A joint effort by virtually all the Australian finance regulators and police groups has led to the arrest of two men, accused of laundering $30 million through Australia.

The Australian Tax Office, Australian Securities and Investments Commission, Australian Transaction Reports and Analysis Centre (Austrac) as well as prosecutors and law enforcers have joined forces for Project Wickenby, this week acting on nine search warrants and bagging the two alleged launderers.

A 65-year-old man and a 69-year-old man were arrested at their homes, along with a 69-year-old Belgian National who was picked up at Sydney International Airport.

Police will allege that the men built a complicated network of offshore companies, which were used to conduct business in Australia.

Profits from their companies were retained offshore, untaxed. The profits were then transferred back to Australian companies controlled by the two men based here and disguised as loans. There are also allegations that the loans were used to reduce the tax liabilities of those companies.

As a result, the people arrested received a benefit of approximately $4.9 million over a five year period.

ATO Deputy Commissioner Greg Williams said the taskforce demonstrates what can be achieved when governments work together to prevent tax avoidance: “Today’s outcome is a warning to people who abuse tax secrecy havens. We will hold tax cheats accountable,” he said

Matt Rippon from the Federal Police said: “The arrests made today are another example of a collaborative commitment to targeting international money laundering activity regardless of the complexity of such schemes and the efforts of offenders in disguising their activities off-shore.”

“The AFP continues to work closely with partner agencies such as the ATO to protect the Australian economy from money laundering schemes and the criminal abuse of our tax system,” Commander Rippon said.

The offences carry maximum penalties of 10 and 25 years imprisonment respectively.

All three are set to appear before Sydney Central Local Court this week.