What Looks Like Helping Someone May Involve Serious Criminal Risk
In New South Wales, more and more criminal defendants are charged by police with “dealing with proceeds of crime” or money laundering because their bank accounts were used to receive or transfer funds, even though they may not have been aware of what was happening.
These people are often in situations where they:
- helped a friend or online acquaintance “receive money” and transfer funds;
- provided their account for purchasing agent or errand-running work;
- did not clearly understand what kind of money was being transferred into their account;
- did not profit from the transaction, or their account was even operated by someone else.
However, in the eyes of police or prosecutors, your role may already constitute what is known as a money mule. Even if you did not directly participate in the criminal conduct, you may still be exposed to related criminal liability.
What Is “Dealing With Proceeds of Crime”? Understanding the Legal Definition and Applicable Provision
Under section 193B of the Crimes Act 1900 (NSW), if a person:
“knows or has reasonable suspicion, but still deals with funds or assets from an unclear source,”
they may commit a criminal offence.
The criminal liability will vary depending on the amount involved and the seriousness of the conduct.
Possible penalties include:
- Lower-level penalties: fines or a Good Behaviour Bond;
- Serious circumstances: imprisonment of up to 20 years, particularly where a significant amount or organised crime is involved.
The term “dealing” in the legislation may include depositing, transferring, holding, exchanging, withdrawing money, or even simply agreeing to lend your account to another person for use. Any of these actions may potentially breach the law.
Common High-Risk Situations
| Situation | Legal Risk Explanation |
| Helping a purchasing agent or agency business account receive unclear funds | If the source of funds is unclear and there are no clear transaction records, you may be suspected of participating in criminal activity |
| An online acquaintance says they need to borrow your account “for temporary cash flow,” but the funds received are actually scam proceeds | Regardless of whether you knew beforehand, if there is no reasonable explanation or proper care taken, it may be treated as risky conduct |
| After receiving a transfer, you immediately transfer the money out and become a “transit point” for scam funds | If there is no reasonable purpose or record, you may be found to have participated as a principal or secondary party and obtained a benefit |
| Your own bank account was previously frozen or investigated, but you did not look into the reason | If you failed to fulfil your duty of care, it may be difficult to claim that you did not know when an investigation occurs |
Why Might You “Unknowingly” Commit an Offence?
The law does not necessarily require that you “clearly knew” the situation. If it can be proved that you ought to have reasonably suspected that the funds were abnormal, you may face criminal liability.
This means:
- “I did not ask clearly” is not a good reason;
- “my friend asked me to help” is not a defence;
- “I did not take any money” does not mean no offence was committed.
Courts tend to examine whether you had the common sense that a person should have, whether you verified the source of the funds, and whether there were signs of active participation.
What Defence Options May Be Available If You Face This Type of Charge?
In cases involving dealing with proceeds of crime or money laundering, common defence strategies include:
- Lack of knowledge: you had no knowledge of the source of the funds and there is reasonable evidence to support this;
- No participation: you were only the nominal account holder and did not actually operate the account, although evidence is required;
- Cooperation with the investigation: providing complete communication records and account transaction information to reduce criminal liability;
- Lack of criminal intent: there was no illegal motive, and you cooperated in returning the money, which may help in seeking a lighter penalty or withdrawal of the charge.
What Should You Do If You Receive a Transfer From an Unknown Source?
- Do not rashly transfer the funds out or withdraw cash.
- Contact the bank immediately to report abnormal account activity.
- Keep all communication and transfer records, such as WeChat, WhatsApp, and email records.
- Proactively seek legal advice to avoid missing the opportunity to respond properly because of delay.
Conclusion
If your account is connected to any proceeds of crime, even if you did not participate in fraud, drug trafficking, or loan fraud, you may still face criminal liability if police believe you had reasonable suspicion but failed to deal with the situation appropriately.
If you receive any related allegation, you should seek legal assistance as early as possible.
The professional legal team at Jenny Xu Lawyers can assist you by:
- analysing the fund flow structure and relevant legal risks;
- preparing strategies and responses for communicating with police;
- seeking a reduced sentence, defence outcome, or withdrawal of charges in court.
Disclaimer: The above content is for general informational purposes only and should not be regarded as legal advice. The information provided may change over time. You should always seek professional advice before taking any action.