Money Laundering Report

By Sam Hurley, New Zealand Herald court reporter –

Police’s Financial Intelligence Unit release report on money laundering, terrorism

An estimated $1.35 billion of criminal proceeds is generated for money laundering in New Zealand every year but the actual transactional value is thought to be several times higher, a new police report suggests.

The figures come as the New Zealand Police Financial Intelligence Unit (FIU) published an updated assessment of the risks the country faces from money laundering and terrorism financing.

The National Risk Assessment report replaces its predecessor from 2010 and is used along with Sector Risk Assessments, published by the Reserve Bank, the Department of Internal Affairs and the Financial Market Authority.

In its report, the FIU said $1.35b of domestic criminal proceeds is generated for laundering in New Zealand annually, excluding tax offending and overseas-based offences.

Of that, $750m comes from drug offending, $500m from fraud and $100m from other offences such as burglary.

The actual transactional value of money laundering, the report reads, is likely to be several times the $1.35b estimate, while it is estimated US$2 trillion is generated globally.

FIU manager Andrew Hill said: “Even in a comparably safe country like ours, money laundering and terrorism financing harms communities by enabling organised crime to flourish.”

He said criminals overseas seeking to mask their illicit funds are also attracted by New Zealand’s reputation as a safe and corruption-free country.

“We need businesses and service providers to appreciate how and why risks arise,” Hill said.

“Recognising risk and not being complacent helps protect New Zealand’s reputation and presents us as a good place to do lawful business.”