Police seize drug dealer's property investments, cash, and cars
This story that was published on Stuff in December 2019 and shows how Reporting Entities can be used to launder money. The Reporting Entities that this offender would have dealt with include:
Lawyers - purchase of property
Money Remitters/Foreign Exchange Dealers - money sent to the UK to place into bank accounts and to buy UK property
Cryptocurrency Dealers – purchase of cryptocurrencies with the proceeds of crime.
Reporting Entities need to be aware that a vast amount of information is being gathered by Government Agencies behind the scenes in order to detect and prevent money laundering where the funds are from the proceeds of crime and tax evasion.
When authorities visit Reporting Entities in relation to an investigation like this one, they need to be prepared to show the customer due diligence they have undertaken to show that they have met their AML/CFT obligations. Often when authorities visit Reporting Entities they are accompanied by an AML/CFT Supervisor.
The message here is be vigilant, as you do not want to be caught up with a money laundering investigation and possibly being named in the press. This could result in fines etc. being imposed under the AML/CFT Act and could result in banks no longer wanting to bank you.
Stuff Article – December 2019
At the end of his sentence for drug dealing Matthew Rowland will leave jail stripped of six houses, four cars, two Harley-Davidsons, and $712,000.
When Rowland was arrested in March 2018 it was the first time the police asset recovery unit restrained cryptocurrency, and recently it became the first to be forfeited to the Crown as criminal proceeds.
But Rowland's sentimental attachment to a Rolex watch, gold necklace and bracelet has survived the Police attempts to wrest from him the proceeds of his crimes.
On paper at least it's hard to tell whether Rowland would have spent more time on his drug business, or investing and stashing the profits in New Zealand and the United Kingdom.
Police estimated the 17.3kg of the class C drug N-Ethylpentylone he admitted importing over two years had a street value of at least $1.75 million.
The assets he recently agreed to forfeit have an estimated value of $1.64m to $1.75m.
Rowland, 30, is still serving a prison sentence of four years and six months.
The Commissioner of Police acknowledged the sentimental value to Rowland of the bracelet and necklace he was wearing when he was caught, and the Rolex he had at home, together valued at about $24,000.
Police accepted that the settlement reached with Rowland was fair and equitable, a judgment from the High Court in Wellington recorded.
Rowland had invested in cryptocurrency Bitcoin and Ethereum. Their value had dropped significantly since they were seized in March 2018 but police would not be hanging on to them in the hope their worth might increase. On current values they were worth $157,000.
Assets to be sold include a property in Woodville and four terrace houses in Blackpool, UK. The rental income is also forfeited.
Rowland sold drugs which caused harm and the Commissioner of Police would pursue the proceeds of his crimes "wherever in the world they are located", the manager of Police asset recovery, acting Detective Inspector Brent Murray said.
Rowland also had a removable house stored in Upper Hutt and one of his assets was a $6547 refund of a deposit for a new kitchen and bathroom for the house.
There was also a 2013 Holden HSV Clubsport, a 2007 Mercedes-Benz and various wheels and tyres, a 2006 Audi and personalised plate BADRS4, and a 1991 Chevrolet C1500 Utility.
Two Harley-Davidson motorbikes, a 2012 and a 2013, were to be sold.
Rowland had nearly $2000 on him when he was arrested on March 8, 2018, $13,000 at his Aotea, Porirua, address, $250,000 was in a storage locker in Porirua, and another $155,000 was in a storage locker in Upper Hutt.
While he had just $3781.91 in a New Zealand bank account, he had £127,630.52 (about $258,500) spread among three UK bank accounts.
Together the cash and bank account totals added up to $712,000, Murray said.
A co-offender of Rowland lost $57,000 cash, jewellery and a motorbike, with a total value of $109,000. He was sentenced to two years and eight months' jail.
Both men were charged out of Operation Manuka, Rowland in relation to importing, possessing and supplying N-Ethylpentylone, and the second man for supplying the drug.
At his sentencing it was said that Rowland had been a body builder and took substances connected to that sport.
The judge called Rowland's role "inescapably commercial", but he had since shown a commitment to rehabilitation.
Murray encouraged the public to contact police about people involved in crime who were benefiting at the expense of others.(via Stuff)