Case Study 5: Transnational drug dealing

Case Study Series:

Over the coming weeks we will bring you a number of case studies. These are a reminder that money launderers will go to extraordinary lengths to make their funds look legitimate.

Case Study 1 - Accountant received funds on behalf of criminal - Read more

Case Study 2 - Using an accountant as an intermediary in the legal structure of a business - Read more

Case Study 3 - Accountant facilitated a round- robin tax evasion scheme - Read more

Case Study 4 - Using shell businesses as a front for drug supply network - Read more

Case Study 5 - Transnational drug dealing - Read more

Operation Major involved Asian organised crime using New Zealand-registered companies to act as a cover for the facilitation of drug smuggling into New Zealand. Multiple companies and bank accounts were established for the sole purpose of being able

to import legitimate goods that concealed illicit drugs within them (crystal methamphetamine and precursor chemicals). The companies purported to be in the business of international trading and supply of materials relating to polymer technologies. In May 2006, a New Zealand Customs drug seizure found 95kg of crystal methamphetamine concealed in the bottom of 95 paint tins. A few days later a second drug seizure found 150kg of pseudo ephedrine tablets in amongst a shipment of bags of block plaster.

Both drug seizures had a combined potential total street value of NZ$135 million. This was the largest and most significant illicit synthetic drug seizure in New Zealand’s history. The shell companies involved were registered by accountants and the individuals involved in the drug importations.