Money laundering and dealing with proceeds of crime under sections 193B and 193C of the Crimes Act 1900 (NSW) are among the most serious financial crime charges in the state, carrying up to 20 years' imprisonment.
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Money laundering under section 193B of the Crimes Act 1900(NSW) carries a maximum penalty of 20 years' imprisonment where you knew the money or property was proceeds of crime and dealt with it intending to conceal that fact, 15 years where you simply knew it was proceeds of crime, and 10 years where you were merely reckless as to that fact. A related, lower-threshold offence under section 193C — dealing with property you merely suspected was proceeds of crime — carries penalties of 3 to 8 years depending on the value involved. Whether you end up with a criminal record, and how severe the outcome is, depends heavily on which mental state the prosecution can actually prove.
Section 193B of the Crimes Act 1900 (NSW) makes it an offence to deal with money or property that is the proceeds of crime, where you know, or are reckless as to whether, it is proceeds of crime. "Dealing" is defined broadly, and covers receiving, possessing, concealing, disposing of, importing, exporting, or converting the money or property, or bringing it into or out of NSW.
A related but lesser offence exists under section 193C, which applies where you merely had reasonable grounds to suspect — rather than actually knew — that the property was proceeds of crime. This lower threshold makes 193C considerably easier for the prosecution to prove, but it carries a much lower maximum penalty, scaled according to the value of the property involved.
A person who deals with property that is the proceeds of crime, knowing that it is the proceeds of crime and intending to conceal that fact, is liable to imprisonment for 20 years.
— Section 193B(1), Money Laundering
Because these matters usually involve complex financial evidence — bank records, forensic accounting, and sometimes transactions spanning multiple countries — the way the brief is unpacked from the outset can make an enormous difference to your outcome.
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| Offence | Mental State / Threshold | Maximum Penalty |
|---|---|---|
| Money laundering (s193B(1)) | Knowing, and intending to conceal | 20 years imprisonment |
| Money laundering (s193B(2)) | Knowing | 15 years imprisonment |
| Money laundering (s193B(3)) | Reckless | 10 years imprisonment |
| Dealing with suspected proceeds (s193C) | Suspected — value under $100,000 | 3 years imprisonment |
| Dealing with suspected proceeds (s193C) | Suspected — value $100,000 or more | 5 years imprisonment |
| Dealing with suspected proceeds (s193C) | Suspected — value $5 million or more | 8 years imprisonment |
A maximum penalty is rarely the actual outcome. The value involved, your role relative to any predicate offence, and your level of cooperation all shape where your matter lands within this range.
Money laundering matters often turn on what you actually knew or suspected, rather than on disputed facts about the transactions themselves. Depending on the circumstances, our lawyers may raise:
You genuinely did not know, suspect, or have any reason to suspect that the money or property was connected to criminal activity. This is the most common and often the most powerful defence in these matters.
Where you can establish a genuine, lawful source for the money or property in question — such as savings, an inheritance, or legitimate business income — this can directly undermine the prosecution's case.
Mere passive possession or knowledge is not enough — the prosecution must prove you actually dealt with the property in one of the ways the legislation defines. Where that evidence is weak or absent, this element cannot be established.
Even where a defence to the charge as laid is not available, it may be possible to argue that only a lower mental state — recklessness rather than knowledge, or mere suspicion rather than knowledge — is made out, significantly reducing your maximum exposure.
Where you dealt with the property only because of a genuine, immediate threat to yourself or your family, and had no safe alternative, duress may be available.
Money laundering matters are typically strictly indictable and finalised in the District Court, and often take considerably longer than other criminal matters because of the volume of financial evidence involved.
You are arrested and charged, or issued a Court Attendance Notice, often following a lengthy police or joint agency financial investigation. Getting advice immediately is critical, particularly around any bail application.
Given the seriousness and value often involved, a bail application may be necessary at the first opportunity, particularly for higher-tier section 193B charges that can trigger a show cause requirement.
The matter begins in the Local Court, where the brief of evidence — often including extensive bank records and forensic accounting reports — is served and reviewed before the matter is committed to the District Court.
Your lawyer engages forensic accounting expertise where needed, tests the prosecution's evidence of your knowledge or suspicion, and can negotiate the charge, including to the lower-threshold section 193C offence where appropriate.
If you plead not guilty, the matter proceeds to trial in the District Court before a jury. If you plead guilty, or are found guilty, the Judge proceeds to sentencing, where your role, the value involved, and any cooperation with authorities are heavily weighed.
Money laundering matters are among the most document-heavy and high-stakes criminal charges in NSW. Our approach is built around forensically testing what the prosecution can actually prove about your state of mind, and pursuing the best available outcome from bail through to sentencing.
For clients in custody, our first priority is a well-prepared bail application, addressing show cause and any concerns about flight risk or further offending.
We work with forensic accountants where needed to scrutinise bank records, transaction trails, and valuation evidence underpinning the charge.
We provide clear costs advice for matters of this complexity, so you understand the likely investment required at each stage of the process.
Arrested or charged after hours? Our experienced Sydney defence team is always available for urgent advice, including at the police station itself.
Author: Muhammad Siddique, Criminal Defence Lawyer | Reviewed by: NS Criminal Lawyers and Associates | Last reviewed: July 2026 | Jurisdiction: New South Wales
The information on this website is general information only and is not legal advice. You should obtain legal advice about your specific circumstances.
