A further seven people have been arrested in Auckland following an ongoing police investigation into an alleged multimillion-dollar money laundering operation using cash wages in the construction industry.
The arrests were made after police this morning carried out nine searches of properties in Ellerslie, Mt Wellington, Panmure, Mt Roskill, Weymouth, Murrays Bay, Waimauku and Whenuapai.
Tens of thousands of dollars in cash, illegal drugs, luxury goods and evidence relating to the investigation were seized by police.
It brings the total number of arrests as part of Operation Beach – a long-running covert investigation into money laundering in the construction industry – to 16.
Detective Inspector Chris Allan, of the Financial Crime Group, said police would allege those arrested 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,” he said.
Allan said the scale of the alleged laundering “is significant and involves multiple millions in transacted funds”.
“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.”
Cash payments ‘fertile ground for money laundering’
The first phase of the operation commenced in August 2023 after police identified an organisation allegedly laundering funds generated through the importation and supply of controlled drugs, cultivation and supply of cannabis and illegal prostitution across the North Island.
Earlier phases led to five people being arrested on several money laundering charges.
Eleven others were arrested on a variety of drug and immigration charges, and approximately $1 million in cash was seized.
Allan said paying wages in cash was not just risky – it could also be criminal.
“Cash wage payments create a fertile ground for money laundering, tax evasion and exploitation of vulnerable workers,” he said.
“Employers who pay in cash may unknowingly – or deliberately – facilitate organised crime, including drug trafficking and human exploitation.”
Police and partner agencies were actively targeting this behaviour, Allan said.
“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.”
The Ministry of Business, Innovation and Employment was assisting police with inquiries involving migrants who may be involved with criminal activity in the country.
