Seems fine to me. The Lord Jesus said to first go to the brother who sinned against you personally, then with others, then the Church, and finally if they be incorrigible then to treat them as a heathen and tax collector (although even love is owed to these). The Lord did not say "first bring it to the government." This also for groups such as the Catholic Church would be relevant to the Seal of Confession which can not be broken.
So--and this is a real question, because I don't know--if someone confesses to such a crime during confessional, is there a mechanism for Matthew 18 to happen within the parish?
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