by those items); and

(e) property that is improved, before or after that commencement, using proceeds or an instrument of an offence (within the meaning of that Act as amended by those items).

(3) The amendment made by item 12 of this Schedule applies after the commencement of this Schedule in relation to property or wealth acquired before or after that commencement.

[Minister’s second reading speech made in—

House of Representatives on 18 October 2017

Senate on 16 February 2018]

(243/17)

Overview

The Proceeds of Crime Amendment (Proceeds and Other Matters) Act 2018 was enacted by the Parliament of Australia to amend the Proceeds of Crime Act 2002. This legislation aims to strengthen the regime against proceeds of crime by providing clearer definitions and broadening the scope of what constitutes proceeds of an offence. The Act was designed to address gaps in the existing legal framework that could potentially allow criminals to evade the confiscation of their illicit gains. It received Royal Assent on 28 March 2018 and commenced on the following day, 29 March 2018. The policy objective behind this Act is to enhance the effectiveness of the proceeds of crime regime by ensuring that more forms of property derived from or used in criminal activities can be identified, frozen, and confiscated.

Scope and Application

The Proceeds of Crime Amendment (Proceeds and Other Matters) Act 2018 amends the Proceeds of Crime Act 2002 to enhance the proceeds of crime regime in Australia. This Act applies to persons and entities that are involved in criminal activities and the proceeds derived from such activities, aiming to prevent and combat money laundering and the financing of terrorism. It has a national reach, applying across all states and territories in Australia. The Act includes specific definitions and provisions to ensure clarity and comprehensiveness in identifying and recovering proceeds of crime, including property derived or realised from criminal activities, and instruments used in the commission of offences. The amendments introduced by this Act apply both retrospectively and prospectively to offences committed before and after its commencement, thus broadening the scope of recovery for proceeds of crime. The Act does not explicitly mention any exclusions or exemptions but allows for its application to be extended or restricted through subordinate instruments as necessary.

Key Provisions

The Proceeds of Crime Amendment (Proceeds and Other Matters) Act 2018 amends the Proceeds of Crime Act 2002 by introducing several modifications to enhance the regime for dealing with the proceeds of crime. For instance, Section 1 of the Act amends paragraph 5(ba) by inserting the phrase "or realised, directly or indirectly," after the word "derived" (Schedule 1, item 1). This amendment is repeated in subparagraphs 20A(1)(g)(ii) and (3)(c)(ii) (Schedule 1, items 2), Section 179A (Schedule 1, item 3), and paragraphs 179E(1)(b) and (2)(b) (Schedule 1, item 4). Additionally, Subsection 179E(3) is amended by inserting the same phrase (Schedule 1, item 5). These changes ensure that the definition of proceeds now includes not just derived but also realised properties, whether directly or indirectly. The Act further amends Subsections 330(1) and (2) by repealing the existing subsections and substituting them with a new definition of when property becomes proceeds of an offence or an instrument of an offence (Schedule 1, items 6 and 7). This includes scenarios where property is derived or realised from a disposal, acquired using proceeds, or where costs or encumbrances are met using such proceeds. The obligations imposed by the Act on the relevant parties include ensuring compliance with the new definitions and criteria for property to be classified as proceeds of an offence or an instrument of an offence. This means that financial institutions, law enforcement agencies, and other entities involved in the tracking and confiscation of proceeds of crime must adapt their practices to align with these expanded definitions. For example, they must consider not only derived but also realised properties in their investigations and reporting. The Act also imposes an obligation on these entities to ensure that the new provisions are applied consistently, both to properties derived or realised before and after the commencement of the amendments. Breaches of the provisions introduced by the Proceeds of Crime Amendment (Proceeds and Other Matters) Act 2018 can result in significant consequences. For example, failing to comply with the new definitions and obligations could lead to civil penalties under Section 336A, which now includes the condition that the property or wealth is not proceeds or an instrument of an offence (Schedule 1, item 12). Furthermore, under Section 338, improvements to property or wealth are now explicitly defined to include any changes to the property, whether or not it results in an increase in value (Schedule 1, item 13). Non-compliance with these provisions could result in legal action, and the courts have the authority to impose fines and other penalties as deemed appropriate. The exact penalties are not specified in the Act but are left to the discretion of the courts, taking into account the severity and nature of the breach.

Area of Law: Criminal Law
Instrument: Act
Concepts: Commencement Provisions; Repeal & Amendment; Offence Provisions; Proceeds of Crime

Interactions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.