February 23 2016
“The UN estimates there is two trillion dollars of money laundering each year so it would be naive to assume New Zealand isn’t part of the problem,” John Bolton of Squirrel Mortgages said.
It is estimated between $1.5 billion to $10 billion of dirty cash is laundered through New Zealand every year.
Auckland’s booming market is a known target for foreign criminals and local gangs. “A lot of it is coming from offshore but there will be domestic as well,” Mr Bolton said. “As an example last year we had a client purchase close to $100 million worth of property with cash.”
In 2013 the New Zealand Government ordered casinos, banks, and mortgage brokers to confirm their customers’ identities and report suspicious transactions. Now the Government is targeting real estate agents, lawyers, and those who trade in high value objects. “The existing regime that applies to financial institutions means fines of up to $200,000, but also there is a criminal element so the police can prosecute,” Justice Minister Amy Adams said.