Seven people were taken into custody.
An ongoing investigation targeting alleged money laundering using cash wages within the construction industry has resulted in further arrests. Photo / NZ Police
Detective Inspector Chris Allan, from the Financial Crime Group, said police allege those arrested used cash payments to “wash” money obtained through illicit activities.
“Sectors that use cash in high volumes are susceptible to exploitation by organised crime groups who look to inject proceeds of crime into labourers’ wages at legitimate construction projects.
“Police allege the scale of this laundering is significant and involves multiple millions in transacted funds,” he said.
Allan said today’s actions reflected the hardline approach being taken by police to disrupt serious organised crime activity.
“Money laundering is not a victimless crime – it facilitates organised crime groups that cause considerable harm in the community,” Allan said.
An ongoing investigation targeting alleged money laundering using cash wages within the construction industry has resulted in further arrests. Photo / NZ Police
“Police are focused on disrupting the entire network at all levels of organised crime groups through to those that help launder the money.”
Investigation timeline
In August 2023, police commenced phase one of this investigation.
Police identified a money laundering organisation responsible for laundering funds generated through importation and supply of controlled drugs, cultivation and supply of cannabis and illegal prostitution across the North Island.
From earlier phases, five people were arrested on a number of money laundering charges.
A further 11 people were arrested on a variety of drug and immigration charges, and approximately $1 million in cash was seized.
Cash wage payments – not just risky, but can be criminal
Allan said paying wages in cash is not just risky, but it can even be criminal.
“Cash wage payments create a fertile ground for money laundering, tax evasion and exploitation of vulnerable workers.
“Employers who pay in cash may unknowingly (or deliberately) facilitate organised crime, including drug trafficking and human exploitation.”
Allan said police and partner agencies are actively targeting this behaviour.
“If you’re an employer, protect your business and your workers by ensuring all wage payments are traceable and compliant with New Zealand law, and if you’re a worker, know your rights and report suspicious practices.”
MBIE is assisting police with their investigation when it involves migrants who may be connected to criminal activity in New Zealand.
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