Australian Crime Commission Annual Report 2014-15
Background
2.1
The Australian Crime Commission (ACC) is established under the Australian
Crime Commission Act 2002 (the ACC Act) as a statutory authority to combat
serious and organised crime.[1]
2.2
It is the only agency 'solely dedicated to combating serious and
organised crime of national significance'.[2]
2.3
The ACC works with partners across law enforcement, national security,
government and industry and provides Australia with 'the ability to discover,
understand and respond to federally relevant serious and organised crime'.[3]
Annual report compliance
2.4
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) 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;
(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 of
its functions;
(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;
(d) the general nature and the extent of any information
furnished by the ([Chief Executive Officer (CEO]) during that year to a law
enforcement agency;
(da) the general nature and the extent of any information
disclosed by the CEO during that year to a body corporate under section 59AB;
(e) the extent to which investigations by the ACC have
resulted in the prosecution in that year of persons for offences;
(ea) the extent to which investigations by the ACC have
resulted in confiscation proceedings;
(g) particulars of the number and results of:
(ii) applications made to the
Federal Court or the Federal Circuit 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.[4]
2.5
As a Commonwealth entity, the ACC must comply with the Public
Governance, Performance and Accountability Act 2013 (PGPA Act), which
requires Commonwealth entities to provide an annual report to the entity's
responsible minister, for presentation to the Parliament, on the entity's
activity during the reporting period,[5]
and with the Public Governance, Performance and Accountability Rule 2014.[6]
2.6
Under the PGPA Act, Commonwealth entities are also required to prepare
annual performance statements and include a copy of these statements in the
entity’s annual report that is tabled in the Parliament.[7]
The ACC's annual performance statement appears at chapter 3 of the annual
report.
2.7
Based on the committee's assessment, the annual report meets the above
requirements.
ACC achievements in 2014–15
2.8
The annual report notes that there were numerous priorities for the ACC
in 2014–15.
Investigations
2.9
The annual report notes that the ACC's investigations are 'designed to
disrupt and deter criminal groups by collecting evidence and intelligence about
criminal activity'.[8]
The ACC Board approved the following investigations during the reporting
period:
-
Targeting Criminal Wealth;
-
Highest Risk Criminal Targets;
-
Highest Risk Criminal Targets—Victoria; and
-
Highest Risk Criminal Targets—South Australia.[9]
Intelligence operations
2.10
The annual report states that the ACC's 'intelligence operations focus
on gathering intelligence around particular criminal activity so decisions are
informed by the extent, impact and threat of that activity'.[10]
The ACC Board approved the following intelligence operations during the
reporting period:
-
High Risk and Emerging Drugs;
-
Outlaw Motor Cycle Gangs;
-
National Security Impacts from Serious and Organised Crime;
-
Making Australia Hostile to Serious and Organised Crime; and
-
Child Sex Offences.[11]
Contribution to law reform and parliamentary inquiries
2.11
The ACC has continued its engagement with various parliamentary inquiries,
and noted its participation in the following parliamentary inquiries during the
reporting period:
-
the Senate References Committee on Legal and Constitutional
Affairs, Comprehensive Revision of the Telecommunications (Interception and
Access) Act 1979;
-
the Parliamentary Joint Committee on Intelligence and Security,
Inquiry into the Telecommunications (Interception and Access) Amendment (Data
Retention) Bill 2014;
-
the Parliamentary Joint Committee on the Australian Commission
for Law Enforcement Integrity, Inquiry into the jurisdiction of the Australian
Commission for Law Enforcement Integrity;
-
the Parliamentary Joint Committee on Law Enforcement, Inquiry
into financial related crime;
-
the Parliamentary Joint Committee on Intelligence and Security,
Inquiry into the Counter-Terrorism Legislation Amendment (Foreign Fighters)
Bill 2014;
-
the Parliamentary Joint Enquiry on Law Enforcement, Inquiry into
the ability of Australian law enforcement authorities to eliminate gun-related
violence in the community;
-
the House of Representatives Standing Committee on Infrastructure
and Communications, Inquiry into the use of subsection 313(3) of the Telecommunications
(Interception and Access) Act 1979 (TIA Act);
-
the Senate Legislation Committee on Legal and Constitutional
Affairs, Inquiry into the Crimes Legislation Amendment (Powers, Offences and
Other Measures) Bill 2015;
-
the Senate Economics References Committee, Inquiry into digital
currency;
-
the Parliamentary Joint Committee on Law Enforcement, Inquiry
into crystal methamphetamine (ice);
-
the Northern Territory Legislative Assembly Select Committee
inquiry into ‘ice’; and
-
the Parliamentary Joint Committee on the Australian Commission
for Law Enforcement Integrity, Integrity of Australia’s border arrangements.[12]
2.12
The ACC also engaged closely with the Attorney-General's Department in
respect of its reviews of the anti-money laundering/counter-terrorism financing
regime.[13]
The ACC contributed to a mutual evaluation undertaken by the international
Financial Action Task Force, which concluded in April 2015; and a statutory
review of the Anti-Money Laundering and Counter-Terrorism Financing
Act 2006.[14]
Staffing and financial management
2.13
On 30 June 2015, the ACC comprised 581 staff across eight offices around
Australia.[15]
This is a slight increase from the previous reporting period, of 562 staff (across
nine offices).[16]
2.14
The Australian National Audit Office determined that, with respect to
the ACC's financial statements, the ACC had complied with the Australian
Accounting Standards and the Public Governance, Performance and Accountability
(Financial Reporting) Rule 2015, and presented fairly its financial
position as at 30 June 2015, its financial performance and cash flows for 2014–15.[17]
2.15
The ACC reported a deficit of $6.295 million in 2014–15,[18]
compared to $6.317 million in 2013–14.[19]
The annual report notes that, with the exclusion of unfunded depreciation and
capital funding, the ACC would have realised a surplus of $0.184 million for
the 2014–15 financial year.[20]
The annual report also provides:
The ACC’s total appropriation for 2014–15 was $98.370
million, which included $93.358 million operating budget, $4.812 million
Departmental Capital Budget and a net equity injection of $0.200 million.[21]
Ombudsman's report—controlled operations
2.16
The Ombudsman's inspection and reporting functions in respect of
controlled operations are found in subsection 15HS(1) of the Crimes Act
1914 (Crimes Act) that provides:
The Ombudsman must, from time to time and at least once every
12 months, inspect the records of each authorising agency to determine the
extent of compliance with this Part [Part IAB—Controlled operations] by the
agency and by law enforcement officers.
2.17
The ACC is one such authorising agency.[22]
2.18
On 24 February 2016, the committee received two
detailed reports from the Ombudsman regarding the ACC's involvement in
controlled operations under Part 1AB of the Crimes Act: the first relating
to the inspection of the controlled operation records of
the ACC for the period 1 January 2014 to 30 June 2014
(published June 2015), and the second relating to the inspection of the
controlled operation records of the ACC for the period 1 July 2014 to 31 December
2014 (published August 2015). Although some of the reported activities occurred
outside of the 2014–15 period, for the purpose of this report, the committee
has considered these reports as part of the 2014–15 reporting period.
2.19
The reports were provided in accordance with section 10 of the Parliamentary
Joint Committee on Law Enforcement Act 2010. The committee has noted the
reports and has received them as confidential correspondence.[23]
2.20
A general summary of the information produced in these reports is available
in the Ombudsman's public report in respect of the controlled operation
activities of the Australian Commission for Law Enforcement Integrity, the
Australian Federal Police and the ACC for the period 1 July 2014 to 30 June 2015.[24]
Committee view
2.21
After reviewing the confidential and public reports, the committee is
generally satisfied as to how the ACC has discharged its obligations with
respect to controlled operations. Nevertheless, the committee notes the
reoccurrence of one issue that was also raised in the previous Ombudsman's
report, where a written record for an urgent application for authority did not
address the legislative requirements under section 15GH of the Crimes Act.
The Ombudsman's report sets out the ACC's remedial action in response to this
issue—that the ACC would address this issue through its internal training
program and resources.[25]
2.22
The committee also notes two findings by the Ombudsman during the
reporting period. In relation to the first finding, concerning variations made
on the authorising officer's own initiative to the same authority, the
Ombudsman set out the ACC's advised remedial action and commended the ACC for
its responsiveness, noting it would test the effectiveness of these measures at
future inspections.[26]
In relation to the second finding concerning variation of an existing
authority, the Ombudsman noted that the ACC advised that it is considering the
Ombudsman's suggestion in relation to this issue. The committee commends the
ACC on its constructive dealings with the Ombudsman.
2.23
The committee will continue to monitor the ACC's use of its controlled
operations powers and in particular, instances where a written record for an
urgent application for authority did not address the legislative requirements
under section 15GH of the Crimes Act.
Ombudsman's report—surveillance devices
2.24
Pursuant to the Surveillance Devices Act 2004 (Surveillance Act):
The Ombudsman must inspect the records of a law enforcement
agency to determine the extent of compliance with this Act by the agency and
law enforcement officers of the agency.[27]
2.25
The ACC is one such law enforcement agency.[28]
2.26
The Surveillance Act restricts the use, communication and publication of
information obtained through the use of surveillance devices. The
Surveillance Act also establishes procedures for law enforcement agencies
to obtain permission to use such devices in relation to 'criminal
investigations and the recovery of children, and imposes requirements for the
secure storage and destruction of records in connection with the use of
surveillance devices'.[29]
2.27
The Ombudsman's public report concerning the ACC's compliance with the
Surveillance Act from 1 January 2014 to 30 June 2014 (the September 2015
report),[30]
being the most recent report provided to the Attorney‑General in
accordance with the Surveillance Act, was provided to the committee by the
Ombudsman on 24 February 2016 and is the subject of the committee's
consideration in this report.
2.28
The September 2015 report into inspections under the Surveillance Act
notes that while no recommendations were made as a result of the Ombudsman's inspections
of the ACC from 7 to 9 October in Brisbane, it was unable to determine
compliance in two instances, and the ACC self-disclosed one issue of non‑compliance.[31]
Committee view
2.29
After reviewing the September 2015 report, the committee is generally
satisfied with how the ACC has discharged its obligations with respect to the
Surveillance Act. The committee notes that the Ombudsman has expressed its
satisfaction that the ACC has taken self-initiated measures to address the
issues identified.[32]
Ombudsman's report—telecommunications interception records and stored
communication records
2.30
On 24 February 2016, the committee received two detailed reports on the
inspection of the ACC's telecommunications interception records under the TIA
Act, the first in relation to the period 1 January to 30 June 2014
(published May 2015), and the second in relation to the period 1 July to 31
December 2014 (published August 2015). The committee also received a
detailed report on the inspection of stored communications records of the ACC
for the period 1 July 2013 to 30 June 2014 (published 16 September 2015). Although
some of the reported activities occurred outside of the 2014–15 period, for the
purpose of this report, the committee has considered these reports as part of
the 2014–15 reporting period. The committee has noted the reports and has
received them as confidential correspondence.
Committee view
2.31
The committee notes the Ombudsman's findings in respect of the ACC's
compliance with the TIA Act, including in respect of one reoccurring issue. The
committee notes the ACC's advised remedial action taken in respect of this
issue.
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