Australian Financial Security Authority (AFSA)

The Australian Financial Security Authority (AFSA) manages the application of bankruptcy and personal property securities laws within Australia. Key to this work is investigating alleged Bankruptcy Act and Personal Property Securities Act (PPS Act) offences and where appropriate, referring for prosecution.

Such offences include:

  • Failure to disclose information about property and its value.
  • Obtaining credit without disclosing bankruptcy.
  • Disposing of property during bankruptcy with intent to defraud creditors.

AFSA regularly publishes statistics on its enforcement activities. Recent results are explored in this article.

 

AFSA enforcement statistics: July 2020 to March 2021

There were no referrals assessed for alleged contraventions of the PPS Act during the period.

The below information refers to alleged contraventions of the Bankruptcy Act.

 

Assessments

During the period, 237 pre-referral enquiries were assessed. Of these, 177 did not require a detailed offence referral.

616 offence referrals were assessed during the period, of which 392 were accepted for investigation.

 

Investigations

AFSA assesses alleged offence referrals for investigation as either compliance or complex offence matters. During the period:

  • 127 compliance investigations were completed.
  • 177 complex investigations were completed.

 

Prosecutions

During the period, 78 briefs of evidence were forwarded to the Commonwealth Director of Public Prosecutions (CDPP), and 64 briefs were accepted for prosecution by the CDPP.

43 persons were prosecuted for a total of 132 charges during the period.

Of those charges, 126 were proven with conviction, five were proven without conviction, and one was withdrawn.

The charges per offence are outlined below:

Charges per offence Offence
27 Fail to file statement of affairs (Section 54(1))
1 Fail to disclose information about property and its value (Section 265(1)(a))
4 Fail to disclose information about examinable affairs (Section 265(1)(ca))
31 Conceal, remove, deal with property during bankruptcy (Section 265(4)(a))
1 Disposes of, or gives security over, property obtained on credit and for which he or she has not paid (Section 265(4)(e))
1 Disposes of, or gives security over, property obtained on credit and for which he or she has not paid (Section 265(4)(e)) read with 265(7)
36 Incur any debt or liability by fraud during bankruptcy (Section 265(5)(b))
3 Incur any debt or liability by fraud during bankruptcy (Section 265(5)(b)) read with 265(7)
1 Disposes of, or creates a charge on any property during bankruptcy with intent to defraud creditors (Section 266(1))
1 Within 12 months before bankruptcy disposes of, or creates a charge on any property with intent to defraud creditors (Section 266(3))
8 Make a false declaration (Section 267(2))
2 Failure to comply with a Notice (Section 267B(1))
1 Obtain credit alone or jointly without disclosing bankruptcy or being party to a debt agreement >$3,000 (Section 269(1)(a))
3 Obtain goods or services alone or jointly without disclosing bankruptcy or being party to a debt agreement by promising to pay >$3,000 (Section 269(1)(ac))
12 Leave Australia without the trustee’s consent in writing (Section 272(1)(c))

Nyman Gibson Miralis provides expert advice and representation in financial crime matters, including cases involving fraud, tax offences and money laundering.

Contact us if you require assistance.