Financial Crime World

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Criminals Find Creative Ways to Store Wealth

A new report has highlighted the growing threat of money laundering in New Zealand, with criminals using various methods to store and move their ill-gotten gains.

The Problem

According to the Financial Intelligence Unit (FIU), an estimated NZD 1.35 billion in criminal proceeds is generated each year from drug offending, fraud, and other crimes such as burglary. This figure does not include tax evasion and overseas predicate offences.

Creative Methods Used by Criminals

The report found that criminals are using a range of techniques to hide their illegal profits, including:

  • The use of transportable goods and real estate assets
  • These goods can be used to store wealth or move value between criminal enterprises, making it difficult for authorities to track

The Actual Value of Money Laundering

The FIU estimates that the actual transactional value of money laundering is likely to be several times higher than the estimated NZD 1.35 billion, as launderers need to move funds through multiple transactions to conceal their illegal origins.

Predicate Offences in New Zealand

The report identified three main types of predicate offences in New Zealand:

  • Drug offending
  • Fraud
  • Tax evasion

These crimes often involve organized crime structures and networks, with offenders using various business models to generate illicit profits.

Analysis of Cases

The FIU’s findings are based on an analysis of cases involving the restraint of assets worth over NZD 1 million by New Zealand Police Asset Recovery Units (ARUs). The study found that drug offending generated the largest amount of proceeds, followed by fraud and tax evasion.

Response from Authorities

“Criminals are getting creative in their attempts to hide their illegal profits,” said a spokesperson for the FIU. “It’s essential that we stay one step ahead of them and use all available resources to track down and recover these ill-gotten gains.”

The report’s findings highlight the need for increased vigilance in detecting and preventing money laundering, particularly in the context of large-scale criminal enterprises.

“In today’s digital age, criminals are using sophisticated methods to hide their illegal activities,” said a senior investigator with the NZ Police. “It’s crucial that we work closely with financial institutions and other agencies to stay ahead of these criminals and bring them to justice.”