Police running out of room to store illegal cigarettes they’ve seized amid Australia’s booming illicit trade
Summary
Australian police are facing difficulties storing large amounts of illegal cigarettes and vaping products due to full storage facilities and high destruction costs. The illicit tobacco trade is growing quickly, causing significant financial losses to the government and supporting other criminal activities.Key Facts
- Police storage facilities for seized illegal cigarettes and vapes are full in Australia.
- Destroying illegal vaping products can cost up to $13 per kilogram because of dismantling requirements.
- Destroying a full pallet of illegal tobacco (about 550kg) can cost over $7,150.
- Since 2016, about 2.66 billion illegal cigarettes, 510 tonnes of loose tobacco, and 7.5 million e-cigarette products have been seized.
- The illicit tobacco market has caused an estimated $6 billion loss in government excise revenue in under six months.
- Criminal gangs use money laundering, including cryptocurrency and private ATMs, to handle profits from illegal tobacco.
- Illegal tobacco profits are linked to other crimes like drug trafficking, violence, and corruption.
- Some banks have closed more than 1,000 accounts suspected of being linked to illegal tobacco activities.
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