|
Getting your Trinity Audio player ready...
|
Police say an ongoing investigation targeting alleged money laundering using cash wages within the construction industry has resulted in further arrests.
Operation Beach is a long-running covert investigation targeting the ongoing manipulation of the construction industry for the purposes of money laundering via cash wage payments, police say.
To date, 16 arrests have been made, with the latest phase in the investigation yielding seven further arrests today, October 7.
This Wednesday morning, police say they executed nine search warrants at properties in Ellerslie, Mt Wellington, Panmure, Mt Roskill, Weymouth, Murrays Bay, Waimauku, and Whenuapai, taking seven people into custody.
Tens of thousands of dollars in cash, illegal drugs, luxury goods and evidence relating to the ongoing investigation were seized, investigators confirm.
Detective inspector Chris Allan, of the police’s financial crime group, says they will allege those arrested have used cash payments to “wash” money coming in 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,” says Allan.
“Police work closely with our partner agencies to investigate and raise awareness about this type of activity.
“In doing so, police expect these sectors to take note.”
Allan says today’s actions reflect the hardline approach being taken to disrupt all facets of organised crime activity.
“Money laundering is not a victimless crime – it facilitates organised crime groups that cause considerable harm in the community.
“Police are focused on disrupting the entire network at all levels of organised crime groups through to those that help launder the money.”
In August 2023, police say they commenced phase one of Operation Beach, identifying a money laundering organisation responsible for laundering funds generated through importation and supply of controlled drugs, cultivation and supply of cannabis, and illegal prostitution occurring 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.
Allan says paying wages in cash is not just risky – it can 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.”
He says 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.”
Allan says the Ministry of Business, Innovation and Employment is assisting police with their investigation where it involves migrants who may be involved with criminal activity in New Zealand.
Police add they are unable to provide further comment as the matter is before the court.
