Vic properties in money laundering probe

Melbourne properties worth more than $4 million have been caught up in a money laundering probe with links to China.

Two houses at Glen Waverley and Southbank have been forfeited, alongside part of a commercial property at Oakleigh South, in the probe involving federal police and Chinese authorities.

Investigators are looking at allegations offshore funds have been laundered in Australia by Chinese nationals.

The three properties, worth a combined $4.2 million, had been listed as being owned by a Chinese national going under a false identity in Australia, federal police allege.

The AFP also says the 32-year-old has left the country and is believed to be in the Caribbean.

The properties were forfeited under a Victorian Supreme Court order, the fruits of an economic crime arrangement between Australia and China's Ministry of Public Security.