In a significant crackdown on illegal vaping operations, the Australian Federal Police (AFP) has restrained two bank accounts holding over $1 million in suspected proceeds of crime. The action, part of a broader operation dubbed Operation Smokestorm, highlights the growing collaboration between federal and state agencies in targeting the illegal sale of vaping products.
Key Details of the Operation
The restraint was authorized by the Supreme Court of New South Wales following a successful application by the AFP-led Criminal Assets Confiscation Taskforce (CACT). The operation was initiated after the AFP received intelligence from banks—including the Australia New Zealand Banking Group Limited (ANZ) and Westpac—via AUSTRAC, which monitors suspicious financial transactions.
Investigations revealed that the $1 million in question was linked to an online and in-person distribution network of unregulated vaping products, which were allegedly sold to consumers in Sydney and supplied to local tobacco outlets.
On 27 June 2025, AFP and TGA officers executed search warrants at storage facilities in Waterloo and Auburn. They also served a restraining order on a man from Rosebery, believed to be the controller of the involved bank accounts. During the raids, authorities seized small quantities of branded vapes and handwritten inventory records detailing the flavors and quantities of the products.
Legal and Investigative Framework
The AFP-led CACT is responsible for tracing, restraining, and confiscating assets derived from criminal activity. The operation was conducted under the Proceeds of Crime Act 2002 (Cth), which allows authorities to seize property believed to be the “proceeds of crime.”
The TGA, which is responsible for enforcing the Therapeutic Goods Act 1989 (Cth), has been leading the effort to combat the illegal advertising and sale of vaping products. The agency has been working closely with the AFP, NSW Crime Commission, and AUSTRAC.
Implications and Future Steps
The funds in the restrained accounts may be forfeited to the Commonwealth and potentially redirected to crime prevention programs. A spokesperson for the AFP, Commander Jason Kennedy, emphasized that disrupting the financial foundation of criminal enterprises is a critical strategy to deter further illegal activity.
“The AFP and its partners will use every tool in our arsenal to ensure that crime does not receive a pay day,” Kennedy said. “If these funds are forfeited, they will be used to support community-based crime prevention initiatives.”
Chris Bedford, Acting Head of the TGA, echoed this sentiment, stating that the operation showcased the agencies’ shared commitment to protecting public health and dismantling illegal vaping networks.
Role of AUSTRAC and Collaboration
AUSTRAC, the Australian Transaction Reports and Analysis Centre, played a key role in identifying the financial flows linked to the criminal activity. With access to data from banks and other reporting entities, AUSTRAC provided critical intelligence that enabled law enforcement to act promptly.
Markus Erikson, AUSTRAC’s Acting National Manager for Law Enforcement, praised the collaborative effort. “By pooling our expertise, we have deprived another alleged criminal of their illicit profits,” he said.
CACT’s Expanded Funding and Future Strategy
The AFP-led CACT will receive $33.5 million over the next two years to enhance its capacity to target the profits of illegal tobacco and vaping operations. Of that, $17 million will be distributed to state and territory police to work in partnership with the CACT.
This increase in funding reflects a broader government strategy to combat the underground vaping market—a sector that has increasingly come under scrutiny due to concerns over youth access and public health risks.
Vapeobservation.com will continue to monitor the progress of the TGA’s investigation and any related legal proceedings. Stay tuned for further updates.
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