Navigation: Previous Page | Contents | Next Page
Chapter 2
Australian Crime Commission Annual Report 2012-13
Background
2.1
The ACC is established under the Australian Crime Commission Act 2002
(the ACC Act) as a statutory authority to combat serious and organised crime.[1]
It is the only agency 'solely dedicated' to combating nationally significant
organised crime in Australia.[2]
The ACC works with partners across law enforcement, national security,
government and industry and provides a 'national intelligence picture of
serious and organised crime activities...[3]
Annual report compliance
2.2
The ACC annual report must comply with requirements specified in section
61 of the ACC Act. Subsection 61(2) requires that the report must include the
following:
-
a description of any investigation into matters relating to
federally relevant criminal activity that the ACC conducted during the year and
that the ACC Board determined to be a special investigation;
-
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 of its functions;
-
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 ACC Board considers
should be made;
-
the general nature and the extent of any information furnished by
the CEO during that year to a law enforcement agency;
-
the general nature and the extent of any information disclosed by
the CEO during that year to a body corporate under section 59AB;[4]
-
the extent to which investigations by the ACC have resulted in
the prosecution in that year of persons for offences;
-
the extent to which investigations by the ACC have resulted in
confiscation proceedings;
-
particulars of the number and results of:
-
applications made 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 the ACC Act; and
-
other court proceedings involving the ACC;
being applications
and proceedings that were determined, or otherwise disposed of, during that
year.[5]
2.3
The ACC is a prescribed agency for the purposes of the Financial
Management and Accountability Act 1997 (FMA Act). As an FMA Act agency, the
ACC must comply with the Requirements for Annual Reports for Departments,
Executive Agencies and FMA Act Bodies, prepared by the Department of the
Prime Minister and Cabinet and approved by the Joint Committee of Public
Accounts and Audit.[6]
2.4
Based on the committee's assessment, the annual report meets the above
requirements.
Emerging serious and organised crime threats and the ACC's response
Cybercrime
2.5
The annual report acknowledges the ability of organised criminals to
extend their reach through the cyber environment. Recognised as a security risk
in Australia, cybercrime helps criminals 'commit new crimes and commit
traditional crimes in new ways.'[7]
When questioned by the committee about the threat of cybercrime, Mr Paul
Jevtovic, Acting CEO noted that:
...the cyber environment has a very important, global and
legitimate social role, and unfortunately it too has not been immune to
penetration by organised crime. If I can give a very simple example: where once
a criminal would have to be...involved person to person to commit a crime, these
days we can have organised crime groups in Third World countries impacting
thousands of Australian citizens with the press of a button. That is a
significant challenge for us in the context that you cannot shut this sector
down, because the sector does so much good.
So how do we work with the sector to better harden the
internet environment against penetration by organised crime?...The ACC's focus
has been on understanding some of the technical areas of cybercrime and how we
might be able to take the fight up to organised crime in a technical context.[8]
2.6
In the annual report, the ACC comments on the establishment of the
Australian Cyber Security Centre (the Centre) in January 2013. The Centre
spearheads the government's response to cyber threats, analyses the nature and
extent of threats and provides protection for valuable networks and systems.
The ACC is one of several agencies involved in the Centre.[9]
Illicit drugs
2.7
In 2012-13 the ACC continued its focus on the illicit drug market, which
remains a key source of profit for serious and organised crime, and is still
the main activity of organised crime in Australia. Serious and organised crime
entities 'have a significant influence over Australia's illicit commodity
markets and are present in all Australian states and territories.'[10]
Most of the groups operate in two or more jurisdictions as well as
transnationally, while many have also established a presence within legitimate business
sectors to facilitate their criminal activity.[11]
The annual report notes the serious impact of illicit drug use on the country's
health infrastructure and its social cost, which is estimated at $8 billion a
year.[12]
Collaborative approach
2.8
The annual report explains that the ACC reduces serious and organised
crime threats by collaborating with 'law enforcement and related government
agencies and private industry as part of the national effort against serious
and organised crime.'[13]
The ACC's single outcome is to achieve a:
Reduction in the threat and impact of serious and organised
crime, through analysis of and operations against national criminal activity,
for governments, law enforcement agencies and private sector organisations.[14]
2.9
In order to achieve this outcome, the ACC improves national
collaborations against organised crime through seven mechanisms:
-
national criminal intelligence data holdings;
-
coercive powers;
-
the Fusion Capability;
-
strategic products;
-
national target management framework;
-
legislative framework allowing data sharing; and
-
specialist skills.[15]
ACC priorities in 2012-13
2.10
There were nine priorities for the ACC over the review period. These
included:
-
highest risk criminal targets;
-
targeting criminal wealth;
-
establishing criminal networks—Victoria;
-
high risk crime groups—South Australia;
-
high risk and emerging drugs;
-
national security impacts from serious and organised crime;
-
making Australia hostile to serious and organised crime;
-
indigenous violence and child abuse; and
-
child sex offences.[16]
Developments and key achievements
Contributing to law reform
2.11
The ACC contributed to law reform and policy initiatives during the
reporting period by using the findings of its investigations and the vulnerabilities
identified in the sea-cargo supply chain. The ACC contributed to the amendments
in the Customs and AusCheck Legislation Amendment (Organised Crime and Other
Measures) Act 2013. Regarding the legislation, the ACC noted:
This Act amends the Customs Act 1901 and the AusCheck
Act 2007 to reduce vulnerabilities at Australia's borders. It is the latest
in a package of measures to deter and prevent infiltration by serious and
organised crime into Australia's seaports, airports and cargo supply chain.[17]
Task forces
2.12
During the committee's examination of the annual report, Mr Jevtovic highlighted
the important work that task forces have undertaken over the review period. For
example, the Eligo National Task Force was established in December 2012 to
reduce money laundering risks 'inherent in the alternate remitters services
sector.'[18]
During the reporting period the task force disrupted global money laundering
and drug networks, seizing drugs with an estimated street value of approximately
$500 million, and secured cash in the order of $18 million. Further, the
task force promoted professionalism in the alternative remitters services sector
to make it more resilient to organised crime.[19]
This sector was targeted as it consists of a 'cash intensive sector [that] transfers
money from within and between countries, often outside formal financial and
banking systems.'[20]
2.13
Mr Jevtovic also drew the committee's attention to the ACC's work in
Task Force Galilee, established to target investment fraud, which prevented
fraud of $113 million against Australian citizens through a national
coordination of partner agencies.[21]
2.14
Other key ACC achievements for 2012-13 include:
-
332 charges against 185 people;
-
$674.26 million estimated street value of drugs confiscated;
-
$83.87 million in proceeds of crime restrained;
-
the disruption of organised crime operations through information
sharing regarding investment fraud, carbon trading, aviation and maritime
security, and drugs in sport; and
-
the establishment of a single Australian Criminal Intelligence
Model that helped to address challenges in intelligence collection and sharing.[22]
Financial management and resourcing
2.15
On 30 June 2013, the ACC comprised 584 staff in nine offices around the
country.[23]
By comparison, as at June 2012, the ACC had a total of 598 staff.[24]
2.16
The ACC' financial statement received an unqualified audit opinion from
the ANAO.[25]
2.17
In terms of financial management, ACC's financial result for 2012-13 was
a deficit of $4.798 million.[26]
The annual report notes that:
Apart from unfunded depreciation of $7.942 million, the ACC
reported result was a surplus of $3.144 million. This reflects $1.018 million
capital funding received from portfolio agencies for capital investment and
assets received free of charge, together with a $2.126 million operating
surplus.[27]
2.18
The ACC's total appropriation for 2012-13 was $88.635 million which
included tied funding of $10.189 million and base funding of $78.446 million.[28]
Security breaches
2.19
In its previous report, the committee noted that in 2011-12 the ACC had 98
security incidents over the period 1 January to 31 December 2012.[29]
The committee also acknowledged the initiatives that had been undertaken by the
ACC to develop a self-reporting culture and improve security awareness, and
noted that security breaches should start to decline.
2.20
During its examination of the ACC, the committee asked about the number
of security breaches. Mr Jevtovic stated that the ACC is highly self-aware and
self‑focused on security issues and sets a high standard around security
matters, due to the ACC being the national custodian for criminal intelligence.
Mr Jevtovic explained:
During that period, the former CEO, John Lawler, was
extremely focused on education around security awareness. That automatically
translated into...a greater detection rate for security breaches. I would say to
you that that has already adjusted itself and that the number of security
breaches in this next period, for example, will be significantly less.[30]
2.21
The committee will continue to monitor ACC security breaches in the next
reporting period, and the effectiveness of measures in place to raise security
awareness.
Navigation: Previous Page | Contents | Next Page
|