Annual Report - COMPLETE - Australian Crime Commission

Guide to this Report 

This is the Australian Crime Commission’s (ACC) report to the Minister for Justice 

and Customs on the performance of the ACC during the fi nancial year 2003–04. It 

is prepared in accordance with the Department of the Prime Minister and Cabinet’s 

Requirements for Annual Reports of June 2003, as approved on behalf of the 

Parliament by the Joint Committee of Public Accounts and Audit. It also recognises 

the Australian National Audit Offi ce’s Better Practice Guide: Better Practice in Annual 

Performance Reporting 2004. 

The aim of this publication is to report on the ACC’s performance against the outcome- 

output structure specifi ed in the Portfolio Budget Statements 2003–04. The ACC’s 

overriding objective is enhanced Australian law enforcement capacity through criminal 

intelligence services, criminal intelligence operations, and investigations into federally 

relevant criminal activity. The ACC’s work is underpinned by a strong emphasis on 

governance, management and accountability. 

In this report you will fi nd: 

• a corporate overview of the ACC, including its organisational structure, corporate 

governance, and accountability mechanisms; 

• an outline of the activities undertaken to achieve the goals of the ACC, including 

information on patterns and trends of criminal activity, and other related information 

required under subsection 61(2) of the Australian Crime Commission Act 2002; 

and 

• information on staffi ng, fi nances, internal and external scrutiny and information 

required under the Freedom of Information Act 1982, and other required statutory 

reporting. 

This is the ACC’s fi rst full year of reporting. 

2 I ACC ANNUAL REPORT 2003–04

Letter of Transmittal 

8 October 2004 

Senator the Hon Chris Ellison 

Minister for Justice and Customs 

Parliament House 

CANBERRA ACT 2600 

Dear Minister, 

In accordance with section 61(1) of the Australian Crime Commission Act 2002 (ACC 

Act), and on behalf of the Board of the ACC, I am pleased to submit the Australian 

Crime Commission Annual Report for the year 1 July 2003 to 30 June 2004. 

Section 61(1) of the ACC Act requires the Chair of the ACC Board, as soon as 

practicable after 30 June, to prepare a report of the ACC’s operations during 

the year and furnish the report to the Inter-Governmental Committee on the 

ACC for transmission, together with any comments the Committee thinks fi t, to 

the Commonwealth Minister and the appropriate Minister of the Crown of each 

participating state. Subsection 61(6) of the ACC Act requires that the report be laid 

before each House of Parliament within 15 sitting days of that House after the report 

is received by you. 

The period covered by the report has been a challenging time for the ACC as it has 

confronted serious allegations of corruption. These allegations were of considerable 

concern to the Board and it has worked closely with the ACC to ensure a robust and 

comprehensive anti-corruption prevention and response system is developed. I can 

assure you that the continuing development and implementation of this system will 

continue to be a key focus of the Board during the coming year. 

Despite these challenges I am pleased to note that the ACC has continued to pursue 

its crucial work in combating sophisticated organised crime and developing Australia’s 

national criminal intelligence capability. The results outlined in this report are evidence 

of progress in these areas. 

The Board can report on several key highlights from its deliberations during its fi rst full 

year of operation including the formation of the fi rst ACC Task Force under the ACC 

Act. This Task Force has successfully targeted entrenched criminal networks in multiple 

jurisdictions. The Board also authorised important assistance to Victoria Police in 

relation to the investigation of the gangland murders in Melbourne and authorised the 

ACC to conduct an intelligence operation against people traffi cking for the purposes of 

sexual exploitation. The Board looks forward to a similarly active year ahead. 

Above all this annual report refl ects the results the ACC, through its talented and dedicated 

people, has achieved during the past twelve months and I commend it to you. 

M J Keelty 

Chair 

ACC ANNUAL REPORT 2003–04 I 3

Key Results 

During 2003-04, the ACC and its partner agencies: 

• charged 203 persons 

• laid 626 charges 

• summonsed 381 witnesses to ACC s28 (or state equivalent) 

examinations 

• conducted 355 examinations 

• used the ACC’s s29 special power 453 times to obtain 

documents 

• restrained $16 million in proceeds of crime, forfeited $2.4 million, 

and recouped $827,000 by Pecuniary Penalty Orders 

• issued tax assessments to the value of $19 million (including 

penalties and interest) 

• made 115 drug seizures, including 750 kgs of pseudoephedrine 

(largest to date in Australia) 

• seized 3552 firearms through 55 seizures, including over 

800 .32 calibre key ring guns and components to create an 

additional 2500 

During 2003-04, the ACC: 

• produced 56 intelligence publications, including the Illicit Drug Data 

Report 2002–03 

• provided 3200 other intelligence products to partner agencies via 

ALEIN/ACID 

• provided over 700 operational disseminations to other LEAs, 

government and foreign agencies 


Contents Page 

Guide to this Report ......................................................................................2 

Letter of Transmittal ......................................................................................3 

Key Results ....................................................................................................4 

CEO Forward ....................................................................................................6 

Chapter 1: Profi le, Governance and Performance ...........................................8 

Chapter 2: Output 1.1 - Criminal Intelligence Services ..........................28 

Chapter 3: Output 1.2 - Criminal Intelligence Operations ..........................40 

Chapter 4: Output 1.3 - Investigations into Federally Relevant Criminal Activity ..............52 

Chapter 5: The ACC’s Internal Performance Framework ..........................78 

Chapter 6: Appendices ....................................................................................90 

Appendix A: Financial Statements .......................................................92 

Appendix B: ACC Staffi ng Statistics .....................................................132 

Appendix C: Consultants and Counsel Engaged .......................................136 

Appendix D: Summary of Charges .....................................................138 

Appendix E: Court Matters ....................................................................140 

Appendix F: Complaints ....................................................................150 

Appendix G: FOI Statement ....................................................................152 

Appendix H: Other Mandatory Information .......................................156 

Indexes to Compliance ..................................................................................158 

Glossary and Abbreviations ....................................................................160 

Acronyms and Abbreviations used in this report .......................................163 

General Index ................................................................................................165 

Offi ces of the ACC ..................................................................................168 


CEO Forward 

I am pleased to present the fi rst full year annual 

report for the Australian Crime Commission. 

During the 2003–04 reporting year the ACC 

continued to pursue change, cooperation and 

teamwork, both internally and in collaboration 

with our partner law enforcement agencies. 

Our stated challenges to re-engineer internally, 

identify our role and establish our external 

law enforcement relationships has involved 

rigorous self examination and commitment. 

The result is a refi ned organisational structure 

that directs our resources towards countering 

serious and organised crime. 

Organisational change processes were 

managed through the ACC’s Integration and 

Development Project, involving staff participation at all levels. To ensure its relevance, 

the project transitioned to the Continuous Development Program in January 2004 

and provides ongoing scrutiny of processes within the ACC. 

Our professional standards have been tested during the reporting period, a challenge 

that has been met by strengthening our management and supervision and by 

renewed focus on those programs that foster the highest level of professionalism 

and integrity. 

Our performance and successes for the past 12 months are presented in this report, 

including clear evidence of the development of dynamic partnerships with other 

Australian law enforcement agencies. These partnerships have highlighted how 

cooperation between agencies can have a positive impact on serious and organised 

crime in Australia. 

I recognise the challenging environment within which the ACC operates and thank 

all staff for their loyalty and effort. The dedication and commitment of the ACC staff 

have made these results possible. 

The next 12 months will see the ACC continue to establish its position in national 

law enforcement, while striving to reduce the impact of organised and serious crime 

on Australia and its people. 

Alastair Milroy 

Chief Executive Offi cer 


OUTCOME: 

Enhanced Australian 

Law Enforcement 

Capacity 


8 I ACC ANNUAL REPORT 2003–04 

Profile, 

Governance 

and Performance

Profi le 

The ACC aims to reduce the incidence and impact of serious and organised criminal 

activity on the Australian community by: 

• improved criminal intelligence collection and analysis; 

• setting clear National Criminal Intelligence Priorities (NCIPs); and 

• conducting intelligence-led investigations into federally relevant criminal activity, 

encompassing investigative and intelligence taskforces as approved by the ACC 

Board. 

The ACC was established to bring a strong intelligence focus to the investigation of 

serious national criminal activity, providing Australian law enforcement agencies with 

the ability to counter the dynamic and complicated nature of modern criminality. 

In addition to the ACC’s wide-ranging in-house capacity, it is able to call on the skills 

and resources of state and territory police forces and Commonwealth agencies such as 

the Australian Federal Police (AFP), Australian Customs Service (ACS), the Australian 

Securities and Investments Commission (ASIC), the Australian Tax Offi ce (ATO) and 

the Australian Security Intelligence Organisation (ASIO). 

In the ACC, Australia now has an organisation that brings together all arms of 

intelligence gathering and law enforcement to unify the fi ght against serious and 

organised criminal activity. 

Functions 

The ACC’s functions are listed under section 7A of the ACC Act. Under the Act, the 

ACC is responsible for the collection, correlation, analysis and dissemination of 

criminal information and intelligence, and the maintenance of a national database 

of that information and intelligence. When authorised by the ACC Board, the ACC 

undertakes intelligence operations and investigations into federally-relevant criminal 

activity. It provides strategic criminal intelligence assessments and advice to the ACC 

Board for the determination of the NCIPs. 

The activities of the ACC are underpinned by strategic and operational intelligence, 

and investigative capability. They inform and assist the ACC and joint taskforces and 

inform law enforcement policy and direction at Commonwealth, state and territory 

levels. 

Special Powers 

The ACC has special powers to enable it to effectively fi ght nationally signifi cant 

crime. The use of these powers is subject to the oversight and authorisation of the 

ACC Board. Legislation makes the special powers available in support of intelligence 

driven operations and investigations, which are the key focus of the ACC. 

ACC ANNUAL REPORT 2003–04 I 9 

1 

PROFILE, GOVERNANCE AND PERFORMANCE

The special, coercive powers include the power to summons a person to an examination 

to give evidence under oath, the power to demand the production of documents and 

the power to demand information from Commonwealth government departments 

and agencies. The special powers can only be used in an intelligence operation 

or investigation which the ACC Board has specifically determined to be a ‘special 

intelligence operation’ or a ‘special investigation’ and only the independent Examiners 

can use those powers. The Examiners must be satisfied that it is reasonable in the 

circumstances to use the special coercive powers. Special powers are necessary 

in circumstances where traditional methods of law enforcement are not sufficient to 

combat sophisticated criminal activity. They increase and enhance the ACC’s ability 

to assess and identify trends and patterns in nationally significant crime. 

Attendance at examinations is compulsory, and questions must be answered. 

Individuals are entitled to legal representation during examinations. Individuals 

required to attend may be prevented by the ACC legislation from disclosing to a 

third party that they have been summonsed to the ACC. 

ACC Examiners are independent statutory officers appointed to approve the use 

of the ACC’s coercive powers, to conduct examinations, and to issue notices to 

produce documents. The ACC’s Examiners are Mr Mac Boulton, the Honourable 

John Hannaford, and Mr Tim Sage. 

ACC Locations 

The ACC has six offices nationally, with its 

headquarters located in Canberra. 

As at 30 June 2004, the ACC employed 

518 staff, including 128 seconded staff 

officers from various law enforcement 

and government agencies and 390 APS 

staff. 


Governance - External scrutiny 

The ACC’s governance framework provides the structure for strategic planning 

and effi cient decision-making. The framework encompasses internal and external 

governance arrangements and refl ects the multi-jurisdictional nature of the ACC. 

General oversight of, and direction to, ACC activities is undertaken by a number 

of bodies, illustrated in Figure 1. These are in addition to the checks and balances 

provided by the legal system. 

Figure 1.1: External scrutiny and governance of the ACC 

The principal external governance bodies include the Minister for Justice and 

Customs, the ACC Board, the Inter-Governmental Committee on the ACC 

(IGC-ACC) and the Parliamentary Joint Committee of the ACC (PJC). 

Minister for Justice and Customs 

The Commonwealth Minister for Justice and Customs, Senator the Hon Chris Ellison, 

has overall responsibility for the administration of the ACC. He is also the Chairman of 

the IGC-ACC which monitors the work of the ACC and oversees its strategic direction. 

The Minister may give directions and issue guidelines to the ACC Board and may 

enter into agreements with the states and territories on the secondment of staff. The 

Minister can also make decisions on the release of sensitive information. 

Inter-Governmental Committee on the ACC 

The role of the Inter-Governmental Committee (IGC-ACC) on the ACC is to monitor 

the work and performance of the ACC and ACC Board, oversee strategic direction, 

receive reports from the ACC Board for transmission to the governments represented 


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on the IGC-ACC, and transmit those reports accordingly. The IGC-ACC may request 

information on special Determinations and may revoke a special Determination made 

by the ACC Board. The IGC comprises the Commonwealth Minister for Justice and 

Customs as permanent Chair, and Ministers representing each of the states and 

territories. The IGC held its fi rst meeting on 2 July 2003. 

The members of the IGC-ACC as at June 30 2004 were: 

Commonwealth 

Senator the Hon Chris Ellison, Minister for Justice and 

Customs (Chair) 

New South Wales 

The Hon John Watkins MP, Minister for Police 

Victoria 

The Hon André Haermeyer MP, Minister for Police and 

Emergency Services 

Queensland 

The Hon Judy Spence MP, Minister for Police and Corrective Services 

South Australia 

The Hon Kevin Foley MP, Deputy Premier and Minister for Police 

Western Australia 

The Hon Michelle Roberts MLA, Minister for Police 

Tasmania 

The Hon David Llewellyn MHA, Minister for Police and Public Safety 

Northern Territory 

The Hon Paul Henderson MLA, Minister for Police, Fire and Emergency Services 

Australian Capital Territory 

Mr Bill Wood MLA, Minister for Police 


Senator the Hon 

Chris Ellison MP

ACC Board 

The ACC Board is responsible for establishing national criminal intelligence 

priorities (NCIP), setting ACC priorities and strategic direction, authorising access 

to the coercive powers, authorising special intelligence operations and special 

investigations, determining intelligence operations and investigations, disseminating 

strategic criminal intelligence assessments, and reporting to the IGC on the ACC’s 

performance. 

The ACC Board has the following members: 

• Commissioner of the AFP as Chair of the ACC Board; 

• Secretary of the Commonwealth Attorney-General’s Department; 

• CEO of ACS; 

• Chairperson of ASIC; 

• Director-General of Security; 

• Commissioners of all state and territory police forces; 

• Chief Police Officer of the ACT; and 

• CEO of the ACC (as a non-voting member of the ACC Board). 

The ACC Act provides that the ACC Board must meet at least twice yearly. In 

2003–04, the ACC Board met on three occasions - 22 September and 4 December 

2003, and 28 April 2004. A further meeting scheduled for June 2004 was postponed 

until September. These followed three earlier meetings in the six months following 

the establishment of the ACC on 1 January 2003. The early meetings focused on 

setting the strategic direction for the ACC required by the ACC Act. Important decisions 

included the endorsement of the ACC Board’s Charter of Governance, the approval 

of processes for ACC authorisations and the determination of the NCIPs. The ACC 

Board also made a number of authorisations and Determinations which provided 

the legislative basis for the important work of the ACC. Where these authorisations 

included provision for the use of the ACC’s coercive powers, the members of the 

IGC-ACC were advised in accordance with the provisions of S9 of the Act. 


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Table 1.1: Attendance at ACC Board meetings 

Member 22/09/03 04/12/03 28/04/04 

Commissioner Mick Keelty, AFP, Chair √ √ √ 

Mr Robert Cornall, Secretary, Attorney-General’s 

Department 


√ √ √ 

Mr Lionel Woodward, Chief Executive Officer, ACS √ √ √ 

Mr David Knott, Chairman, ASIC - √ N/A 

Mr Jeff Lucy, Chairman, ASIC N/A N/A √ 

Mr Dennis Richardson, Director-General of Security 

ASIO 

Commissioner Ken Moroney, New South Wales 

Police 

√ √ √ 

√ √ √ 

Chief Commissioner Christine Nixon, Victoria Police - √ √ 

Commissioner Robert Atkinson, Queensland Police 

Service 

√ - √ 

Commissioner Malcolm Hyde, South Australia Police √ √ - 

Commissioner Barry Matthews, Western Australia 

Police Service 

√ √ √ 

Commissioner Richard McCreadie, Tasmania Police - - √ 

Commissioner Paul White, Northern Territory Police √ √ √ 

Chief Police Officer, John Murray, ACT Policing √ N/A N/A 

Chief Police Officer, John Davies, ACT Policing N/A √ √ 

Chief Executive Officer, Mr Alastair Milroy, ACC √ √ √ 

N/A = not applicable 

Carried-forward work 

In accordance with ACC Board direction, the ACC by 30 September had concluded 

operational work conducted under the transitional IGC-NCA References and 

reported its compliance to the ACC Board. It also reported out-of-session on 30 

September to members of the IGC-ACC as required in the terms of the References 

and in accordance with standing practice. The ACC Board also noted that the 

new authorisations and Determinations approved by the ACC Board were being 

energetically progressed by the ACC.

Operational menu of work 

In addition to the provision of a comprehensive range of intelligence services, 

the ACC Board determined that ACC resources were to be applied in intelligence 

operations and investigations against identified criminal activities. The ACC Board 

also authorised the use of coercive powers for special intelligence operations and 

special investigations. The 2003–04 menu of work included: 

Intelligence operations 

Intelligence operations approved by the ACC Board in May 2003 continued in 

2003–04. These were as follows: 

• Amphetamines and Other Synthetic Drugs (AOSD), 

• Vehicle Rebirthing, 

• Identity Crime, and 

• Card Skimming. 

AOSD and Vehicle Rebirthing were endorsed by the ACC Board in May 2003 as 

special intelligence operations. The Identity Crime and Card Skimming intelligence 

operations were merged as a special intelligence operation in September 2003. 

People Trafficking for Sexual Exploitation is the most recent Intelligence Operation 

undertaken by the ACC; it was endorsed by the ACC Board as a Special Intelligence 

Operation in December 2003. 

Investigations 

Special Investigations approved by the ACC Board in May 2003 continued in 

2003–04. These issues are considered by the ACC Board to be criminal activity 

of the highest priority, requiring coordinated and national law enforcement action. 

They are as follows: 

• Firearms Trafficking, 

• Established Criminal Networks (ECN), 

• South-East Asian Organised Crime (SEAOC), and 

• Money Laundering and Tax Fraud (Midas). 

In March 2003, following a Victoria Police request for assistance, the ACC Board 

approved a special investigation into the activities of established criminal networks in 

Victoria. This investigation was authorised under the Victorian State ACC legislation 

and is the first investigation to be authorised under the underpinning state and territory 

legislation. 

In April 2004 the South East Asian Organised Crime (SEAOC) special investigation 

was incorporated within the ECN special investigation. 


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ACC Board-Strategic Direction Committee 

The terms of reference for the ACC Board Strategic Direction Committee (SDC), 

established by the ACC Board on 13 May 2003, were varied at its 22 September 

meeting. The committee comprises the Commissioner AFP (as Chair), the Chief 

Police Officer of the Australian Capital Territory, the NSW Police Commissioner and 

the CEO ACC (non-voting). The committee’s role as revised is to: 

‘assist and advise the CEO on matters relevant to the implementation of ACC Board- 

approved strategic directions and priorities and report to the ACC Board accordingly. 

When appropriate, the committee shall make recommendations to the ACC Board 

for support to the ACC and shall undertake such other functions as specified by the 

ACC Board from time to time.’ 

The SDC held six meetings in the reporting period and noted the encouraging progress 

the ACC had made since its inception. The SDC agreed that the ACC Board should 

be asked to provide feedback on the value of ACC intelligence products. It also 

reviewed the proposed ACC operational priorities and conceptual framework for 

proposed ACC authorisations and Determinations for 2004–05. 

Parliamentary Joint Committee on the ACC 

The Parliamentary Joint Committee on the ACC (PJC) is made up of members of both 

the Senate and the House of Representatives. Its role is to monitor and review the 

performance of the ACC. It reports to both Houses of the Commonwealth Parliament 

on any matter relevant to the ACC or the performance of its functions. Its membership, 

powers and functions are set out at sections 53-55 of the ACC Act. 

In 2003, the PJC held an inquiry into the ACC’s role in the cybercrime environment. 

The ACC and other agencies and individuals provided submissions to the inquiry and 

attended hearings held in July 2003. The committee’s report was finalised in March 

2004 and the Government’s response will soon be finalised. 

In 2003 and 2004, the PJC held an inquiry into trafficking in women for sexual 

servitude. The ACC and other agencies and individuals provided submissions to the 

inquiry and attended hearings held in February 2004. The Committee’s report was 

finalised in June 2004 and the Government’s response will soon be finalised. 

The CEO gave a presentation on ACC strategic directions to the PJC meeting on 

4 March 2004. 


The CEO also briefed the PJC on 

corruption allegations on 24 June 

2004. This relates to alleged criminal 

activity by two former employees being 

investigated by the Commonwealth 

Ombudsman, NSW Police Integrity 

Commission and Victorian Police 

Ethical Standards Department. 

Members of the PJC on the ACC 

The Hon Bruce Baird MP (Chair) 

Mr Bob Sercombe MP (Deputy Chair) 

Senator Kay Denman 

Senator Jeannie Ferris 

Senator Brian Greig 

Senator Steve Hutchins 

Senator Julian McGauran 

Mr Peter Dutton MP 

The Hon Duncan Kerr SC, MP 

Mr Cameron Thompson MP 

Commonwealth Ombudsman 

The Commonwealth Ombudsman can receive and investigate complaints against 

the ACC and the former NCA. The Ombudsman may advise the ACC of complaints 

it has received but is not required to do so. The Ombudsman advised the ACC of 

two complaints he had received and is investigating. 

During 2003–04 the Ombudsman and the ACC fi nalised arrangements for the referral 

and investigation of complaints. 

The Ombudsman is also required to report to the PJC on the ACC’s use of controlled 

operations and to monitor the ACC’s compliance with telecommunications interception 

(TI) legislation. 

Hon Bruce Baird MP 

On June 29, 2004, the Ombudsman released an own motion investigation into a review 

of the operational and corporate implications for the ACC, arising from alleged criminal 

activity by two former secondees. The report made a number of recommendations, 

all of which were accepted by the ACC. The ACC has moved to implement these 

recommendations as a matter of organisational priority. 


1 


The Ombudsman is scheduled to conduct a further own motion investigation within 

six months of the initial investigation to monitor the ACC’s progress in implementing 

the recommendations. The ACC is continuing to work closely with all relevant parties 

to ensure full compliance with the recommendations. 

Audit 

The financial statements prepared for transition, and audited by the Australian National 

Audit Office (ANAO), were unqualified. 

The ANAO undertook an audit to review and assess the ACC’s financial control 

environment and the major systems of internal controls governing the accuracy, 

completeness and reliability of the accounts and records. The audit results indicated 

that the ACC’s control structure provides sound assurance on the accuracy and 

reliability of the accounts and records that support the financial statement preparation 

at year-end. 

Judicial Review of ACC Decisions 

A person may seek a review of a decision by the ACC or an Examiner, pursuant 

to the Administrative Decisions (Judicial Review) Act 1977, section 57 of the ACC 

Act, and section 39B of the Judiciary Act 1903. The outcomes of reviews of ACC 

decisions are reported in Appendix F. 

Complaints and Freedom of Information 

Complaints about the activities of the ACC generally, and/or specific member/s of 

ACC staff, may be made to the ACC or to the Commonwealth Ombudsman. The 

ACC received thirteen complaints during the reporting period. Four complaints were 

resolved and the remainder are under investigation. 

Four complaints were outstanding from 2002–03. Two of the complaints were not 

substantiated and the other two are still under investigation. These are reported in 

Appendix F. 

Complaints made concerning the alleged actions of seconded police officers are 

usually referred to the officer’s home jurisdiction for investigation. 

During 2003–04 the ACC received nine requests for information under the Freedom of 

Information Act 1982. No requests for internal review were received and no appeals 

were lodged with the Administrative Appeals Tribunal (AAT). 


Governance - Internal scrutiny 

In addition to its external governance mechanisms, the ACC internal governance 

framework provides the structure for strategic planning and effi cient decision-making, 

with stringent internal governance controls and processes to ensure accountability 

and transparency in its activities. In addition to the CEO and Senior Executive Team 

these controls include the ACC Governance Operations Committee, internal audits 

and a dynamic corporate structure that integrates all levels of the organisation. 

Figure 1.2: ACC’s internal security and governance 

Chief Executive Offi cer 

The ACC’s CEO is responsible for the management and administration of the ACC, 

and acts in accordance with the policies determined by the ACC Board. The CEO must 

also manage, coordinate and control ACC intelligence operations and investigations, 

and allocate Examiners to operations and investigations as necessary. 

Mr Alastair Milroy was appointed as the ACC’s CEO on 3 March 2003. Mr Milroy’s 

35-year career includes roles in the New South Wales Police Service, the Royal 

Commission into the New South Wales Building Industry, the United Nations 

International Criminal Tribunal, and the private sector. 


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Senior Executive Team – Directors 

The Senior Executive Team is responsible for the effective day-to-day oversight and 

management of the ACC and staff, and held regular meetings during 2003–04. 

At 30 June 2004, the ACC’s Directors were: 

• Director National Operations, Mr Michael Outram; 

• Director Intelligence, Mr Kevin Kitson; 

• Director Executive Services, Mr Lionel Newman; and 

• Director Corporate Services, Mr Andrew Phelan. 

More information on each Directorate is located on pages 80-81. 

ACC Governance Operations Committee 

The ACC Governance Operations Committee consists of the CEO, the Senior Legal 

Adviser, the Director National Operations, the Director Intelligence, the General 

Manager Intelligence Services, the General Manager Operational Resources, the 

General Manager Operational Intelligence and Development, and the General 

Manager National Operations. In 2003–04, the committee met weekly to determine 

priorities for intelligence operations and investigations and provided strategic and 

tactical advice to ACC operational and resource managers. 

Internal Audit 

The ACC’s Audit Committee, which includes independent members and an observer 

from the ANAO, met quarterly during the financial year to review internal and external 

audit reports, consider findings and recommendations, and oversee the internal audit 

program. In addition, the committee reviewed the ACC’s risk assessment and fraud 

and corruption control plans. 

Major activities undertaken by Internal Audit for 2003–04 included monitoring 

the development of ACC’s business risk assessment process and subsequent 

development of its risk management, fraud and corruption control plans. Audits 

were also carried out on: 

• assumed identities, 

• special operations advances, 

• exhibit administration, 

• payments to informants, 

• weapons and ammunition security, 

• APS salary, allowances and leave recording, 

• credit cards, and 

• the Asia/Pacific Group on Money Laundering Secretariat. 


Other major activities have focused on compliance audits leading up to the completion 

of the ACC’s financial statements and to meet mandatory external reporting. 

Internal Audit also undertakes reviews of the ACC’s use of the New South Wales 

Law Enforcement and National Security (Assumed Identities) Act 1998. During the 

reporting period, 35 assumed identities were approved, and none varied or revoked. 

Officers using assumed identities are involved in the investigation of serious and 

organised crime. Audit review of the use of assumed identities did not indicate any 

fraudulent or criminal behaviour. 

Other Internal Committees and Programs 

Senior Executive Team Meeting 

Senior Executive Team Meetings were held regularly in 2003–04. They examined the 

strategic direction for the ACC as well as other senior management issues. Senior 

Executive Team Meetings are attended by the CEO, Executive Officer to the CEO 

and the four Directors. 

Continuous Development Program 

The role of the CDP is to assist the ACC to achieve its mission. It has assisted in 

facilitating the strategic objectives and business goals of the organisation in 2003–04, 

and monitored the ACC’s progress in implementing supporting enabling tasks. The 

CDP and its predecessor, the Integration and Development Project, is discussed as 

a standing agenda item at Senior Executive Team Meetings. 

Senior Management Meetings 

Senior Management Meetings were held fortnightly in 2003–04 and covered all current 

issues. They are attended by Directors, General Managers and Managers. 

ICT Steering Committee 

ICT Steering Committee meetings were held once a month to examine issues relating 

to the ACC’s strategic information and communications technology, and related issues. 

They are attended by the CEO, the four Directors and Manager ICT. 

National Consultative Committee 

The National Consultative Committee met twice a year in 2003–04, and discussed a 

range of workplace issues, including remuneration, working conditions and OH&S. 

The committee is comprised of the CEO, representatives of all Local Consultative 

Committees, a union representative, and Manager Human Resources. 


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Local Consultative Committee 

Local Consultative Committee meetings were held twice a year in each ACC office. 

The LCC consisted of staff from various business areas with an interest in local 

ACC issues. A representative of each LCC also attends meetings of the National 

Consultative Committee. 

Integration Workshops 

Integration workshops were held quarterly as a forum for staff to express their views 

on all aspects of the ACC. The workshops are attended by the CEO, various staff 

members from all ACC offices, HR representatives, and the Director Corporate 

Services. Staff members are able to self-nominate to attend these workshops. This 

enables a wide diversity of views to be put forward on the activities, culture and 

strategic direction of the ACC. 


Planning and Performance 

_________________________________________________________________ 

ACC Board Assessment of the ACC’s Performance 

In his report to the IGC-ACC for its 30 June 2004 meeting, the Chair of the ACC 

Board recorded the ACC Board’s satisfaction with the performance of the ACC. In 

part he wrote: 

‘There have been continuing substantial operational successes by the ACC in this 

reporting period, (six months to March 2004) particularly with respect to Established 

Criminal Networks and Firearms Traffi cking. The ACC has worked productively in 

partnership with state and territory jurisdictions to achieve these successes. The 

ACC has responded energetically to ACC Board authorisations and to ACC Board- 

authorised requests from jurisdictions in response to particular requirements. The 

Schumacher Task Force is one example. The coercive powers support provided to 

the Victoria Police Purana Task Force is another. 

The ACC’s capacity continues to develop as an innovative national law enforcement 

agency, focused on enhancing Australian law enforcement’s capacity to counter 

serious and organised crime.’ 

_________________________________________________________________ 

ACC’s Outcome and Outputs Framework 

The 2003–04 ACC Outcome and Outputs Framework was developed in line with its 

Portfolio Budget Statement (PBS). The PBS provided a departmental overview and 

detailed the ACC’s appropriation in accordance with the ACC’s specifi ed outcome 

and outputs. 

OUTPUT 1.1 

Criminal 

Intelligence 

Services 

OUTCOME 

Enhanced Australian 

Law Enforcement 

Capacity 

OUTPUT 1.2 

Criminal 

Intelligence 

Operations 

OUTPUT 1.3 

Investigations into 

federally relevant 

criminal activity 


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This framework also details performance indicators against which the ACC’s 

effectiveness in achieving its stated objectives were measured. 

The ACC’s Outcome is: ‘Enhanced Australian Law Enforcement Capacity’. To achieve 

this significant goal, the ACC identified three external outputs and one internal output. 

These were: 

External 

Output 1.1 – Criminal Intelligence Services 

Output 1.2 – Criminal Intelligence Operations 

Output 1.3 – Investigations into Federally Relevant Criminal Activity 

Internal 

Output 1.4 – Strengthening Organisational Capacity (not provided with external 

budgetary appropriation) 

The performance indicators underpinning each of the external outputs were as 

follows: 

Table 1.2: Performance information for departmental outputs 

Output description Performance measure 

Output 1.1: Criminal 

Intelligence Services 

Output 1.2: Criminal 

Intelligence Operations 

Output 1.3: 


Federally Relevant 

Criminal Activity 

Quality & Quantity: 


• Number and value of disseminations provided to other 

law enforcement agencies. 

• Provision and maintenance of criminal intelligence 

systems 

• Number and significance of strategic criminal 

assessments and other intelligence and information 

products 

• Acceptance by ACC Board of advice on National Criminal 

Intelligence Priorities 

• Number of criminal intelligence priorities that become 

intelligence operations 


• Number conducted and proportion of proposals actioned 

by ACC Board 

• Achievement of objectives of intelligence operations 

• Use of coercive powers 

• Collaboration with partner law enforcement agencies 

• Number evaluated and determined as special 

investigations 


• Number conducted and allocated by the ACC Board 

• Value of proceeds of crime forfeited 

• Use of coercive powers 

• Achievement of objectives of investigations 

• Number and significance of arrests and charges arising 

from investigations 

• Collaboration with partner law enforcement agencies

Planning and Performance Reporting 

The ACC reviewed its performance as part of an integrated performance management 

process. In line with the Outcome and Outputs Framework, the ACC developed, 

monitored, reviewed and assessed the following plans against performance objectives 

for all operational and corporate areas: 

• Corporate Plan: A one year plan for 2003–04, but will be redeveloped as a 

three year plan for 2004-07. This plan detailed the ACC’s vision, mission, and 

values. 1 

• Strategic Direction Statement: A three year plan outlining the strategic goals 

and objectives of the ACC. 

• ACC Business Plan: A one year plan that included the ACC fi nancial management 

plan which costs each output, as well as the output management plan. This plan 

detailed the key performance measures for each output, and the key initiatives 

and deliverables for that year. These initiatives and deliverables were tied to, 

and refl ected, the ACC’s internal budget allocations. 

• Business unit plans: Developed annually and reviewed every six months. 

Business unit plans detailed the major activities, deliverables and performance 

measures for each business unit for that year. They are linked to business unit 

internal budget appropriations. 

• Individual work/performance management plans: Developed annually and 

currently reviewed every six months. Work targets for these plans refl ect those 

established for the relevant business unit as a whole. 

These plans are complemented by a range of other plans including risk management, 

fraud control, operational activity and business continuity. 

Review and Reporting 

As part of the Output Management Plan, a biannual review and reporting process 

assessed progress in achieving outputs and major initiatives. 

All business units and Determinations reviewed their business plans as part of this 

process and the results were reported to the CEO and the Senior Executive Team. 

At all levels, plans were underpinned by the ACC’s Outcome and Outputs Framework 

and were focused on the achievement of the ACC’s stated Outcome of ‘Enhanced 

Australian Law Enforcement Capacity’. 

1 The ACC’s Corporate Plan and Strategic Direction Statement will be integrated in 2004–05. 


1 


Figure 1.3: Business planning and performance measurement framework 



Output 1.1 

Criminal Intelligence 

Services

Overview of Key Activities 

The ACC is recognised as a provider of proactive and inclusive strategic intelligence 

to law enforcement agencies and other clients, with a focus on quality disseminations, 

strategic criminal assessments and other intelligence products. 

The ACC’s fi rst output aims to deliver criminal intelligence services that are 

instrumental in providing Australian law enforcement agencies with responses 

to criminal behaviour. The ACC is developing a leading edge intelligence capability 

that supports and strengthens the national fi ght against serious and organised 

criminal activity. The intelligence provided and collated by the ACC has led to 

signifi cant arrests and seizures; these are covered in more detail in Chapters 

3 and 4. ACC intelligence has also assisted the formulation of law enforcement 

policy and strategies. 

In 2003–04, the ACC continued to devote signifi cant resources to the production of 

a range of intelligence products for domestic and international agencies. Importantly, 

the ACC also continues to develop and implement the National Consultative 

Framework and continues to maintain and improve the delivery of the Australian 

Criminal Intelligence Database (ACID) and the Australian Law Enforcement 

Intelligence Net (ALEIN). 

Performance measures 

The key performance measures under this output in 2003–04 were: 

• Number and value of disseminations provided to other law enforcement agencies, 

• Provision and maintenance of criminal intelligence systems, 

• Number and signifi cance of strategic criminal assessments and other intelligence 

and information products, 

• Acceptance by ACC Board of advice on National Criminal Intelligence Priorities, 

and 

• Number of criminal intelligence priorities that become intelligence operations. 

_________________________________________________________________ 

Criminal Intelligence work in the ACC 

The ACC’s criminal intelligence work is infl uenced by the Determinations (reported 

under outputs 1.2 and 1.3) and NCIPs determined by the ACC Board. 

This work is undertaken through the ACC’s Intelligence Program which covers: 

• intelligence collection; 

• strategic reporting; 

• strategic assessment; 

• strategic threat and warning; 

• operational analysis and reporting; 


2 

OUTPUT 1.1: CRIMINAL INTELLIGENCE SERVICES

• covert intelligence; 

• Open Source Information (OSI); and 

• nationally significant conferences and workshops. 

The ACC’s Intelligence Directorate is structured into teams to provide coverage 

across the majority of NCIPs. These teams work intimately with both law enforcement 

agencies and ACC operational areas to provide timely and accurate intelligence to 

support operational and strategic decision making-processes. 

Key teams include: 

• National Fraud Team, 

• Emerging Issues Team, 

• Established Criminal Networks Team, 

• National Illicit Drugs Team, 

• National Firearms Team, 

• Vehicle Rebirthing Team, 

• Global Monitoring Team, 

• Open Source Information (OSI) Team, 

• Operational Intelligence Unit, and 

• Covert Intelligence Unit. 

_________________________________________________________________ 

Results 

Number and value of disseminations provided to other law enforcement agencies 

The ACC made more than 700 operational disseminations in 2003–04, with well over 

half of this number being formal disseminations of operational intelligence to partner 


Table 2.1: Output 1.1 – Statistical summary of ACC disseminations in 2003–04 

Measure Totals 

Formal disseminations 424 

Disseminations from covert unit 72 

Information reports 67 

Intelligence product 164 

Total 727 

Feedback received on the value of ACC formal disseminations was wide-ranging, and 

was received from numerous partner agencies involved in various investigations. 


Feedback indicated the disseminations: 

• provided evidence allowing for arrests to be made; 

• assisted in the dismantling of organised crime syndicates, including a syndicate 

involved in counterfeiting activities; 

• provided evidence for use in court; 

• confirmed criminal associations and connections with crimes; 

• provided information that investigators were not previously aware of; and 

• provided current and relevant information of assistance to investigation. 

Provision and maintenance of criminal intelligence systems 

Australian Law Enforcement Intelligence Net (ALEIN) 

ALEIN is a secure national extranet used by all Australian police services, the New 

Zealand Police, state Crime Commissions and a large number of government law 

enforcement agencies. It provides a dissemination capability for the Australian 

law enforcement community and enables cooperative intelligence sharing 

across jurisdictional boundaries. It also provides real-time, secure intelligence 

communications between the ACC, police jurisdictions and other law enforcement 

agencies across Australia. 

New ALEIN users: In 2003–04, 1580 new users ‘self registered’ to ALEIN. This 

brings the total number of registered ALEIN users to 12,756. 

ALEIN use: In 2003–04, 2313 documents were submitted to ALEIN. During this 

period 78,372 hits were recorded. 

Australian Criminal Intelligence Database (ACID) 

ACID is provided by the ACC as a national intelligence resource for Australian 

law enforcement agencies. ACID is a secure, centralised, national repository for 

criminal intelligence used to store and disseminate both intelligence and factual 

information. 

Queensland Police Service and South Australia Police use ACID as their primary 

intelligence database. All other agencies with a connection to ACID supply intelligence 

from their primary systems to the national repository. 

New ACID users: In 2003–04, 574 new users were granted access to ACID. This 

brings the total number of ACID users to 8271. 

ACID use: In 2003–04, 128,718 intelligence and information reports were uploaded 

to ACID. These reports contained 539,934 entities and 622,885 links. A total of 

736,980 searches were conducted in this period. 

Australian Law Enforcement Reference and Targeting (ALERT) program 

In 2002, the Australian Government commenced funding a proposal for $11 million 

(to be provided over four years) for the Australian Law Enforcement Referencing and 

Targeting (ALERT) program. 


2 


ALERT will provide increased analytical tools such as mapping and charting 

capabilities for intelligence practitioners as well as improve the ability to identify 

new trends and patterns in the information being supplied to the national criminal 

intelligence database. It will also provide resources for replacing ageing hardware 

and increased technical capacity and capability. 

In 2003–04 under the ALERT initiative, a feasibility study was undertaken to provide 

intelligence analysts with a search and display capability based on geographic 

location. New data storage technology was purchased and is being implemented 

as well as upgrades to the ALEIN communications infrastructure. 

Enhancements were also made to the ‘search’ capability in ACID. A ‘Virtual Office’ 

framework has been implemented to improve the ability of intelligence analysts to 

manage and share information they have extracted from the intelligence database. 

Violent Crime Linkage Analysis System (ViCLAS) 

ViCLAS captures information for analysis on serial and violent crimes such as 

attempted/actual homicides, sexual assaults, child abductions and selected missing 

persons cases. It provides jurisdictions with a useful tool which has identified more 

than 190 series of offences involving in excess of 741 crimes since its introduction. 

During the reporting period ViCLAS produced a range of disseminations on potential 

series identifications. The ACC provided technical and systems support. 

Australian Identity Fraud Protection Registers (AIPR) 

The AIPR commenced on 1 January 2004 and is a continuation and an improvement 

of the innovative Identity Fraud Register Pilot which began in February 2002. 

Through the AIPR the ACC collects information on fraudulent identities and victims 

of identity theft from 30 law enforcement and government agencies. This national 

collection allows law enforcement agencies to detect and stop the use of fraudulent 

identities for criminal activities. At 30 June 2004, the AIPR listed in excess of 4000 

fraudulent identities. 

The register has made the ACC a world leader in the identification and use of fraudulent 

identities and has already produced significant outcomes for law enforcement and 

government agencies. The ACC is also assisting other law enforcement agencies 

in the region to develop similar capacities. 

Number and significance of strategic criminal assessments and other intelligence 

and information products 

The ACC produced a number of intelligence products in 2003–04 to inform partner 

law enforcement agencies and the ACC Board of emerging harms and threats 

identified by the ACC. 


Table 2.2: Output 1.1 - Summary of ACC intelligence products in 2003–04 

Measure Totals 

Strategic Criminal Assessments 3 

Intelligence Assessments/Reports/Alerts 31 

Information Bulletins 18 

Information Items/OSI Reports 3079 1 

Presentations/Briefings 73 

Operational Reports 1 

Strategic criminal assessments 

Strategic criminal assessments are a key output of the ACC. They form the core 

output of the ACC’s strategic assessment program and are designed to provide a 

strategic context within which to understand emerging threats, to provide a foresight 

capacity to allow the development of targeted strategies, to provide warning of the 

need for new or different capabilities, policies, responses, priorities and powers to 

narrow the range of uncertainty and to ensure that this understanding is provided in 

an appropriate form to the appropriate policy makers at the right time. 

Strategic criminal intelligence assessments produced during 2003–04 were: 

• To Police the Traffickers: People Trafficking for Sexual Exploitation in Australia 

(October 2003), 

• Picture of Criminality in Australia (November 2003), and 

• Picture of Criminality in Australia (April 2004). 

_________________________________________________________________ 

Picture of Criminality in Australia 

1 This includes figures for 

data input into ACID from 

November 2003 to June 

2004. 

From November 2003 to April 2004, the ACC conducted an important strategic criminal 

threat review across all crime types in general and considered a number of criminal 

issues in more detail. The completed works comprise a Picture of Criminality in Australia 

which was compiled from intelligence reporting from across the country. The Picture 

of Criminality consists of: 

• an overview assessment that identifies current and emerging criminal threats 

to Australia in order to support decisions on National Criminal Intelligence 

Priorities; 

• an assessment of the changing nature of the strategic environment for law 

enforcement to 2007; 

• an associated threat assessment on serious and organised crime groups that 

ranks high threat criminal syndicates as well as emerging syndicates of concern- 

a first for Australian law enforcement; and 


2 


• National Criminal Threat Assessments supporting reviews of operational priorities 

in relation to the ACC’s Determinations, including assessments on: amphetamines 

and other synthetic drugs, vehicle rebirthing, firearms trafficking, identity crimes 

and money laundering. 

Intelligence analysed by the ACC reveals that while organised criminals still work 

in tight-knit groups, they more readily operate through extended networks and with 

other criminal groups with similar interests. Drugs and fraud are the big earners 

for organised criminals in Australia. Although the ACC’s Illicit Drug Data Report 

2002–03 records that cannabis remains the most widespread illicit drug, Australian 

law enforcement agencies agree that amphetamines is the big growth area due to 

the scale of profits involved. 

The Picture of Criminality was subjected to two rounds of comment and one central 

forum discussion with other law enforcement agencies and relevant policy areas. The 

papers generally received positive comments from external agencies. 

_________________________________________________________________ 

Intelligence Assessments/Reports/Alerts 

A range of national criminal threat assessments (NCTAs) were produced to provide 

strategic advice to the ACC Board on the threat posed by organised criminal activities 

nationally and to facilitate the development and review of national law enforcement 

response options. This process was unprecedented in scope and objective within 

Australian law enforcement. 

Criminal Intelligence assessments and reports produced during 2003–04 include: 

• Firearms Trafficking in Australia NCTA; 

• Money Laundering in Australia NCTA; 

• Identity Crimes in Australia NCTA; 

• Amphetamines and Other Synthetic Drugs NCTA; 

• Vehicle Rebirthing in Australia NCTA; 

• Serious and Organised Crime Groups NCTA; 

• Report on Organised Crime in Australasia (ROCA); 

• A Picture of Criminality in Australia; 

• Illicit Drug Data Report (IDDR) 2003–04; 

• Crack Cocaine: An Emerging Threat? (Strategic Warning Report); 

• OMCG involvement in amphetamine-type stimulant production Current Intelligence 

Report (CIR); 

• MDMA Trends in Australia (CIR); and 

• Illicit Drug Literature Sourced Via the Internet: Trends and Implications (CIR). 

Feedback on these reports was generally positive and mechanisms have been put 

in place to ensure that their future frequency and timeliness is enhanced. 


Alerts provide timely information of immediate issues in criminal intelligence in 

an effort to encourage further collection, analysis and action. They are produced 

periodically for partner agencies, government departments and, in specific cases, 

for industry groups. 

Alerts produced during 2003–04 include: 

• Card trapping device located in Australia; 

• Card trapping device located in Australia (For Industry); 

• Officer safety issue: Increasing use of key ring disguised firearms; 

• Person - wanted for multiple fraud offences; 

• Emerging methylamphetamine production in India: relevance to Australia; 

• Significant disguised firearm seizure: Implications for Law Enforcement; 

• Organised group/s operating a fraudulent loan scam; 

• Suspicious action of a family - regular name change; 

• Emerging trend for concealing and destroying payment cards identified in 

Malaysia; 

• Child abuse, child pornography and the internet; 

• Internet scam suspected of operating through a bank call centre; 

• Methodology to disguise blank credit cards to avoid detection; 

• Use of online images by identity crime offenders; 

• Purchase of airline tickets using fraudulent credit cards; 

• High purity MDMA tablets in Europe: implications for Australia; 

• Fraudulent purchases – Implications for Vehicle Rebirthing; 

• Full false-front located on ATM wall mounted machine; and 

• Fraudulent passport trends in the banking sector. 

_________________________________________________________________ 

Firearms National Criminal Threat Assessment 

The Firearms National Criminal Threat Assessment (NCTA) was compiled using 

information provided by all jurisdictions and from current and finalised operational 

investigations and intelligence probes. This assessment provided law enforcement 

agencies with a picture of the domestic firearms trafficking environment. The report 

was accepted by the ACC Board who endorsed its outcomes and findings and 

forwarded them to the IGC-ACC. The firearms trafficking NCTA continues to influence 

the policy environment. 

The assessment incorporated work by ACC Firearms Analysts, who worked with 

Firearms Registries in every state and territory and collected information on firearms 

seized at major shooting incidents and found in the possession of criminals on 

arrest. 


2 


Illicit Drug Data Report (IDDR) 

The ACC produced the Illicit Drug Data Report (IDDR) as an evolution of the 

Australian Illicit Drug Report (AIDR), previously produced by the former ABCI. The 

IDDR provided a law enforcement oriented statistical overview of drug arrests, 

seizures and detection. Data was provided by federal, state and territory police as 

well as forensic laboratories and ACS. It is the only report in Australia that publicly 

disseminated nationally agreed illicit drug data and provided law enforcement and 

interested stakeholders with a national picture of the illicit drugs market. 

The statistical information in the IDDR helps national law enforcement, government 

and stakeholders understand the illicit drug environment in Australia and also 

provides the data necessary to assess possible future illicit drug trends. The annual 

publishing of the IDDR supports United Nations reporting requirements for national 

law enforcement illicit drug statistics. 

Although the IDDR was a significant departure from the AIDR, it has continued to be 

well received by law enforcement agencies, government and the interested parties. 

The 2003–04 iteration of the IDDR will include greater levels of qualitative information 

on the illicit drug situation in Australia. 

Key findings of the IDDR included: 

• more than nine tonnes of illicit drugs were seized in Australia in 2002–03 in over 

46,830 seizures; 

• cannabis is the most widely used illicit drug in Australia; 

• MDMA border detections have been increasing since the mid-1990s, with weight 

of detections increasing since 1999-2000; 

• there was an increase in the seizure of amphetamine-type stimulants and an 

increase in its availability; 

• heroin seizures and heroin-related arrests increased; 

• there has been a relative decline in cocaine purity seized since 1997-98 and a 

significant drop in the number of arrests in 2002–03 compared with 2001-02; 

and 

• there was a decline in the number of seizures of performance-and-image- 

enhancing drugs for the first time since reporting began in 1994-95. 

_________________________________________________________________ 

Alert on methodology to disguise blank credit cards to avoid detection 

A timely Alert released by the ACC in May 2004 related to a concealment methodology 

of counterfeit credit cards that the ACC detected as part of Project Carlby. 

The alert provided invaluable information to the AFP regarding a suspect involved 

in the manufacture of counterfeit credit cards and the concealment of blank cards 

being shipped to Australia. The dissemination significantly progressed the AFP’s 

understanding of this syndicate’s activities. 

_________________________________________________________________ 


Information Bulletins 

The ACC National Fraud Desk produced a Fortnightly National Fraud Desk Update 

in 2003–04 to inform key stakeholders of key developments in the fraud sector. This 

bulletin was disseminated directly to over 5,000 addressees and is widely recognised 

as a valuable and worthwhile product. 

Information Items/OSI Reports 

The ACC continued to provide Open Source Information (OSI) intelligence products 

over the reporting period including daily updates covering both Australian and overseas 

environments and weekly summaries of environments sectioned by organised crime, 

illicit drugs, fi rearms traffi cking and fraud and identity crime. These summaries were 

distributed electronically and uploaded to the OSI desk on ALEIN to facilitate ease 

of access by all law enforcement and other clients nationally. 

This service was acknowledged by internal and external clients as providing an 

increased awareness of the criminal environment and as an ‘early warning’ indicator 

for emerging trends. It has evolved to become an indispensable service provision that 

enhances law enforcement awareness of relevant issues in the criminal environment, 

both domestically and internationally. 

Presentations/Briefi ngs 

The ACC provided a range of well received intelligence presentations and briefi ngs 

to Ministers, partner agencies, government departments and agencies, consultative 

forums, training courses, conferences, advisory councils and committees and industry 

groups. These presentations and briefi ngs shared knowledge and contributed to 

greater awareness of crime trends as well as ACC activities and capabilities. 

_________________________________________________________________ 

Card Skimming 

In March 2004, ACC Criminal Intelligence 

Services provided information that led to the 

disruption of a card skimming factory operating 

in Melbourne, and what police believe is the 

largest seizure of fraudulent cards in Australasia. 

The ACC seized approximately 700 skimmed 

cards, encoders and embossing machines and 

obtained details of a further 1200 cards made 

at the factory. A worldwide alert was issued on 

these cards. Importantly, the search also identifi ed how the fraudulent cards were 

imported into Australia. 


2 


Acting on information from the ACC, ACS identified a passenger at Sydney Airport 

with almost 2,000 fraudulent cards. Intelligence was then obtained through the ACC’s 

coercive powers to complement information obtained through AFP investigations. 

The information provided by ACC Criminal Intelligence Services was directly 

responsible for the June 2004 seizure of approximately 200 credit cards and 

equipment for the manufacture and distribution of skimmed cards. Three people 

were charged by the AFP for their involvement. 

The seized cards could have been used to commit approximately $4.5 million worth 

of fraud. The worldwide alert could potentially save an even greater amount. 

_________________________________________________________________ 

Acceptance by ACC Board of advice on national criminal intelligence 

priorities 

Through the provision of three Overview Threat Assessment products, the ACC 

provided advice to the ACC Board to inform the revision of the NCIPs approved 

in May 2003. This advice was the cumulative work of consultation and negotiation 

with the law enforcement and regulatory community and also a range of other 

stakeholders in the national strategic environment. The advice was referred back 

to the ACC for further clarification to be raised for approval at the ACC Board 

meeting in September 2004. 

Number of criminal intelligence priorities that become intelligence 

operations 

Identity Crime and Card Skimming were merged as a special intelligence operation 

in September 2003 while People Trafficking for Sexual Exploitation was endorsed by 

the ACC Board as a special intelligence operation in December 2003. 

Other key intelligence activities 

National Chemical Diversion Conference: The 7 th Annual National Chemical 

Diversion Conference, run by the ACC in September 2003, provided an invaluable 

forum for the sharing of information relating to developments in the production of 

illicit drugs. Funding has been secured under the National Working Group on the 

Diversion of Chemical Precursors to support the running of the next conference which 

has been re-named to the National Chemical Diversion Congress and will be hosted 

by Victoria Police over the period 19-21 October 2004. 


National Strategic Criminal Intelligence Course: Two National Strategic 

Intelligence Courses (NSIC) were conducted during the reporting period, attracting 

a total of 40 students, including five from the ACC. It is the premier training course 

offered by the ACC in partnership with the AFP and Charles Sturt University. It 

enhances professional knowledge and practice in strategic criminal intelligence in 

law enforcement agencies and creates a network of intelligence analysts from law 

enforcement agencies throughout Australia and overseas. 

The continuation of the NSIC partnership was confirmed for the next five years 

following the signing of a Memorandum of Understanding in May 2004 by ACC CEO 

Alastair Milroy, Deputy Vice-Chancellor of Charles Sturt University, Professor Ross 

Chambers and AFP Commissioner Mick Keelty. 


2 


3Output 1.2 


Criminal Intelligence 

Operations


The ACC is recognised as adding signifi cant value to operations into serious organised 

crime through its capability to plan and execute intelligence operations, and through 

the strategic and tactical use of its coercive powers. 

The ACC’s second output, Criminal Intelligence Operations, aims to disrupt and deter 

serious organised crime through the conduct of intelligence operations into federally 

relevant criminal activity, in collaboration with partner law enforcement agencies. 

The criminal intelligence operations authorised by the ACC Board were selected 

to utilise the ACC’s abilities to target emerging crime trends. The operations aim to 

obtain strategic insight into crime through the use of the ACC’s specialist capabilities 

and coercive powers and through collaborative arrangements with partner agencies 

and other groups. 

The major objectives for criminal intelligence operations are for the ACC to work with 

its partner agencies to: 

• improve intelligence on the nature and extent of the threat; 

• scope the threat in an international context, identifying trends, vulnerabilities and 

law enforcement opportunities; 

• reduce the impact of the threat on the Australian community; and 

• deliver informed and timely advice to drive an effective national response to the 

threat. 

The resulting assessments provided law enforcement with the understanding 

necessary to counter these areas of criminal activity. 

In 2003–04, the ACC continued to devote considerable resources to—and achieve 

signifi cant results in—intelligence operations determined and authorised by the ACC 

Board. 

Table 3.1: Totals for Special Intelligence Operations 

Measure Total 

Arrests 13 

Charges 34 

s28 Examinations held 131 

s29 Notices issued 19 


3 

OUTPUT 1.2: CRIMINAL INTELLIGENCE OPERATIONS



• Number conducted and proportion of proposals actioned by ACC Board; 

• Achievement of objectives of intelligence operations; 

• Use of coercive powers; 

• Collaboration with partner law enforcement agencies; and 

• Number evaluated and determined as special investigations. 

Results 

Number conducted and proportion of proposals actioned by ACC Board 

During the reporting period, the ACC conducted the following four special intelligence 

operations: 

• Amphetamines and Other Synthetic Drugs (AOSD); 

• Vehicle Rebirthing; 

• Identity Crime and Card Skimming; and 

• People Trafficking for Sexual Servitude. 

During the reporting period the ACC Board actioned all intelligence operation 

proposals. 

The ACC proposed to the ACC Board that the authorisations for intelligence operations 

on Identity Crime and Card Skimming, which were approved in May 2003, should be 

merged into a single intelligence operation. The ACC also proposed that the new 

intelligence operation should be a special intelligence operation with access to the 

ACC’s special powers. The ACC Board approved this proposal at its September 

2003 meeting. 

Number evaluated and determined as special investigations 

During 2003–04, no intelligence operations were evaluated and determined as 

special investigations. 

Reporting against remaining performance measures 

The performance of all four ACC special intelligence operations against the remaining 

performance measures are as follows. 


Determination - Amphetamines and Other Synthetic Drugs (AOSD) 

The AOSD Determination commenced in May 

2003 with the objective of developing intelligence 

in relation to the importation, manufacture and 

traffi cking in amphetamines and other synthetic 

drugs and precursor chemicals. The aim of the 

special intelligence operation is to better guide 

investigative action and policy as part of a more 

comprehensive national response. 

Amphetamines and other synthetic drugs are 

becoming the most widely used and abused illicit 

drugs in the world. Australia is not immune to 

this problem and has mirrored the international 

trend towards increased importation, manufacture and traffi cking of amphetamines, 

predominantly by well organised criminal groups, including Outlaw Motor Cycle 

Gangs (OMCGs). 

The increase in the domestic production of Amphetamine Type Substances (ATS) 

such as MDMA (ecstasy) has seen a related increase in the organised sourcing 

and traffi cking of chemical precursors and pharmaceutical products which are the 

ingredients of illicit drugs. 

An essential feature of this special intelligence operation was the ACC’s close 

consultation with jurisdictions to identify people suspected of being involved in 

the manufacture and distribution of amphetamines or involved in supplying critical 

ingredients or equipment. Numerous people were summonsed to ACC coercive 

examinations to be questioned on their direct or indirect involvement in the criminal 

activity. As a result of these examinations the ACC and partner agencies conducted 

a number of operations to explore the information obtained. The key results from 

these operations included: 

• South Australia Police seized 25 kgs of pseudoephedrine from a pharmacist who 

was manufacturing ‘over-the-counter’ hay fever capsules. Substantial amounts 

of these capsules were being sold to professional ‘pseudo’ shoppers for use in 

MDMA manufacture; 

• Victoria Police seized $501,000 from a security company vault - the suspected 

proceeds of crime from a known amphetamine/precursor dealer; 

• a joint Queensland Police and ACC operation coercively examined 65 witnesses 

to ascertain the methods used for manufacture and distribution of amphetamines. 

Numerous other offences were also identifi ed, in particular, extensive drug 

traffi cking by a number of principal offenders; 


3 


• clear evidence now confi rms and links OMCGs to the manufacturing process of 

ATS in Australia, with organised and large scale sourcing of precursor chemicals 

and pharmaceuticals and the subsequent traffi cking of ATS products in commercial 

quantities; 

• Queensland Police investigated a person who sourced in excess of 240 kgs of 

iodine, an amphetamine precursor, through a company and then diverted the 

entire amount to a person linked to a well known OMCG member; 

• NSW Police seized 400 litres of sassafras oil from an importing company which 

had imported over 2.5 tonnes of the oil over the past two years. Sassafras oil 

is an essential precursor used in the manufacture of MDMA. This company has 

now voluntarily withdrawn from importing and dealing in this commodity; 

• a well known private producer of laboratory glassware was identifi ed and 

summonsed to an examination in Queensland. This person admitted that he had 

produced and sold 774 reaction vessels to numerous unknown people over an 

18 month period. He further admitted to knowingly supplying the amphetamine 

industry with glassware for a period of fi ve years. He voluntarily closed his 

operation; and 

• a total of fi ve people were arrested and seven charges were laid as a result of 

Determination activity. 

Achievement of these results was greatly assisted by the use of the ACC’s coercive 

powers. 

Table 3.2: Output 1.2 – AOSD use of coercive powers 

Measure Total 



A number of legal and administrative reform issues have been identifi ed and will be 

further discussed with ACC Board member agencies and the Commonwealth Attorney 

General’s Department. These issues include: 

• legislative defi ciencies and non-uniformity throughout jurisdictions relating to 

possession and supply of precursor chemicals; 

• limited appropriate legislation at a Commonwealth and state level governing 

the importation and control of pill 

presses and other related laboratory 

apparatus including glassware; 

• regular non-compliance by chemical 

suppliers with the voluntary National 

Code of Practice; and 

• lack of appropriate ‘children found in 

laboratory’ legislation. 


Clandestine laboratory

A formal working group consisting of state, territory and Commonwealth jurisdictions 

was established to progress the commencement of a national clandestine laboratory 

database. Closer relationships have been established with the private/public sectors 

through regular meetings and briefi ngs. For example, the ACC is represented at 

the National Working Group on Diversion of Precursor Chemicals and the annual 

National Chemical Diversion Congress (NCDC) conducted in September 2003, with 

the next planned for October 2004. 

Determination - Vehicle Rebirthing 

The Vehicle Rebirthing Determination commenced in May 2003 with the aim 

of developing intelligence in relation to 

vehicle rebirthing in Australia to better 

guide investigative and policy action 

and to facilitate a more comprehensive 

national response. 

Vehicle theft and rebirthing costs Australians 

around $500 million each year. Rebirthing 

occurs when a vehicle’s identifi able parts 

are replaced with identifi cation from another 

vehicle. Rebirthing is a key enabler for a 

range of criminal activities as it provides 

a high profi t, low risk criminal enterprise. 

Criminals involved in rebirthing typically operate across jurisdictions, selling vehicles 

stolen from one state in another. 

Although the overall level of vehicle theft in Australia has decreased, the number of 

unrecovered vehicles, which is generally considered to be an indicator of organised 

criminal activity, has reduced at a much lower rate, indicating that rebirthing will 

continue to be a problem for some time. 

Results include: 

• the ACC now has an improved understanding of the extent and nature of vehicle 

rebirthing in Australia. A Vehicle Rebirthing desk has been established on the 

Australian Law Enforcement Intelligence Net (ALEIN), which will facilitate the 

sharing of information amongst law enforcement on a national basis; 

• the ACC’s coercive powers were utilised during an intelligence probe to gain further 

insight into the theft of motor vehicle parts from the manufacturing industry. The 

project tested the theory that thefts from manufacturers were contributing to the 

problem of organised motor vehicle crime. The project revealed high volume, 

but largely opportunistic theft occurring constantly, but showed no direct links to 

vehicle rebirthing; and 

A vehicle identifi cation number that has 

been tampered with 


3 


• a number of collaborative relationships with key stakeholders from the public and 

private sectors were formed. This includes relationships with insurance agencies 

and local car manufacturers, government agencies including ACS and partner 

agencies. 

_________________________________________________________________ 

Smashing prime mover rebirthing operation in Queensland 

A multi-jurisdictional vehicle rebirthing operation involving the ACC was awarded the 

Australasian Branch of the International Association of Auto Theft Investigator’s 2004 

Auto Theft Investigation of the Year. 

ACC investigators and telecommunication interception and intelligence staff assisted 

in the Queensland Police-led operation. The operation was successful in dismantling 

an organised criminal network involved in rebirthing stolen prime movers and trailers. 

Suspect properties were identified and 30 of 34 heavy vehicles reported stolen in 

Queensland were eventually recovered. Twelve people were charged with 76 offences 

and $1.7 million in property was restrained. Stolen goods, cars and other vehicles, a 

small quantity of illicit drugs and unlicensed and stolen firearms were also seized. 

_________________________________________________________________ 

Use of the ACC’s coercive powers under the Vehicle Rebirthing Determination was 

minimal as most vehicle rebirthing operations were conducted in collaboration with 

partner law enforcement agencies not requiring use of the powers. 

Table 3.3: Output 1.2 – Vehicle rebirthing use of coercive powers 

Measure Total 



_________________________________________________________________ 

Vehicle Rebirthing media campaign 

The Vehicle Rebirthing Special Intelligence Operation launched a national advertising 

campaign on 21 January 2004 to gather information on organised vehicle theft and 

vehicle rebirthing from the public and industry stakeholders. The campaign included 

the use of industry and consumer magazines, websites and ethnic press specifically 

targeting Arabic speakers. Responses from the public reporting criminal activity were 

encouraging; and a number of disseminations were made to partner agencies with 

the information that was received. 

The ACC also sought submissions from manufacturers, insurance agencies, 

registration bodies, industry bodies, law enforcement and government agencies as 

part of its intelligence collection process into vehicle rebirthing. The submissions 


provided information on the diffi culties of combating vehicle rebirthing from a national 

perspective, as well as identifying opportunities for industry and law reform to reduce 

its impact on the Australian community. 

There were a number of recurring issues and suggestions that were raised as part of 

the submission process which the ACC may be able to help resolve, including fl aws 

in registration systems. The ACC is also conducting intelligence work in relation to 

the motor vehicle export trade. 

The ACC is well placed to provide meaningful representation in industry forums 

and to fulfi l an intelligence collection and coordination role in cooperation with the 

jurisdictions. Stakeholders have indicated that a national coordinated response is 

required to address vehicle rebirthing. 

_________________________________________________________________ 

Determination - Identity Crime and Card-Skimming 

The ACC Board resolved to make the Identity Crime and 

Card Skimming Determination a Special Intelligence 

Operation on 22 September 2003. The Determination 

commenced in October 2003 with the objective of 

developing intelligence in relation to identity crime in 

Australia to better guide investigative and policy action 

as part of a more comprehensive national response. 

Identity crime is a global phenomenon that is resistant 

to traditional policing approaches. Technological 

developments have provided the criminal sector with 

a range of options for obtaining or producing fraudulent identity documents that are 

high quality, low cost and increasingly easy to access. Identity crimes, particularly 

identity fraud and theft, remain central to much criminal activity and now constitute a 

key growth area – driven by increasingly stringent regulatory frameworks (especially 

in relation to controls on freight and movement), electronic business environments 

and other opportunities for fraud. 

The Determination adopted a number of innovative approaches to the identity crime 

problem, particularly in relation to the fraud register and card skimming database, 

and made a signifi cant impact through its contribution to several forums and the 

policy environment. 


• $30,000 of fraudulently obtained merchandise has been recovered and 

restrained; 

• eight people were arrested and 27 charges laid as a result of activity by the 

Determination; 


3 


• the ACC’s coercive powers were successfully employed to obtain intelligence 

from international identity crime offenders; 

• the fraud register has successfully linked information which contributed to arrests 

in other law enforcement jurisdictions; and 

• intelligence obtained by the Determination resulted in changes to the online 

displays of proof of identity documents at several state Births, Deaths and 

Marriages Offices. These displays were being used to create fraudulent 

documents. 

_________________________________________________________________ 

Project Carlby 

This project led to the significant disruption of an international card skimming syndicate 

through the seizure of 700 fraudulent credit cards, embossing and encoding machines 

to produce skimmed cards and the detection and worldwide alert of approximately 

1150 skimmed cards that were being used to commit fraud around the world. According 

to industry experts, the 700 cards could have been used in transactions of up to $3.5 

million, and the early detection of a further 1150 cards could potentially have saved 

$5.75 million. 

_________________________________________________________________ 

ACC National Card Skimming Database 

In March 2004, the ACC launched its pilot National Card Skimming Database to 

protect Australian Eftpos and credit card holders from card-skimming. Card skimming 

occurs when information on the magnetic strip of credit and Eftpos cards is copied 

using a small device during a transaction, and transferred onto a blank card, to be 

used without the knowledge of the card’s owner. The database, which is the first of 

its kind in the Asia-Pacific region, boosted the ability of law enforcement agencies to 

detect and stop card skimming by storing and sharing details of skimmed cards, and 

provided intelligence of how and where the cards were skimmed. The database will 

also help identify the organised gangs responsible for card skimming. 

The pilot has now been finalised, and the ACC is assessing the results. 

_________________________________________________________________ 

Despite the limited use of the coercive powers in 2003–04 under the Identity Crime 

and Card Skimming Determination, their use helped disrupt an international card 

skimming operation (Project Carlby). 


Table 3.4: Output 1.2 – ID Crime use of coercive powers 

Measure Total 



Many ID Crime operations were conducted in collaboration with partner law 

enforcement agencies. 

_________________________________________________________________ 

Operation Pitsford 

In February 2004, Intelligence supplied by the ACC’s Criminal Intelligence Services 

Directorate, and the combined efforts of New Zealand Police and the Department of 

Immigration and Multicultural and Indigenous Affairs (DIMIA), led to the arrest of a 

New Zealand woman for identity fraud offences. Searches uncovered a number of 

fraudulent identity documents including biography pages for New Zealand passports, 

birth and marriage certificates, cheque books and credit cards, a Victorian driver’s 

licence, an American state driver’s licence and complete portfolios of documents to 

substantiate at least five different fraudulent identities. 

The woman’s arrest is believed to have saved the Australian community an estimated 

$400,000 in fraud and recovery costs. 

_________________________________________________________________ 

Additional outputs under the Determination included: the ACC’s participation in seven 

identity crime working parties with membership from both public and private sectors; 

the development and communication of an understanding of the weaknesses in proof 

of identity processes; and the development of an understanding of the methodologies 

used for manufacturing and producing skimmed cards which has allowed law 

enforcement to better detect and prosecute identity crime offenders. 

Determination - People Trafficking for Sexual Exploitation (PTSE) 

The People Trafficking for Sexual Exploitation Determination commenced in December 

2003 with the objective of developing intelligence to better guide investigative and 

policy action as part of a more comprehensive national response. Following evaluation 

of an ACC classified assessment concerning people trafficking for sexual exploitation, 

the ACC Board agreed that a special intelligence operation in cooperation with the 

AFP and DIMIA would have a significant impact on the investigation and prosecution 

of those involved in people trafficking in Australia. 


3 


Operational activity under this Determination is not led by the ACC, rather the 

Determination is designed to complement partner agencies’ investigative efforts. 

People Trafficking for Sexual Exploitation (PTSE) is an increasingly prevalent crime 

that generates continued profits for criminals. The trafficking of women to work in 

the sex industry is the most common form of people trafficking in many countries. It 

often involves a range of other crimes at various stages of the trafficking process, 

including immigration offences, identity crimes, fraud, money laundering, tax evasion, 

operating illegal brothels, various forms of assault, and may occur within the context 

of a legitimate business operation. 


• Information Collection Plans were developed and provided to the ACC’s Covert 

Intelligence section for the identification and development of appropriate human 

sources. Two enquires were initiated as a result of this strategy. An Information 

Collection Plan is also being developed for distribution to AFP overseas liaison 

officers for ongoing international collection; 

• an Information Collection Plan has been drafted and is being further developed as 

a source document for the National Criminal Intelligence Collection Requirements 

process. This will assist in targeting and identifying intelligence gaps in people 

trafficking and its relationship with other organised criminal activity; 

• briefings were delivered by the ACC to all Australian police agencies, Australian 

Transaction Reports and Analysis Centre, NSW Crime Commission, Queensland 

Crime and Misconduct Commission and DIMIA, as well as to trafficking 

investigation courses run by the AFP; 

• an informal network was established with law enforcement agencies also 

investigating this area of crime; and 

• the ACC participated on an Inter-Departmental Committee looking at a whole-of- 

Government approach to trafficking in women for sexual exploitation. 


_________________________________________________________________ 

Consultations on PTSE 

As part of its commitment to combating people trafficking for sexual exploitation, 

the ACC held meetings with the Melbourne-based NGO ‘Project Respect’, and a 

visiting former US Congresswoman engaged to undertake research on behalf of the 

US State Department. Discussions were held with an international consultant on 

people trafficking and with a number of local councils in an effort to develop a range 

of possible sources for intelligence collection. 

_________________________________________________________________ 

Use of the ACC’s coercive powers under the People Trafficking for Sexual Exploitation 

Determination was minimal as most operations were conducted in collaboration with 

partner law enforcement agencies not requiring use of the powers. 

Table 3.5: Output 1.2 – PTSE use of coercive powers 

Measure Total 




3 



Output 1.3 


Federally Relevant 

Criminal Activity


The ACC’s third output aims to disrupt and deter serious organised crime through 

investigations into federally relevant criminal activity, in collaboration with partner 


The ACC proactively involves itself in criminal investigations that are strategically 

selected to enhance Australian law enforcement capacity. Each investigation 

aims to combine the ACC’s coercive powers and specialist expertise with partner 

agencies to: 

• disrupt and deter criminal syndicates from committing offences; 

• enhance the ACC’s intelligence in areas of crime to further benefi t partner 

agencies; 

• identify key organised crime groups and individuals, and their associates; 

• identify interaction and connections between criminal groups in Australia and 

internationally; 

• identify assets obtained with proceeds of crime and money laundering activities; 

and 

• identify areas of possible law reform or other relevant information. 

The ACC forms joint or cooperative task forces, domestically and internationally, 

to investigate serious and organised crime using its coercive powers and specialist 

capabilities. 

In 2003–04 the ACC continued to devote considerable resources to, and achieve 

successful results in, investigations approved by the ACC Board. 



• Number of investigations conducted and allocated by the ACC Board; 

• Value of proceeds of crime forfeited; 

• Use of coercive powers; 

• Achievement of objectives of investigations; 

• Number and signifi cance of arrests and charges arising from investigations; and 

• Collaboration with partner law enforcement agencies. 


4 

OUTPUT 1.3: INVESTIGATIONS INTO FEDERALLY RELEVANT CRIMINAL ACTIVITY

Results 

Number conducted and allocated by the ACC Board 

During the reporting period, the ACC conducted the following five special 

investigations: 

• Firearms Trafficking; 

• Established Criminal Networks; 

• Established Criminal Networks - Victoria; 

• South-East Asian Organised Crime (SEAOC); and 

• Money Laundering and Tax Fraud. 

In addition, investigations under the former NCA Freshnet (Established Criminal 

Networks), Blade (South East Asian Organised Crime) and Swordfish (Money 

Laundering and Tax Fraud) References ceased on or before 30 September 2003. 

Carry over prosecutorial action arising from those operations continued and is reported 

under current Determinations results in Table 4.15. 

Figure 4.1: Total arrests, charges and use of coercive powers for ACC Special Investigations 

Number 

100 

80 

60 

40 

20 

0 

Jul 

Arrests 

Aug 

Sep 

Oct 

Reporting against remaining performance measures 

The performance of all five ACC special investigations against the remaining 

performance measures are as follows. 


Charges 

Nov 

Dec 

Jan 

Month 

s.28 

Feb 

Mar 

Apr 

s.29 

May 

June

Determination - Firearms Traffi cking 

The Firearms Trafficking Determination 

commenced in May 2003 with the objectives 

of investigating, disrupting and dismantling 

fi rearms traffi cking organised crime groups 

active in Australia, and improving intelligence 

on the nature and extent of the fi rearms 

trafficking threat to Australia. The ACC’s 

Firearms Traffi cking Special Investigation 

represents the collaborative operational 

arrangements between the ACC and its law enforcement partners. 

Firearms seized by the ACC 

The current concerns with fi rearms traffi cking in Australia are refl ective of the 

domestic climate, both politically and within law enforcement. The major source of 

illegal fi rearms in Australia is the diversion of legal fi rearms from people who have 

legitimate access. This is largely facilitated by a small number of corrupt licensed 

fi rearms dealers, licensed fi rearms owners/users, as well as people in the private 

security sector and various government agencies (for example, defence, law 

enforcement and corrections). Organised criminal groups are key consumers of 

illegally traffi cked fi rearms. 

The ACC has had a major impact on criminal groups trading in firearms in 

2003–04. ACC intelligence and investigations, usually in partnership with police, have 

dismantled several fi rearm traffi cking syndicates. This included a syndicate in NSW 

involved in the production of thousands of lethal and highly concealable key-ring 

guns. Most recently, working with police in Victoria, an ACC investigation seized a 

major cache of fi rearms and ammunition. 

A range of assets including a house, land and vehicles were restrained under state 

legislation as a result of fi rearms investigations. 

Table 4.1: Output 1.3 – Firearms Traffi cking proceeds of crime forfeited 

Measure Total 

Assets restrained $1,581,200 

Pecuniary Penalty Orders (PPO) $94,000 

The use of coercive powers under the Firearms Traffi cking Determination provided 

valuable information on fi rearms traffi cking, the location of weapons and information 

on organised tax evasion. 


4 


Table 4.2: Output 1.3 – Firearms Trafficking use of coercive powers 

Measure Total 



Figure 4.2: Use of coercive powers under the Firearms Trafficking Determination 

Number 

12 

10 

8 

6 

4 

2 

0 

Jul 

The Firearms Trafficking Determination has provided intelligence and information 

to place into context Australia’s position within the international illicit firearms 

market. Each investigation under the Determination has targeted federally-relevant 

criminal activity and focused on gathering information and intelligence regarding the 

importation of firearms and cross border trafficking. Many of these investigations have 

led to the seizure of firearms, arrests, charges and convictions. 


• the seizure of 1,121 firearms; 

• a National Threat Assessment on Firearms Trafficking was produced from 

intelligence collected from Australian law enforcement agencies, and was 

circulated to ACC Board members; 

• twenty drug seizures; and 

• the Firearms Trafficking Determination conducted 31 projects/operations in 

an effort to reduce the impact of firearms trafficking in Australia and identify 

culprits. 

s.28 held 

Aug 

Table 4.3: Output 1.3 – Firearms Trafficking arrests and charges 

Measure Total 

Arrests 33 

Charges 190 

Sep 

Oct 


s.29 issued 

Nov 

Dec 

Jan 

Month 

Feb 

Mar 

Apr 

May 

Jun

Figure 4.3: Firearms Traffi cking Determination arrests and charges by month 

Number 

60 

50 

40 

30 

20 

10 

0 

Jul 

Arrests 

Aug 

_________________________________________________________________ 

Operation Pewsey 

This joint ACC and NSW Police investigation targeted .32 

calibre key-ring fi rearms being manufactured and sold 

in NSW. Nine-hundred and two key-ring fi rearms were 

seized during the operation, with suffi cient components 

to produce another 2500 firearms. Ten people were 

arrested on 55 charges; the manufacturer was identifi ed 

and closed down. Other fi rearms seized as part of this 

operation included four pistols, a machine pistol, 49 stun 

guns, mace, and a crossbow. Clandestine laboratory, 

chemicals, and cannabis were also seized during the 

investigation. The seizures confi rmed that illegal fi rearms 

are being manufactured in Australia. 

Operation Backford 

Sep 

Oct 

Charges 

Nov 

In Project Backford, the ACC investigated the traffi cking of fi rearms to OMCGs in 

Western Australia with possible links to Melbourne. The operation established that 

a fi rearms dealer diverted in excess of 700 fi rearms (mainly handguns) to the illicit 

market. The dealer has been charged. Seven examinations were conducted which 

provided valuable intelligence on fi rearms traffi cking and organised tax evasion and 

facilitated in the recovery of 68 handguns. 

Dec 

_________________________________________________________________ 

Jan 

Month 

Feb 

Mar 

Apr 

May 

Jun 

A key-ring gun 

_________________________________________________________________ 


4 


_________________________________________________________________ 

Project Narborough 

During 2003–04, the ACC focused on gathering intelligence and conducting national 

investigations into illegal firearms trafficking syndicates. In June 2004, an intensive 

investigation by the ACC and Victoria Police resulted in the seizure of various illegal 

firearms and the arrest of a husband and wife in Victoria. 

A raid on a property resulted in the seizure of 20 unlicensed firearms, 11 of which 

were prohibited firearms, including semi-automatic handguns, semi automatic rifles, 

and one MP40 sub machine gun. A large quantity of ammunition was also seized. 

Seven of these weapons had been reported stolen from the property during a burglary 

in 1997. A further six of the seized firearms with destroyed serial numbers were also 

believed to have been previously reported stolen. 

Further search warrants executed on associates’ properties resulted in the seizure 

of 75 unlicensed firearms, the majority of which were longarms. 

This investigation is another example of the excellent working relationships between 

national, state and territory law enforcement agencies. 

_________________________________________________________________ 

Additional outputs under the Determination included: 

• the provision of a report detailing law reform proposals for state and territory 

firearms legislation, supported by ACC operational case studies; 

• a media campaign was conducted in July 2003 calling for information and 

submissions regarding firearms trafficking. Information has been investigated 

and outcomes of those investigations have been disseminated to the relevant 

jurisdictions; 

• the ACC is organising meetings on firearms trafficking with law enforcement 

agencies, ACS and Defence to provide a forum for the exchange of information 

and to encourage operational cooperation; 

• the Head of Investigations of the Firearms Trafficking Determination represents 

the ACC at the Firearms Police Working Group, which is chaired by the 

Commonwealth Attorney General’s Department; and 

• law reform issues have been identified, and included a comprehensive review of 

jurisdictional firearm legislation which has been forwarded to the Commonwealth 

Attorney General’s Department and jurisdictions for information and attention. 

Determination - Established Criminal Networks (ECN) 

The majority of serious criminal activity in Australia is linked to organised criminal 

groups. The aim of the Established Criminal Networks Special Investigation is to 

investigate the entrenched criminal networks involved in drug importation and 

manufacture, money laundering and violence. These groups have both a willingness 

and capacity to corrupt public officials, intimidate witnesses and use knowledge of 

law enforcement methods to defeat investigations. 


As at 1 June 2004, operations previously conducted under the South East Asian 

Organised Crime (SEAOC) Determination were incorporated into the ECN 

Determination. 

ECN operations have demonstrated the resilience of criminal groups. In Operation 

Senatus, for example, despite the disruption caused by the arrest of key players in 

Australia and India, the network has continued its criminal activities. 

Networks identified in ECN operations prevail as fluid ‘entrepreneurial’ type networks 

involving a core group or key individuals. Intelligence has found that these groups 

often combine expertise and resources to commit crimes, most usually drug 

trafficking, and maintain a range of strategic relationships to facilitate their illicit 

activities. Associations and involvement in specific types of business activities are 

commonplace. The networks are involved in a range of criminal activities which are 

ancillary to their primary criminal involvement in the lucrative domestic and international 

drug market. While nationality and background appears not to limit membership to 

specific networks, ECN operations have shown that key individuals within groups do 

share common ethnic backgrounds. The Determination has also benefited from the 

profiling of criminal networks through the production of the ACC’s National Criminal 

Intelligence Assessment on Serious and Organised Crime Groups. 

ECN operations conducted by the ACC have resulted in numerous charges relating to 

various criminal activity including narcotic and firearms offences. The people charged 

have played significant roles within their respective criminal groups, creating disruption 

and reducing the threats they pose. 

A substantial amount of assets including houses, properties, factories, cars, trucks, 

truck trailers and cash in bank accounts were restrained under Commonwealth and 

state legislation as a result of ECN operations. 

Table 4.4: Output 1.3 – ECN use proceeds of crime restrained 

Measure Total 


Exercise of the ACC’s coercive powers under the ECN Determination has confirmed 

that the dominant criminal activities in Australia are the importation, distribution 

and/or manufacture of illicit drugs, as well as associated offences including money 

laundering and defrauding the Commonwealth through tax evasion. Coercive powers 

have resulted in the arrest and charging of significant criminal members involved in 

such activities as drugs (Operation Ballynoe and Boothia) and firearms trafficking 

(Operation Senatus), and has led to the dismantling and deterrence of organised 

criminal groups that would have otherwise continued to commit serious crimes. 


4 


Table 4.5: Output 1.3 – ECN use of coercive powers 

Measure Total 



S20 Notices issued 3 

Targeting of established criminal networks has provided an enhanced understanding 

of a number of criminal networks within Australia, operating regionally, nationally 

and internationally. Twenty-three tactical investigations and four target development 

projects were initiated leading to the seizure of drugs and assets and resulting in arrests 

and charges. Targeting has also identified significant links to other ACC operations 

which investigate organised and serious crime under other Determinations. 

Figure 4.4: Use of coercive powers under the ECN Determination 

Number 

25 

20 

15 

10 

5 

0 

Jul 

s.28 

Aug 

_________________________________________________________________ 

Operation Ballynoe 

Sep 

Oct 

Operation Ballynoe, an ECN Operation which was supported by AOSD, led to the seizure 

of 2500 ecstasy tablets (MDMA) and $37,500 in August 2003. In September 2003, eight 

arrests were made, 12.5 kgs of precursor chemical seized and 445 grams of amphetamine 

was purchased from the target. Later that month, approximately 4.4 kgs of precursor 

chemical was seized in a joint operation with Queensland Police. Several examinations 

were held in November 2003 resulting in four arrests. Additional examinations were held 

in February 2004 resulting in three additional targets being arrested and charged. 

_________________________________________________________________ 


s.29 

Nov 

Dec 

Jan 

Month 

Feb 

Mar 

Apr 

May 

Jun


• significant disruption of established criminal networks in Australia; 

• 161 disseminations released to partner agencies; one of which directly resulted 

in the arrest of three people by South Australian Police for attempted murder; 

• the seizure of MDMA in Italy and cocaine in Peru; 

• 47 drug seizures in total; 

• the identification of significant links to other ACC operations under the ACC Money 

Laundering and Tax Fraud, Firearms Trafficking, Vehicle Rebirthing and AOSD 

Determinations; and 

• significant collaboration with partner agencies through joint task force and joint 

operational arrangements. 

_________________________________________________________________ 

Task Force Schumacher 

Task Force Schumacher was established in December 2003 to facilitate investigations 

in a number of jurisdictions relative to several criminal groups, who either act singularly 

or in concert with others, to commit serious criminal offences impacting on the Australian 

community. It was the first ACC Board authorised task force to be established under 

the ACC Act. It is known that the criminal activities being perpetrated by these groups 

is spread between four states with identified international connections and activity. 

The Task Force arose because of the known national links and the strategic national 

understanding of these groups gained under the NCA Freshnet Reference. This 

included the basic enterprise composition, structure and activities which continue to be 

an ongoing threat to the Australian community. Schumacher is a nationally coordinated 

investigation into the larger narcotic enterprise using the full suite of investigative 

tools available to the ACC, particularly its coercive powers. It has allowed for more 

effective, focused and informed targeting and investigation to reduce the impact of 

this ECN on the Australian community, particularly in relation to the importation of, 

and trafficking in, illegal drugs. 

A further aim of the Task Force is for any intelligence gathered identifying criminal 

activities of other networks peripheral to the target networks to be processed and 

disseminated to state, territory and/or Commonwealth agencies for action. 

_________________________________________________________________ 

Operation Senatus 

In October 2003, eight firearms (six handguns, one UZI machine gun and one shot 

gun), six silencers and a considerable amount of ammunition were seized in South 

Australia. In November 2003, 12 search warrants were executed in Victoria, resulting 

in seven arrests and a total of 21 charges. A further six offenders were interviewed 

and were dealt with by way of summons on a further 18 charges. 

_________________________________________________________________ 


4 


Table 4.6: Output 1.3 – ECN arrests and charges 

Measure Total 

Arrests 75 

Charges 198 

Many ECN operations were conducted in collaboration with partner law enforcement 

agencies. Examples include: Operation Kallisto - a joint Northern Territory and ACC 

investigation which led to the restraining of assets totalling $950,000, including three 

properties, one bank account five motor vehicles and one motorcycle. The ACC’s 

coercive powers revealed evidence of unrelated offences which could not have been 

obtained through ordinary police methods. Operation Boothia was a joint ACC and 

Queensland Police investigation in August 2003 which led to the seizure of 2.6 

kgs of cannabis (believed to be part of a 40 kgs consignment), a small amount of 

amphetamine, cash, scales, heat sealing equipment and growing instructions. Further 

arrests were made in January 2004. 

An additional output under the ECN Determination was the identification of a need for 

law reform to more effectively address the issue of ECNs. Proposals for reform include 

amendments to permit the commencement of prosecutions under Corporations Law 

and to the Victorian Fisheries Act to include indictable offences in circumstances of 

serious criminality. 

Figure 4.5: ECN arrests and charges by month 

Number 

50 

40 

30 

20 

10 

0 

Jul 

Arrests 

Aug 

Sep 

Oct 


Charges 

Nov 

Dec 

Jan 

Month 

Feb 

Mar 

Apr 

May 

Jun

Determination – Established Criminal Networks – Victoria 

This Determination is an excellent example of the ACC working in partnership with 

a jurisdiction to address major criminal activity with its roots in a particular state, but 

with national or international implications for Australian law enforcement. 

The Australian Crime Commission Special Investigation Consent and Determination 

(Established Criminal Networks - Victoria) 2004 authorised the special investigation 

of allegations that established criminal networks are involved in a range of criminal 

offences and activity in Victoria. This Determination was made under the Australian 

Crime Commission (State Provisions) Act 2003 and is the only Determination made 

by the ACC Board so far under state or territory underpinning legislation. 

The objective of the ECN - Victoria special investigation is to assist the Victoria Police 

Purana Task Force investigations of state offences committed by members of ECNs 

active in and based in Victoria. Offences included, murder, drug offences, firearms 

offences, bribery and corruption, kidnapping, blackmail, perverting the course of 

justice and connected criminal activity. 

Operational activity under this Determination, which commenced in March 2004, is 

not led by the ACC. The Determination is designed to complement partner agencies’ 

investigative efforts. This involves the utilisation of the ACC’s coercive powers to assist 

in progressing investigations leading to prosecution, and to assist with intelligence 

and target development. 

No proceeds of crime have been forfeited under this Determination. 

Exercise of the ACC’s coercive powers under the ECN - Victoria Determination have 

been undertaken in support of partner agency investigative efforts. 

Table 4.7: Output 1.3 – ECN - Victoria use of coercive powers 

Measure Total 

S19 Examinations held 13 


Table 4.8: Output 1.3 – ECN - Victoria arrests and charges 

Measure Total 

Arrests 2 

Charges 4 


4 


Determination - South-East Asian Organised Crime (SEAOC) 

The SEAOC Determination 

commenced in May 2003 with the 

aim of investigating organised crime 

groups involved in the importation 

of illicit drugs from South East 

Asia, particularly heroin, and 

associated offences including 

money laundering, tax fraud and 

violence. It was moved into the ECN 

Determination as of 1 June 2004. 

Since 1995, South-East Asian 

organised crime groups operating in 

Australia have been specifi cally targeted 

as part of a coordinated law enforcement response. ACC intelligence has contributed 

to providing an updated national law enforcement overview of this area. However, it 

has become increasingly apparent that SEAOC groups are no longer confi ning their 

criminal activities to specifi c crimes, and are increasingly willing to cooperate with 

criminal entities of various ethnic backgrounds to meet market demands for a range 

of drug commodities. This was highlighted in the ACC’s Katakan and Djura (phase 

3) operations and recent Joint Asian Crime Group (JACG) drug seizures. 

The blurring of distinctions between ethnic criminal groups, coupled with the shift from 

perceived traditional product lines, led the ACC to merge the SEAOC Determination 

into the ECN Determination. This area of crime will continue to be targeted through 

the ECN Determination during 2004–05. 

Operation Katakan resulted in the restraint of a signifi cant amount of property under 

Commonwealth legislation. Amounts of $115,000 and $750,000 were also recovered 

by the NSW Crime Commission as proceeds of crime. 

Table 4.9: Output 1.3 – SEAOC proceeds of crime forfeited 

Measure Total 


ACC coercive powers under the SEAOC Determination were used in tactical 

operations and intelligence projects, in conjunction with partner agencies, to reduce 

the impact of SEAOC-related crime on the Australian community. Coercive powers 

identifi ed suspect money movements and business and property investment believed 

to be associated with drug traffi cking (Djura 3) and led to numerous arrests and 

charges of members of a drug importing and traffi cking syndicate (Katakan). 


Decorative wall plaques used to conceal 

pseudoephedrine

Table 4.10: Output 1.3 – SEAOC use of coercive powers 

Measure Total 



_________________________________________________________________ 

Blade Operation Djura 3 

During March 2003, cooperation between ACC, AFP and ACS led to the interception 

of a shipping container imported from Cambodia. A search revealed 24 kgs of heroin 

concealed in a frozen seafood product. Two people were arrested in Sydney, while 

the Cambodian National Police (CNP) arrested a further five people in Cambodia. 

Analysis of material seized in later searches by the ACC and NSW Crime Commission 

led to the September 2003 search of containers imported from Thailand, and the 

discovery of 750 kgs of pseudoephedrine concealed in plaster wall plaques. Five 

people were subsequently arrested in Sydney. 

In October 2003, a third container, originating from Vietnam, was intercepted. It 

contained 2.1 kgs of heroin concealed in grocery products, leading to the arrest of 

two people in Sydney. 

A principal member of this organised crime syndicate fled Australia. However, she 

was later located, becoming the sixth person to be arrested in Cambodia by the 

CNP in relation to this operation. On 28 May 2004, she was sentenced to 20 years’ 

imprisonment by the Phnom Penh Municipal Court for her role in exporting heroin. 

The use of the ACC’s coercive powers during this investigation identified suspect 

money movements and business and property investments believed to finance drug 

importations and harbour proceeds of crime. The ACC’s information is assisting in 

the recovery of proceeds of crime against an estimated $4 million in real estate 

holdings in NSW. 

_________________________________________________________________ 

Targeting of South East Asian organised crime has provided an enhanced 

understanding of a number of SEAOCs within Australia, operating regionally, nationally 

and internationally. Significant criminal associations continue to occur according to 

common South East Asian ethnicity, while also often including criminal relationships 

with other ethnic criminal networks. Targeting of SEAOC has led to disruption and 

dismantling of these groups. 


• the seizure of 1.39 kgs of heroin and subsequent arrest of four people by Western 

Australia Police; 

• the seizure of an industrial heroin press and arrest of two people by Victoria 

Police; 


4 


• the dismantling of an Australian coinage counterfeiting syndicate, including the 

arrest of two people by AFP; 

• a 275 grams seizure of cocaine and arrest of one person by AFP; 

• 28 drug seizures in total; and 

• the detaining of more than 20 people by DIMIA who had unlawfully remained in 

Australia. 

Table 4.11: Output 1.3 – SEAOC arrests and charges 

Measure Total 

Arrests 29 

Charges 59 

Figure 4.6: SEAOC arrests and charges by month 

Number 

30 

25 

20 

15 

10 

5 

0 

_________________________________________________________________ 

Operation Palace 

This operation, reported in last year’s Annual Report, led to the arrest of a further 31 

people in Queensland for drug trafficking offences. Those arrested included 12 people 

charged in relation to a conspiracy to import cocaine into Australia via Cairns. 

_________________________________________________________________ 

Examples of collaboration by law enforcement agencies on SEAOC operations 

include: 

Jul 

Arrests 

Aug 

Sep 

Oct 

• Joint Asian Crime Group, Sydney: The ACC provides investigative, analytical 

and operational support resources to JACG, a standing taskforce focusing on 

upper-level drug importation and trafficking. During 2003–04, the JACG seized 

442 kgs of MDMA, 46 kgs of ‘ice’ (ATS), 5.2 kgs of heroin, arrested 18 people, 

and seized approximately $1 million in proceeds of crime. 


Charges 

Nov 

Dec 

Jan 

Month 

Feb 

Mar 

Apr 

May 

Jun

• Viking Task Force: The ACC provides investigative, analytical and operational 

support resources and infrastructure to Viking. Investigations led to the arrest of 12 

people in South Australia and Western Australia, and the seizure of 1.75 kgs heroin 

and 30 grams amphetamines during the period of the SEAOC Determination. 

_________________________________________________________________ 

Operation Katakan 

In June 2003, 728 grams heroin was seized en-route from Sydney to Brisbane. 

The ACC commenced an investigation into the identification of syndicate members, 

their drug sources and trafficking methodologies. A further 700 grams of heroin was 

seized in July 2003, and two people were arrested in Sydney with the assistance of 

Queensland and New South Wales Police. 

The ACC and Queensland Police Service investigators seized a further 3400 ecstasy 

tablets, $62,900 cash, 250 grams of heroin, 60 grams of cannabis, and 500 grams 

of cocaine. Cooperation with the AFP resulted in the further seizure of 272 grams of 

cocaine from an air passenger arriving in Sydney from overseas in January 2004. 

In April 2004, search warrants were executed across South East Queensland by 

the ACC and Queensland Police investigators. Leading syndicate members were 

arrested, and property with an estimated value of $5.8 million was restrained under 

the Proceeds of Crime Act 2002 (Clth). Further small quantities of drugs (including 

amphetamine, cannabis, heroin, LSD and MDMA) and cash were also seized. 

An ACC examination programme was conducted after the arrests. In May 2004, 

another person was arrested returning from overseas and charged in relation to 

the January 2004 cocaine importation. In total 17 people were arrested during 

the investigation. 

This investigation highlighted the difficulties faced by law enforcement agencies in 

categorising organised criminal activity in cultural, geographic or specific commodity 

terms. Members of the wider network arrested during this investigation included people 

of Anglo-Saxon, Central and Southern European, Middle Eastern and South East 

Asian background, whilst the range of drugs trafficked fluctuated according to trends 

of availability and demand within the marketplace. The seized commodities included 

heroin imported from South East Asia, cocaine imported from Lebanon and MDMA 

(ecstasy) tablets which are suspected to have been manufactured in Europe. 

_________________________________________________________________ 

Additional outputs include use of SEAOC findings to assist the drafting of law reform 

proposals in respect to the inclusion of indictable offences in the Victorian Fisheries 

Act (arising from investigations into illegal harvesting and export of abalone). Also, 

proposals have been raised to amend Schedule VI of the Customs Act 1901 to include 

pseudoephedrine as a prohibited drug import so adequate sentencing options become 

available for convictions of unlawful importation of the substance into Australia. 


4 


In addition, the ACC has formed relationships with the Australian-Asian community 

by placing advertisements in Chinese and Vietnamese language newspapers in 

Sydney that seek information on SEAOC activity. The ACC maintained a ‘hotline’ with 

specialist ACC staff with linguistic and cultural skills in 2003–04, allowing positive 

communication with the Asian-Australian community. 

Determination - Money Laundering and Tax Fraud 

The Money Laundering and Tax Fraud Determination (MIDAS) commenced in May 

2003 with the objective of investigating serious financial crime such as large-scale 

money laundering, tax fraud and associated crimes with the aim of detecting and 

dismantling underlying criminal enterprises of national significance. 

Money laundering is a prolific and ongoing global phenomenon that is linked 

to, and enables, a wide range of organised criminal activity. It allows criminals 

to use the proceeds of crime to gain wealth and further criminal and legitimate 

business interests. The speed, anonymity, reach, complexity and variety of criminal 

financing is increasing. The complexity of identifying, investigating, prosecuting and 

recovering funds from money-launderers is also increasing. This is being driven by 

the diversification and growth of the global financial sector, advances in information 

technology and other factors. 

MIDAS operated a financial intelligence assessment team (FIAT) made up of 

specialist investigators and intelligence officers from the ACC, ACS, AFP, ASIC, 

ATO, and Australian Transaction Reports and Analysis Centre. It examined financial 

intelligence received either from AUSTRAC or partner agencies to identify possible 

money laundering and predicate offences, and created a package of intelligence that 

is referred for further investigation by the ACC or by other appropriate law enforcement 

or revenue authorities. 

_________________________________________________________________ 

A significant outcome of the Determination was its contribution to the recovery of 

proceeds of crime and evaded tax in all ACC Determinations and carried-forward 

work of: 

• $16 million in proceeds of crime was restrained in various operations; 

• $2.4 million forfeited in various operations as proceeds of crime; and 

• $19 million in tax assessments and penalties. 

_________________________________________________________________ 


Coercive powers under the Money Laundering and Tax Fraud Determination were 

exercised in various joint agency operations. Use of the coercive powers led to 

significant seizures of documentation which was later used as evidence, resulting in 

arrests and recovered proceeds of crime. 

A significant result under the Money Laundering and Tax Fraud Determination was 

the finalisation of the long running Operation Spada. This involved a joint ACC/ATO 

investigation of an illegal tax minimisation scheme and the disallowance of tax 

deductions of up to $26 million. In February and May 2004 two promoters of the 

scheme were sentenced to three years’ imprisonment each for their involvement 

in the scheme. Three advisers to the scheme were each sentenced to five years 

imprisomnent, dating from 29 June 2004, for their involvement in the scheme. All 

the offenders were charged with conspiracy to defraud the Commonwealth. These 

sentences should serve as a significant deterrent to the accounting profession and 

demonstrate that attempts to evade tax through fraudulent schemes can attract a 

prison sentence. 

In The Australian on Wednesday 14 July 2004 a respected financial journalist had 

this to say about the results of the operation: 

“Remember Tuesday July 13 it was the day tax schemes ended in Australia”. 

Table 4.12: Output 1.3 – MIDAS use of coercive powers 

Measure Total 



The Determination uncovered methodologies used in money laundering and tax 

evasion. The various ongoing operations under the Determination have—and will 

continue to—lead to a better understanding of how large scale and sophisticated 

schemes operate and the best methods to counteract them. Targeting of crime 

relating to money laundering and tax fraud continues to affirm the effectiveness of 

strategies that target large and suspect international fund movements and financial 

service providers suspected of facilitating major profit driven crime. 

_________________________________________________________________ 

Operation Bokusen 

Operation Bokusen is an investigation into suspect funds being sent from Australia 

to Hong Kong, believed to be the proceeds of drug trafficking and other crimes. A 

target was arrested and charged in February 2004 with $318,000 in cash found in 

his possession seized as ‘Good in Custody’. 

_________________________________________________________________ 


4 


_________________________________________________________________ 

Operation Dashi 

Operation Dashi is an ACC/ATO/AFP 

and ACS investigation into tax evasion 

and money laundering associated 

with tobacco smuggling. In October 

2003, evidence of a second cigarette 

importation, the fi rst of which occurred 

in January 2003, was obtained. One 

person was arrested by NSW Police 

in December 2003 and charged with 

the August 2003 murder of a witness 

who was assisting Operation Dashi 

in relation to the January cigarette 

importation. Inquiries conducted during Operation Dashi led to the identifi cation 

of linkages between a Sydney based tobacco smuggling group and a large scale 

ecstasy production syndicate. As reported in 2002–03, ACC intelligence led to the 

seizure of over 1,000 kgs of precursor chemicals. 

Subsequent investigations in July 2003 led to the discovery in Wollongong, of one 

of the largest clandestine laboratories ever uncovered in NSW and the seizure of a 

further 700 kgs of precursors from the laboratory and a nearby service station. The 

laboratory is believed to have manufactured signifi cant quantities of ecstasy between 

January and July 2003. 

Three people were arrested. The two principal fi gures behind the laboratory had been 

of interest to Australian law enforcement for the past 15 years for their involvement 

in the production and distribution of various narcotic commodities. ACC intelligence 

was instrumental in the apprehension of these people and the dismantling of the 

group and its drug manufacturing business. 

_________________________________________________________________ 

Swordfi sh Operation Pleco 

Pleco is an ACC and ATO investigation into tax fraud involving a registered tax agent 

and accountant. The tax agent was served with a Court Attendance Notice in relation to 

20 counts of fraud on the Commonwealth amounting to approximately $435,000. 

_________________________________________________________________ 


Wollongong clandestine laboratory

Table 4.13: Output 1.3 – MIDAS arrests and charges 

Measure Total 

Arrests 9 

Charges 18 

Figure 4.7: MIDAS arrests and charges by month 

Number 

12 

10 

8 

6 

4 

2 

0 

Jul 

Arrests 

Aug 

Most MIDAS operations were conducted in collaboration with partner law enforcement 

agencies. 

Additional outputs included the improvement of Australian law enforcement understanding 

of money laundering and tax fraud schemes. The ACC has conducted case studies 

of new methodologies to raise awareness of new money laundering and tax fraud 

techniques. These case studies have been disseminated to the ATO, AFP, and Anti- 

Money Laundering Council in the Philippines and are available to all law enforcement 

agencies through ALEIN. 

Other Information 

Major court outcomes 

Sep 

Oct 

Charges 

Nov 

Dec 

A person summonsed to give evidence in relation to his knowledge of drug 

trafficking and money laundering activities of the principal of a syndicate under 

investigation in (ACC Operation Soho) was examined in January 2004 and was 

subsequently sentenced to one year imprisonment for failing to answer questions 

at the examination. 

This is the first sentence for such an offence under the ACC legislation and is an 

important result for the ACC. It confirms that the courts are willing to be firm with 

people who attempt to defy the ACC coercive powers in the expectation that they 

will only be given a fine. Courts have been unwilling to apply penal penalties in the 

past for the refusal to answer questions at coercive examinations. 

Jan 

Month 

Feb 

Mar 

Apr 

May 

Jun 


4 


The principal target of Operation Soho was found guilty in Queensland in February 

2004 and sentenced to six years’ imprisonment for offences of burglary whilst armed, 

torture, assault occasioning bodily harm with intent to do grievous bodily harm and 

stealing. These offences were not investigated during Operation Soho but were 

revealed by various witnesses who were summonsed to ACC examinations at the 

conclusion of the operation. Following extensive legal arguments, the prosecution 

was permitted to admit into evidence the transcripts and audio recordings of the 

ACC examinations in which those witnesses provided direct evidence of the person’s 

involvement in the offences. 

Significantly, this is the first time that ACC transcripts have been used in such a 

context and in this manner. Had it not been for the ACC examinations, a conviction 

would not have been possible. 

Two people were sentenced to life imprisonment for their role in the importation of 

150 kgs of ecstasy tablets into Australia in October 2001. This was investigated by 

the NCA under Operation Affcot. In his sentencing remarks, Justice Sully said “... the 

MDMA importation was from first to last an enterprise breath-taking in its contempt 

for the law; in its disregard for the public order and welfare of this country and its 

citizens; and in its cynical amorality. Anybody instrumental in the planning and 

execution of so wicked an undertaking is criminally culpable in high degree”. The 

life sentences represent a significant achievement and should serve as a deterrent 

to those involved in drug trafficking. 

Other Court Matters 

Two matters were determined under the Administrative Decisions (Judicial Review) 

Act 1977 during 2003–04. Two people sought orders of review in relation to the 

exercise of the ACC coercive powers. 

In the first matter a person summonsed to appear at an ACC examination asserted 

that because he is facing criminal and confiscation proceedings, further questioning 

of him would impinge upon his common law rights and the “privilege against self 

incrimination”, and would prejudice his position in confiscation proceedings before the 

WA Supreme Court. The ACC had placed on the record undertakings that it would 

not question the witness on these matters. 

Carr J. of the Federal Court declined to grant the relief sought by the applicant. 

However the Court recognised that circumstances might arise where questions were 

put to the applicant that might constitute a real, or substantial, risk of interference with 

the course of justice. The court referred the Examiner’s ruling that the examination 

should proceed, back to the ACC Examiner for consideration. 


The purpose of referring that matter for further consideration by the Examiner was 

not necessarily to preclude the applicant being required to answer such questions, 

but to ensure that the applicant’s rights to legal professional privilege were protected 

and also to ensure that there was no interference with the administration of justice 

in the confiscation proceedings. The Court granted the applicant liberty to apply on 

short notice to the Federal Court if the continued examination resulted in questions 

which breached those rights (Mansfield v Australian Crime Commission [2003] FCA 

1059 (3 October 2003)). 

In the second matter a person summonsed to appear at an ACC examination 

submitted that he was not required to answer the examiner’s questions. He argued 

that there has only been a partial abrogation of the privilege against self-incrimination, 

and that derivative use immunity is not expressly removed by section 30 of the 

ACC Act. He also argued that the power of the ACC to examine a class of people 

should be read down so that a person about to be charged with an offence cannot 

be examined. This is an extension of Hammond v The Commonwealth ((1982) 152 

CLR 188). The applicant had also foreshadowed argument on constitutional grounds 

but did not proceed with this argument. 

This matter was heard by Weinberg J. in the Federal Court who dismissed the 

application. The ACC was successful on all grounds (A. v. Boulton [2004] FCA 56 

(6 February 2004)). 

This is an important decision in support of the ACC’s coercive powers. In particular, 

Weinberg J. confirmed that the ACC Act, by necessary implication, abrogates 

the privilege against self-incrimination. The judgment affirmed the ACC’s power 

to examine a person who has not yet been charged with any criminal offence. 

The judgment also confirmed that there is no prohibition in the ACC Act upon the 

admissibility of derivative evidence obtained in an examination. 

The applicant subsequently appealed to the Full Federal Court. This appeal was 

dismissed (A v Boulton [2004] FCAFC 101 (30 June 2004)). 

Another matter challenging the ACC’s powers to compulsorily examine witness was 

also heard in the Federal Court. The ACC had summonsed 27 crew members of the 

North Korean freighter Pong Su to ACC examinations. The ACC was assisting the 

AFP’s investigation of the importation of 125 kgs of heroin, allegedly via the Pong Su. 

The 27 crew members had been discharged at committal in relation to this importation 

but three crew members and four other people were committed for trial. The ACC 

obtained passport surrender orders in respect of the 27 crew members to prevent 

them from leaving Australia until such time as they attended ACC examinations. This 

was the subject of argument and a final decision by Marshall J. in the Federal Court 

made in favour of the ACC. 


4 


When the ACC attempted to commence the examinations legal representatives for the 

crew issued proceedings in the Federal Court challenging the ACC’s examinations. 

The applicants contended that the compulsive investigatory power conferred on the 

ACC under the ACC Act could not be used to gather evidence if there is a concurrent 

criminal proceeding. The applicants argued that the compulsive investigatory power 

therefore terminated upon the bringing of charges or, in the alternative, the power 

was proposed to be exercised in a manner that was calculated to interfere with the 

exercise of the judicial power in the criminal proceeding. In addition, the applicants 

argued that the examinations were for an improper purpose, namely to assist the 

conduct of the criminal proceeding. 

This was fully argued before Merkel J. in the Federal Court. Merkel J. dismissed 

the challenge by the crew members, clearing the way for ACC examinations 

to be conducted (Hak Song Ra v Australian Crime Commission [2004] FCA 416 

(8 April 2004)). 

A long running civil matter against the ACC and others was finalised in July 2003. A 

person had instituted civil proceedings against a former Victoria Police officer who 

had been seconded to the NCA and a Victoria Police fingerprint expert. The applicant 

claimed that the defendants had fabricated evidence against him and undertaken a 

malicious prosecution in 1987 when he was tried and convicted on offences relating 

to drugs, explosives and firearms. The applicant contended that the Commonwealth 

was vicariously liable for the actions of the seconded officer and that the State of 

Victoria was vicariously liable for the actions of the fingerprint expert. 

The matter was heard before Nettle J. over 29 days in the Victorian Supreme 

Court. In his judgment Nettle J. said he had not seen any evidence capable of 

establishing the allegations of conspiracy and that the nature of the allegations made 

them utterly improbable. He said the allegations were baseless and dismissed 

the plaintiff’s claim. 

An ex-NCA staff member commenced an action against the NCA claiming she had 

been discriminated against on the basis of her family responsibilities. In September 

2003 the Federal Magistrates Court found that the NCA had unlawfully discriminated 

against the applicant contrary to sections 14(2) and 14(3A) of the Sex Discrimination 

Act 1984 (Cwlth). The applicant was awarded the sum of $54,488 in damages for 

wage loss, non-economic loss, and special damages. 

The ACC appealed the decision to the Federal Court and achieved partial success 

on the appeal. In May 2004, the Court overturned the initial finding that the ACC had 

unlawfully discriminated against Ms Evans on the ground of her sex. However, the 

Court rejected the ACC’s assertion that there was no evidence before the Federal 

Magistrate that the respondent was treated less favourably than a staff member 

without family responsibilities who took personal leave within his or her entitlement. 

The sum of $54,488.57 was reduced to $40,579.98. 


In February 2003, the NSW Supreme Court gave judgment to the estate of a former 

NCA protected witness and the witness’s spouse for equitable compensation of over 

$403,000, including interest, on the basis of representations the NCA made to the 

protected witness. The ACC appealed that decision and had partial success before 

the NSW Court of Appeal. In December 2003, the Court of Appeal reduced the 

compensation amount to $45,791 including interest. 

Drug Seizures 

Following is a table of drugs seized during 2003–04. In some instances drugs 

were seized by other agencies on ACC information, to protect the integrity of ACC 

investigations. These seizures are included in the table. 

Table 4.14: Drug Seizures 

No of 

seizures 

July 2003 – June 2004 

Amount 

seized 

Units 

Heroin 22 7,229 grams 

Cocaine 7 863 grams 

Amphetamine 36 3,224 grams 

Cannabis 21 182,681 grams 

Cannabis, plants 1 70 plants 

Ecstasy 19 37,180 grams 

Precursors* 7 1,489,500 grams 

*Precursors are used in the manufacture of amphetamines and ecstasy 

Note: one tab of LSD was also seized. 

Law Reform 

The major reform for 2003–04 was the enactment of the Australian Crime Commission 

Amendment Act 2004, which received Royal Assent on 2 April 2004. This legislation 

chiefly provides amendments to sections 51 and 55A of the ACC Act, and enacted 

a new section 55D to ensure that the legal transition to the ACC is fully effective. 

There were technical amendments to the Administrative Decision (Judicial Review) 

Act 1977 and the Australian Postal Corporation Act 1989. 


4 


Several reform issues have been raised with, and are under consideration by, 

the Attorney-General’s Department. The ACC continued to work with relevant 

departments, agencies and groups such as the Joint Working Group on National 

Investigative Powers; the report of which was released in November 2003. 

Carried Forward Work 

Table 4.15: Carried-forward work – Proceeds of crime forfeited and arrests and charges 

Measure Total 

Assets Forfeited 

Swordfish $320,660 

Blade $905,000 

Freshnet $0 

$1,225,660 

Assets restrained 

Swordfish $1,700,000 

Blade $0 

Freshnet $84,320 

$1,784,320 

Pecuniary Penalty Orders (PPO) 

Swordfish $650,229 

Blade $0 


$660,229 

Tax Assessments 

Swordfish $1,240,000 

Blade $0 


$1,460,892 

Arrests 

Swordfish 1 

Blade 51 

Freshnet 3 

55 

Charges 

Swordfish 82 

Blade 108 

Freshnet 4 

194 



The ACC’s 

Internal 

Capacity

Overview 

In 2003–04, the ACC continued to strengthen its specialist capabilities and support 

infrastructure by building on the business improvement strategies undertaken in 

2002–03 and by refi ning its organisational structure to meet business requirements. 

One of the most important tasks facing the ACC at its inception was the creation of a 

single cohesive and dynamic organisation from three former agencies with multiple 

cultures, conditions and service expectations. 

The ACC has continued to move towards complete integration through a process of 

consultation, review and detailed strategic planning. Specifi c and detailed initiatives 

and deliverables were set out in the ACC Business Plan for 2003–04 to ensure the 

internal capability to achieve the ACC’s outputs. 

ACC Organisational Structure 

The ACC’s organisational structure consists of the Offi ce of the Chief Executive Offi cer 

and four core directorates (National Operations, Intelligence, Corporate Services and 

Executive Services). The structure was designed to best utilise the ACC’s skilled staff 

and to ensure decisions were made quickly and effectively. 

The day-to-day function of each Directorate is overseen by a Director, who reports 

to the CEO. Within each Directorate, Managers and Team Leaders manage specifi c 

business areas (see page 89). 

Offi ce of the Chief Executive Offi cer (CEO) 

The offi ce of the CEO undertakes a critical oversight, management and liaison role 

within the ACC and supports the CEO in the exercise of his responsibilities. This 

includes management oversight of professional standards and integrity. The offi ce 

provides administrative and executive support and internal audit, legal advice, liaison 

and executive management services to the CEO. 

National Operations 

The National Operations Directorate conducts the ACC’s investigations and operations 

into serious and organised criminal activity, and monitored resources allocated to 

them. The National Operations Directorate includes management of: 

• Operational Resources; 

• Financial Crime Group; 

• Operational Governance Unit; 

• Determination-specifi c teams; 

• Cyber Support Unit; 

• Operational Legal Services; 

• Technical and Physical Surveillance; and 

• Telecommunication Interception/Computer Forensics. 

Information on the results produced by National Operations is provided in Chapters 

3 and 4. 


5 

THE ACC’S INTERNAL CAPACITY

Intelligence 

The Intelligence Directorate of the ACC provides a range of intelligence services 

and operational intelligence to the ACC’s National Operations Directorate and to the 

ACC’s partner agencies in national law enforcement. The Intelligence Directorate is 

managed through a series of functional teams: 

• National Criminal Intelligence Priorities; 

• Emerging Issues; 

• Operational and Intelligence Development; 

• Operational Analysts; 

• Covert Intelligence; 

• Current Intelligence Priorities; 

• Global Monitoring; and 

• National Intelligence Services. 

Information on the results produced by Intelligence during the reporting period is 

provided in Chapters 2 and 3. 

Corporate Services 

The Corporate Services Directorate provides a range of enabling support to the ACC. 

This includes management of: 

• information and communication technology systems, including the ACC’s extensive 

computer system and its intelligence collection systems and databases; 

• coordination of the ACC’s human resources, including staffing, remuneration, 

OH&S and training and development; 

• corporate support services such as the coordination of administrative services 

and supplies, maintenance of the ACC’s assets and buildings and overseeing 

vehicle use; 

• finance and budgets; and 

• security, including overseeing security of ACC buildings, coordinating security 

vetting of new staff members, and overseeing security elements of the ACC’s 

systems and processes. 

Executive Services 

The Executive Services Directorate provides a range of enabling support services 

to the ACC. This includes management of: 

• ACC Board secretariat services, including managing ACC Board meetings, 

coordinating material to be presented, and following up resolutions; 

• planning and performance reporting, including coordination of ACC reporting, 

corporate and business planning and risk management planning; 

• ministerial and parliamentary services, including coordination of ministerial advice 

and undertaking policy reviews and amendments; 

• law reform and commercial legal services, including advice on national and state 

legislation; and 

• corporate communications, which coordinated the ACC’s communications, media 

and corporate styles and standards. 


Corporate Capabilities 

Professional Standards and Integrity 

Professionalism and integrity underpins the work of the ACC. 

In 2003–04, to ensure isolated cases of unethical and/or inappropriate conduct did 

not undermine ACC achievements, the ACC enhanced the rigour and scope of its 

professional standards and integrity framework. This allowed it to more effectively 

prevent, identify and deal with unethical behaviour and conduct detrimental to the 

high standards of the organisation. 

The application of the framework is managed by the Senior Executive Team and 

CEO, and involved policies, processes and plans that strengthened the effective 

recruitment and management of the ACC’s diverse workforce. 

The Professional Integrity and Standards Coordinator position will be filled in the 

2004–05 financial year. 

ACC Managers 

New positions were created for ACC Office Managers during 2003–04. These roles 

were developed to further support the ACC’s key functions. The primary duties of 

these roles include: 

• managing all local corporate support functions, including the registry and 

exhibits; 

• assisting Heads of Determinations in the facilitation and coordination of deployed 

resources to meet operational priorities; 

• providing logistical and administrative support for Task Forces; 

• monitoring operational resource deployment and usage; and 

• representing the ACC in relevant forums and providing a local point of contact. 

Risk Management 

The ACC is committed to managing risks as an integral part of its management 

practices and as a safeguard to ensuring successful continuity of business. During 

2003–04, the ACC initiated an independent risk assessment of its procedures, 

processes and operations, and linked its risk management policy plan and fraud 

and corruption control plans to its corporate, business and individual work plans. It 

has conducted fraud risk assessments and has in place appropriate fraud prevention, 

detection, investigation, reporting and data collection procedures and processes 

that meet the specific needs of the ACC, and comply with the Commonwealth fraud 

control guidelines. 


5 


ACC Media 

Coordinated by Corporate Communications in the Executive Services Directorate, 

the ACC provided 17 media releases including six joint releases with other agencies 

during 2003–04. The Minister for Justice and Customs, Senator Chris Ellison, also 

issued eight media releases on behalf of the ACC on the transition, the new menu 

of work being undertaken by the ACC, and operational activities. 

Approximately 530 local and international media enquiries were logged during the 

reporting period. Media monitoring revealed that the ACC was mentioned in more 

than 580 print articles and 990 electronic broadcasts across Australia. 

Corporate Communications produced six editions of the internal magazine ‘Insight’ 

and developed a corporate style manual for all ACC communications. 

Information & Communications Technology 

During 2003–04, following an audit of ICT systems and equipment, the ACC developed 

an information management plan to facilitate, improve and integrate the collection, 

control, dissemination and disposal of information. A standardised national record- 

keeping system was also implemented. 

The ACC reviewed its ICT Governance framework in 2003–04 and established an 

ICT Steering Committee made up of the Senior Executive Team and Manager ICT. 

A number of specific initiatives were developed, including the review and completion 

of ICT governance, control and change management policies and procedures. 

Security - Protection of ACC Functions, Resources and Information 

Throughout 2003–04, the level of security risk to the ACC remained as ‘Major’, 

requiring, in accordance with Commonwealth standards, that senior management 

attention be given to vulnerable areas of the organisation. As a result, the ACC 

initiated a safety awareness program for all ACC staff and an upgrade of physical 

security measures at a number of its premises. These programs are continuing and 

regular operational security risk assessments as well as home security inspections 

are now being conducted for high-risk ACC staff and operatives. 

ASIO commenced a review of the ACC’s security functions during the year. 

In January 2004, the ACC introduced a new category of security clearance to 

accommodate short-term task force members and other personnel attached to the 

ACC for short periods. This is now enabling the ACC to deploy such personnel with 

relative speed while ensuring the organisation remains compliant with Commonwealth 

personnel security requirements. 


In 2003–04 the ACC refused security clearances for three applicants for employment. 

In mid-2004, a Security Risk Assessment Plan for the ACC was developed. The plan 

prescribes, along risk management lines, the security work program for the ACC 

from July 2004 to July 2007. 

The ACC maintained an operational security and counter-intelligence focus throughout 

2003–04. Operational security and counter-intelligence is now being incorporated 

into ACC operational policy. The introduction of new technologies into the ACC for 

both intelligence and operations has seen a growth in security risk assessments 

being undertaken. 

ACC Continuous Development Project 

ACC Continuous Development Project (formerly the ACC Integration and Development 

Project) began in April 2004. 

The integration of three different organisations across six offices, with additional 

seconded staff from national and state law enforcement bodies, was an enormous 

challenge for the ACC in 2003–04. Added to this complex amalgamation was a fusion 

of different systems and infrastructures. 

The objective of the integration and development project was to carry out critical work 

required to establish the new organisation, its policies and procedures. 

The Integration and Development Project Steering Committee met on 14 January 2004 

to discuss the substantial completion of the integration elements within the IDP. It was 

decided that a formal development process would remain as a permanent feature 

to manage change and improvement within the ACC. The Continuous Development 

Project (CDP) is managed by the Senior Executive Team. The CDP provided effective 

oversight of integration activities. 

Human Resource Management 

The ACC is committed to best practice human resources principles and procedures 

and seeks to be an organisation recognised nationally as an employer of choice. 

The ACC’s human resources strategy aims to maximise the performance and 

development of all staff and secondees at the ACC. It provides a framework to 

integrate and build on programs and processes and recognises the important role 

that people play in achieving the ACC’s vision and corporate objectives. 

In 2003–04, this strategy was progressed by the Human Resources team through 

workforce planning, staff consultation, workplace agreements, performance 

management, learning and development, awards and honours and a range of other 

resource initiatives. 


5 


Staffing profile 

The staff of the ACC comprises: 

• Chief Executive Officer and Examiners, 

• Commonwealth staff employed under the Public Service Act 1999 (the PS Act), 

• consultants engaged under section 48 of the ACC Act, 

• AFP and other Commonwealth staff seconded under section 49 of the ACC Act, 

and 

• state and territory police seconded to the ACC under section 58 of the ACC Act. 

Refer to Appendix B for further details on staffing. 

Workforce planning 

In undertaking its intelligence operations and investigations, the ACC uses 

multidisciplinary teams of lawyers, seconded police, financial investigators, 

intelligence analysts, surveillance staff, TI and operations support staff and 

specialist staff seconded from other agencies. Corporate services such as human 

resources, financial and resource management, information technology, information 

management, internal audit, business planning and reporting, strategic policy and 

communications and corporate management support the ACC’s core functions. 

The ACC recruits highly experienced staff on an ongoing and non-ongoing basis to 

support its core business and special operations. It has, made a decision to reduce 

the proportion of non-ongoing staff. At 30 June 2004, 22 percent of APS staff were 

employed as non-ongoing staff, down from 42 percent at 1 January 2003. 

The secondment of police and staff from other agencies to the ACC enhances 

its intelligence and investigative ability and helps promote positive working 

relationships with partner law enforcement agencies. Police are seconded from 

Commonwealth, state and territory police services for periods of two to three 

years. Officers from Commonwealth agencies such as ACS and the ATO are also 

seconded for varying periods. 

Workplace agreements 

The ACC’s first Certified Agreement came into force on 6 January 2004 and will 

remain until 30 June 2006. All Senior Executive Service (SES) staff are employed 

under individual AWAs and 50 non-SES staff are also employed under an AWA. 

Staff consultation 

The principal vehicle for consultation with staff is the National Consultative Committee 

(NCC), supported by Local Consultative Committees in each office. The NCC met in 

December 2003 and June 2004 and discussed various issues, including the ACC’s 

functions, staff profile and employment arrangements. 


Performance management 

All staff covered by the NCA’s Certified Agreement participated in a Performance 

Recognition Program (PRP). The PRP allowed managers and staff to jointly set targets 

and performance measures and provided an assessment and feedback mechanism. 

It also provides a mechanism to identify staff development needs. 

Staff were rated on a scale of one to five and had to achieve a rating of at least three to 

be eligible for an incremental increase in salary, or a performance bonus of one per cent 

of salary if at the top of their salary range. Ratings of four or five attracted an incremental 

advancement and/or a performance bonus of up to five per cent of salary. 

Table 5.1: Performance bonus payments paid in 2003–04 

Classification No. of 

staff 

Total 

Payment 

Average 

Payment 

Range of 

Payments 

APS2 7 $3,216 $459 $337 - $1,081 

APS3 49 $28,832 $588 $165 - $2,121 

APS4 11 $10,346 $941 $357 - $2,346 

APS5 26 $27,584 $1,061 $469 - $2,438 

APS6 17 $15,237 $896 $289 - $2,853 

Exec Level 1 25 $30,170 $1,207 $679 - $3,849 

Exec Level 2 20 $33,882 $1,694 $828 - $2,915 

Total Cost $149,267 

The PRP ceased on 30 June 2004 and is to be replaced by a new Performance 

Development Scheme, developed in consultation with staff and tailored to the needs 

of the ACC. 

Learning and development 

The ACC views targeted Learning and Development for staff as essential if the 

organisation is to achieve its business objectives. In 2003–04, a combination of 

functional, interpersonal, leadership development and change management training 

was implemented across the organisation. 

The ACC’s study assistance program provided formal support for career development. 

Coaching and mentoring were also seen as vital development vehicles and to that 

end the ACC continued to participate in the Women in Law Enforcement Scheme 

(WILES) This is a formal scheme designed to support, develop and retain women 

in the law enforcement industry. 

In 2004 and beyond, the ACC will focus on establishing core staff and leadership 

capabilities. 


5 


Awards and honours 

The ACC regularly presented awards and honours to staff in 2003–04 which: 

• reward outstanding performance; 

• provide visible evidence of the important role played by individuals and teams in 

meeting the ACC corporate goals; and 

• contribute to a more productive and satisfying work environment. 

Managers are also encouraged to use informal mechanisms to recognise good 

performance. 

Human Resource initiatives – the outlook for 2004–05 

In 2004–05, as part of the ACC’s new Performance Development Scheme, it is 

projected that all staff will commit to a performance development process that involves 

development and adherence to quarterly Individual Work Plans (IWPs). IWPs will 

be developed by managers and staff, and will be linked to Business Unit Plans, the 

ACC Business Plan and Outcome and Outputs Framework. 

Compliance with the agreed Certified Agreement clauses on leave-taking is being 

planned for 2004–05. The ACC has significant accumulated leave liabilities and the 

purpose of this measure is to improve the taking of leave in the calendar year. The 

ACC believes this will improve OH&S in the workplace and reduce liabilities. 

There is increasing support for the ACC’s new activity-based job costing system which 

requires staff to complete weekly timesheets, and improved adherence is projected 

for the next reporting period. This system will enhance the ACC’s ability to effectively 

manage its resources and will assist in identifying the full cost of operations. 

Financial Management 

The ACC’s appropriation for 2003-04 was $65.471 million which included tied funding 

of $11.9 million. The tied funding was allocated for the following purposes: 

• $7.3 million to fund the ACC’s MIDAS investigation. MIDAS is the investigation 

of money laundering and tax fraud associated with serious and organised crime. 

This is first year of four-year funding of $30 million for this program; 

• $1.8 million to enhance the ACC’s technical capacity. This is the second year of 

four-year funding of $6.9 million for this program. This program is being conducted 

jointly with the AFP and ASIO, which have also received funding; and 

• $2.8 million for the second stage of the ALERT program to improve the ability to 

analyse data in the Australian Criminal Intelligence Database (ACID). This is the 

second year of four-year funding of $11 million for this project. 


The ACC’s financial result for 2003-04 was a deficit of $3.3 million. This was an 

improvement against the budgeted deficit of $4.5 million in this year. The budgeted 

deficit reflected the commitment to expenditure of $4.5m in this year on lapsed tied 

funding programs, where funding had not been expended in 2002–03 and carried 

over. The ACC’s operating loss for 2003-04 was $1.4 million, with the remainder of 

the deficit comprising abnormal items, mainly reflecting write-downs in asset values. 

These will better position the ACC financially through reduced depreciation expenses 

in later years and allow greater flexibility to replace and enhance technology and 

communications infrastructure. The ACC has a balanced budget for 2004–05. 

The ACC’s revenue for 2003-04 included $6.8 million for services received from other 

law enforcement agencies. This is an encouraging sign of increased cooperation 

in managing nationally significant crime. 

Resource Management 

Asset management 

All ACC assets are safeguarded, recorded and managed in accordance with the Chief 

Executive Instructions (CEIs) to guarantee the integrity of its financial statements. 

The CEIs are included on the ACC’s intranet site for the information of all staff. 

Purchasing 

During 2003–04, a review was undertaken of the ACC’s support services and 

contracts. A number of recommendations were made to improve the functions 

necessary to sustain the ACC business. On 1 July 2004, the purchasing function of 

the ACC was strengthened and transferred from Melbourne to head office in Canberra 

in order to better manage and record contracts. 

Competitive tendering and contracting 

The ACC engaged in no competitive tendering or contracting activity during the period. 

Social justice 

Social justice principles such as equity, equality and access are reflected in the ACC’s 

policies and practices. Internally, the ACC aims to ensure equity and fairness by 

implementing and supporting programs including equity and diversity and workplace 

harassment. The ACC’s Equity and Diversity Plan promotes awareness of these 

matters among staff and managers. The ACC’s ethics statement is based on the 

Australian Public Service Values. Sound ethics are encouraged among all ACC staff 

in their dealings with colleagues, external organisations and other individuals. This 

is particularly vital during investigations to ensure that the privacy, reputation and 

safety of all parties, including those being investigated, is protected. 


5 


Table 5.2 Resources for Outcomes 

Outcome 1: Enhanced Australian Law Enforcement Capacity 

Administered Expenses 

(including third party 

outputs) 

Total Administered 

Expenses 

Price of Departmental 

Outputs 

Output 1.1 - Criminal 

Intelligence Services 

Output 1.2 - Criminal 

Intelligence Operations 

Output 1.3 - Investigations 

into Federally Relevant 

Criminal Activities 

Revenue from Government 

(Appropriation) for 

Departmental Outputs 

Revenue from other 

sources 


(1) 

Budget* 

2003–04 

(2) 

Actual 

Expenses* 

2003–04 

Variation 

(Column 2 

- Column 

1) 

Budget** 

2004–05 

$’000 ‘$000 $’000 $’000 

- - - - 

- - - - 

14,253 7,141 -7,112 19,525 

11,465 6,028 -5,437 - 

39,753 52,302 12,549 48,499 

65,471 65,471 - 68,024 

7,829 8,153 324 7,979 

Total price for Outputs 73,300 73,624 324 76,003 

TOTAL FOR OUTCOME 1 

(Total price of Outputs and 

Administered Expenses) 

77,459 76,771 -688 76,003 

2003–04 2004–05 

Average staffing level 480 510 

* Full-year budget, including additional estimates 

** Budget prior to additional estimates 

Note - The staff year figures include staff seconded to the ACC from other agencies (for example, 

seconded police officers)

ACC Organisational Structure 


5 



Appendices

Appendix A 

Financial Statements 

Appendix B 

ACC Staffi ng Statistics 

Appendix C 

Consultants and Counsel Engaged 

Appendix D 

Summary of Charges 

Appendix E 

Court Matters 

Appendix F 

Complaints 

Appendix G 

FOI Statement 

Appendix H 

Other Mandatory Information 


6 

APPENDIXES

Appendix A: Financial Statements 



6A 

APPENDIX A: FINANCIAL STATEMENTS

AUSTRALIAN CRIME COMMISSION 

Statement by the Chief Executive Officer and Chief Finance Officer 

In our opinion, the attached financial statements for the year ended 30 June 2004 are based on 

properly maintained financial records and give a true and fair view of the matters required by The 

Finance Minister’s Orders made under the Financial Management and Accountability Act 1997. 

……………………… 

Alastair Milroy 

Andrew Phelan 

Chief Executive Officer Chief Finance Officer 

15 September 2004 15 September 2004 


………………………


STATEMENT OF FINANCIAL PERFORMANCE 

for the year ended 30 June 2004 

Notes 2004 

01.01.03- 

30.06.03 

Revenues from ordinary activities 

$ 

$ 

Revenues from Government 

4A 65,850,235 34,489,900 

Services provided by State and Territory Police 

4B 6,234,061 

847,345 

Revenue from Sale of Goods and Services 4C 1,809 18 

Revenue from sale of assets 4D 11,324 2,549 

Other revenues 4E 1,527,040 609,448 

Revenues from ordinary activities 73,624,469 35,949,260 

Expenses from ordinary activities (excluding 

borrowing costs expense) 

Employees 5A 28,529,091 12,922,167 

Suppliers 5B 25,146,479 12,618,718 

Services provided by State, Territory and other 

5C 17,822,612 6,246,413 

Commonwealth Agencies 

Value of assets sold 4D 273,107 53,848 

Depreciation and amortisation 5D 4,896,824 1,923,839 

Write down of assets 5E 81,899 432,508 

Expenses from ordinary activities (excluding 

borrowing cost expense) 76,750,012 34,197,493 

Borrowing costs expense 6 21,444 22,793 

Net surplus / (deficit) (3,146,987) 1,728,974 

Net credit (debit) to asset revaluation reserve 

Increase / (decrease) in accumulated results on initial 

application of fair value under accounting standard AASB 

1041 Revaluation of Non-current Assets 

- 

- 

987,145 

(1,539,326) 

Total revenues, expenses and valuation adjustments 

recognised directly in equity - (552,181) 

Total changes in equity other than those resulting from 

transactions with the Australian Government as 

owners 

The above statement should be read in conjunction with the accompanying notes. 

(3,146,987) 1,176,793 


6A 



STATEMENT OF FINANCIAL POSITION 

as at 30 June 2004 

ASSETS Notes 2004 

01.01.03- 

30.06.03 

Financial assets 

$ 

$ 

Cash 7A 4,577,800 1,662,601 

Receivables 7B 8,469,133 11,901,440 

Total financial assets 13,046,933 13,564,041 

Non-financial assets 

Land and buildings 8A 3,799,208 4,854,778 

Infrastructure, plant and equipment 8B 4,022,651 5,877,934 

Intangibles 8C 417,868 1,079,383 

Other 8E 347,984 488,231 

Total non-financial assets 8,587,711 12,300,326 

Total Assets 21,634,644 25,864,367 

LIABILITIES 

Interest bearing liabilities 

Leases 9A 335,038 872,885 

Other 9B 279,035 556,016 

Total interest bearing liabilities 614,073 1,428,901 

Provisions 

Capital use charge 10A - 829,000 

Employees 10B 8,061,485 8,429,194 

Total provisions 8,061,485 9,258,194 

Payables 

Suppliers 11A 5,671,780 4,742,979 

Total payables 5,671,780 4,742,979 

Total Liabilities 14,347,338 15,430,074 

NET ASSETS 7,287,306 10,434,293 

EQUITY 

Contributed Equity 12A 9,594,500 9,594,500 

Reserves 12A 987,145 987,145 

Retained Surpluses / (Accumulated deficits) (3,294,339) (147,352) 

TOTAL EQUITY 7,287,306 10,434,293 

Current assets 13,394,917 14,052,272 

Non-current assets 8,239,727 11,812,095 

Current liabilities 12,735,263 13,545,966 

Non-current liabilities 1,612,075 1,884,108 




STATEMENT OF CASH FLOWS 


Notes 2004 

01.01.03- 

OPERATING ACTIVITIES 

30.06.03 

$ 

$ 

Cash received 

Appropriations 68,500,000 28,953,769 

Revenue from States, Territories, the Commonwealth and 

other 

1,456,020 15,000 

Net GST received from ATO 3,142,659 1,447,849 

Other 1,527,040 976,225 

Total cash received 74,625,719 31,392,843 

Cash used 

Employees 28,896,800 12,959,875 

Suppliers 27,564,611 15,230,959 

Borrowing costs 21,444 22,793 

Appropriations repaid - 7,214,000 

Services provided by State, Territory & Federal Police and 

other Commonwealth Agencies 

12,730,527 6,246,413 

Total cash used 69,213,382 41,674,040 

Net cash from / (used by) operating activities 13 5,412,337 (10,281,197) 

INVESTING ACTIVITIES 

Cash received 

Proceeds from sales of property, plant and equipment 11,324 2,549 

Total cash received 11,324 2,549 

Cash used 

Purchase of property, plant and equipment 1,663,837 1,066,090 

Purchase of intangibles 15,626 48,118 

Total cash used 1,679,463 1,114,208 

Net cash from / (used by) investing activities (1,668,139) (1,111,659) 

FINANCING ACTIVITIES 

Cash received 

Cash brought forward from NCA/ABCI - 13,317,551 

Total cash received - 13,317,551 

Cash used 

Repayment of debt 829,000 262,094 

Total cash used 829,000 262,094 

Net cash from / (use d by) financing activities (829,000) 13,055,457 

Net increase / (decrease) in cash held 2,915,199 1,662,601 

Cash at the beginning of the reporting period 1,662,601 - 

Cash at the end of the reporting period 7A 4,577,800 1,662,601 



6A 



SCHEDULE OF COMMITMENTS 


BY TYPE 


2004 

$ 

01.01.03- 

30.06.03 

$ 

Other Commitments 

Operating leases 1 

32,401,941 22,199,671 

Total other commitments 32,401,941 22,199,671 

Commitments Receivable 2,945,631 1,171,918 

Net commitments 29,456,310 21,027,753 

BY MATURITY 

Operating Lease Commitments 

One year or less 11,915,459 8,624,036 

From one to five years 

20,486,482 

13,575,635 

Over five years 

- 

- 

Total operating lease commitments by maturity 32,401,941 22,199,671 

NB: Commitments are GST inclusive where relevant. 

1 Operating leases included are effectively non-cancellable and comprise: 

Nature of lease General description of leasing arrangements 

Lease of office 

accommodation 

Agreements for 

the provision of 

motor vehicles to 

senior executive 

officers 

Lease of 

computer 

equipment 

• Office accommodation leases are still current but vary in respect to 

renewal. 

• Lease payments are subject to annual increases in accordance 

with varying terms of the agreement. 

• No contingent rentals exist. 

• There are no renewal or purchase options available to the ACC. 

• Lease is a cancellable lease in which the ACC has no right of 

purchase at the end of the lease period. 

The above schedule should be read in conjunction with the accompanying notes.


SCHEDULE OF CONTINGENCIES 


SCHEDULE OF CONTINGENCIES 

As at 30 June 2004, the ACC had no contingent liabilities or assets that may become payable or 

receivable. 

SCHEDULE OF UNQUANTIFIABLE CONTINGENCIES 

Litigation arising from ACC investigations result in costs being awarded either for or against the ACC 

from time to time. 

The ACC is unable to declare an estimate of the amounts due to uncertainty of the outcome of the 

matter and the sensitivity of the information related to matters still before the Courts. 


6A 



NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 


Note Description 

1. Summary of Significant Accounting Policies 

2. Adoption of AASB Equivalents to International Financial Reporting Standard from 

2005-2006 

3. Events Occurring after Reporting Date 

4. Operating Revenues 

5. Operating Expenses 

6. Borrowing Cost Expense 

7. Financial Assets 

8. Non-Financial Assets 

9. Interest Bearing Liabilities 

10. Provisions 

11. Payables 

12. Equity 

13. Cash Flow Reconciliation 

14. Contingent Liabilities and Assets 

15. Executive Remunerations 

16. Remuneration of Auditors 

17. Staffing Levels 

18. Financial Instruments 

19. 

20. 

Appropriations 

Comcare Account 

21. Reporting of Outcomes 

22. Specific Payment Disclosures 


Notes to and forming part of the Financial Statements 

Note 1: Summary of Significant Accounting Policies 

1.1 Objectives of Australian Crime Commission 

The objective of Australian Crime Commission (ACC) is to counteract organised criminal activity 

and reduce its impact on the Australian community in partnership with other agencies. “Outcome 1 

– Enhanced Australian law enforcement capacity” provides funding for the ACC under the 

Commonwealth Governments Outcomes Framework. 

ACC Outputs are: 

1.1 Criminal intelligence services. 

1.2 Criminal intelligence operations. 

1.3 Investigations into federally relevant criminal activity. 

ACC activities contributing toward these outcomes are classified as either departmental or 

administered. Departmental activities involve the use of assets, liabilities, revenues and expenses 

controlled or incurred by the ACC in its own right. Administered activities involve the management 

or oversight by the ACC on behalf of the Government of items controlled or incurred by the 

Government. There were no Administered activities during the period 

Accordingly the ACC’s financial reports are based on a going concern basis, based on the ACC 

realising the assets and extinguishing the liabilities transferred in the ordinary course of business. 

The continued existence of the Commission in its present form is dependent on Government policy 

and on continuing appropriations by Parliament for the Commission’s outcome. 

1.2 Basis of Accounting 

The financial statements are required by section 49 of the Financial Management and 

Accountability Act 1997 and are a general purpose financial report. 

The statements have been prepared in accordance with: 

• Finance Minister’s Orders (or FMOs), being the Financial Management and Accountability 

Orders (Financial Statements for reporting periods ending on or after 30 June 2004); 

• Australian Accounting Standards and Accounting Interpretations issued by the Australian 

Accounting Standards Board; and 

• Consensus Views of the Urgent Issues Group. 

The Statements of Financial Performance and Financial Position have been prepared on an accrual 

basis and are in accordance with historical cost convention, except for certain assets which, as 

noted, are at valuation. Except where stated, no allowance is made for the effect of changing 

prices on the results or the financial position. 

Assets and liabilities are recognised in the Statement of Financial Position when and only when it is 

probable that future economic benefits will flow and the amounts of the assets or liabilities can be 

reliably measured. However, assets and liabilities arising under agreements equally proportionately 

unperformed are not recognised unless required by an Accounting Standard. Liabilities and assets 

which are unrecognised are reported in the Schedule of Commitments and the Schedule of 

Contingencies (other than unquantifiable or remote contingencies, which are reported at Note 14). 

Revenues and expenses are recognised in the Statement of Financial Performance when and only 

when the flow or consumption or loss of economic benefits has occurred and can be reliably 

measured. 


6A 


1.3 Changes in Accounting Policy 

The accounting policies used in the preparation of these financial statements are consistent with 

those used in 2002-03. 

1.4 Revenue 

The revenues described in this Note are revenues relating to the core operating activities of the 

ACC. 

Revenues from Government 

Amounts appropriated for Departmental outputs appropriations for the period (less any savings and 

reductions) are recognised as revenue, except for certain amounts that relate to activities that are 

reciprocal in nature, in which case revenue is recognised only when it has been earned. 

Appropriations receivable are recognised at their nominal amounts. 

Resources Received Free of Charge 

The ACC’s mission is to enhance Australian Law Enforcement Capacity to counter serious and 

organised criminal activity. The agency works in partnership with its fellow Law Enforcement 

Agencies (LEA’s) to achieve this goal. Our LEA’s partners supply significant resources Free of 

Charge (FOC) by the following two arrangements: 

• Resources being allocated to a specific taskforce through Board ratification; or 

• Resources provided by Australian Law Enforcement Agencies; the Australian Customs 

Service; the Australian Tax Office; or the Crime and Misconduct Commission by 

agreement with the Agency. 

Services received free of charge are recognised as revenue when and only when a fair value can 

be reliably measured and service has been performed. The consumption of Free of Charges 

Resources is recognised as an expense. 

Other Revenue 

Revenue from the sale of goods is recognised upon the delivery of goods to customers. 

Revenue from rendering of services is recognised by reference to the stage of completion of 

contracts or other agreements to provide services. The stage of completion is determined 

according to the proportion that costs incurred to date compared to the estimated total costs of the 

transaction. 

Receivables for goods and services are recognised at the nominal amounts due less any provision 

for bad and doubtful debts. Collectability of debts is reviewed at balance date. Provisions are 

made when collectability of the debt is judged to be less rather than more likely. 

Revenue from disposal of non-current assets is recognised when control of the asset has passed to 

the buyer. 


1.5 Transactions with the Government as Owner 

Equity Injections 

Amounts appropriated which are designated as ‘equity injections’ for a year (less any savings 

presented in the Portfolio Additional Estimates Statements) are recognised directly in Contributed 

Equity in that year. 

Other distributions to owners 

The FMO’s require that distributions to owners be debited to contributed equity unless in the nature 

of a dividend. In 2003-2004 the ACC did not return any surplus output appropriation funding to the 

Official Public Account 

1.6 Employee Benefits 

Liabilities for services rendered by employees are recognised at the reporting date to the extent that 

they have not been settled. 

Liabilities for wages and salaries (including non-monetary benefits) and annual leave are measured 

at their nominal amounts. Other employee benefits expected to be settled within 12 months of the 

reporting date are also measured at their nominal amounts. 

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the 

liability. 

All other employee benefit liabilities are measured as the present value of the estimated future cash 

outflows to be made in respect of services provided by employees up to the reporting date. 

Leave 

The liability for employee entitlements includes provision for annual leave and long service leave. 

No provision has been made for sick leave as all sick leave is non-vesting and the average sick 

leave taken in future years by employees of the ACC is estimated to be less than the annual 

entitlement for sick leave. 

The leave liabilities are calculated on the basis of employees’ remuneration, including the ACC’s 

employer superannuation contribution rates to the extent that the leave is likely to be taken during 

service rather than paid out on termination. 

Separation and redundancy 

Provision is made for separation and redundancy benefit payments in circumstances where the 

ACC has formally identified positions as excess to requirements and a reliable estimate of the 

amount of the payment can be determined. 

Superannuation 

Employees of the ACC are members of the Commonwealth Superannuation Scheme and the 

Public Sector Superannuation Scheme. The liability for their superannuation benefits is recognised 

in the financial statements of the Australian Government and is settled by the Australian 

Government in due course. 

The ACC makes employer contributions to the Australian Government at rates determined by an 

actuary to be sufficient to meet the cost to the Commonwealth of the superannuation entitlements of 

the ACC’s employees. 


6A 


1.7 Leases 

A distinction is made between finance leases and operating leases. Finance leases effectively 

transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership 

of leased non-current assets. In operating leases, the lessor effectively retains substantially all 

such risks and benefits. 

Where a non-current asset is acquired by means of a finance lease, the asset is capitalised at the 

present value of minimum lease payments at the inception of the lease and a liability recognised for 

the same amount. The discount rate used is the interest rate implicit in the lease. Leased assets 

are amortised over the period of the lease. Lease payments are allocated between the principal 

component and the interest expense. 

Operating lease payments are expensed on a basis which is representative of the pattern of 

benefits derived from the leased assets. The net present value of future net outlays in respect of 

surplus space under non-cancellable lease agreements is expensed in the period in which the 

space becomes surplus. 

The National Crime Authority entered into leases for certain computer hardware and software 

during 2001-2002. These assets were transferred to the Commission at 1 January 2003. These 

leases are cancellable, but have been capitalised in accordance with the criteria in the accounting 

standard – AAS 17. 

Lease incentives taking the form of “free” leasehold improvements and rent holidays are recognised 

as liabilities. These liabilities are reduced by allocating lease payments between rental expense 

and reduction of the liability. 

1.8 Borrowing Costs 

All borrowing costs are expensed as incurred except to the extent that they are directly attributable 

to qualifying assets, in which case they are capitalised. 

The ACC has a number of qualifying assets for which funds have been borrowed specifically (Refer 

Note 6). 

1.9 Cash 

Cash means notes and coins held and any deposits held at call with a bank or financial institution. 

Cash is recognised at its nominal amount. 

1.10 Other Financial Instruments 

Trade Creditors 

Trade creditors and accruals are recognised at their nominal amounts, being the amounts at which 

the liabilities will be settled. Liabilities are recognised to the extent that the goods or services have 

been received (and irrespective of having been invoiced). 

Contingent Liabilities and Contingent Assets 

Contingent Liabilities and Assets are not recognised in the Statement of Financial Position but are 

discussed in the relevant schedules and notes. They may arise from the uncertainty as to the 

existence of a liability or asset, or represent an existing liability or asset in respect of which 

settlement is not probable or the amount cannot be reliably measured. Remote contingencies are 

part of this disclosure. Where settlement becomes probably, a liability or asset is recognised, a 

liability or asset is recognised when its existence is confirmed by a future event, settlement 

becomes probable or reliable measurement becomes possible. 


1.11 Acquisition of Assets 

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes 

the fair value of assets transferred in exchange and liabilities undertaken. 

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and 

revenues at their fair value at the date of acquisition, unless acquired as a consequence of 

restructuring administrative arrangements. In the latter case, assets are initially recognised as 

contributions by owners at the amounts at which they were recognised in the transferor agency’s 

accounts immediately prior to the restructuring. 

1.12 Property, Plant and Equipment (PP&E) 

Asset Recognition Threshold 

Purchases of property, plant and equipment are recognised initially at cost in the Statement of 

Financial Position, except for purchases costing less than $2,000, which are expensed in the 

period of acquisition (other than where they form part of a group of similar items which are 

significant in total). 

Revaluations 

Basis 

Land, buildings, plant and equipment are carried at valuation. Revaluations undertaken up to 30 

June 2002 were done on a deprival basis; revaluations since that date are at fair value. This 

change in accounting policy is required by Australian Accounting Standard AASB 1041 

Revaluation of Non-Current Assets. Valuations undertaken in any year are as at 30 June. 

Fair value for each class of asset are determined as shown below: 

Under fair value, assets which are surplus to requirements are measured at their net realisable 

value. 

Frequency 

Asset class Fair value measured 

at: 

Land Market selling price 

Buildings Market selling price 

Leasehold 

Depreciated 

improvements replacement cost 

Plant 

equipment 

& Market selling price 

Land, buildings, plant and equipment were last revalued as at 30 June 2003. The updated useful 

lives of the respective revalued assets were not updated in the Fixed Assets Register for the year 

ended 30 June 2003 to fair value. 

The Fixed Assets Register has been updated for the financial year ended 30 June 2004 to reflect 

the adjusted useful lives based on the Australian Valuation Office revised useful lives. 

The associated depreciation expense has been recognised in the financial statements for the year 

ended 30 June 2004. 

Leasehold improvements are each revalued on a fair value basis. 


6A 


1.12 Property, Plant and Equipment (PP&E) (continued) 

Conduct 

All valuations are conducted by the independent qualified valuer the Australian Valuation Office. 

Depreciation 

Depreciable property plant and equipment assets are written-off to their estimated residual values 

over their estimated useful lives to the ACC using in all cases, the straight line method of 

depreciation. Leasehold improvements are amortised on a straight-line basis over the lesser of the 

estimated useful life of the improvements or the unexpired period of the lease. 

Depreciation rates (useful lives) and methods are reviewed at each balance date and necessary 

adjustments are recognised in the current, or current and future reporting periods, as appropriate. 

Residual values are re-estimated for a change in prices only when assets are revalued. 

Depreciation rates applying to each class of depreciable asset are based on the following useful 

lives: 

2004 2003 

Leasehold improvements Lease term Lease term 

Plant and equipment 3 to 5 years 3 to 5 years 

Computer Equipment 3 years 3 years 

Intangibles 3 years 3 years 

The aggregate amount of depreciation allocated for each class of asset during the reporting period 

is disclosed in Note 5D. 

1.13 Intangibles 

ACC’s intangibles comprise purchased software for internal use. These assets are carried at cost. 

Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the 

ACC’s software are three years. 

1.14 Bad and Doubtful debts 

A provision is raised for any doubtful debts based on a review of all outstanding amounts at period 

end. 

Bad debts are written off during the period in which they are identified. 

1.15 Taxation 

The ACC is exempt from all forms of taxation except fringe benefits tax and the goods and services 

tax. 

Revenues, expenses and assets are recognised net of GST: 

• except where the amount of GST incurred is not recoverable from the Australian Taxation 

Office; and 

• except for receivables and payables. 


1.16 Foreign Currency 

Transactions denominated in a foreign currency are converted at the exchange rate at the date of 

the transaction. Any associated foreign currency gains or losses are brought to account in the 

Statement of Financial Performance in the period in which either the receivable was settled or the 

liability was paid. 

1.17 Insurance 

ACC has insured for risks through the Government’s insurable risk managed fund, called 

‘Comcover’. Workers compensation is insured through the Government’s “Comcare Australia”. 

1.18 Comparative Figures 

The Financial Statements for the year ended 30 June 2003 were for a six month period reflecting 

the establishment of the ACC as a new Agency on 1 January 2003. 

1.19 Rounding 

Amounts have been rounded to the nearest dollar. 


6A 


Note 2: Adoption of AASB Equivalents to International Financial Reporting Standards from 2005- 

2006 

The Australian Accounting Standards Board has issued replacement Accounting Standards to apply 

from 2005-06. The new standards are the AASB Equivalents to International Financial Reporting 

Standards (IFRS’s) which are issued by the International Accounting Standards Board. The new 

standards cannot be adopted early. The standards being replaced are to be withdrawn with effect 

from 2005-06, but continue to apply in the meantime. 

The purpose of issuing AASB Equivalents to IFRS’s is to enable Australian entities reporting under 

the Corporations Act 2001 to be able to more readily access overseas capital markets by preparing 

their financial reports according to accounting standards more widely used overseas. 

It is expected that the Finance Minister will continue to require compliance with the Accounting 

Standards issue by the AASB, including the AASB Equivalents to IFRS’s, in his Orders for the 

Preparation of Agency financial statements for 2005-06 and beyond. 

The AASB Equivalents contain certain additional provisions which will apply to not-for-profit entities, 

including Australian Government agencies. Some of these provisions are in conflict with the IFRS’s 

and therefore the ACC will only be able to assert compliance with the AASB Equivalents to the 

IFRS’s. 

Existing AASB standards that have no IFRS equivalent will continue to apply, including in particular 

AAS 29 Financial Reporting by Government Departments. 

Changes in accounting policies under AASB Equivalents are applied retrospectively, i.e. as if the 

new policy had always applied. This rule means that a balance sheet prepared under the AASB 

Equivalents must be made as at 1 July 2004, except as permitted in particular circumstances by 

AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards. 

This will enable the 2005-06 financial statements to report comparatives under the AASB 

Equivalents also. 

Accounting Standards AASB 1047 Disclosing the impact of Adopting Australian Equivalents to 

IFRS’s requires that the financial statements for 2003-04 disclose: 

• An explanation of how the transition to the AASB Equivalents is being managed; and 

• A narrative explanation of the key differences in accounting policies arising from the 

transition 

Management of the transition to AASB Equivalents to IFRS’s 

The ACC has taken the following steps in preparing for the transition to AASB Equivalents: 

Planning has incorporated the following: 

• Attendance at formal training sessions regarding IFRS’s conducted by the ANAO; and 

• Discussing the Agency business with ANAO and DoFA in respect of IFRS. 

The ACC is confident that IFRS will have minimal impact on the agency, no transactions have been 

identified that require different accounting treatments. The ACC has briefed the Audit Committee and 

committed to continuously monitor and assess our business to guarantee continuous compliance. 

Explanation of the key differences in accounting policies arising from the transition 

The ACC has reviewed the accounting treatment required under IFRS’s and we are confident that 

we are compliant. 


Note 3: Events Occurring after Reporting Date 

The host secretariat responsibility for the Asia Pacific Group on Money Laundering is being 

transferred to the Australian Federal Police effective 11 October 2004. 

The transfer of the secretariat responsibility will not significantly affect the ongoing workings of the 

ACC. The transfer is unlikely to significantly affect the financial statements prepared for the ACC for 

the 2004-2005 financial year. 


6A 


Note 4: Operating Revenues 

Note 4A: Revenues from Government 


2004 

$ 

01.01.03- 

30.06.03 

$ 

Appropriations for outputs 65,471,000 34,431,900 

Salary reimbursements from Commonwealth 

Agencies 

20,890 

- 

Missing Persons Unit funded by the Commonwealth 

Resources Provided Free of Charge 

3,067 

37,180 

Police Services Provided by Government 

288,278 

- 

Other 

67,000 

58,000 

Total revenues from government 65,850,235 34,527,080 

Note 4B: Services provided by State and Territory Police 

Salary reimbursements from State and Territory 

Police 

Services provided free of charge by State and 

Territory Police 

Total revenues from State and Territory Police 

Note 4C: Goods and Services 

1,430,254 810,165 

4,803,807 - 

6,234,061 810,165 

Goods 

1,550 

18 

Services 

259 

- 

Total sale of goods and services 1,809 18 

Provision of goods to: 

External entities 1,809 18 

Total sale of goods and services 1,809 18 

Note 4D: Net Gains from Sale of Assets 

Infrastructure, plant and equipment: 

Proceeds from disposal 11,324 2,549 

Net book value of assets disposed 273,107 53,848 

Net / (loss) from disposal of infrastructure, plant 

and equipment (261,783) (51,299) 

TOTAL proceeds from disposals 11,324 2,549 

TOTAL value of assets disposed 273,107 53,848 

TOTAL net gain / (losses) from disposal of assets (261,783) (51,299) 

Note 4E: Other Revenues 

Asia Pacific Group (APG) on Money Laundering 1,060,821 192,788 

Legal costs awarded to the ACC 1,818 405,296 

Other 464,401 11,364 

Total other revenues 1,527,040 609,448

Note 5: Operating Expenses 

Note 5A: Employee Expenses 

2004 

$ 

01.01.03- 

30.06.03 

$ 

Wages and Salary 23,390,447 10,583,150 

Superannuation 

3,956,498 

1,470,407 

Leave and other entitlements 

688,848 

650,196 

Separation and redundancy 97,514 29,803 

Other employee expenses 233,400 96,126 

Total employee benefit expenses 28,366,707 12,829,682 

Worker compensation premiums 162,384 92,485 

Total employee expenses 28,529,091 12,922,167 

Note 5B: Supplier Expenses 

Goods from related entities 17,054 495,199 

Goods from external entities 1,423, 349 922,268 

Services from related entities 1,517,468 1,613,595 

Services from external entities 12,550,851 4,975,045 

Operating lease rentals * 9,637,757 4,612,611 

Total supplier expenses 25,146,479 12,618,718 

* These comprise minimum lease payments only. 

Note 5C: Police Services provided by State, Territory & Federal Police, and other Commonwealth 

Agencies 

Services provided by State, Territory & Federal 

Police and other Commonwealth Agencies 

12,730,527 

6,246,413 

- provided as a free of charge resource 

5,092,085 

- 

Total other expenses 17,822,612 6,246,413 

Note 5D: Depreciation and Amortisation 

Depreciation 

Other infrastructure, plant and equipment 2,896,848 1,356,025 

Total depreciation 2,896,848 1,356,025 

Amortisation 

Leasehold improvements 1,322,835 361,542 

Intangibles – computer software 677,141 206,272 

Total amortisation 1,999,976 567,814 

Total depreciation and amortisation 4,896,824 1,923,839 

The aggregate amounts of depreciation or amortisation expenses during the reporting period for each 

class of depreciable asset are as follows: 

Leasehold improvements 1,322,835 361,542 

Plant and equipment 2,896,848 1,356,025 

Intangibles – Computer software 677,141 206,272 

Total depreciation and amortisation 4,896,824 1,923,839 


6A 


Note 5E: Write down of assets 


2004 

$ 

01.01.03- 

30.06.03 

$ 

Financial assets 

Bad and doubtful debts expense - 228,199 

Non Financial Assets 

Plant and equipment – revaluation decrement - 175,673 

Plant and equipment – write off 81,899 28,636 

Total write-down of assets 81,899 432,508 

Note 6: Borrowing Cost Expense 

Leases 21,444 17,577 

Other - 5,216 

Total borrowing cost expense 21,444 22,793 

Note 7: Financial Assets 

Note 7A: Cash 

Departmental (other than special accounts) 

Asia Pacific Money Laundering Group 

Total cash 

3,298,919 

1,278,881 

4,577,800 

1,273,376 

389,225 

1,662,601 

Under banking arrangements in place up to 1 July 2003, monies in the Agency’s bank accounts 

were swept into the Official Public Account nightly and earned interest on the daily balance at rates 

based on money market call rates. Since 1 July 2003, no interest is earned on the Agency’s bank 

balances. 

Note 7B: Receivables 

Goods and services 367,686 502,919 

Less: Provision for doubtful debts (128,199) (228,199) 

239,487 274,720 

GST receivable from the Australian Taxation Office 643,353 1,011,427 

Appropriations receivable 

- undrawn 7,586,293 10,615,293 

Total receivables (net) 8,469,133 11,901,440 

All receivables are current assets 

Receivables (gross) are aged as follows: 

Not overdue 

Overdue by: 

8,410,436 12,045,554 

Less than 30 days 

9,356 

18,073 

60 to 90 days 

22,389 

- 

More than 90 days 155,151 66,012 

Total receivables (gross) 8,597,332 12,129,639 

The provision for doubtful debts is aged as follows: 

Not overdue 

128,199 

- 

Overdue 

- 

228,199 

Total provision for doubtful debts 128,199 228,199

Note 7: Financial Assets (continued) 

All receivables with entities external to the Commonwealth have 30 day credit terms. 

Appropriations receivable undrawn are appropriations controlled by the Agency but held in the Official 

Public Account under the Government’s just-in-time drawdown arrangements. 

Note 8: Non-Financial Assets 

Note 8A: Land and Buildings 

Leasehold improvements 

- at 2003 valuation (fair value) 

Accumulated depreciation 

2004 

$ 

01.01.03- 

30.06.03 

$ 

4,316,991 

4,620,640 

(1,083,213) 

- 

3,233,778 4,620,640 

- at cost 729,140 234,138 

Accumulated amortisation (163,710) - 

565,430 234,138 

Total leasehold improvements 3,799,208 4,854,778 

Note 8B: Property, Plant and Equipment 

Plant and equipment 

- at 2003 valuation (fair value) 

Accumulated depreciation 

4,057,950 

4,167,395 

(1,891,189) 

- 

2,166,761 4,167,395 

- at cost 3,190,505 2,004,606 

Accumulated depreciation (1,334,615) (294,067) 

1,855,890 1,710,539 

Total Property, Plant and Equipment 

(non-current) 4,022,651 5,877,934 

The revaluations were in accordance with the revaluation policy stated at Note 1 and were 

completed by the Australian Valuation Office for the year ended 30 June 2003. 

Note 8C: Intangibles 

Intangibles - Computer Software 

Purchased at cost (non-current) 1,301,281 1,285,655 

Accumulated depreciation (883,413) (206,272) 

Total intangibles 417,868 1,079,383 


6A 


Note 8: Non-Financial Assets (continued) 

Note 8D: Analysis of Property, Plant, Equipment and Intangibles 

TABLE A: Reconciliation of the opening and closing balances of property, plant and equipment 

and intangibles 

As at 1 July 2003 

Item Buildings - 

Leasehold 

Improvements 


Property, 

Plant & 

Equipment 

Computer 

Software 

TOTAL 

$ $ $ $ 

Gross book value 4,854,778 6,172,001 1,285,655 12,312,434 

Accumulated depreciation/ 

amortisation - (294,067) (206,272) (500,339) 

Net book value 4,854,778 5,877,934 1,079,383 11,812,095 

Additions by 

Purchases 495,002 1,168,834 15,626 1,679,462 

Net revaluation 

increment/(decrement) 

- - - - 

Depreciation/amortisation 

expense 

(1,322,835) (2,896,848) (677,141) (4,896,824) 

Recoverable Amount write-downs - (81,899) - (81,899) 

Disposals (227,737) (45,370) - (273,107) 

Other disposals - - - - 

As at 30 June 2004 

Gross book value 5,046,131 7,248,455 1,301,281 13,595,867 

Accumulated 

depreciation/amortisation 

(1,246,923) (3,225,804) (883,413) (5,356,140) 

Net book value 3,799,208 4,022,651 417,868 8,239,727 

TABLE B: Assets held under finance lease 

Item Buildings - 

Leasehold 

Improvements 

Property, 

Plant & 

Equipment 

Computer 

Software 

TOTAL 

$ $ $ $ 

As at 30 June 2004 

Gross value - 1,123,469 - 1,123,469 

Accumulated 


- (866,901) - (866,901) 

Net book value 

As at 1 July 2003 

- 256,568 - 256,568 

Gross value - 1,123,469 - 1,123,469 

Accumulated 


- (286,854) - (286,854) 

Net book value - 836,615 - 836,615 

All assets under financial arrangements are included in Table A and B above.

Note 8: Non-Financial Assets (continued) 

Note 8E: Other Non-Financial Assets 

2004 

$ 

01.01.03- 

30.06.03 

$ 

Prepayments 347,984 488,231 

All other non-financial assets are current assets. 


6A 


Note 9: Interest Bearing Liabilities 

Note 9A: Leases 


2004 

$ 

01.01.03- 

30.06.03 

$ 

Finance Lease Commitments: 

Payable: 

Within one year 338,555 559,002 

In one to five years 

- 

338,554 

In more than five years 

- 

- 

Minimum lease payments 338,555 897,556 

Deduct: future finance charges (3,517) (24,671) 

Net lease liability 335,038 872,885 

Lease liability is represented by: 

Current 335,038 537,848 

Non-current - 335,037 

Net lease liability 335,038 872,885 

Finance leases exist in relation to information technology equipment. One lease is non-cancellable 

for a fixed term of 3 years. The ACC guarantees the residual values on that lease. The other 

leases are cancellable during the 3 year term. These leases have been capitalised in accordance 

with Australian Accounting Standard (AAS 17). There are no contingent rentals. 

Note 9B: Other Interest Bearing Liabilities 

Lease incentives 268,334 338,334 

Other 10,701 217,682 

279,035 556,016 

Other interest bearing liabilities are represented by: 

Current 279,035 287,682 

Non Current - 268,334 

Total other interest bearing liabilities 279,035 556,016

Note 10: Provisions 

Note 10A: Capital Use Charge Provision 

2004 

$ 

01.01.03- 

30.06.03 

$ 

Capital Use Charge - 829,000 

Balance owing 1 July 829,000 492,000 

Capital Use Charge provided for / (paid) during the 

period 

(829,000) 337,000 

Balance owing 30 June - 829,000 

Note 10B: Employee Provisions 

Salaries and wages - 811,698 

Leave 8,044,626 7,558,458 

Aggregate employee entitlement liability 8,044,626 8,370,156 

Workers’ compensation 16,859 59,038 

Aggregate employee benefit liability and related 

on-costs 8,061,485 8,429,194 

Current 6,449,411 7,148,457 

Non-current 1,612,074 1,280,737 


6A 


Note 11: Payables 

Note 11A: Supplier Payables 


2004 

$ 

01.01.03- 

30.06.03 

$ 

Trade creditors 5,396,933 3,607,093 

Operating lease rentals 274,847 1,135,886 

Total supplier payables 5,671,780 4,742,979 

Supplier payables are represented by: 

Current 5,671,780 4,742,979 

Total supplier payables 5,671,780 4,742,979

Note 12: Equity 

Note 12A: Analysis of Equity 

Asset Revaluation 

Item Accumulated Results 

Contributed Equity TOTAL EQUITY 

Reserves 

2004 2003 2004 2003 2004 2003 2004 2003 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

Opening balance (147,352) - 987,145 - 9,594,500 - 10,434,293 - 

(3,146,987) 1,728,974 - - - - (3,146,987) 1,728,974 

Net surplus / (deficit) 

- - - 987,145 - - - 987,145 

Net revaluation increment / (decrement) 

- (1,539,326) - - - - - (1,539,326) 

Decrease in retained surpluses on application of transitional 

provisions in accounting standard AASB1041 Revaluation of 

Non-current Assets 

Transactions with owner: 

Distributions to owner: 

Returns on Capital 

Dividends - - - - - - - - 

Capital use charge - (337,000) - - - - - (337,000) 

Returns of Capital 

Restructuring - - - - - - - - 

Returns of contributed equity - - - - - - - - 

Contributions by owner: 

Appropriations (equity injections) - - - - - 9,594,500 - 9,594,500 

Restructuring - - - - - - - - 

Transfers to / (from) / between reserves - - - - - - - - 

Closing balance as at 30 June 2004 (3,294,339) (147,352) 987,145 - 9,594,500 9,594,500 7,287,306 10,434,293 

Less: outside equity interests - - - - - - - - 

Total equity attributable to the Commonwealth (3,294,339) (147,352) 987,145 987,145 9,594,500 9,594,500 7,287,306 10,434,293 


6A 


Note 13: Cash Flow Reconciliation 

Reconciliation of cash per Statement of Financial Position 

to Statement of Cash Flows 


2004 

$ 

01.01.03- 

30.06.03 

$ 

Cash at period end per Statement of Cash Flows 4,577,800 1,662,601 

Statement of Financial Position items comprising above cash: 

“Financial Asset – Cash” 4,577,800 1,662,601 

Reconciliation of net surplus to net cash from operating 

activities: 

Net surplus / (deficit) (3,146,987) 1,728,974 

Capital Use Charge - (337,000) 

Depreciation / amortisation 4,896,824 1,923,839 

Net write down of non-financial assets 81,899 432,508 

(Gain) / Loss on disposal of assets 273,107 51,299 

(Increase) / decrease in net receivables 3,432,307 (10,573,484) 

(Increase) / decrease in prepayments 140,247 270,115 

Increase / (decrease) in other debt (276,981) (2,630) 

Increase / (decrease) in capital usage charge provision - 337,000 

Increase / (decrease) in employee provisions (367,709) (37,708) 

Increase / (decrease) in supplier payables 928,802 (1,031,607) 

Increase / (decrease) in other interest bearing liabilities (537,848) (3,042,503) 

Net cash from / (used by) operating activities 5,412,337 (10,281,197) 

Note 14: Contingent Liabilities and Assets 

Quantifiable Contingencies 

At 30 June 2004, the Agency did not have any quantifiable contingencies. 

Unquantifiable Contingencies 

At 30 June 2004, the Agency did not have any unquantifiable contingencies. 

Remote Contingencies 

At 30 June 2004, the Agency did not have any remote contingencies.

Note 15: Executive Remuneration 

The number of Executives who received or were due to receive 

total remuneration of $100,000 or more: 

$100,000 to $109,999 

$120,000 to $129,999 

$150,000 to $159,999 

$170,000 to $179,999 

$180,000 to $189,999 

$230,000 to $239,999 

$260,000 to $269,999 

$310,000 to $319,999 

2004 01.01.03- 

30.06.03 

Number Number 

The aggregate amount of total remuneration of executives shown 

above. 1,350,813 551,576 

The aggregate amount of separation and redundancy/termination 

benefit payments during the period to executives shown above. Nil Nil 

- 

- 

- 

2 

1 

1 

1 

1 


1 

1 

1 

1 

- 

- 

- 

- 

6A 


Note 16: Remuneration of Auditors 

Financial statement audit services are provided free of charge to the ACC 

(including the APG). 


2004 

$ 

01.01.03- 

30.06.03 

$ 

The fair value of the services provided was: 67,000 58,000 

No other services were provided by the ANAO.

Note 17: Staffing Levels 

2004 

$ 

01.01.03- 

30.06.03 

$ 

Staffing levels for the business operation and the ACC as at 30 

June 2004 were: 385 330 

The staffing level for the Agency represents Australian Public Service employees only. Seconded officers 

from Law Enforcement Agencies are not included in the above number. 


6A 


Note 18: Financial Instruments 

Nature of Underlying Instrument (including significant 

terms & conditions affecting the amount, timing and 

certainty of cash flows) 

Note 18A: Terms, Conditions and Accounting Policies 

Financial Instrument Notes Accounting Policies and Methods (including recognition 

criteria and measurement basis) 

Financial Assets Financial assets are recognised when control over future economic 

benefits is established and the amount of the benefit can be reliably 

measured. 

Cash 7A Cash is recognised at its nominal amount. The department invests funds with a commercial bank at 

call. Monies in the ACC’s bank accounts are swept into the 

Official Public Account nightly and interest is earned on the 

daily balance at rates based on money market call rates. 

Interest is retained by the Department of Finance and 

Administration. 

Receivables for goods and 7B Receivables are recognised at the nominal amounts due less any All receivables are with entities external to the 

services 

provision for bad and doubtful debts. Collectability of debts is Commonwealth. Credit terms are net 30 days. 

reviewed at balance date. Provisions are made when collection of 

the debt is judged to be less rather than more likely. 

Appropriations receivable 7B Receivables are recognised at their nominal amounts. Amounts appropriated by Parliament in the current period 

which are available to be drawndown by the Agency. 


Financial liabilities Financial liabilities are recognised when a present obligation to 

another party is entered into and the amount of the liability can be 

reliably measured. 

Finance lease liabilities 9A Liabilities are recognised at the present value of the minimum lease 

payments at the beginning of the lease. The discount rates used 

At reporting date, the Department had finance leases with 

terms of three years. The interest rate implicit in the leases 

averaged 3.5%. The lease assets secure the liabilities. 

The final amount payable for the period will be equal to the 

funding received for the Capital Use Charge for the year 

(part of the Departmental appropriation) previously 

expensed in the accounts of the National Crime Authority, 

are estimates of the interest rates implicit in the leases. 

10A This payable is recognised as the amount outstanding on the 

estimated amount to be paid in accordance with the calculations 

outlined by the Department of Finance and Administration. 

Capital Use Charge 

payable 

less any amount settled before 30 June. 

Creditors include entities that are both part of the 

Commonwealth legal entity and external suppliers. 

Settlement is usually made net 30 days. 

Trade creditors 11A Creditors and accruals are recognised at their nominal amounts, 

being the amounts at which the liabilities will be settled. Liabilities 

are recognised to the extent that the goods or services have been 

received (and irrespective of having been invoiced).

Note 18: Financial Instruments (continued) 

Note 18B: Interest Rate Risk 

Total 

Fixed Interest Rate Maturing In Non–Interest 

bearing 

1 Year or Less 1 to 5 Years > 5 Years 

2004 2003 2004 2003 2004 2003 2004 2003 

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 

Financial Instrument Notes Floating 

Interest Rate 

2003 

$’000 

2004 

$’000 

2003 

$’000 

2004 

$’000 

Financial Assets 

Cash 7A - - - - - - - - 4,578 1,663 4,578 1,663 

Receivables for goods 

and services (gross) 7B - - - - - - - - 368 503 368 503 

Appropriations Receivable 7B - - - - - - - - 7,586 10,615 7,586 10,615 

Assets - - - - - - - - 12,532 12,781 12,532 12,781 

Total Assets 21,635 25,864 

Total Weighted 

Average 

Effective 

Interest Rate 

Fixed Interest Rate Maturing In Non–Interest 

bearing 

Financial Instrument Notes Floating 

Interest Rate 

2003 

% 

2004 

% 

2003 

$’000 

2004 

$’000 

2003 

$’000 

2004 

$’000 

1 Year or Less 1 to 5 Years > 5 Years 

2004 2003 2004 2003 2004 2003 

$’000 $’000 $’000 $’000 $’000 $’000 

2003 

$’000 

2004 

$’000 

Financial Liabilities 

Finance lease liabilities 9A - - 335 538 - 335 - - - - 335 873 3.5 3.5 

Capital Use Charge 

- - - - - - - - - 

payable 10A 

829 - 829 n/a n/a 

Trade Creditors 11A - - - - - - - - 5,672 4,743 5,672 4,743 n/a n/a 

Liabilities - - 335 538 - 335 - - 5,672 5,572 6,007 6,445 n/a n/a 

Total Liabilities 14,347 15,430 


6A 


Note 18: Financial Instruments (continued) 

Note 18C: Net Fair Values of Financial Assets and Liabilities 


Notes Total 

Carrying 

Amount 

Aggregate 

Net Fair 

Value 

Total 

Carrying 

Amount 

Aggregate 

Net Fair 

Value 

2004 01.01.03-30.06.03 

$’000 $’000 $’000 $’000 

Departmental Financial Assets 

Cash 

Receivables for goods and 

7A 4,578 4,578 1,663 1,663 

services (net) 7B 239 239 275 275 

Appropriations receivable 7B 7,586 7,586 10,615 10,615 

Total Financial Assets 12,403 12,403 12,553 12,553 

Financial Liabilities 

(Recognised) 

Finance lease liabilities 9A 335 335 873 873 

Capital Use Charge 10A - - 829 829 

Trade Creditors 11A 5,672 5,672 4,743 4,743 

Total Financial Liabilities 

(Recognised) 6,007 6,007 6,445 6,445 

The net fair values of cash and non interest-bearing monetary financial assets approximate their 

carrying amounts. 

The net fair values of the finance lease, surplus space and lease incentive liabilities, and guarantees 

are based on discounted cash flows using current interest rates for liabilities with similar risk profiles 

(Where the liability is on a floating rate of interest, the method returns the principal amount). 

The net fair values for trade creditors are approximated by their carrying amounts. 

Note 18D: Credit Risk Exposures 

The ACC's maximum exposures to credit risk at reporting date in relation to each class of recognised 

financial assets is the carrying amount of those assets as indicated in the Statement of Financial 

Performance. 

The Department has no significant exposures to any concentrations of credit risk. 

All figures for credit risk referred to do not take into account the value of any collateral or other 

security.

Note 19: Appropriations 

Note 19A: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund (Appropriations) from 

Acts 1 and 3 

Particulars Departmental 

Outputs 

2004 

Year ended 30 June 2004 

$ 

Departmental 

Outputs 

2003 

$ 

Balance carried from previous year 12,499,737 10,751,241 

Appropriation Act (No.1) 2003-2004 – basic 

appropriation 

65,069,000 31,030,607 

Appropriation Act (No.3) 2003-2004 – basic 

appropriation 

402,000 373,000 

Departmental Adjustments by the Finance Minister - - 

Advance to the Finance Minister - - 

Refunds credited (FMAA 30) - - 

Appropriations to take account of recoverable GST 

(FMAA 30A) 

3,174,945 1,637,610 

Annotations to ‘net appropriations’ (FMAA 31) 1,684,200 800,987 

Transfer to/from other agencies (FMAA 32) - 3,028,293 

Total Appropriations available for payments 82,829,882 47,621,738 

Payments made (GST inclusive) (71,301,317) (35,122,001) 

Appropriations credited to Special Accounts - - 

Balance carried to next year 11,528,565 12,499,737 

Represented by: 

Cash at bank and on hand 3,298,919 1,273,376 

Add: Appropriations not drawn from the OPA 7,586,293 10,615,293 

Add: Receivables – Net GST receivable from ATO 704,612 1,011,427 

Less: Payables – Suppliers – GST portion (61,259) (400,359) 

Total 11,528,565 12,499,737 


6A 


Note 19B: Special Accounts 

Account Name 2004 2003 

$ $ 

Financial Action Task Force – Asia Pacific 

Group Secretariat Account 

Legal Authority: Financial Management and 

Accountability Act 1997; s20 

Appropriation: Financial Management and 

Accountability Act 1997; s20 

Purpose: for expenditure relating to the operations 

of the Secretariat to the Financial Action Task Force 

– Asia/Pacific Group. 

This account is non-interest bearing. 

Balance carried forward 389,225 63,837 

Appropriation for reporting period (Act 1) - - 

Appropriation for reporting period (Act 3) - - 

Adjustments by the Finance Minister - - 

Amounts from Advance to the Finance Minister - - 

Refunds credited (FMA s 30) - - 

GST credits (FMA s 30A) - - 

Other Receipts – Members Contribution 1,310,184 1,091,712 

Available for payments 1,699,409 1,155,549 

Payments made (420,528) (766,324) 

Balance carried to next year 1,278,881 389,225 

Represented by: 

Cash on call held in APG bank account 1,278,881 389,225 

Total 1,278,881 389,225 

The Asia Pacific Group Secretariat special account is prepared on a cash basis for the 2002/2003 

comparative. As a result, the opening balance for the 2002/2003 financial year has been restated in 

order to comply with the FMO’s. 

The ACC has an Other Trust Monies Account and a Service for other Governments and Non-Agency 

Bodies Account. Both accounts were established under section 20 of the Financial Management and 

Accountability Act 1997. For the year ended 30 June 2004 the accounts had nil balances and there 

were no transactions debited or credited to the accounts during the financial year. 

The purpose of the Other Trust Monies Special Account is for expenditure of monies temporarily held 

on trust or otherwise for the benefit of a person other than the Commonwealth. Any money held is thus 

special public money under section 16 of the FMA Act 1997. 

The purpose of the Services for other Governments and Non Agency Bodies Special Account is for 

expenditure in connection with services performed on behalf of other Governments and bodies that are 

not Agencies under the Financial Management and Accountability Act 1997. 

The ACC has a Law Enforcements Projects Reserve Special Account is for expenditure of monies on 

law enforcement projects selected for the purpose of Section 34D of the Proceeds of Crime Act 1987. 

For the year ended 30 June 2004 the account had a nil balance and there were no transactions debited 

or credited to the account during the financial year. 


Note 20: Comcare account 

Nil. 

Note 21: Reporting of Outcomes 

Note 21A: Net Cost of Outcome Delivery 

The ACC expenditure by outputs has been reviewed and assessed by internal management. 

Expenditure is based on the number of employees directly attributable to the outputs. Overhead 

expenditure is allocated to outputs in accordance with the share of the consumption of resources 

per output. 

Total Total 

2004 

01.01.03- 

30.06.03 

$ 

$ 

Departmental expenses 76,771,456 34,197,493 

Total Expenses 76,771,456 34,197,493 

Costs recovered from provision of goods and 

services to the non-government sector 

Departmental 1,809 18 

Total costs recovered 1,809 18 

Other External revenues 

Departmental 

Revenue from disposal of fixed assets 11,324 2,549 

Other revenues 1,527,040 609,448 

Total Departmental 1,538,364 611,997 

Total other external revenues 1,538,364 611,997 

Net cost of outcome 75,231,283 33,585,478 


6A 


Note 21B: Major Classes of Departmental Revenues and Expenses by Outputs 2004 

Outcome 1 Output 1.1 Output 1.2 Output 1.3 Total 

2004 2004 2004 2004 

Departmental Expenses 

Employees 3,111,723 2,626,710 22,790,658 28,529,091 

Suppliers 2,742,775 2,315,269 20,088,436 25,146,480 

Depreciation and amortisation 534,106 450,857 3,911,861 4,896,824 

Other expenses 1,982,668 1,673,637 14,521,314 18,177,619 

Total departmental expenses 8,371,272 7,066,473 61,312,269 76,750,014 

Funded by: 

Revenues from government 7,141,047 6,028,000 52,301,953 65,471,000 

Sales of goods and services 682,771 576,350 5,000,705 6,259,826 

Other non-taxation revenues 167,792 141,639 1,228,933 1,538,364 

Total departmental revenues 7,991,610 6,745,989 58,531,591 73,269,190 


Note 21C: Major Classes of Departmental Revenues and Expenses by Outputs 2003 

Outcome 1 Output 1.1 Output 1.2 Output 1.3 Total 

2003 2003 2003 2003 

Departmental Expenses 

Employees 2,482,164 2,610,771 7,829,232 12,922,167 

Suppliers 2,446,386 2,340,327 7,832,005 12,618,718 

Depreciation and amortisation 459,798 438,635 1,025,406 1,923,839 

Other expenses 396,824 750,064 5,585,881 6,732,769 

Total departmental expenses 5,785,172 6,139,797 22,272,524 34,197,493 

Funded by: 

Revenues from government 8,243,086 7,863,697 18,383,117 34,489,900 

Sales of goods and services 847,345 - - 847,345 

Other non-taxation revenues 13,720 24,703 573,592 612,015 

Total departmental revenues 9,104,151 7,888,400 18,956,709 35,949,260

Note 22: Specific Payment Disclosures 

No Act of Grace payments were made during the reporting period, and there are no amounts owing as at 

balance date. 

No waivers of amounts owing to the Commonwealth were made pursuant to subsection 34(1) of the 

Financial Management and Accountability Act 1997. 

No payments were made under the Defective Administration Scheme during the reporting period. 


6A 


Appendix B: Staffing Statistics 

Staffing 

Table 6B1: ACC staffing at 30 June 2004 

CEO & Examiners 4 

APS Staff 377 

Seconded Police Officers 117 

ATO secondees 7 

ACS secondees 3 

CDPP secondees 1 

Agency staff 9 

TOTAL 518 

Table 6B2: ACC staffing by classification and location at 30 June 2004 


Sydney Melbourne Brisbane Adelaide Perth Canberra Total 

CEO 1 1 

Examiner 2 1 3 

SES Band 2 1 1 3 5 

SES Band 1 3 1 4 

Exec Level 2 20 12 6 1 2 12 53 

Exec Level 1 25 23 10 3 8 16 85 

APS Level 6 18 12 3 1 3 17 54 

APS Level 5 22 10 3 2 8 45 

APS Level 4 8 9 7 1 2 11 38 

APS Level 3 38 15 14 5 5 2 79 

APS Level 2 4 3 1 1 9 

Agency staff 5 3 1 9 

Subtotal 145 88 46 15 20 71 385

Table 6B2: ACC staffing by classification and location at 30 June 2004 (cont.) 

Sydney Melbourne Brisbane Adelaide Perth Canberra Total 

Seconded 

Police 39 29 24 7 8 10 117 

ATO 

secondees 3 3 1 7 

ACS 

secondees 3 3 

CDPP 

secondees 1 1 

Subtotal 46 32 24 7 9 10 128 

TOTAL 195 120 70 22 29 82 518 

Table 6B3: Seconded police by home force at 30 June 2004 

Home Force Number 

Australian Federal Police 32 

New South Wales Police 22 

Victoria Police 24 

Queensland Police 21 

South Australia Police 6 

Western Australia Police 4 

Tasmania Police 8 

TOTAL 117 

In addition, a number of police officers and other staff are attached to ACC task 

forces. They are as follows: 

Taskforce Number 

Australian Federal Police 2 

Victoria Police 2 

Queensland Police 16 

South Australia Police 19 

Western Australia Police 11 

CMC 4 

TOTAL 54 


6B 

APPENDIX B: STAFFING STATISTICS

Table 6B4: Salary bands under the ACC’s Certified Agreement 2002–03 at 

30 June 2004 

Classification Salary Band 

APS 1 $30,576pa - $33,794pa 

APS 2 $34,604pa - $38,373pa 

APS 3 $39,415pa - $42,539pa 

APS 4 $43,926pa - $47,695pa 

APS 5 $48,995pa - $51,954pa 

APS 6 $52,917pa - $60,787pa 

Executive Level 1 $67,494pa - $82,023pa 

Executive Level 2 $82,981pa - $93,495pa 

Table 6B5: Salary bands under Australian Workplace Agreements at 30 June 2004 

Classification Salary Band 

Non-SES staff $52,000pa - $117,294pa 

SES Band 1 $111,111pa - $139,121pa 

SES Band 2 $137,500pa - $148,158pa 


Table 6B6: ACC staff by gender at 30 June 2004 

Classification Female Male Total % Female 

CEO 1 1 0 

Examiner 3 3 0 



Exec Level 2 10 45 55 18 

Exec Level 1 22 65 87 25 

APS Level 6 24 31 55 44 

APS Level 5 29 16 45 64 

APS Level 4 26 12 38 68 

APS Level 3 57 22 79 72 

APS Level 2 6 3 9 67 

Agency staff 8 1 9 89 

Subtotal 182 208 390 47 

Seconded staff 13 115 128 10 

TOTAL 195 323 518 35 

Table 6B7: ACC staff turnover in 2003–04 

Termination Reason 

Move to other APS agency 6 

Resignation 34 

Retired after Age 55 2 

Dismissal - Misconduct 1 

Completed Non-ongoing contract 5 

Termination - Other Reason 3 

Total 51 


6B 

APPENDIX B: STAFFING STATISTICS

Appendix C: Consultants and Counsel Engaged 

Table 6C1: Consultants paid by the ACC in 2003–04 

Name Description Cost 

Yarimbah Consulting Complaint investigation $106,127 

Chris Farrell Consulting Development of a performance 

development system 

Hansen & Searson Executive 

Search 


$66,294 

Recruitment services $60,600 

Scarlett Lancer Consulting Project management services $44,000 

Risk Resource Risk assessments and 

development of fraud and risk 

management plans 

Ridgeall P/L Financial intelligence technical 

assistance 

$32,702 

$25,600 

Spherion Recruitment Recruitment services $21,600 

John Valentin & Associates Complaint investigation $21,000 

Cavill Mayor Recruitment services $19,650 

Rhonda Waller Grievance investigation $19,290 

Layrib P/L Review of information 

management and technology 

services 

Lexiq Review of project and job costing 

systems 

$18,000 

$12,510 

Staff & Executive Resources Recruitment services $11,466 

Various* Specialised translating and 

interpreting services 

Only consultancies of $10,000 or over are included in this list. 

$812,372 

Total payments made in 2003–04 $1,271,211 

*For security reasons people involved in ACC operational work are not identified.

Table 6C2: Counsel paid by the ACC in 2003–04 

Name Description Cost 

A Southall Appearance for the ACC $67,707 

S Crennan Appearance for the ACC $18,000 

M Dicker Advice for the ACC $13,305 

J Buxton Appearance for the ACC $12,190 

R Wilson Appearance for the ACC $11,045 

I Temby Advice and appearances for the 

ACC 

$9,062 

S Donaghue Appearance for the ACC $7,480 

P Johnson Appearance for the ACC $7,200 

N Williams Appearance for the ACC $6,480 

H Insall Advice and appearances for the 

ACC 

$2,473 

Total payments made in 2003–04 $154,942 


6C 

APPENDIX C: CONSULTANTS AND COUNSEL ENGAGED

Appendix D: Summary of Charges 

Table 6D1: Summary of charges July 2003 to June 2004 

Matter Nature of charge Arresting agency 

South- 

East Asian 

Organised 

Crime 

Fraud 

against the 

Commonwealth 

Established 

Criminal 

Networks 

70 x sell/supply drug 

29 x possess/use drug 

25 x import drug 

5 x produce/cultivate drug 

7 x possess tainted property/ 

proceeds of crime 

1 x money laundering / fraud/ 

structuring 

11 x possess drug equipment 

1 x failure to comply with legal 

instruction 

8 x other 

3 x import drugs 

1 x produce/cultivate drugs 



41 x money laundering / fraud/ 

structuring 

1 x possession 

4 x other 



5 x import drug 

25 x produce/cultivate drug 




22 x weapon offences 

7 x money laundering/fraud/ 

structuring 

3 x falsified documents 

3 x stealing 

28 x other 

Firearms 3 x sell/supply drug 





115 x weapon offences 

15 x possession 

Identity Crime 21 x money laundering/fraud/ 

structuring 

3 x falsified documents 

6 x other 

Amphetamine 

and Other 

Synthetic Drugs 


4 x firearms/weapons 


Arresting agencies included: 

• ACC 

• AFP 

• Victoria Police 

• Queensland Police 

• Western Australia 

Police 

• Joint task force 

• External Agency 


• ACC 

• AFP 

• New South Wales 

Police 

• Joint task force 


• ACC 

• AFP 



• South Australia Police 

• Joint task forces 


• ACC 


Police 


• Western Australia 

Police 

• Joint task forces 



Police 


• South Australia Police 


• ACC

Table 6D2: Summary statistical report on investigations 

Requests for information – s19 Nil 

Requests for information – s19A Nil 

Requirements to furnish information. – s20 3 

Requests for information – Tax Admin Act 628 

Search warrants under s22 11 

Search warrants granted other than s22 192 

Deliver passport to an Examiner s24 28 

Warrants for telephone interception 

No of standard (service) warrants issued 195 

No of services intercepted 175 

No of named person warrants issued 195 

No of services intercepted 429 

Warrants for listening devices 125 

Witnesses summonsed to s28, and State Act equivalent examination 381 

Notices issued under s29, and State Act equivalent 453 

People charged directly by the ACC 1 75 

Charges laid 224 

People charged by task forces 128 

Charges laid 402 

Convictions obtained 88 

Witnesses taken into protection 2 Nil 

Public sittings Nil 

Review of decisions pursuant to AD(JR) 2 

1. Figures for arrests and charges are those that were current at the end of the year reported 

on. The substitution, withdrawal or modification of charges during the prosecution phase 

are not reflected in the reported figures. 

2. One person was taken into protection in June 2003. This was not reported in the 2002–03 

report. 


6D 

APPENDIX D: SUMMARY OF CHARGES

Appendix E: Court Results 

Table 6E1: Court Results - 1 July 2003 - 30 June 2004 

Date Name Offence Type Result 

South-East Asian Organised Crime (Blade) 


03/07/2003 Bourke 

Glen 

28/07/2003 Le 

Cong Chi 

01/08/2003 Le 

Van Trung 

31/10/2003 Khong 

Chien Van 

31/10/2003 Pham 

Nam Van 

07/11/2003 Do 

Quyen Duc 

14/11/2003 Halmi 

Nicolae 

14/11/2003 Do 

Quynh Duc 

14/11/2003 Do 

Triet Minh 

14/11/2003 Do 

Vien Duc 

14/11/2003 Nguyen 

Tam Van 


Knowingly concerned 

in the importation of a 

prohibited import 

Supply large 

commercial quantity 

prohibited drug 

Import prohibited 

import 

Ongoing supply 


Supply prohibited drug 



Supply large 



Supply large 



Supply large 





Supply large 



Supply large 



Supply trafficable 

quantity prohibited 

drug 

Acquitted 

No Bill - defendant 

deceased on 6 July 

2003 

6 years 

imprisonment 

with a non parole 

period of 3 years 6 

months 

5 years 

imprisonment with 

a non parole period 

of 3 years 

4 1/2 years 



of 2 years 

16 years 



of 12 years 

7 years 

imprisonment 



months 

8 years 



of 4 years 

4 1/2 years 



of 2 years 

12 years 



of 9 years 

5 years 



of 2 1/2 years 

12 months 

imprisonment

Table 6E1: Court Results - 1 July 2003 - 30 June 2004 (cont.) 


14/11/2003 Truong 

Tuan Minh 

28/11/2003 Ha 

Tien Lan 

18/12/2003 Prasad 

Simon 

19/12/2003 Sukkar 

Steven 

05/03/2004 Nassif 

Fred 

09/03/2004 Nguyen 

Thanh Hai 

09/03/2004 Pham 

Van Hau 

09/03/2004 To 

Kam Pui 

09/03/2004 Vu 

Quang Huy 



Supply large 









Supply large 

commercial quantity of 

a prohibited import 


in the importation of 


(MDMA) 




(Heroin) 




(MDMA) 




(Heroin) 

Convey prohibited 

import 

Convey prohibited 

import (MDMA) 




(Heroin) 




(Methylamphetamine) 

4 1/2 years 




Nolle prosequi 

14 years 

imprisonment 



months 

14 years 



of 9 years 

6 years 



of 3 years 

25 years 

imprisonment 

with a non-parole 

period of 16 years 

15 years 

imprisonment 

Life imprisonment 



15 years 

imprisonment 

Life imprisonment 



10 years 



of 6 years 

8 years 

imprisonment 

8 years 

imprisonment 


6E 

APPENDIX E: COURT RESULTS



11/03/2004 Sukkar 

Louis 

11/03/2004 Stojkov 

Mile 

19/04/2004 Sukkar 

Paul 

18/05/2004 Duong 

Thi Minh Phung 

Victoria 

18/08/2003 Nguyen 

Hung Van 

18/08/2003 Tran 

Thi Thu Van 

19/08/2003 Pham 

Lam Ngoc 

19/02/2004 Siu 

Paul See Hon 

27/02/2004 Lao 

Vinh Lac 

14/05/2004 Nguyen 

Hung Thanh 





(123.5 kgs MDMA) 

Supply large 



(14,000 MDMA tablets) 

Supply large 



Accessory after the 

fact to importation of a 


Permit another person 

to use passport for 

travel purposes 

Trafficking commercial 

quantity of a drug of 

dependence 



dependence 



dependence 

Export prohibited 

goods 

Possess prohibited 

goods for export 



dependence 



dependence 

18 years 



of 12 years 

6 years 



of 3 years 

7 years 

imprisonment 



months 

14 months periodic 

detention with a 

non parole period 

of 9 months 

Fined $5,000 

13 years 



of 9 years 

4 years 



of 2 years 

4 years 




9 months 

imprisonment 

4 months 

imprisonment 

To serve 11 months 

and sentences 

suspended on 

good behaviour 

bond of $5,000 for 

3 years 

19 years 



of 15 years 

10 years 



of 7 1/2 years



11/06/2004 Nguyen 

Allan 

11/06/2004 Nguyen 

Manh Huong 

Queensland 

08/08/2003 Forrest 

Bradley 

11/08/2003 Tran 

Chau Van 

18/09/2003 Parker 

Lee 

30/09/2003 Tran 

Chieu Van 

03/10/2003 Tutoveanu 

Pompiliu 

19/01/2004 Yin 

Anthony 

18/02/2004 Hanush 

Troy 

25/03/2004 Thompson 

Dennis 

21/04/2004 Crane 

Bradley 

01/06/2004 Ancuta 

Ion 



dependence 



dependence 

Supply large 


a prohibited drug 




Possess dangerous 

drug 




Knowingly take part in 

supply of commercial 

quantity of a prohibited 

drug 

Fail to provide dockets 

(abalone) 

Fail to keep 

processing records 

(abalone) 

Supply dangerous 

drug 

Trafficking in 

dangerous drugs 

Supply dangerous 

drug 


drug 

Supply commercial 

quantity of a prohibited 

drug 

5 years 




6 years 




3 years 6 months 



of 1 year 9 months 

9 years 

imprisonment 

with no 

recommendation 

for a non parole 

period 

Fined $1,000 

5 years 

imprisonment 



months 

13 years 



of 8 years 

Fined $25,000 

Withdrawn 

- defendant 

deceased 6 

February 2004 

5 years 

imprisonment, 

balance 

suspended after 

serving 12 months 

4 years 

imprisonment 

9 years 

imprisonment 



months 


6E 




17/06/2004 Raciti 

Giuseppe 

17/06/2004 Rizk 

Keiyed 


29/07/2003 Nguyen 

Ngoc Giau 

06/11/2003 Tran 

Thi Ngoc 

05/12/2003 Phung 

Can So 

16/12/2003 Lam 

Van Tuan 

17/12/2003 Tran 

Mung Van 

04/02/2004 Huynh 

Ngoan Van 

01/04/2004 Kuoch 

Siev Leng 

01/04/2004 Nguyen 

Thi Tuyet Ngoc 

Established Criminal Networks (Freshnet) 


10/07/2003 McDougall 

Daniel 

10/07/2003 Brokenshire 

Dominic 






Take part in supply of 

prohibited substance 

for sale 

Take part in supply of 

prohibited substance 

for sale 

Import prohibited 

import 


drug with intent to sell 


substance for sale 



Possess controlled 


Possess controlled 


Conspiracy to import 

or export 


or export 

11 years 

imprisonment, 

declared serious 

violent offender (to 

serve minimum of 

80% of sentence) 

8 years 



of 3 years 


imprisonment 

3 years 



of 18 months 

5 years 



of 3 years 

6 years 



of 4 years 

Dismissed for want 

of prosecution 

Dismissed for want 

of prosecution 


imprisonment 

suspended on 


bond of 3 years 

3 years 

imprisonment 



suspended on 


bond of 3 years 

Acquitted 

Acquitted



24/09/2003 Lawrence 

John 

24/09/2003 Diez-Orozco 

Juan 

20/05/2004 Hepburn 

Scott 

25/02/2004 Rajwan 

Baruch 

Victoria 

30/10/2003 Corsetti 

Daniel 

Queensland 

15/08/2003 Mainwaring 

Daryl Mervyn 

04/12/2003 Lowe 

Dennis 


or export 


or export 

Obtaining credit by 

false and misleading 

information (2 counts) 

Incite to crime (to 

cause grievous bodily 

harm) (2 counts) 

Cultivate drug of 

dependence 

Theft (electricity) 



Unlawful Possession 

of Motor Vehicles 

Trafficking, production 

and possession of 

methylamphetamine 

Possession of 

glassware and money 

24 years 

imprisonment 



6 months 

24 years 

imprisonment 



6 months 

2 years 

imprisonment 

on each count 

to be served 

concurrently, 

suspended for 2 

years 

3 years 



of 2 years, to be 

served co-currently 

18 months 

imprisonment 

4 months 

imprisonment 

with 2 months 

to be served 

concurrently with 

drug charge 

7 years 

imprisonment 

eligible for postprison 

community 

based release after 


2 years 

imprisonment 

18 years 

imprisonment 


6E 




04/12/2003 Zagata 

Erik 

19/12/2003 Coles 

Michael 

02/02/2004 Bailey 

Sheree Ann 

05/02/2004 Pfaff 

Thomas 

31/05/2004 Eyre 

Brett Leslie 

Fraud against the Commonwealth (Swordfish) 


16/09/2003 Milardovic 

Peter 

19/09/2003 Wagstaff 

Paul Alan 


Production of 

methylamphetamine 

Trafficking and supply 

of dangerous drugs 

Produce dangerous 

drug 


drugs 

Possess drug utensils 

Possess item 

connected with drug 

related crime 

Trafficking dangerous 

drugs 


drug with a 

circumstance of 

aggravation 


in defrauding the 

Commonwealth 

Aid and abet in the 

commission of an 

offence 

Defraud the 

Commonwealth 

Aid and abet 

dishonestly obtain 

financial advantage by 

deception 

Dishonestly obtain 


deception 

5 years 

imprisonment 

to be served 

cumulatively with a 

2 year suspended 

sentence for a 

previous fraud 

conviction 

5 and half years 



of 2 years 

2 years 

imprisonment 


years 

4 years 

imprisonment 

suspended after 15 

months 

2 years 

imprisonment 


months for 3 years 


imprisonment 

minus discount 

for guilty plead 

- 2 years 9 months 

imprisonment to be 

released on good 

behaviour bond of 

$100 after 1 year 9 

months 

8 years 

imprisonment 

with a minimum 

of 5 years minus 

50% discount 

for plea of guilty 

and assistance 

to 4 years 


a minimum of 2 

and half years to 

serve



07/11/2003 Michael 

Timothy 

20/11/2003 Buksh 

Michael 

14/05/2004 Stoeski 

Bill 

01/06/2004 Stevens 

Gary John 

07/06/2004 Scarinci 

Silvano 

Aid and abet 

dishonestly obtain 


deception 

Attempt by deception 

to dishonestly obtain 

financial advantage 

Defraud the 

Commonwealth 

Dishonestly obtain 


deception 

Defraud the 

Commonwealth 

Attempt to defraud the 

Commonwealth 

Obtain financial 

advantage by 

deception 

Attempt to obtain 


deception 

Receive proceeds of 

crime 

6 years 


discount for plea 

of guilty to serve 5 

years with a non 

parole period of 3 

years 



25% reduction for 

assistance to serve 

4 and a half years 



and 8 months 

18 months good 

behaviour bond 

and reparation of 

$5,000 

General dishonesty 9 months 

imprisonment 


behaviour bond of 

$1,000 for 2 years 

Receive property 

reasonably suspected 

of being proceeds of 

crime 

Fined $3,000 and 

$61 in court costs 

9 months 

imprisonment to be 


behaviour bond 

of $1,000 for 2 

years and accept 

the supervision 

of Probation and 

Parole as long 

as they deem 

necessary. Repay 

$1,000 to ATO 

Fined $1,000 and 

$61 in court costs 


6E 




Queensland 

03/09/2003 Hennessey 

Peter 

03/09/2003 Wesolowski 

John 

01/03/2004 Brown 

Sonja 

01/03/2004 Hawkes 

Christopher 


13/05/2004 Stanton 

Nicholas 

13/05/2004 Stamos 

Alexander 

13/05/2004 Williams 

Linda Ann 

13/05/2004 Kapovic 

Simon 


Defraud the 

Commonwealth 

Defraud the 

Commonwealth 



Trafficking dangerous 

drug 

Produce a dangerous 

drug 

Possess property 

suspected of being 

tainted 

Take part in sale of a 

controlled substance 







3 years 



months 

4 years 



months reduced 

for assistance to 

2 and a half years 

with a minimum of 

8 months 

7 years 



of 3 years 

Also sentenced 

to 3 months for 

possession of 

cannabis and 

6 months for 

possession of 

equipment used in 

the production of 

cannabis 

3 years 

imprisonment 


months 

28 days 

imprisonment 

6 years 



of 3 years 

10 years 



of 6 years 

7 years 







of 9 months




27/02/2004 Aistrope 

Lawrence John 

06/05/2004 Wahby 

Tarek Ibrahim 

Firearms 


15/10/2003 Goktas 

Hakan 

31/10/2003 Elrich 

Bassam 

18/11/2003 Kuan 

Joseph 

Queensland 

25/03/2004 Olssen 

Matthew 

06/11/2003 Bradshaw 

David 


28/11/2003 Marrapodi 

David Frank 

23/01/2004 Holmes 

Paul 

Conspiring to defraud 

the Commonwealth 

Conspiring to defraud 

the Commonwealth 


firearm 

Possess or use 

unauthorised firearm 

Sell prohibited firearm 

to person unauthorised 

to possess 


weapon without permit 

4 years 

imprisonment 

reduced to 3 years 

in recognition of 

cooperation. To 

serve 10 months 

4 years 

imprisonment 

reduced to 3 years 

in recognition of 

cooperation and 

undertaking to give 

evidence for the 

Crown. To serve 

14 months 

4 years 




6 years 

imprisonment 

on each charge, 

to be served 

concurrently, 



months 

Offence proved 

but dismissed 

pursuant to s10 

of the Crimes 

(Sentencing 

Procedure) Act 

1999 

Possessing and Fined $350 

acquiring restricted 

item 

Possess utensils Full admissions 

made - agreed to 

drug diversion 

Possess unlicensed 

firearm 

Possess unlicensed 

firearm 

Fined $1,000 

2 years 

imprisonment 


years 


6E 


Appendix F: Complaints 2003–04 

Nature of Complaint Result 

Complaints made to the NCA during 2002 

A person complained that an ACC 

investigator had made threats to other 

persons. 

Complaints made to the ACC during 2003 

A solicitor complained that an ACC 

investigator had ignored his client’s right 

to obtain a lawyer. 

A person complained that crucial evidence 

had been erased from a tape made 

during an NCA investigation in 1997, and 

tendered in a prosecution. 

A person alleged that the ACC had 

breached its own secrecy provisions. 

Complaints made to the ACC in 2003–04 

A person raised a number of concerns 

regarding the ACC’s handling of 

complaints and merit selection processes. 

A person provided information regarding 

alleged corruption of NCA offi cers in SA. 

A person complained regarding possible 

improper access to the ACC computer 

system. 


This matter was investigated 

independently. Investigation of the 

complaint found it to be unsubstantiated. 

This matter was referred to the Ethical 

Standards Command of Queensland 

Police Service for investigation. 

Investigation of the complaint found it to be 

unsubstantiated. 

The trial judge accepted expert evidence 

in relation to the tape. The complainant 

was found guilty by the jury. The ACC 

has advised the complainant it will not reexamine 

the tape. 

This matter was investigated 

independently. Investigation of the 

complaint found it to be unsubstantiated. 

This matter was investigated internally. 

Investigation of the complaint found it to be 

unsubstantiated. 

The information provided was not 

suffi ciently detailed to indicate what 

corruption was alleged. No further action 

was taken. 

This matter was investigated internally. No 

evidence of improper computer accesses 

was found.

Nature of Complaint Result 

A confi dential informer provided 

information that an ACC offi cer had acted 

corruptly. 

A person provided information that 

another person was being protected by an 

offi cer of the ACC. 

An ACC offi cer raised a complaint against 

an investigator regarding the investigator’s 

integrity. 

A person complained to the 

Commonwealth Ombudsman about the 

return of property from the ACC. 

A person complained to the ACC about 

the possible misconduct of an ACC staff 

member. 

A person wrote to the ACC regarding 

irregularities in a selection process. 

The informer did not provide suffi cient 

information to substantiate the allegation. 

This matter was referred to the NSW 

Police Integrity Commission and the NSW 

Police Commissioner for investigation. The 

investigation is ongoing. 

This matter was referred to the Victoria 

Police Ethical Standards Department for 

investigation. It has been joined with the 

above NSW Police Integrity Commission 

investigation. The investigation is ongoing. 

All property held by the ACC has been 

returned to the complainant’s solicitor. 

The matter was investigated internally. 

No evidence of any breach of personal 

integrity by the ACC staff member was 

found. 

This matter is being investigated internally. 


6F 

APPENDIX F: COMPLAINTS

Appendix G: FOI Statement 

Freedom of Information 

Statement under section 8 of the Freedom of Information Act 

Section 8 of the Freedom of Information Act 1982 (Cwlth) requires agencies to publish 

annually statements containing particulars and information about their organisation, 

functions, decision making powers, consultative arrangements, categories of 

documents maintained and facilities and procedures to enable members of the public 

to obtain access to documents under the FOI Act. These statements are required 

by the FOI Act to be included in the annual report of each agency. 

The following statement is correct to 30 June 2004. 

Establishment 

The ACC was established by the Australian Crime Commission Act 2002, 

and commenced operations on 1 January 2003. The ACC was created by the 

amalgamation of the former agencies, the National Crime Authority, the Australian 

Bureau of Criminal Intelligence and the Office of Strategic Crime Assessments. 

Organisation 

The ACC is a Commonwealth statutory body established under Section 7(1) of the 

Australian Crime Commission Act 2002 (ACC Act), and a prescribed agency for the 

purposes of the Financial Management and Accountability Act 1997 (FMA Act). 

Section 7(2) of the ACC Act states that the ACC consists of 

(a) the CEO; 

(b) the examiners; and 

(c) the members of the staff of the ACC. 

The ACC’s functions are listed under section 7(A) of the Act. They are: 

(a) to collect, correlate, analyse and disseminate criminal information and intelligence 

and to maintain a national database of that information and intelligence; 

(b) to undertake, when authorised by the ACC Board, intelligence operations; 

(c) to investigate, when authorised by the ACC Board, matters relating to federally 

relevant criminal activity; 

(d) to provide reports to the ACC Board on the outcomes of those operations and 

investigations; 

(e) to provide strategic criminal intelligence assessments, and any other criminal 

information and intelligence, to the ACC Board; 

(f) to provide advice to the ACC Board on national criminal intelligence priorities; 

(g) such other functions as are conferred on the ACC by other provisions of this Act 

or by any other Act. 


Decision-Making Powers and Powers Affecting Members Of The 

Public 

The ACC has powers which may affect members of the public. It has the power to: 

(a) require information from certain Commonwealth agencies; 

(b) receive information from a State, or an authority of a State under arrangements 

made by the Commonwealth Minister; 

(c) make arrangements with any other body or person to receive information; 

(d) apply for the issue of a search warrant, in some cases by telephone; 

(e) summon a person to appear before it to give evidence; 

(f) require a person to produce documents; 

(g) apply for a court order requiring a witness to deliver his/her passport to the 

ACC; 

(h) apply for a warrant for the arrest of a witness considered likely to leave 

Australia; 

(i) apply for a warrant for the interception of communications in respect of a 

telecommunications service; and 

(j) apply for a listening device warrant in its own right for the investigation of Federal 

narcotics offences and for certain State and Territory offences. 

External consultation 

The ACC Board exists independently of the ACC. It determines NCIPs, provides 

strategic direction to, and determines the priorities of, the ACC, authorises intelligence 

operations or investigations and determines the use of the ACC’s coercive powers, 

establishes task forces and reports to the Inter-Governmental Committee on the 

ACC (IGC-ACC) on the ACC’s performance. There are arrangements specified 

in the ACC Act for participation by the IGC-ACC. The IGC-ACC comprises the 

relevant Commonwealth Minister and a Minister from each participating state and 

territory. The Act also defines the role and responsibility of the Parliamentary Joint 

Committee on the ACC, comprising five Senators and five Members of the House of 

Representatives. Although not specifically provided for in the Act, the ACC consults 

with Australasian Police Ministers’ Council – Senior Officer Group, an advisory group 

to the IGC, and the Heads of Commonwealth Operational Law Enforcement Agencies 

(HOCOLEA). 

Categories of documents 

The following documents are available for purchase from the Australian Government 

Publishing Service: 

• Australian Crime Commission Act 2002, and 

• Australian Crime Commission Regulations. 


6G 

APPENDIX G: FOI STATEMENT

In addition the following documents are available from the ACC on request: 

• National Crime Authority Annual Reports 1984–85 to 2002–03; 

• Australian Crime Commission Annual Report 2002–03, 2003–04; 

• National Complex White Collar Crime Conference Papers (June 1992); 

• Working Party Paper – Proceeds of Crime Conference (June 1993); 

• National Proceeds of Crime Conference Papers (June 1993); 

• Liberty, Law Enforcement and Accountability – National Conference with the 

Victorian Council for Civil Liberties, Proceedings (April 1993); 

• Strategic Crime Intelligence Explained (June 1994); 

• Operation Cerberus – Italo-Australian Organised Crime – Bulletin 

(November 1995); 

• Assessment of the Potential for Fraud in the Australian Superannuation System 

(November 1996); 

• Organised Crime in Australia – NCA Commentary 2001; 

• Australian Illicit Drug Reports 1989–90 to 2001–02; 

• Illicit Drug Data Report 2002–03. 

The following categories of documents are held by the ACC: 

• agendas, submissions, papers and minutes of ACC Board meetings, conferences 

and senior staff meetings; 

• confidential transcripts of examinations conducted under Part II Division 2 of the 

Australian Crime Commission Act 1984; 

• correspondence between the ACC and Commonwealth, state and territory 

governments and their agencies; 

• documents and other materials comprising intelligence and other information 

made available by law enforcement and other agencies and individuals; 

• documents and other materials produced to the ACC under the provisions of the 

Australian Crime Commission Act 2002; 

• documents and other materials of the NCA transferred to the ACC under the transitional 

provisions of the Australian Crime Commission Establishment Act 2002; 

• documents, files and other materials relating to internal management and 

administration, including personnel, staffing, finance and related matters; 

• general correspondence files; 

• investigation reports and analyses prepared by ACC staff; 

• papers relating to the activities of the Inter-Governmental Committee of the ACC, 

the Parliamentary Joint Committee on the ACC and other relevant committees; 

• media releases and speeches; 

• procedural instructions and guidelines; and 

• documents and other materials in the custody of the ACC pursuant to a direction 

under section 22(3) of the Archives Act 1983. 


Access to Documents 

All applications for access to documents in the possession of the ACC are handled 

in the Melbourne office of the ACC. The ACC also has offices in Sydney, Brisbane, 

Adelaide, Perth and Canberra and arrangements can be made in each location for 

the viewing of documents, depending on the location of the applicant. 

Requests under the provisions of the FOI Act should be addressed to: 

FOI Co-ordinator 

Australian Crime Commission 

GPO Box 238E 

MELBOURNE Vic 3001 


6G 

APPENDIX G: FOI STATEMENT

Appendix H: Other Mandatory Information 

Environment Protection and Biodiversity Conservation Act 1999 

This statement is made in accordance with s 516A of the Environment Protection 

and Biodiversity Conservation Act 1999. 

The ACC is committed to the Government program aimed at reducing energy 

consumption. ACC buildings have timer-controlled air conditioning and lighting to 

reduce energy consumption out of hours. Waste management initiatives, such as 

the recycling of paper and other consumable, have been implemented. 

The ACC does not undertake any activities that are relevant to ecologically sustainable 

development. 

Discretionary Grants 

The ACC received no discretionary grants in 2003–04. 

There were no material errors in the ACC’s 2002–03 Annual Report. 

Advertising and Market Research 

Section 311A of the Commonwealth Electoral Act 1918 requires agencies to report 

particulars of all amounts paid by, or on behalf of the ACC during the financial year 

for advertising and market research. During 2003–04, the ACC paid the following 

amounts to media advertising agencies for recruitment advertising: 

HMA Blaze: $178,009 

Beeley Callan Euro: $35,957 

Engagement of Consultants and Counsel 

The ACC engages consultants for the provision of professional or expert advice 

or for services that cannot be met through internal resources. Consultants are 

selected in accordance with Commonwealth procurement guidelines and the ACC 

Chief Executive’s Instructions. Approval to engage consultants rests with the CEO 

as set out in section 48 of the ACC Act. A list of consultants engaged and/or paid in 

2003–04 at a cost of more than $10,000 is at Appendix C. 

While the ACC does not undertake prosecutions, it frequently requires legal 

representation in cases where an investigation leads to prosecution or where the ACC 

is otherwise involved in a case. In addition, the ACC is occasionally the respondent in 

legal proceedings arising from legal challenges by people who have been summonsed 

to appear at a hearing before the ACC. In such cases independent legal counsel 

represent the ACC. Where appropriate the ACC also engages independent counsel 

to assist the ACC in the conduct of hearings. 


Commonwealth Disability Strategy 

The ACC has from its inception adhered to the principles of equity and access for 

people with disabilities. Until a formal policy is fully implemented in 2004–05, the 

ACC remains committed to the Commonwealth Disability Strategy. 

Occupational Health and Safety 

The ACC Occupational Health and Safety (OH&S) Handbook outlines the roles and 

responsibilities of staff and management. Each operational centre has an active 

local committee that identifies and addresses issues relating to health and safety. 

The OH&S policy was developed in consultation with staff and sets out the OH&S 

roles and responsibilities of management and staff. 

The ACC was not required to give any notices under section 68 of the Occupational 

Health and Safety (Commonwealth Employment) Act 1991 during the year. No 

directions under section 45 or notices under sections 29, 46 or 47 of the Act were 

given to the ACC in 2003–04. 


6H 

APPENDIX H: OTHER MANDATORY INFORMATION

Indexes to Compliance 

Index to Compliance with Section 61 of the ACC Act 2002 

The following table links pages and/or chapters of the annual report with the reporting 

requirements set out in section 61(2) of the ACC Act. 

Section of the Australian Crime Commission Act Reference(s) 

Chapter 4 

Section 61(2)(a) - ‘a description of any investigation into matters 

relating to federally relevant criminal activity that the ACC conducted 

during the year and that the Board determined to be a special 

investigation’ 

Section 61(2)(b) - ‘a description, which may include statistics, of any 

patterns or trends, and the nature and scope, of any criminal activity 

that have come to the attention of the ACC during that year in the 

performance if its function’ 

Section 61(2)(c) - ‘any recommendations for changes in the laws 

of the Commonwealth, of a participating State or of a Territory, or 

for administrative action, that, as a result of the performance of the 

ACC’s functions, the Board considers should be made’ 

Section 61(2)(d) - ‘the general nature and extent of any information 

furnished by the CEO during that year to a law enforcement agency’ 

Section 61(2)(e) - ‘the extent to which investigations by the ACC 

have resulted in the prosecution in that year of persons for offences’ 

Section 61(2)(ea) – ‘the extent to which investigations by the ACC 

have resulted in confiscation proceedings’ 

Section 61(2)(g) - ‘particulars of the number and results of: 

(ii) applications to the Federal Court or the Federal Magistrates 

Court under the Administrative Decisions (Judicial Review) Act 

1977 for orders of review in respect of matters arising under this 

Act; and 

(iii) other court proceedings involving the ACC; 

being applications and proceedings that were determined, or 

otherwise disposed of, during that year’ 


Chapters 3 & 4 

Pages 

58,62,67,& 75 

N/A 

Appendix D 

Chapters 3,4 & 

Appendix D 

Pages 71-75 & 

Appendix E

Index to compliance with Annual Report Guidelines 

Annual Reporting Requirement Reference 

Letter of Transmittal p3 

Aids to access: 

Table of contents p5 

Index p164 

Glossary p160 

Contact Officer p168 

Internet home page address and Internet address for report p168 

Agency Overview 

ACC Board Chair foreword p3 

CEO Overview p6 

Role and functions p9 

Organisational structure p79 

Outcome and output structure p23 

Report on Performance 

Review and narrative discussion and analysis of performance Chapters 

2,3 & 4 

Social justice and equity impacts p88 

Discussion and analysis of the department’s financial performance p897 

Summary resource table by outcomes p89 

Management Accountability 

Corporate Governance p19-22 

Certification of fraud measures p20,81-83 

External Scrutiny p11-18 

Judicial decisions p71-75 & 

Appendix E 

Reports by the Auditor-General, a Parliamentary Committee or the 

Commonwealth Ombudsman 

p16-18 

Management of Human Resources p84-87 

Staffing statistics p132-135 

Certified agreements and AWAs p85-86,134 

Performance pay p84-85 

Purchasing p88 

Consultants Appendix C 

Financial Statements 

Appendix A 

Other information 

Occupational Health and Safety p157 

Freedom of Information Appendix G 


Glossary and abbreviations 

Glossary of Terms 

Amphetamines 

A general term for the amphetamine-based group of drugs including 

methylamphetamine, ecstasy and crystal methamphetamines (‘ice’). Illicit use 

and availability of this group of drugs has increased significantly in Australia and 

overseas. 

Authorisation 

The ACC Board may authorise the ACC to undertake intelligence operations or to 

investigate offences which constitute serious and organised crime. 

Card skimming 

Copying the data from the magnetic strip of a credit or debit card using a card reading 

device. The identity data may be used to create counterfeit credit or debit cards or 

to commit other forms of fraud with the stolen identity details. 

Criminal intelligence systems 

Information technology based systems which facilitate dissemination and sharing of 

criminal intelligence, including databases containing intelligence holdings which can 

be interrogated by users. 

Criminal networks 

Fluid entrepreneurial-type networks with a core group or key individuals whose activity 

may be localised, across Australia or extend overseas. 

Desk 

An intelligence analyst group which focuses on a specific area, (for example, illicit 

drugs or organised crime). Each Desk has a presence on ALEIN, part of the ACC’s 

national criminal intelligence system. 

Determination 

When authorising the ACC to undertake an intelligence operation or an investigation, 

the ACC Board can determine that the ACC can use its special powers. Before issuing 

a Determination, the ACC Board must consider whether normal intelligence collection 

methods or ordinary police methods of investigation are likely to be effective. 


Examinations 

ACC Examiners can summons a person to attend a compulsory examination and 

answer questions under oath. The person is entitled to legal representation and the 

examination is held in private. The evidence gained from an examination cannot 

be used against the person in a criminal proceeding. A person summonsed to an 

examination cannot disclose that summons to any person other than their legal 

representative. 

Examiners 

Examiners are independent statutory officers and experienced legal practitioners 

who may exercise the ACC’s special powers under a Determination issued by the 

ACC Board. 

Federally relevant criminal activity 

Serious and organised crime which is an offence against a law of the Commonwealth 

or a territory or serious and organised crime which is an offence against a law of a state 

and has a federal aspect. A state offence can have a federal aspect if it potentially 

falls within Commonwealth legislative power or where the ACC’s interest in the state 

offence is incidental to ACC operations/investigations relating to Commonwealth or 

territory offences. 

Intelligence operation 

An intelligence operation involves the collection, correlation, analysis or dissemination 

of criminal information and intelligence relating to federally relevant criminal 

activity. 

National Criminal Intelligence Priorities 

At the strategic level, the ACC Board establishes NCIPs. They provide a 

comprehensive ranked summary of known national criminal threats affecting Australia 

and a basis for considering resource allocation and operational deployments. The 

NCIP promote effective law enforcement agency planning and responses. 

Serious and organised crime 

Serious and organised crime means an offence that involves two or more offenders 

and substantial planning and organisation, the use of sophisticated methods and 

techniques, is committed in conjunction with other offences of a like kind and is 

punishable by imprisonment for at least three years. 


Special intelligence operation or special investigation 

Special intelligence operations and investigations are intelligence operations and 

investigations which the ACC Board has determined can use the ACC’s special 

powers. 

Special powers 

The ACC has coercive powers similar to those of a Royal Commission, which may 

be exercised only by ACC Examiners for special intelligence operations or special 

investigations. The special powers allow the ACC to summons a person to give 

evidence under oath, demand the production of documents, demand information from 

Commonwealth agencies, apply for a search warrant and demand the production 

of a passport. 

Vehicle Rebirthing 

A criminal activity where a stolen or illicitly-obtained or made vehicle is given a new 

‘identity’, for example, by fitting a counterfeit or altered compliance plate, for the 

purpose of selling the rebirthed vehicle for profit. Vehicle Rebirthing can involve 

the use of vehicle ‘half-bodies’, written-off vehicles and stolen vehicles to produce 

saleable whole vehicles. 

Violent Crime Linkage Analysis System (ViCLAS) 

ViCLAS captures information nationally on serial and violent crimes such as 

attempted and actual homicides, sexual assaults, child abductions, and selected 

missing persons cases, with the aim of identifing offences potentially committed 

by the same offender(s), and assisting in the identification of the offender(s) at the 

earliest opportunity. 


Acronyms and abbreviations used in this report 

AAT Administrative Appeals Tribunal 

ABCI Australian Bureau of Criminal Intelligence 

ACC Australian Crime Commission 

ACID Australian Criminal Intelligence Database 

ACS 

or Customs Australian Customs Service 

ACT Australian Capital Territory 

AFP Australian Federal Police 

AIDR Australian Illicit Drug Report 

ALEIN Australian Law Enforcement Intelligence Network 

ALERT Australian Law Enforcement Referencing and Targeting 

ANAO Australian National Audit Office 

AOSD Amphetamines and Other Synthetic Drugs 

ASIC Australian Securities and Investment Commission 

ASIO Australian Securities and Intelligence Organisation 

ATO Australian Taxation Office 

ATS amphetamine type substances/simulants 

AUSTRAC Australian Transaction Reports and Analysis Centre 

AWA Australian Workplace Agreement 

CDPP Commonwealth Director of Public Prosecutions 

CEO Chief Executive Officer 

CMC Criminal and Misconduct Commission (Qld) 

CNP Card Not Present transactions 

DIMIA Department of Immigration and Indigenous Affairs 

DPP Director of Public Prosecutions 

ECN Established Criminal Networks 

GOC Governance Operations Committee (Internal ACC) 

IDDR Illicit Drug Data Report 

IGC Inter-Governmental Committee of the ACC 

JACG Joint Asian Crime Group 

LEA law enforcement agency 

MDMA 3,4-methylenedioxymethylamphetamine (‘ecstasy’) 

MoU Memorandum of Understanding 

NCA National Crime Authority 

NCICRs National Criminal Intelligence Collection Requirements 

NCC National Consultative Committee 

NCIPs National Criminal Intelligence Priorities 

NSIC National Strategic Intelligence Course 

NSWCC New South Wales Crime Commission 

NSWPOL New South Wales Police 

NCTA National Criminal Threat Assessment 


Acronyms and abbreviations used in this report (cont.) 

OH&S 

or OHS Occupational Health and Safety 

OMCG Outlaw Motorcycle Gangs 

OSCA Office of Strategic Crime Assessments 

OSI Open Source Information 

OSCG Organised and Serious Criminal Groups 

POC Proceeds of Crime 

PJC Parliamentary Joint Committee on the ACC 

POC Profits of Crime 

POI Proof of Identity 

PPO Pecuniary Penalty Order 

PPQ Possible Parliamentary Question 

PROMIS Police Realtime Online Management Information System 

PRP Performance Recognition Program 

QPOL Queensland Police Service 

SAPOL South Australia Police 

SEAOC South East Asian Organised Crime 

SES Senior Executive Service 

SusTR 

or SUSTR Suspicious Transaction Reports 

TASPOL Tasmanian Police 

TI Telecommunication Interception 

ViCLAS Violent Crime Linkage Analysis System 

VICPOL Victorian Police 

VIN Vehicle Identification Number 

WAPOL Western Australia Police Service 


General Index 

ACC Board, 3, 9, 10, 11, 12, 13, 14, 15, 16, 19, 23, 24, 29, 32, 34, 35, 38, 41, 42, 

44, 47, 49, 53, 54, 56, 61, 63, 80, 152, 153, 154, 159, 160, 161 

strategic direction committee, 16 

Administrative Appeals Tribunal, 18,162 

Amphetamine type substances, 43,162 

Appropriation, 23, 24, 25, 86, 88 

Attorney-General’s Department, 12, 14, 76 

Audit, 2, 18, 19, 20, 21, 79, 82, 84, 162 

AUSTRAC, 68, 162 

Australian Bureau of Criminal Intelligence (ABCI), 152, 162 

Australian Crime Commission Act 2002, 2, 3, 152, 153, 154 

Australian Crime Commission Establishment Act 2002, 154 

Australian Criminal Intelligence Database (ACID), 29, 31, 86, 162 

Australian Identity Fraud Protection Registers (AIPR), 32 

Australian Law Enforcement Intelligence Net (ALIEN), 29, 31, 45, 162 

Australian Securities and Investments Commission, 9 

Blade, 54, 65, 76, 140 

Carried-Forward Work, 14, 68, 76 

Chief Executive Officer, 6, 14, 19, 79, 84, 162 

Commonwealth Ombudsman, 17-18, 151, 159 

Complaints, 5, 17, 18, 91, 150 

Continuous Development Project , 83 

Consultants engaged, 5, 84, 91, 136, 156, 159 

Counsel engaged, 5, 91, 136, 137,156 

Court outcomes, 71-75 

Criminal intelligence operations 

amphetamines and other synthetic drugs, 15, 34, 42, 43, 162 

card skimming, 15, 37, 38, 42, 47, 48, 160 

identity crime, 15, 34, 35, 37, 38, 42, 47, 48, 49, 50, 138 

performance measures, 25, 29, 42, 53, 54, 85 

vehicle rebirthing, 15, 30, 34, 35, 42, 45, 46, 47, 61, 162 

Criminal intelligence services 

fraud, 15, 20, 21, 25, 30, 32, 34, 35, 37, 38, 47, 48, 49, 50, 54, 59, 61, 

64, 68, 69, 70,71, 81, 86, 160 

Identity Fraud Register, 32 

illicit drugs, 30, 36, 37, 38, 43, 46, 59, 64, 160 

intelligence systems, 24, 29, 31, 160 

National Strategic Intelligence Course, 39, 163 

organised crime, 3, 6, 15, 21, 23, 31, 33, 34, 37, 41, 53, 54, 55, 59, 64, 

65, 87, 160, 161, 163 


Cybercrime, 16 

open source information, 30, 37, 163 

performance measures, 25, 29, 42, 53, 54, 85 

products, 16, 24, 29, 32, 33, 37, 38, 43, 44, 65 

Determinations, 12, 13, 14, 16, 25, 29, 34, 54, 60, 61, 68, 81 

Established criminal networks, 15, 23, 30, 54, 58, 60, 61, 63, 163 

Firearms, 15, 23, 30, 34, 35, 37, 46, 54, 55, 56, 57, 58, 59, 61, 63, 74 

Midas, 15, 68, 69, 71, 86 

South-East Asian Organised Crime, 15, 54, 64 

Drug seizures, 56, 61, 64, 66, 75 

Energy, 156 

Equity and diversity plan, 87 

Ethics, 87 

Examiners, 10, 19, 84, 132, 152, 160, 161 

Financial management, 25, 86, 152 

Fraud control, 20, 25, 81, 136 

Freedom of information, 2, 18, 152, 159 

Freshnet, 54, 61, 76, 144 

Functions, 9 

Governance Operations Committee, 19-20 

Identity Fraud Register, 32 

Illicit Drug Date Report (IDDR), 36 

Information management, 82, 84 

intranet, 87 

Information services, 68 

ALERT, 31 

Information technology, 68, 84, 116, 160 

Integration and development project, 83 

Inter-Governmental Committee, 11, 12, 13 23, 35, 153 

Investigations/operations/projects 

Backford, 57 

Ballynoe, 60 

Bokusen, 69 

Carlby, 48 

Dashi, 70 

Djura (phase 3), 64, 65 

Joint Asian Crime Group (JACG), 66 

Katakan, 67 

Narborough, 58 

Palace, 66 

Pewsey, 57 

Pitsford, 49 


Schumacher Task Force, 61 

Senatus, 61 

Soho, 71-72 

Spada, 69 

Swordfish Operation Pleco, 70 

Viking Task Force, 67 

Law reform, 47, 53, 58, 62, 67, 75, 80 

Learning and development, 83, 85 

Locations, 10 

Minister for Justice and Customs, 11 

Mission, 21, 25, 102 

Money laundering and tax fraud, 15, 20, 34, 50, 53, 54, 58, 59, 61, 64, 68, 69, 70, 

71, 86, 109, 110, 112, 138 

National Chemical Diversion Conference, 38 

National Crime Authority, 124, 152, 154 

National Criminal Intelligence Collection Requirements, 50 

National Criminal Intelligence Priorities, 9, 13, 29, 30, 38, 153, 161 

Occupational health and safety, 157 

Office of Strategic Crime Assessments (OSCA), 152 

Organisational structure, 79,89 

Outcome and Outputs Framework, 23-24 

Outlaw motor cycle gangs, 43 

Parliamentary Joint Committee, 11, 16-17 

Performance Management Framework, 25 

Planning and Performance Reporting, 25-26 

Proceeds of Crime, 4, 24, 43, 53, 55, 59, 63 – 69, 76, 128, 138, 147, 154, 

Professional Standards and Integrity, 79, 81 

Public affairs and media, 46, 58, 81-82, 154 

Purchasing policy, 87 

Queensland Crime and Misconduct Commission, 50, 102, 133 

Resource Management, 83,84,87 

Security, 20, 80, 82,83 

Special Powers, 9 -10 

Social justice, 87 

Staff consultation, 83, 84 

Strategic Criminal Assessments, 33 

Swordfish, 54, 76, 146 

Tax assessments, 4, 68 

Telecommunications interception, 17, 84 

Violent Crime Linkage Analysis System, 32, 162 

Vision, 25, 83 

Workforce planning, 83,84 

Workplace agreements, 83, 84, 134 


Offices of the ACC 

ACC Headquarters 

Street address: ACC Headquarters, Level 1 (AFP Building), 

Telephone: 02 6243 6666 

Fax: 02 6243 6687 

Regional Offices 


68 Northbourne Avenue, Canberra, ACT, 2601 

Postal address: GPO Box 5260, Sydney, NSW, 2001 

Street address: 201 Elizabeth Street, Sydney, NSW, 2000 

Telephone: 02 9373 2100 

Fax: 02 9373 2199 

Postal address: GPO Box 238E, Melbourne, Vic, 3001 

Street address: 383 LaTrobe Street, Melbourne, Vic, 3000 

Telephone: 03 8636 7111 

Fax: 03 8636 7399 

Postal address: GPO Box 1084, Milton, Qld, 4064 

Street address: Level 3, Comtech House 

Telephone: 07 3213 0800 

Fax: 07 3213 0899 

139 Coronation Drive, Milton, Qld, 4064 

Postal address: GPO Box 2411, Adelaide, SA, 5001 

Street address: 55 Currie Street, Adelaide, SA, 5000 

Telephone: 08 8217 6300 

Fax: 08 8217 6366 

Postal address: GPO Box F378, Perth, WA, 6001 

Street address: 619 Murray Street, West Perth, WA, 6872 

Telephone: 08 9265 6789 

Fax: 08 9265 6780 

ACC internet home page: www.crimecommission.gov.au 

People who believe they have information which could help the ACC in its 

investigation of organised crime can contact the ACC in writing at any of the 

addresses above, or by calling the following toll-free number: 1800 088 225. 

There is also a Chinese language toll-free number: 1800 023 861.

Annual Report - COMPLETE - Australian Crime Commission

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