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<strong>Organised</strong> <strong>Crime</strong> <strong>in</strong> New Zealand<br />
<strong>2010</strong>
Commissioner's Foreword<br />
<strong>Organised</strong> crime is a global threat, but local <strong>in</strong> its impact and damage to New Zealand<br />
society. It affects every community <strong>in</strong> New Zealand. It is widely recognised that the most<br />
effective way <strong>in</strong> which to combat this threat is through cooperation and collaboration.<br />
<strong>Organised</strong> <strong>Crime</strong> <strong>in</strong> New Zealand <strong>2010</strong> br<strong>in</strong>gs together <strong>in</strong>formation and <strong>in</strong>telligence<br />
provided by a wide range of agencies from the New Zealand Government and the private<br />
sector. I am particularly grateful to these agencies for their ongo<strong>in</strong>g assistance and for<br />
work<strong>in</strong>g together to better understand the threat and develop solutions.<br />
The report reveals that today's organised crime networks are <strong>in</strong>volved <strong>in</strong> a range of illegal markets. They are agile,<br />
<strong>in</strong>novative and operate across <strong>in</strong>ternational borders. The world-wide profits run to billions of dollars annually and<br />
organised crime presents a current and grow<strong>in</strong>g threat across the globe. The responses required to address these<br />
threats need to be equally sophisticated and New Zealand Police, together with our partners, are engaged <strong>in</strong> a range<br />
of <strong>in</strong>itiatives. Some of these are highly visible - for example runn<strong>in</strong>g traditional crim<strong>in</strong>al <strong>in</strong>vestigations - while others<br />
<strong>in</strong>volve support<strong>in</strong>g legislation reviews, tighten<strong>in</strong>g regulations or cooperat<strong>in</strong>g with <strong>in</strong>ternational partners to make the<br />
New Zealand environment <strong>in</strong>creas<strong>in</strong>gly hostile for organised crim<strong>in</strong>als.<br />
But it is not just the police and our partners that are responsible for combat<strong>in</strong>g organised crime. We are all responsible<br />
for help<strong>in</strong>g to reduce organised crime; it requires us as all to be vigilant; to recognise, report and respond to these<br />
threats so that we stay ahead of the crim<strong>in</strong>als that do so much harm to our society. The aim of this report is to put <strong>in</strong>to<br />
the public doma<strong>in</strong> a clear picture of the problems and challenges we face, and to help engage our community <strong>in</strong> the<br />
jo<strong>in</strong>t efforts needed to disrupt and dismantle organised crime <strong>in</strong> New Zealand.<br />
Howard Broad<br />
Commissioner of Police<br />
<strong>2010</strong><br />
2
CONTENTS<br />
INTRODUCTION.................................................................................................................4<br />
DEFINING AND IDENTIFYING ORGANISED CRIME....................................................................4<br />
ORGANISED CRIME GROUPS AND MEMBERS IN NEW ZEALAND................................................5<br />
New Zealand Adult and Youth Gangs<br />
Family syndicates<br />
Transnational organised crime groups<br />
Facilitators and specialists<br />
ILLEGAL MARKETS.............................................................................................................7<br />
Illicit drugs<br />
Burglary, theft and l<strong>in</strong>ks to organised crime<br />
Violence<br />
Kidnapp<strong>in</strong>g<br />
Illegal trade, possession and use of firearms<br />
Illegal migration<br />
Identity crime<br />
F<strong>in</strong>ancial crime<br />
Electronic crime (e-crime)<br />
Environmental crime<br />
Intellectual Property (IP) crime<br />
Bribery and corruption<br />
EFFORTS TO DISRUPT AND DISMANTLE ORGANISED CRIME................................................... 21<br />
Collaboration - <strong>in</strong>ternational, government and private sector<br />
Legislation<br />
3
INTRODUCTION<br />
Accord<strong>in</strong>g to the United Nations (UN), transnational organised crime is a major threat to human security, imped<strong>in</strong>g the<br />
social, economic, political and cultural development of societies worldwide. <strong>Organised</strong> crime groups throughout the<br />
world are <strong>in</strong>volved <strong>in</strong> a range of crim<strong>in</strong>al activities <strong>in</strong>clud<strong>in</strong>g drug traffick<strong>in</strong>g, human traffick<strong>in</strong>g, firearms traffick<strong>in</strong>g,<br />
environmental crime, cyber crime and money launder<strong>in</strong>g. As part of the global community, New Zealand is not immune<br />
to the organised crime threat. A number of organised crime groups, both domestic and <strong>in</strong>ternational, are <strong>in</strong>volved <strong>in</strong> a<br />
range of illegal markets impact<strong>in</strong>g on New Zealand.<br />
<strong>Organised</strong> <strong>Crime</strong> <strong>in</strong> New Zealand <strong>2010</strong> aims to provide <strong>in</strong>sight <strong>in</strong>to the nature and extent of the threat <strong>in</strong> New Zealand.<br />
The analysis <strong>in</strong> this report draws from <strong>in</strong>formation provided by a range of agencies from the New Zealand Government<br />
and the private sector. Open source research on national, regional and global trends relat<strong>in</strong>g to organised crime is also<br />
<strong>in</strong>cluded. Further, the report highlights efforts that aim to disrupt and dismantle organised crime <strong>in</strong> New Zealand.<br />
DEFINING AND IDENTIFYING ORGANISED CRIME<br />
New Zealand has signed and ratified the UN Convention Aga<strong>in</strong>st Transnational <strong>Organised</strong> <strong>Crime</strong> that def<strong>in</strong>es an<br />
organised crim<strong>in</strong>al group as ‘a structured group of three or more persons, exist<strong>in</strong>g for a period of time and act<strong>in</strong>g <strong>in</strong><br />
concert with the aim of committ<strong>in</strong>g one or more serious crimes 1 <strong>in</strong> order to obta<strong>in</strong>, directly or <strong>in</strong>directly, a f<strong>in</strong>ancial or<br />
other material benefit’. Under New Zealand domestic law, membership of an organised crim<strong>in</strong>al group is punishable<br />
pursuant to Section 98A of the <strong>Crime</strong>s Act 1961, and could result <strong>in</strong> up to 10 years imprisonment. Section 98A draws<br />
from the UN def<strong>in</strong>ition but also <strong>in</strong>cludes penalties for group violence, or committ<strong>in</strong>g crimes overseas, that if committed<br />
<strong>in</strong> New Zealand, would be an offence.<br />
“Today’s organised crime networks are more agile and <strong>in</strong>ventive, quick to embrace new technologies<br />
and seek out new markets and supply routes. They run like sophisticated and modern multi-national<br />
bus<strong>in</strong>esses”.<br />
United K<strong>in</strong>gdom, Home Office 2009<br />
A number of groups engaged <strong>in</strong> organised crime <strong>in</strong> New Zealand are traditional, <strong>in</strong> the sense that they operate as<br />
a structured group with a rigid hierarchy. However, consistent with <strong>in</strong>ternational trends, some organised groups<br />
impact<strong>in</strong>g on New Zealand are fluid, flexible and dynamic crim<strong>in</strong>al networks, where structure is less obvious.<br />
Increas<strong>in</strong>gly, these organised crime groups expand and contract depend<strong>in</strong>g on crim<strong>in</strong>al opportunities. In this way, the<br />
networks are entrepreneurial and often use facilitators and specialists, as well as legitimate bus<strong>in</strong>esses, to facilitate their<br />
illicit activities. While organised crime def<strong>in</strong>itions provide a useful start<strong>in</strong>g po<strong>in</strong>t, def<strong>in</strong><strong>in</strong>g and identify<strong>in</strong>g organised<br />
crime groups is problematic due to their cont<strong>in</strong>u<strong>in</strong>g evolution and the complexity of emerg<strong>in</strong>g networks. Despite the<br />
challenges <strong>in</strong> def<strong>in</strong><strong>in</strong>g and identify<strong>in</strong>g organised crime groups, those <strong>in</strong>volved are l<strong>in</strong>ked by two common characteristics;<br />
they all pose a risk to New Zealand and they are largely motivated by f<strong>in</strong>ancial ga<strong>in</strong>.<br />
1 The UN Convention aga<strong>in</strong>st Transnational <strong>Organised</strong> <strong>Crime</strong> def<strong>in</strong>es serious crime as conduct constitut<strong>in</strong>g an offence punishable by a maximum deprivation of liberty at least<br />
four years or a more serious penalty.<br />
4
ORGANISED CRIME GROUPS AND MEMBERS IN NEW ZEALAND<br />
<strong>Organised</strong> crime <strong>in</strong> New Zealand is perpetrated by a range of groups. Importantly, not all organised crime groups<br />
pose the same level of risk. The diagram below highlights that organised crime group <strong>in</strong>volvement <strong>in</strong> crim<strong>in</strong>al activity<br />
varies from street level offend<strong>in</strong>g to transnational organised crime. Consequently, the impact these groups have on the<br />
community, and the law enforcement response, varies greatly.<br />
New Zealand Adult and Youth Gangs<br />
A New Zealand Adult or Youth Gang is an organisation, association or group with the follow<strong>in</strong>g<br />
characteristics: a common name; one or more common identifiers; and whose members or associates<br />
either <strong>in</strong>dividually or collectively promote, encourage or engage <strong>in</strong> crim<strong>in</strong>al activity that is driven by a<br />
desire for profit and/or to create an atmosphere of fear and <strong>in</strong>timidation, all of which are enabled by<br />
virtue of membership <strong>in</strong> the gang.<br />
New Zealand Police<br />
Currently, it is noted that there are 30 adult gangs <strong>in</strong> New Zealand. These adult gangs are present <strong>in</strong> towns and cities<br />
throughout New Zealand and are <strong>in</strong>volved <strong>in</strong> a wide range of crim<strong>in</strong>al offend<strong>in</strong>g. While tension often exists between<br />
these groups, an observable trend <strong>in</strong> the last few years is their will<strong>in</strong>gness to work together where there is profit to be<br />
made from crim<strong>in</strong>al activity. New Zealand Adult Gangs have also evolved and are now less likely to be collectively l<strong>in</strong>ked<br />
to a s<strong>in</strong>gle crim<strong>in</strong>al venture. Rather, <strong>in</strong>dividuals use their gang membership to enable and facilitate crim<strong>in</strong>al activity.<br />
New Zealand Youth Gang presence is also noted widely throughout the country. However, their fluid nature makes<br />
determ<strong>in</strong><strong>in</strong>g membership particularly problematic. New and emerg<strong>in</strong>g youth gangs cont<strong>in</strong>ue to be identified but<br />
group<strong>in</strong>gs are often observed to disband or merge with other gangs. New Zealand Youth Gangs are commonly noted<br />
for their <strong>in</strong>volvement <strong>in</strong> drug offend<strong>in</strong>g, burglary, vehicle crime, disorder, <strong>in</strong>timidation, wilful damage and graffiti.<br />
While not always considered ‘organised’, offend<strong>in</strong>g is often facilitated and driven by membership <strong>in</strong> a youth gang and<br />
sometimes the gangs’ affiliation to an adult gang.<br />
5
Family syndicates<br />
<strong>Organised</strong> crime groups <strong>in</strong> New Zealand can also be l<strong>in</strong>ked by family relationships. Family syndicates are noted<br />
throughout New Zealand and are <strong>in</strong>volved <strong>in</strong> a range of offend<strong>in</strong>g <strong>in</strong>clud<strong>in</strong>g burglary, violence, threats, possession of<br />
weapons, drugs and vehicle crime.<br />
Transnational organised crime groups<br />
Law enforcement cont<strong>in</strong>ues to identify transnational organised crime groups impact<strong>in</strong>g on New Zealand. These groups<br />
often have l<strong>in</strong>ks to <strong>in</strong>ternational crim<strong>in</strong>als or networks, <strong>in</strong>creas<strong>in</strong>g the risk that they pose. Commonly l<strong>in</strong>ked by<br />
either ethnicity, or their <strong>in</strong>volvement <strong>in</strong> a specific illegal market, these groups are often flexible and entrepreneurial.<br />
West African, Vietnamese, Ch<strong>in</strong>ese, Iranian, Italian, Romanian, Pakistani and Malaysian organised crime groups have all<br />
been noted for their <strong>in</strong>volvement <strong>in</strong> a range of organised offend<strong>in</strong>g <strong>in</strong>clud<strong>in</strong>g fraud, Intellectual Property (IP) crime and<br />
illicit drug activity. Asian organised crime groups <strong>in</strong> particular cont<strong>in</strong>ue to pose a serious threat to New Zealand, due to<br />
their ongo<strong>in</strong>g <strong>in</strong>volvement and central role <strong>in</strong> the illicit drug market.<br />
Facilitators and specialists<br />
Outsiders are commonly recruited or exploited where specialised skills are required to facilitate organised crim<strong>in</strong>al<br />
activity <strong>in</strong> New Zealand. They may be outside contractors or part of a crim<strong>in</strong>al network and <strong>in</strong>clude complicit lawyers,<br />
accountants, chemists and computer hackers, or even those with access to particular goods <strong>in</strong>clud<strong>in</strong>g firearms, false<br />
documents or precursor chemicals.<br />
6
ILLEGAL MARKETS<br />
Illicit drugs<br />
Methamphetam<strong>in</strong>e, precursor chemicals and clandest<strong>in</strong>e laboratories<br />
• Oceania is recognised <strong>in</strong>ternationally as hav<strong>in</strong>g one of the highest amphetam<strong>in</strong>e-type substance user rates<br />
per capita <strong>in</strong> the world.<br />
• The New Zealand methamphetam<strong>in</strong>e market is estimated to be worth approximately <strong>NZ</strong>$1.2 billion per<br />
year at street level prices.<br />
• The recently published Tackl<strong>in</strong>g Methamphetam<strong>in</strong>e: Action Plan aims to reduce methamphetam<strong>in</strong>e use <strong>in</strong><br />
New Zealand and the subsequent harm it causes.<br />
• Asian organised crime groups are a key threat due to their <strong>in</strong>volvement <strong>in</strong> the importation of<br />
methamphetam<strong>in</strong>e and pseudoephedr<strong>in</strong>e, as well as domestic manufacture of the drug.<br />
• Report<strong>in</strong>g <strong>in</strong>dicates domestically sourced pseudoephedr<strong>in</strong>e is commonly used <strong>in</strong> clandest<strong>in</strong>e laboratories.<br />
• <strong>Organised</strong> crime group <strong>in</strong>volvement is noted at every stage of the methamphetam<strong>in</strong>e supply cha<strong>in</strong> <strong>in</strong><br />
New Zealand.<br />
Oceania is recognised <strong>in</strong>ternationally as hav<strong>in</strong>g one of the highest amphetam<strong>in</strong>e type substance 2 user rates <strong>in</strong> the world<br />
‘per capita’. Methamphetam<strong>in</strong>e, commonly referred to as ‘P’, is supplied to the New Zealand market via importations<br />
and domestic manufacture. It is estimated that the methamphetam<strong>in</strong>e market is worth <strong>NZ</strong>$1.2 billion per year at street<br />
level prices and is the most significant driver of profit for organised crime <strong>in</strong> New Zealand.<br />
The recent publication Tackl<strong>in</strong>g Methamphetam<strong>in</strong>e:<br />
An Action Plan 3 released by the New Zealand<br />
Government demonstrates a commitment to<br />
reduc<strong>in</strong>g methamphetam<strong>in</strong>e use <strong>in</strong> New Zealand<br />
and the subsequent harm it causes. The Action Plan<br />
outl<strong>in</strong>es the aim to implement stronger controls over<br />
methamphetam<strong>in</strong>e precursors, provide better routes<br />
<strong>in</strong>to treatment for problematic users, <strong>in</strong>crease community<br />
support, and ensure that agencies are work<strong>in</strong>g together to<br />
reduce the use of, and harm associated with, the drug <strong>in</strong><br />
New Zealand.<br />
The global demand for methamphetam<strong>in</strong>e that<br />
emerged <strong>in</strong> the 1990s, has driven the demand for<br />
precursor 4 substances, namely pseudoephedr<strong>in</strong>e and<br />
ephedr<strong>in</strong>e, typically used as the primary <strong>in</strong>gredients <strong>in</strong> the manufactur<strong>in</strong>g process. Manufactur<strong>in</strong>g methods that use<br />
pseudoephedr<strong>in</strong>e are often preferred, because it is (relatively) easily converted to make methamphetam<strong>in</strong>e. Ch<strong>in</strong>a is<br />
currently the primary source country for both pseudoephedr<strong>in</strong>e and ephedr<strong>in</strong>e predom<strong>in</strong>antly <strong>in</strong> the form of ContacNT 5 .<br />
ContacNT granules concealed with<strong>in</strong> a bicycle frame.<br />
New Zealand cont<strong>in</strong>ues to be targeted by Asian organised crime groups who dom<strong>in</strong>ate the supply of overseas sourced<br />
pseudoephedr<strong>in</strong>e, however, these groups are also l<strong>in</strong>ked to importations of methamphetam<strong>in</strong>e, and more recently its<br />
domestic manufacture. It is likely their <strong>in</strong>volvement <strong>in</strong> the methamphetam<strong>in</strong>e market <strong>in</strong> New Zealand will cont<strong>in</strong>ue.<br />
2 For the purposes of this report, ATS <strong>in</strong>cludes amphetam<strong>in</strong>e, methamphetam<strong>in</strong>e and MDMA.<br />
3 Refer l<strong>in</strong>k: http://www.beehive.govt.nz/sites/all/files/ActionPlan.pdf<br />
4 Precursor substances are those used <strong>in</strong> the manufacture of illicit drugs.<br />
5 ContacNT is a medic<strong>in</strong>e widely available <strong>in</strong> Ch<strong>in</strong>a.<br />
7
Operation Jacaranda <strong>in</strong> 2009 targeted one of the largest<br />
methamphetam<strong>in</strong>e clan labs ever detected <strong>in</strong> New Zealand.<br />
The <strong>in</strong>vestigation revealed that pseudoephedr<strong>in</strong>e<br />
was be<strong>in</strong>g extracted <strong>in</strong> a motel <strong>in</strong> Auckland and then<br />
transported to a rural property for conversion <strong>in</strong>to<br />
methamphetam<strong>in</strong>e. A hollow, cracked marble table and<br />
statues at the rural site <strong>in</strong>dicated imported precursors<br />
had been used. Four full truckloads of chemicals were<br />
removed from one of the sites. Chemicals present at the<br />
scene also <strong>in</strong>dicated experimentation with alternate<br />
manufactur<strong>in</strong>g methods not requir<strong>in</strong>g pseudoephedr<strong>in</strong>e.<br />
The manufactur<strong>in</strong>g operation was run by an Asian offender.<br />
Another source of pseudoephedr<strong>in</strong>e is the diversion<br />
of pseudoephedr<strong>in</strong>e-based medic<strong>in</strong>es brought over<br />
the counter from pharmacies; a practice known as ‘pill<br />
shopp<strong>in</strong>g’. Pill shoppers are often either contracted by domestic organised crime groups and paid <strong>in</strong> cash, or they may<br />
be users obta<strong>in</strong><strong>in</strong>g the medic<strong>in</strong>e <strong>in</strong> exchange for drugs. Domestically sourced pseudoephedr<strong>in</strong>e is commonly identified<br />
at clandest<strong>in</strong>e laboratories. Forthcom<strong>in</strong>g legislative changes that <strong>in</strong>tend to make pseudoephedr<strong>in</strong>e a prescription-only<br />
medic<strong>in</strong>e aim to significantly reduce domestic diversion.<br />
New Zealand methamphetam<strong>in</strong>e manufactur<strong>in</strong>g methods also use chemicals that are not controlled by legislation, for<br />
example, phosphorous and iod<strong>in</strong>e. These chemicals are typically obta<strong>in</strong>ed domestically and diverted for illicit purposes.<br />
New Zealand Adult Gangs cont<strong>in</strong>ue to be <strong>in</strong>volved <strong>in</strong> the manufacture and distribution of methamphetam<strong>in</strong>e, with<br />
104 of the 133 clan labs dismantled (78 percent) <strong>in</strong> 2008 l<strong>in</strong>ked to Adult Gangs.<br />
Cannabis<br />
Some of the chemicals located dur<strong>in</strong>g Operation Jacaranda.<br />
• New Zealand is self sufficient <strong>in</strong> the cultivation of cannabis, which is the most commonly used illicit drug <strong>in</strong><br />
New Zealand.<br />
• <strong>Organised</strong> crime groups and members can be l<strong>in</strong>ked to every stage of the cannabis supply cha<strong>in</strong>.<br />
• There has been an <strong>in</strong>crease <strong>in</strong> <strong>in</strong>door cannabis operations l<strong>in</strong>ked to Vietnamese organised crime groups.<br />
• While ‘drug deal<strong>in</strong>g houses’ once sold only cannabis, a range of illicit drugs are now sold at these locations.<br />
S<strong>in</strong>ce the early 1990s New Zealand has been self<br />
sufficient <strong>in</strong> the cultivation of cannabis, which is<br />
the most widely used illicit drug <strong>in</strong> New Zealand.<br />
Accord<strong>in</strong>g to <strong>in</strong>ternational research, New Zealand is<br />
acknowledged as hav<strong>in</strong>g one of the highest rates of<br />
use per capita <strong>in</strong> the world.<br />
Both <strong>in</strong>door and outdoor cannabis cultivation is<br />
noted <strong>in</strong> New Zealand. Whilst outdoor cultivation of<br />
cannabis rema<strong>in</strong>s the preferred means, <strong>in</strong>door soil<br />
and hydroponics operations produc<strong>in</strong>g higher potency<br />
cannabis are becom<strong>in</strong>g more prevalent. Vietnamese<br />
organised crime groups have been l<strong>in</strong>ked to several<br />
recent <strong>in</strong>door grow<strong>in</strong>g operations.<br />
Operation Kristy<br />
The 2008/2009 New Zealand Police National<br />
Cannabis and <strong>Crime</strong> Operation resulted <strong>in</strong> the<br />
destruction of approximately 141,000 cannabis<br />
plants. Police arrested 1,175 <strong>in</strong>dividuals and<br />
seized approximately <strong>NZ</strong>$400,000 worth of<br />
stolen property and 191 firearms.<br />
In addition, four methamphetam<strong>in</strong>e clan labs<br />
were detected. It is believed that Operation<br />
Kristy cannabis plant seizures alone prevented<br />
an estimated <strong>NZ</strong>$377 million <strong>in</strong> harm to the<br />
New Zealand community.<br />
8
<strong>Organised</strong> crime cont<strong>in</strong>ues to be l<strong>in</strong>ked to every step of the<br />
cannabis supply cha<strong>in</strong>. A ‘typical’ cannabis supply cha<strong>in</strong><br />
consists of a cultivator us<strong>in</strong>g a trusted buyer, or a small<br />
select group of trusted buyers, who then on-sell to a wider<br />
range of buyers. In 2009 a number of New Zealand Adult<br />
Gangs were l<strong>in</strong>ked to seizures of cannabis.<br />
Locations sell<strong>in</strong>g cannabis are colloquially referred to as<br />
‘t<strong>in</strong>nie houses’, due to cannabis often be<strong>in</strong>g sold <strong>in</strong> small<br />
quantities wrapped <strong>in</strong> t<strong>in</strong>foil. However, a range of illicit<br />
drugs are <strong>in</strong>creas<strong>in</strong>gly be<strong>in</strong>g sold at these locations,<br />
prompt<strong>in</strong>g a change of name by the New Zealand Police<br />
from ‘t<strong>in</strong>nie houses’ to ‘drug deal<strong>in</strong>g houses’.<br />
Cannabis seized dur<strong>in</strong>g a police <strong>in</strong>vestigation.<br />
MDMA and MDMA mimics<br />
• Tablets that users believe to be MDMA are <strong>in</strong>creas<strong>in</strong>gly found to actually conta<strong>in</strong> a range of synthetic<br />
substances (MDMA mimics).This also means it is more difficult to determ<strong>in</strong>e the true nature of the MDMA<br />
market <strong>in</strong> New Zealand.<br />
• MDMA <strong>in</strong> New Zealand is sourced from illegal importations.<br />
• Both domestic and transnational organised crime groups are <strong>in</strong>volved <strong>in</strong> the MDMA market <strong>in</strong> New Zealand.<br />
MDMA is commonly referred to as ‘ecstasy’. Importations of MDMA <strong>in</strong>to New Zealand<br />
first emerged <strong>in</strong> the mid-1990s and orig<strong>in</strong>ated from Europe (specifically the<br />
Netherlands and Belgium). However, <strong>in</strong> recent years a wider range of regions and<br />
source countries, <strong>in</strong>clud<strong>in</strong>g Eastern Europe and Asia, have been noted. From the<br />
late 1990s, domestic organised crime groups became <strong>in</strong>creas<strong>in</strong>gly <strong>in</strong>volved <strong>in</strong> the<br />
importation and distribution of MDMA. Only a small number of clandest<strong>in</strong>e MDMA<br />
laboratories have been dismantled <strong>in</strong> New Zealand <strong>in</strong> the last 20 years, <strong>in</strong>dicat<strong>in</strong>g<br />
MDMA <strong>in</strong> New Zealand is primarily sourced from illegal importations.<br />
Both domestic and transnational organised crime groups have been identified<br />
import<strong>in</strong>g and distribut<strong>in</strong>g MDMA <strong>in</strong> New Zealand. Approximately 14,500 MDMA<br />
tablets 6 were seized <strong>in</strong> 2009 <strong>in</strong> 112 seizures. 7 However, s<strong>in</strong>ce 2007, it has become<br />
difficult to identify MDMA tablets because they <strong>in</strong>creas<strong>in</strong>gly <strong>in</strong>clude a range of<br />
alternative synthetic substances (MDMA mimics). 8 This <strong>in</strong>cludes BZP 9 , which has<br />
been classified as a Class C Controlled Drug under the Misuse of Drugs Act 1975.<br />
These developments have essentially altered the MDMA market, mak<strong>in</strong>g it difficult<br />
to determ<strong>in</strong>e trends. It is likely MDMA tablets will cont<strong>in</strong>ue to conta<strong>in</strong> other synthetic<br />
substances, which presents a greater risk for users who believe that they are tak<strong>in</strong>g<br />
MDMA.<br />
Seized MDMA tablets and granules.<br />
6 Tablets refer to tablet equivalents as MDMA is imported <strong>in</strong> both tablet and powder form.<br />
7 Tablets have been recorded as MDMA but may have <strong>in</strong>cluded other synthetic substances.<br />
8 Alternate synthetic substances can <strong>in</strong>clude but is not limited to piperaz<strong>in</strong>es, mephedrone and methylone.<br />
9 Benzylpiperaz<strong>in</strong>e (BZP) is a recreational drug with stimulant properties. The effects produced by BZP are believed to mimic those produced by amphetam<strong>in</strong>e, although at<br />
reduced potency.<br />
9
Coca<strong>in</strong>e<br />
• By <strong>in</strong>ternational standards the current coca<strong>in</strong>e market <strong>in</strong> New Zealand is believed to be small.<br />
• It is possible that organised crime groups will seek to expand the coca<strong>in</strong>e market <strong>in</strong> New Zealand.<br />
• New Zealand and the Pacific region are used as transit po<strong>in</strong>ts for shipments of coca<strong>in</strong>e.<br />
Coca<strong>in</strong>e is derived from the coca plant, which is grown <strong>in</strong> South America, specifically Colombia, Peru and Bolivia, and<br />
there is no evidence that coca<strong>in</strong>e is currently produced <strong>in</strong> New Zealand. It is believed that New Zealand’s coca<strong>in</strong>e market<br />
is relatively small, however, dur<strong>in</strong>g the latter part of 2009 and early <strong>2010</strong>, report<strong>in</strong>g <strong>in</strong>dicated <strong>in</strong>creased availability of<br />
coca<strong>in</strong>e.<br />
It is possible that transnational organised crime groups, as well as New Zealand Adult Gangs, might seek to expand the<br />
coca<strong>in</strong>e market <strong>in</strong> New Zealand. Intercepted shipments of coca<strong>in</strong>e <strong>in</strong>dicate New Zealand and the Pacific region are used<br />
as transit po<strong>in</strong>ts for illicit drug consignments dest<strong>in</strong>ed for other <strong>in</strong>ternational markets.<br />
Opiates and opioids<br />
• Hospital admissions <strong>in</strong>dicate an <strong>in</strong>creas<strong>in</strong>g number of younger <strong>in</strong>dividuals are us<strong>in</strong>g opioids.<br />
• The New Zealand market is currently dom<strong>in</strong>ated by the diversion of opiate-based pharmaceuticals.<br />
• It is possible that organised crime groups will seek to exploit any expansion <strong>in</strong> the opiates and opioids<br />
market <strong>in</strong> New Zealand.<br />
There are no current <strong>in</strong>dicators to suggest there is a market for imported hero<strong>in</strong><br />
<strong>in</strong> New Zealand and there have been no significant seizures of imported hero<strong>in</strong><br />
s<strong>in</strong>ce 2001.<br />
While New Zealand has had a long period of relatively low opiate 10 abuse s<strong>in</strong>ce it was<br />
targeted by the Mr Asia syndicate <strong>in</strong> the 1970s, there are early <strong>in</strong>dications that this<br />
market is expand<strong>in</strong>g. Hospital admissions highlight an <strong>in</strong>creas<strong>in</strong>g number of younger<br />
<strong>in</strong>dividuals who are us<strong>in</strong>g potentially addictive opioids 11 .<br />
The New Zealand opiate market is currently dom<strong>in</strong>ated by the diversion of opiatebased<br />
pharmaceuticals, <strong>in</strong>clud<strong>in</strong>g those that can be obta<strong>in</strong>ed via doctor’s prescription.<br />
It is difficult to determ<strong>in</strong>e the most widely abused opiates <strong>in</strong> New Zealand. Code<strong>in</strong>e<br />
is most widely available but morph<strong>in</strong>e features more regularly <strong>in</strong> seizure <strong>in</strong>cidents.<br />
The abuse of methadone is also commonly noted. It is possible that any <strong>in</strong>creased use<br />
of opiates and other opioids <strong>in</strong> New Zealand could lead to the recommencement of<br />
imported hero<strong>in</strong> and the expansion of this market by organised crime groups.<br />
Scored Opium Pod.<br />
10 An opiate <strong>in</strong>cludes, but is not limited to, hero<strong>in</strong>, opium and methadone.<br />
11 Opioid <strong>in</strong>cludes, but is not limited to, morph<strong>in</strong>e, code<strong>in</strong>e and oxycodone.<br />
10
Burglary, theft and l<strong>in</strong>ks to organised crime<br />
• <strong>Organised</strong> crime groups and family syndicates cont<strong>in</strong>ue to be noted for their <strong>in</strong>volvement <strong>in</strong> volume crime<br />
offend<strong>in</strong>g.<br />
There are ongo<strong>in</strong>g examples of New Zealand Adult and<br />
Youth Gang, as well as family syndicate, <strong>in</strong>volvement <strong>in</strong><br />
burglary, theft and a range of other ‘volume’ 12 crimes.<br />
Investigations reveal theft and burglary are often<br />
undertaken to support a drug habit.<br />
<strong>Organised</strong> crime groups <strong>in</strong> New Zealand are also <strong>in</strong>volved<br />
<strong>in</strong> the movement of illicit and stolen commodities to<br />
satisfy national supply and demand. Both the road and air<br />
transport networks are utilised to move goods <strong>in</strong>clud<strong>in</strong>g,<br />
for example, stolen property, firearms, counterfeit items<br />
and illicit drugs.<br />
Stolen vehicle and parts ready for export.<br />
Operation Beryl<br />
An operation was launched <strong>in</strong> 2009 follow<strong>in</strong>g the identification of organised offend<strong>in</strong>g relat<strong>in</strong>g to the<br />
theft of over 500 Toyota Hiace Vans <strong>in</strong> the Auckland Region. A small percentage of these stolen vehicles<br />
were subsequently recovered. The police targeted ‘chop shops’ as well as the offenders who were<br />
steal<strong>in</strong>g the vehicles. To date there have been 12 arrests and 444 crim<strong>in</strong>al charges laid.<br />
In addition, the operation has resulted <strong>in</strong> the recovery of 127 or <strong>NZ</strong>$690,000 worth of stolen vehicles<br />
or parts, four firearms, stolen property, methamphetam<strong>in</strong>e and cash. Parts were be<strong>in</strong>g shipped to the<br />
Middle East via the United Arab Emirates, sometimes at a rate of one conta<strong>in</strong>er per week. This highly<br />
organised crim<strong>in</strong>al syndicate had a significant impact on vehicle theft across Auckland.<br />
Violence<br />
• The majority of organised crime groups engage <strong>in</strong> violent offend<strong>in</strong>g.<br />
• New Zealand Adult Gangs engage <strong>in</strong> overt displays of violent offend<strong>in</strong>g commonly perpetrated with<strong>in</strong> and<br />
aga<strong>in</strong>st other organised crime groups. Many of these <strong>in</strong>cidents rema<strong>in</strong> unreported.<br />
<strong>Organised</strong> crime groups provide a structure as well as a set of values and behaviours that actively encourage and<br />
normalise antisocial behaviour, <strong>in</strong>clud<strong>in</strong>g violence. In New Zealand, the majority of organised crime groups engage <strong>in</strong><br />
violence and <strong>in</strong>timidation as a way of life, <strong>in</strong> random acts of aggression or <strong>in</strong> self defence.<br />
New Zealand Adult Gangs often engage <strong>in</strong> overt displays of violent offend<strong>in</strong>g commonly l<strong>in</strong>ked to <strong>in</strong>cidents of both<br />
<strong>in</strong>ter and <strong>in</strong>tra gang tension. Gang members <strong>in</strong> New Zealand are noted for their ongo<strong>in</strong>g <strong>in</strong>volvement <strong>in</strong> ‘standovers’ 13<br />
and ‘tax<strong>in</strong>g’, 14 which are often l<strong>in</strong>ked to the illicit drug trade. This is consistent with <strong>in</strong>ternational report<strong>in</strong>g that notes<br />
violence is used to enforce crim<strong>in</strong>al bus<strong>in</strong>ess deal<strong>in</strong>gs and recover debts.<br />
12 Volume crime generally <strong>in</strong>cludes burglary, unlawful tak<strong>in</strong>g of motor vehicles and general theft (<strong>in</strong>clud<strong>in</strong>g theft from motor vehicles and shoplift<strong>in</strong>g).<br />
13 A standover <strong>in</strong>volves the use of <strong>in</strong>timidation to create fear of consequences if a certa<strong>in</strong> demand is not complied with.<br />
14 Tax<strong>in</strong>g is the removal or theft of property, drugs or money by a gang member <strong>in</strong> payment of a debt, whether real or imag<strong>in</strong>ed. Tax<strong>in</strong>g often <strong>in</strong>volves the use of <strong>in</strong>timidation or<br />
violence to overcome resistance.<br />
11
While some gang members have legitimised their <strong>in</strong>volvement <strong>in</strong> debt collection <strong>in</strong> New Zealand, it is likely that their<br />
status as a gang member is used to <strong>in</strong>timidate victims. Further, organised crime groups and members are often found<br />
<strong>in</strong> possession of a range of weapons, <strong>in</strong>clud<strong>in</strong>g firearms. New Zealand Youth Gangs are commonly <strong>in</strong>volved <strong>in</strong> violent<br />
offend<strong>in</strong>g <strong>in</strong>clud<strong>in</strong>g fight<strong>in</strong>g, assault and <strong>in</strong>timidation. <strong>Organised</strong> crime group <strong>in</strong>volvement <strong>in</strong> violent offend<strong>in</strong>g is often<br />
unreported out of fear, or due to the victims be<strong>in</strong>g crim<strong>in</strong>als themselves.<br />
Operation Billy<br />
Operation Billy related to a violent clash between two rival youth gangs <strong>in</strong> 2005. Thirty members<br />
of one gang, armed with weapons, confronted members of another gang at an Auckland address.<br />
The ensu<strong>in</strong>g violence resulted <strong>in</strong> gang members be<strong>in</strong>g knocked unconscious, and beaten about<br />
the head and body with baseball bats, hammers, glass bottles and pieces of wood. Victims were<br />
hospitalised with life threaten<strong>in</strong>g <strong>in</strong>juries. Eleven <strong>in</strong>dividuals were charged with attempted murder,<br />
wound<strong>in</strong>g with <strong>in</strong>tent and serious assault. This violence highlights that tensions between rival gangs<br />
can often lead to violent offend<strong>in</strong>g.<br />
Kidnapp<strong>in</strong>g<br />
• <strong>Organised</strong> crime groups <strong>in</strong> New Zealand are <strong>in</strong>volved <strong>in</strong> crim<strong>in</strong>al vendetta kidnapp<strong>in</strong>gs as well as<br />
kidnapp<strong>in</strong>gs for ga<strong>in</strong>.<br />
• <strong>Organised</strong> crime group <strong>in</strong>volvement <strong>in</strong> kidnapp<strong>in</strong>g <strong>in</strong> New Zealand is under reported.<br />
There are a number of examples of organised crime group<br />
<strong>in</strong>volvement <strong>in</strong> kidnapp<strong>in</strong>g <strong>in</strong> New Zealand. It is believed that<br />
kidnapp<strong>in</strong>g <strong>in</strong>cidents are under reported, commonly due to<br />
the victims be<strong>in</strong>g crim<strong>in</strong>als themselves. These <strong>in</strong>cidents are<br />
sometimes referred to as ‘crim<strong>in</strong>al vendetta’ kidnapp<strong>in</strong>gs.<br />
For example, an <strong>in</strong>door cannabis grow<strong>in</strong>g operation shut down<br />
by police <strong>in</strong> 2008 led to a standover <strong>in</strong> relation to lost drug<br />
money. A violent <strong>in</strong>cident ensued and kidnapp<strong>in</strong>g charges<br />
were subsequently laid aga<strong>in</strong>st four <strong>in</strong>dividuals. In another<br />
example, a well-known crim<strong>in</strong>al <strong>in</strong>volved <strong>in</strong> illicit drug activity<br />
was charged with kidnapp<strong>in</strong>g follow<strong>in</strong>g an <strong>in</strong>cident <strong>in</strong> 2008.<br />
Along with two others, and armed with a cattle prod, a knife<br />
and a pistol, they entered the victim’s address and demanded<br />
the return of cannabis that had allegedly been stolen.<br />
<strong>Organised</strong> crime groups <strong>in</strong> New Zealand have also been noted<br />
for their <strong>in</strong>volvement <strong>in</strong> kidnapp<strong>in</strong>g for ga<strong>in</strong>. In a recent<br />
example, a brothel client was kidnapped, threatened with<br />
violence and had a large amount of money withdrawn from<br />
their account. The brothel is believed to be one of several <strong>in</strong><br />
the wider Auckland region run by an Asian organised crime<br />
syndicate. In an <strong>in</strong>cident <strong>in</strong> early <strong>2010</strong> a New Zealand Adult<br />
Gang member who, while armed with a weapon, kidnapped<br />
an <strong>in</strong>dividual from their apartment complex. The victim was<br />
transported <strong>in</strong> the offender’s vehicle, robbed of possessions<br />
and made to withdraw money from their bank account.<br />
Operation Convoy<br />
Operation Convoy related to the<br />
kidnapp<strong>in</strong>g of a female from her home.<br />
One of the four offenders had undertaken<br />
contract<strong>in</strong>g work at the victim’s residence<br />
prior to the kidnapp<strong>in</strong>g. Armed with<br />
a knife and a fake gun, three of the<br />
offenders entered the victim’s home <strong>in</strong> the<br />
early morn<strong>in</strong>g and tied her and her elderly<br />
parents up.<br />
They told the victim’s parents they<br />
wanted <strong>NZ</strong>$500,000 by noon and another<br />
<strong>NZ</strong>$500,000 by noon the next day.<br />
They said if the kidnapp<strong>in</strong>g was reported<br />
to the police all three of them would be<br />
murdered. The victim was bl<strong>in</strong>dfolded and<br />
driven away <strong>in</strong> her own vehicle. Realis<strong>in</strong>g<br />
their demands would not be met, the<br />
offenders left the victim <strong>in</strong> an <strong>in</strong>dustrial<br />
area. The offenders were subsequently<br />
arrested.<br />
12
Illegal trade, possession and use of firearms<br />
• <strong>Organised</strong> crime groups and members are <strong>in</strong>volved <strong>in</strong> the illegal trade, possession and use of firearms.<br />
• Firearm use is noted <strong>in</strong> <strong>in</strong>ter and <strong>in</strong>tra gang violence. Incidents <strong>in</strong>volv<strong>in</strong>g members of the public are rare.<br />
• <strong>Organised</strong> crime groups undertake burglaries and cont<strong>in</strong>ue to target legitimate firearm owners and<br />
collectors <strong>in</strong> order to ga<strong>in</strong> access to firearms.<br />
The dynamics of organised crime lends itself to conflict<br />
and consequently, the possession and use of firearms.<br />
<strong>Organised</strong> crime groups use firearms for their protection,<br />
the enhancement of their status and the commission<br />
of crime <strong>in</strong>clud<strong>in</strong>g <strong>in</strong>timidation, robbery, assault and<br />
homicide. International report<strong>in</strong>g highlights that the<br />
possession of firearms by organised crime groups is often<br />
l<strong>in</strong>ked to the illicit drug trade.<br />
<strong>Organised</strong> crime groups <strong>in</strong> New Zealand cont<strong>in</strong>ue to<br />
illegally possess and use firearms. Inter and <strong>in</strong>tra group<br />
conflict, often <strong>in</strong>volv<strong>in</strong>g weapons, 15 has existed <strong>in</strong><br />
New Zealand for decades and firearms have featured <strong>in</strong> a<br />
number of high profile cases <strong>in</strong> recent years. For example, <strong>in</strong> 2007 a New Zealand Adult Gang member killed the two<br />
year old daughter of a rival gang member <strong>in</strong> a drive-by shoot<strong>in</strong>g. Fortunately, organised crime group use of firearms<br />
<strong>in</strong> <strong>in</strong>cidents <strong>in</strong>volv<strong>in</strong>g members of the public are rare. However, any use of firearms by the crim<strong>in</strong>al fraternity poses an<br />
unacceptable risk to the public.<br />
Consistent with <strong>in</strong>ternational report<strong>in</strong>g, organised crime groups undertake burglaries and cont<strong>in</strong>ue to target legitimate<br />
firearm owners and collectors <strong>in</strong> order to ga<strong>in</strong> access to firearms. For example, 22 firearms were stolen <strong>in</strong> six targeted<br />
burglaries <strong>in</strong> rural Northland <strong>in</strong> 2009.<br />
Illegal migration<br />
Weapons and ammunition seized from an address by police <strong>in</strong> 2008.<br />
• International migration is set to <strong>in</strong>crease <strong>in</strong> the future, driven by a range of factors.<br />
• Human traffick<strong>in</strong>g has not yet ga<strong>in</strong>ed a foothold <strong>in</strong> New Zealand.<br />
• There is a risk of future seaborne people smuggl<strong>in</strong>g attempts target<strong>in</strong>g New Zealand.<br />
• Illegal migration is facilitated by application fraud, the use of irregular travel documentation or the<br />
contravention of permits once an <strong>in</strong>dividual arrives <strong>in</strong> New Zealand.<br />
• <strong>Organised</strong> crime groups are <strong>in</strong>volved <strong>in</strong> the production and use of false, fraudulent or stolen documents to<br />
facilitate entry <strong>in</strong>to New Zealand.<br />
The UN estimate there are approximately 200 million migrants worldwide, a figure that has more than doubled <strong>in</strong> the<br />
last 25 years. Increased migration has been driven largely by globalisation and the dramatic improvements <strong>in</strong> transport<br />
and communications. While economic <strong>in</strong>centives will cont<strong>in</strong>ue to drive migration <strong>in</strong> the future, environmental pressures<br />
and climate change will almost certa<strong>in</strong>ly become more relevant. Conflict and war also result <strong>in</strong> the displacement of<br />
people to other countries. Consequently, illegal migration as a subset of all migration looks set to <strong>in</strong>crease.<br />
Human traffick<strong>in</strong>g is dist<strong>in</strong>ct from people smuggl<strong>in</strong>g <strong>in</strong> that it <strong>in</strong>volves coercion and exploitation of the migrant. It is<br />
believed human traffick<strong>in</strong>g has not yet ga<strong>in</strong>ed a foothold <strong>in</strong> New Zealand.<br />
15 Firearms most commonly used are ‘long arms’ such as rifles and shotguns.<br />
13
People smuggl<strong>in</strong>g has emerged as a major organised crime<br />
problem <strong>in</strong> Australia. There is a risk of future seaborne people<br />
smuggl<strong>in</strong>g attempts target<strong>in</strong>g New Zealand. The success of<br />
any venture is dependant on a number of factors <strong>in</strong>clud<strong>in</strong>g<br />
the determ<strong>in</strong>ation of the smugglers, the seaworth<strong>in</strong>ess of<br />
the vessel, the weather, as well as required food and fuel<br />
provisions. Proactive law enforcement <strong>in</strong>tervention will also<br />
h<strong>in</strong>der the success of any venture.<br />
Illegal migration cont<strong>in</strong>ues to be facilitated by application<br />
fraud, the use of irregular travel documentation or<br />
the contravention of permits once an <strong>in</strong>dividual is <strong>in</strong><br />
New Zealand. The presence of foreign nationals work<strong>in</strong>g<br />
illegally <strong>in</strong> New Zealand’s sex <strong>in</strong>dustry has also been<br />
identified.<br />
The abuse of legitimate entry to New Zealand by organised<br />
crime groups is likely to cont<strong>in</strong>ue as border controls tighten<br />
<strong>in</strong> regard to illegal migration. Such groups are often <strong>in</strong>volved<br />
<strong>in</strong> the production and use of false, fraudulent or stolen<br />
documents to support legitimate applications to ga<strong>in</strong> entry<br />
and rema<strong>in</strong> <strong>in</strong> New Zealand. It is likely organised crime groups<br />
will produce <strong>in</strong>creas<strong>in</strong>gly sophisticated documentation <strong>in</strong><br />
support of elaborate scams to deceive immigration authorities.<br />
CASE STUDY<br />
In 2004, a male Malaysian national<br />
was one of the first <strong>in</strong>dividuals to<br />
be convicted of people smuggl<strong>in</strong>g <strong>in</strong><br />
New Zealand. The <strong>in</strong>vestigation related<br />
to the smuggl<strong>in</strong>g of Malaysian and Thai<br />
nationals <strong>in</strong>to New Zealand to work<br />
illegally <strong>in</strong> the horticulture <strong>in</strong>dustry.<br />
Upon arrang<strong>in</strong>g entry <strong>in</strong>to New Zealand<br />
through Auckland International Airport<br />
and transit<strong>in</strong>g the workers to Blenheim,<br />
the offender reta<strong>in</strong>ed his employees’<br />
passports and provided sub-standard<br />
accommodation. The offender was<br />
subsequently convicted and sentenced<br />
on 12 immigration charges relat<strong>in</strong>g to<br />
people smuggl<strong>in</strong>g and sentenced to two<br />
years imprisonment.<br />
Identity crime<br />
• Identity crime is often essential to facilitate successful, and sometimes large-scale, offend<strong>in</strong>g.<br />
• Information and Communications Technology, <strong>in</strong>clud<strong>in</strong>g the Internet, are used as a means to facilitate, as<br />
well as commit, identity crime.<br />
• <strong>Organised</strong> crime groups and specialists cont<strong>in</strong>ue to use fraudulent identity documents to commit a range of<br />
offend<strong>in</strong>g.<br />
The misuse of personal identity <strong>in</strong>formation, commonly referred to as identity crime 16 , describes illicit activity that<br />
forms part of an offence. It is important to exam<strong>in</strong>e identity crime as a separate illegal market because it rema<strong>in</strong>s poorly<br />
understood and facilitates a range of crim<strong>in</strong>al activity. The misuse of personal identity <strong>in</strong>formation can directly expedite<br />
an offence by allow<strong>in</strong>g a deception to occur. This is evidenced <strong>in</strong> many f<strong>in</strong>ancial and immigration frauds. While identity<br />
crime is described as an ‘enabler’, it is often essential to facilitate successful, and sometimes large-scale, offend<strong>in</strong>g.<br />
Cash and gold bars retrieved from an identity crime offender’s property.<br />
16 Internationally, terms relat<strong>in</strong>g to the misuse of identity vary widely and can <strong>in</strong>clude identity theft, identity fraud and identity crime.<br />
14
Information and Communications Technology, <strong>in</strong>clud<strong>in</strong>g the Internet, provides avenues that assist identity crime<br />
offend<strong>in</strong>g. For example, technology provides the means to produce high quality manufactured identity documents,<br />
while the <strong>in</strong>creas<strong>in</strong>g onl<strong>in</strong>e storage of personal <strong>in</strong>formation and onl<strong>in</strong>e transaction systems are also be<strong>in</strong>g exploited.<br />
Onl<strong>in</strong>e identity crime activity, currently based around phish<strong>in</strong>g 17 , account compromise and credit card fraud, is often<br />
committed aga<strong>in</strong>st New Zealanders by offenders based elsewhere <strong>in</strong> the world. The scope and reach of this offend<strong>in</strong>g<br />
can be vast with m<strong>in</strong>imal f<strong>in</strong>ancial outlay. Many items used <strong>in</strong> the production of false identity documents are widely<br />
available on the Internet, <strong>in</strong>clud<strong>in</strong>g card readers, card encoders, card pr<strong>in</strong>ters and over-lam<strong>in</strong>ates used to produce cloned<br />
credit cards.<br />
<strong>Organised</strong> crime groups and their specialists cont<strong>in</strong>ue to use fraudulent identity documents to facilitate a range of<br />
offend<strong>in</strong>g, commonly l<strong>in</strong>ked to fraud and illegal migration. An example <strong>in</strong> 2009 related to the fraudulent report<strong>in</strong>g<br />
of ‘lost’ passports that were then used to ga<strong>in</strong> illegal entry <strong>in</strong>to Australia. Of note is the fact that identity documents,<br />
<strong>in</strong>clud<strong>in</strong>g passports and driver licences, cont<strong>in</strong>ue to be targeted <strong>in</strong> thefts and burglaries <strong>in</strong> New Zealand.<br />
F<strong>in</strong>ancial crime<br />
Money launder<strong>in</strong>g<br />
• <strong>Organised</strong> crime groups are <strong>in</strong>volved <strong>in</strong> money launder<strong>in</strong>g <strong>in</strong> New Zealand.<br />
• The complexity of money launder<strong>in</strong>g methods depends largely on the sophistication of the offenders<br />
<strong>in</strong>volved.<br />
• New legislation will result <strong>in</strong> <strong>in</strong>creased scrut<strong>in</strong>y of f<strong>in</strong>ancial <strong>in</strong>stitutions and transactions, and it well enable<br />
law enforcement to more easily seize proceeds of crime.<br />
Money launder<strong>in</strong>g is the process by which <strong>in</strong>come and assets used <strong>in</strong>, and derived from, illegal activity are converted<br />
<strong>in</strong>to, or disguised, as apparently legitimate <strong>in</strong>come. <strong>Organised</strong> crime groups launder proceeds of crime to avoid<br />
detection, preserve profit, further their crim<strong>in</strong>al enterprise and support their lifestyle. The primary aim of organised<br />
crim<strong>in</strong>al activity is the pursuit of profit. Therefore, combat<strong>in</strong>g money launder<strong>in</strong>g is fundamental to effectively<br />
address<strong>in</strong>g serious and organised crime.<br />
Money launder<strong>in</strong>g is a crim<strong>in</strong>al offence and separate to the orig<strong>in</strong>al (or predicate) offence 18 that generated the proceeds<br />
of crime. In essence, money launder<strong>in</strong>g occurs whenever a crim<strong>in</strong>al deals with the proceeds of a serious crime 19 with<br />
the purpose of conceal<strong>in</strong>g the orig<strong>in</strong>s, and with the knowledge that the proceeds have been derived from serious crime.<br />
There is no reliable estimate as to the extent of proceeds of crime. However, organised crime is f<strong>in</strong>ancially motivated and<br />
therefore it is likely that the crim<strong>in</strong>al proceeds laundered are of substantial value.<br />
Most money launder<strong>in</strong>g occurs through the regulated f<strong>in</strong>ancial system. The complexity of the money launder<strong>in</strong>g<br />
depends on the sophistication of the offenders <strong>in</strong>volved. For example, the launder<strong>in</strong>g of proceeds of crime can range<br />
from the sale of a stolen item 20 and the deposit of the money <strong>in</strong>to a retail bank account, through to multiple transfers<br />
of illicit drug money through shelf companies’ 21 trust accounts. <strong>Organised</strong> crime groups <strong>in</strong> New Zealand have been<br />
observed us<strong>in</strong>g a range of money launder<strong>in</strong>g methods <strong>in</strong>clud<strong>in</strong>g:<br />
• Use of the retail bank<strong>in</strong>g sector, credit cards, cheques, stored value cards, promissory notes etc.<br />
• Cash conversion.<br />
• Currency exchange.<br />
17 Phish<strong>in</strong>g commonly <strong>in</strong>volves send<strong>in</strong>g fake emails to a victim purport<strong>in</strong>g to come from a legitimate source and request<strong>in</strong>g <strong>in</strong>formation (such as bank account details and/or<br />
passwords), or direct<strong>in</strong>g a victim to a fake Internet website where this <strong>in</strong>formation can be captured.<br />
18 Predicate offence refers to a serious offence (or specified drug offence) from which the proceeds can be laundered.<br />
19 In this context, serious crime is def<strong>in</strong>ed as an offence punishable by five years imprisonment or more or an offence committed overseas that, if committed <strong>in</strong> New Zealand,<br />
would be punishable by five years imprisonment or more - Section 243 (1) <strong>Crime</strong>s Act 1961.<br />
20 Under New Zealand legislation, stolen property must have a value of <strong>NZ</strong>$1,000 or more before it can be laundered.<br />
21 A shelf company is a legal company that exists <strong>in</strong> name only and does not perform or operate <strong>in</strong> anyway.<br />
15
• Purchase of portable valuable commodities (gems, precious metals etc).<br />
• Purchase of valuable assets (real estate, vehicles etc).<br />
• Alternative remittance services/underground bank<strong>in</strong>g.<br />
• Cas<strong>in</strong>o, pub and bar gambl<strong>in</strong>g, horse rac<strong>in</strong>g.<br />
• Co-m<strong>in</strong>gl<strong>in</strong>g (bus<strong>in</strong>ess <strong>in</strong>vestment).<br />
• Use of nom<strong>in</strong>ees, trusts, family members or third parties.<br />
• Use of professional services (lawyers, accountants, brokers etc).<br />
The Anti Money Launder<strong>in</strong>g and Counter<strong>in</strong>g F<strong>in</strong>anc<strong>in</strong>g of Terrorism Act 2009 will be implemented over two years.<br />
The Act will result <strong>in</strong> <strong>in</strong>creased scrut<strong>in</strong>y by f<strong>in</strong>ancial <strong>in</strong>stitutions of f<strong>in</strong>ancial transaction activity. S<strong>in</strong>ce the Crim<strong>in</strong>al<br />
Proceeds (Recovery) Act 2009 came <strong>in</strong>to force, <strong>NZ</strong>$36 million worth of assets have been identified that are believed to<br />
have been obta<strong>in</strong>ed through crim<strong>in</strong>al activity. Of the <strong>NZ</strong>$36 million under <strong>in</strong>vestigation, a large proportion is believed to<br />
be l<strong>in</strong>ked to the illicit drug trade. Targets <strong>in</strong> these <strong>in</strong>vestigations have <strong>in</strong>cluded organised crime groups and members.<br />
Fraud<br />
• International and domestic organised crime groups cont<strong>in</strong>ue to be noted for their <strong>in</strong>volvement <strong>in</strong> a range of<br />
fraud offences impact<strong>in</strong>g on New Zealand.<br />
It is sometimes difficult to identify an organised element to fraud offend<strong>in</strong>g as offences are often viewed <strong>in</strong> isolation.<br />
Despite this, the use of similar modus operandi by offenders is often noted, highlight<strong>in</strong>g knowledge shar<strong>in</strong>g with<strong>in</strong> the<br />
crim<strong>in</strong>al fraternity.<br />
Consistent with <strong>in</strong>ternational report<strong>in</strong>g, New Zealanders cont<strong>in</strong>ue to be targeted <strong>in</strong> advance fee frauds, commonly<br />
perpetrated by West African nationals and organised crime groups. The pr<strong>in</strong>cipal strategy of these scams is to target<br />
vulnerable <strong>in</strong>dividuals with promises of personal ga<strong>in</strong>. A recent scam <strong>in</strong> New Zealand <strong>in</strong>volved onl<strong>in</strong>e vacancy<br />
advertisements for ‘receipts payment clerks’. The receipts payment clerks were required to bank stolen or fraudulent<br />
funds <strong>in</strong> vary<strong>in</strong>g forms, predom<strong>in</strong>antly counterfeit traveller cheques, before forward<strong>in</strong>g funds offshore.<br />
These scams are commonly referred to as mule recruitment 22 . The clerk essentially acts as a mule, launder<strong>in</strong>g funds<br />
on behalf of the offender and subsequently receives a commission for conduct<strong>in</strong>g the transactions. Advance fee fraud<br />
and other onl<strong>in</strong>e fraud offences are challeng<strong>in</strong>g to <strong>in</strong>vestigate, as the Internet enables offenders to conceal their<br />
whereabouts and ma<strong>in</strong>ta<strong>in</strong> anonymity. The M<strong>in</strong>istry of Consumer Affairs <strong>in</strong> New Zealand provides the public with<br />
<strong>in</strong>formation to help them recognise and protect themselves from such scams. 23<br />
<strong>Organised</strong> crime group <strong>in</strong>volvement <strong>in</strong> credit card fraud is ongo<strong>in</strong>g and often <strong>in</strong>volves <strong>in</strong>ternational gangs. An example<br />
of this is a recent <strong>in</strong>vestigation identify<strong>in</strong>g <strong>in</strong>creased theft of credit cards by courier drivers. It is believed the cards were<br />
be<strong>in</strong>g passed to ‘distributors’ who arranged for ‘shoppers’ to make the first purchase for the distributor. Shoppers were<br />
then able to cont<strong>in</strong>ue us<strong>in</strong>g the cards for their own benefit.<br />
In March 2008, two Malaysian nationals were arrested <strong>in</strong> Whangārei us<strong>in</strong>g professionally cloned credit cards to purchase<br />
high-end electrical goods for on-sale. In addition, 18 cloned Visa and MasterCard credit cards were seized from two<br />
S<strong>in</strong>gaporean nationals at Auckland International Airport. It is believed that these two <strong>in</strong>cidents are l<strong>in</strong>ked and the<br />
offenders were connected to an organised crime group <strong>in</strong> Australia.<br />
22 ‘Mule Recruitment’ is an attempt to get a person to receive stolen funds us<strong>in</strong>g his or her bank account, and then transfer those funds to crim<strong>in</strong>als overseas.<br />
23 http://www.consumeraffairs.govt.nz/scamwatch/<strong>in</strong>dex.html<br />
16
Electronic crime (e-crime)<br />
• Cyber crime and onl<strong>in</strong>e theft is believed to be cost<strong>in</strong>g the global economy US$1 trillion annually.<br />
• Computer users <strong>in</strong> New Zealand cont<strong>in</strong>ue to be targeted, mostly by cyber attacks orig<strong>in</strong>at<strong>in</strong>g from overseas.<br />
• The Internet provides an opportunity for offenders <strong>in</strong> New Zealand to communicate and extend their<br />
crim<strong>in</strong>al networks.<br />
Electronic crime (e-crime) refers to offences where <strong>in</strong>formation and<br />
communications technology (ICT) 24 is used as a tool <strong>in</strong> the commission<br />
of a crime, is the target of an offence, or is used as a storage device <strong>in</strong> the<br />
commission of a crime. Onl<strong>in</strong>e theft is estimated to cost the global economy<br />
US$1 trillion annually. Some <strong>in</strong>ternational report<strong>in</strong>g states that cyber crime<br />
is currently <strong>in</strong> a transition period and that, left unabated, there will be a<br />
significant <strong>in</strong>crease <strong>in</strong> offend<strong>in</strong>g <strong>in</strong> the com<strong>in</strong>g years.<br />
Society has become <strong>in</strong>creas<strong>in</strong>gly dependant on the Internet and ICT <strong>in</strong> general.<br />
<strong>Public</strong>, private, social, economic and military <strong>in</strong>stitutions all now rely heavily<br />
on computer networks, and throughout the world the Internet is used for<br />
communication, <strong>in</strong>formation gather<strong>in</strong>g and shar<strong>in</strong>g, as well the purchase of<br />
goods and services. Despite the progress facilitated by the Internet, it has been<br />
likened to a new frontier where users can exist anonymously and physical<br />
identity and location are irrelevant. Crim<strong>in</strong>als are <strong>in</strong>creas<strong>in</strong>gly exploit<strong>in</strong>g this<br />
space to engage <strong>in</strong> crim<strong>in</strong>al activity that threatens <strong>in</strong>dividuals, organisations<br />
and governments.<br />
Forensic exam<strong>in</strong>ation of a computer hard drive.<br />
International organised crime groups are noted for their ongo<strong>in</strong>g <strong>in</strong>volvement <strong>in</strong> us<strong>in</strong>g ICT to facilitate traditional<br />
offend<strong>in</strong>g, as well as launch<strong>in</strong>g cyber attacks. The Internet is be<strong>in</strong>g used to exploit vulnerabilities <strong>in</strong> computer systems<br />
to launch cyber attacks aga<strong>in</strong>st both <strong>in</strong>dividuals and organisations. Attacks aga<strong>in</strong>st <strong>in</strong>dividuals often <strong>in</strong>volve malicious<br />
software (malware 25 ) or codes that are used to harvest personal <strong>in</strong>formation or data while the <strong>in</strong>dividual is onl<strong>in</strong>e.<br />
Crim<strong>in</strong>als are also launch<strong>in</strong>g cyber attacks us<strong>in</strong>g malware to ga<strong>in</strong> access to large amounts of personal <strong>in</strong>formation held<br />
by organisations. Computer users <strong>in</strong> New Zealand are targeted, predom<strong>in</strong>antly by attacks orig<strong>in</strong>at<strong>in</strong>g from overseas.<br />
The Internet provides an opportunity for offenders <strong>in</strong> New Zealand to communicate and extend their crim<strong>in</strong>al networks.<br />
For example, organised crime groups and members are us<strong>in</strong>g social network<strong>in</strong>g websites 26 to advertise their gang<br />
connections, communicate and share <strong>in</strong>formation with each other.<br />
CASE STUDY<br />
In April <strong>2010</strong>, a jo<strong>in</strong>t <strong>in</strong>vestigation conducted by the FBI, United States Secret Service and Romanian<br />
law enforcement agencies resulted <strong>in</strong> the arrest of 70 <strong>in</strong>dividuals from three separate organised cyber<br />
crime syndicates. The <strong>in</strong>dividuals were charged for their <strong>in</strong>volvement <strong>in</strong> onl<strong>in</strong>e auction scams that<br />
targeted eBay users. It is believed the groups launched phish<strong>in</strong>g attacks to obta<strong>in</strong> log<strong>in</strong> credentials<br />
and set up fake auctions sell<strong>in</strong>g high value commodities. The offenders fraudulently obta<strong>in</strong>ed <strong>in</strong> excess<br />
of £1million and targeted more than 800 victims <strong>in</strong> 11 countries, <strong>in</strong>clud<strong>in</strong>g New Zealand.<br />
24 ICT describes a range of technologies used for gather<strong>in</strong>g, stor<strong>in</strong>g, retriev<strong>in</strong>g, process<strong>in</strong>g, analys<strong>in</strong>g and transmitt<strong>in</strong>g <strong>in</strong>formation. ICT technologies can <strong>in</strong>clude computer<br />
systems and mobile phones.<br />
25 Malware is malicious software that covers any unwanted program that makes its way onto a computer system<br />
26 A social network<strong>in</strong>g website is an onl<strong>in</strong>e community which allows users to send messages, write blogs and post images. Popular social network<strong>in</strong>g websites <strong>in</strong>clude MySpace,<br />
Facebook and Bebo.<br />
17
Environmental crime<br />
• The illegal trade <strong>in</strong> environmentally sensitive items is lucrative.<br />
• New Zealand Adult Gangs as well as Asian organised crime groups are <strong>in</strong>volved <strong>in</strong> poach<strong>in</strong>g and black<br />
market activity relat<strong>in</strong>g to environmentally sensitive items.<br />
• Environmentally sensitive items are be<strong>in</strong>g traded onl<strong>in</strong>e.<br />
• There is an ongo<strong>in</strong>g risk relat<strong>in</strong>g to the illegal importation of biosecurity risk materials <strong>in</strong>to New Zealand.<br />
The illegal trade <strong>in</strong> environmentally sensitive items,<br />
<strong>in</strong>clud<strong>in</strong>g endangered species, mar<strong>in</strong>e resources, timber,<br />
ozone deplet<strong>in</strong>g substances, toxic chemicals and hazardous<br />
waste is a serious problem with global impact. The<br />
<strong>in</strong>volvement of organised crime entities <strong>in</strong> the exploitation<br />
of mar<strong>in</strong>e resources, the illegal trade <strong>in</strong> wildlife and illegal<br />
logg<strong>in</strong>g is well documented.<br />
Environmental crime is one of the most lucrative and<br />
fastest grow<strong>in</strong>g areas of <strong>in</strong>ternational crim<strong>in</strong>al activity.<br />
For example, the <strong>in</strong>ternational illegal trade <strong>in</strong> wildlife is<br />
estimated to be worth at least US$5 billion and potentially<br />
<strong>in</strong> excess of US$20 billion annually.<br />
New Zealand Adult Gangs as well as Asian organised crime<br />
groups are <strong>in</strong>volved <strong>in</strong> poach<strong>in</strong>g, and black market activity<br />
l<strong>in</strong>ked to environmentally sensitive items. New Zealand<br />
fisheries, <strong>in</strong>clud<strong>in</strong>g paua and rock lobster, are commonly<br />
targeted.<br />
In March 2007, an <strong>in</strong>vestigation resulted <strong>in</strong> the<br />
apprehension of a black market paua buyer who had<br />
l<strong>in</strong>ks to Asian organised crime entities. The offender was<br />
identified over a two-month period as hav<strong>in</strong>g received<br />
and on-sold 1.6 tonnes of illegal product. He was pay<strong>in</strong>g<br />
<strong>NZ</strong>$17kg to purchase the illegal paua and on-sell<strong>in</strong>g it on<br />
the Auckland black market for <strong>NZ</strong>$46kg. It is believed the<br />
offender, who was active over a 12-month period, made <strong>in</strong><br />
excess of <strong>NZ</strong>$270,000 <strong>in</strong> profit.<br />
CASE STUDY<br />
A jewelled gecko, the target of a smuggl<strong>in</strong>g attempt.<br />
In February <strong>2010</strong>, three <strong>in</strong>dividuals were<br />
<strong>in</strong>volved <strong>in</strong> traffick<strong>in</strong>g of 16 jewelled geckos,<br />
n<strong>in</strong>e of which were pregnant. The geckos<br />
would likely have fetched approximately<br />
<strong>NZ</strong>$200,000 on the <strong>in</strong>ternational black<br />
market. WEG had previously noted one of<br />
these <strong>in</strong>dividuals for his <strong>in</strong>volvement <strong>in</strong><br />
wildlife traffick<strong>in</strong>g <strong>in</strong>ternationally.<br />
New Zealand is considered both a source and dest<strong>in</strong>ation for Convention on International Trade <strong>in</strong> Endangered Species<br />
of Wild Fauna and Flora (CITES) items. The Wildlife Enforcement Group 27 (WEG) confirms that environmentally sensitive<br />
items from New Zealand are be<strong>in</strong>g traded onl<strong>in</strong>e.<br />
There is an ongo<strong>in</strong>g risk relat<strong>in</strong>g to the illegal importation of biosecurity risk materials that have the potential to<br />
adversely impact New Zealand, both from an economic and biosecurity perspective. For example, any deliberate<br />
importation of foot and mouth virus would severely impact the New Zealand economy, and grape phlox could destroy<br />
the w<strong>in</strong>e <strong>in</strong>dustry. In the past, there have been attempts to smuggle the calicivirus <strong>in</strong>to New Zealand. The honey<br />
<strong>in</strong>dustry has also been severely affected by the <strong>in</strong>troduction of the varroa mite, believed to have been brought <strong>in</strong> on a<br />
smuggled queen bee.<br />
27 The New Zealand Customs Service hosts the Wildlife Enforcement Group, which is resourced and staffed by the New Zealand Customs Service, the Department of Conservation<br />
and the M<strong>in</strong>istry of Agriculture and Forestry.<br />
18
Intellectual Property (IP) crime (counterfeit<strong>in</strong>g and piracy)<br />
• Globalisation and technological advances have facilitated the growth <strong>in</strong> IP crime.<br />
• While domestic and transnational organised groups have been noted for their <strong>in</strong>volvement <strong>in</strong> IP crime <strong>in</strong><br />
New Zealand, much of the current offend<strong>in</strong>g is opportunistic.<br />
It is estimated IP crime, namely counterfeit<strong>in</strong>g and piracy,<br />
constitutes five to seven percent of global trade. The World<br />
Health Organization (WHO) predicts that 10 percent of<br />
medic<strong>in</strong>es available worldwide are counterfeit. Globalisation and<br />
technological advances have facilitated the growth <strong>in</strong> IP crime<br />
by enabl<strong>in</strong>g widespread distribution of high quality counterfeit<br />
goods, some of which are hard to differentiate from the genu<strong>in</strong>e<br />
articles. The global <strong>in</strong>crease <strong>in</strong> the use of the Internet has further<br />
facilitated the advertis<strong>in</strong>g, sale and distribution of counterfeit and<br />
pirated goods.<br />
International report<strong>in</strong>g has established a l<strong>in</strong>k between organised<br />
crime and the manufacture, distribution and sale of Intellectual<br />
Property Rights (IPR) <strong>in</strong>fr<strong>in</strong>g<strong>in</strong>g goods. While transnational and<br />
domestic organised groups have been noted for their <strong>in</strong>volvement<br />
<strong>in</strong> IP crime <strong>in</strong> New Zealand, much of the current offend<strong>in</strong>g is<br />
opportunistic, exploit<strong>in</strong>g market demand for particular goods.<br />
Film piracy cont<strong>in</strong>ues to threaten New Zealand’s film <strong>in</strong>dustry.<br />
CASE STUDY<br />
In March 2008, the New Zealand Police and the New Zealand Federation aga<strong>in</strong>st Copyright Theft<br />
(<strong>NZ</strong>FACT) seized over 6,300 pirated DVD movies. The burn<strong>in</strong>g set-up, located at an apartment <strong>in</strong> the<br />
Auckland CBD, had a capacity to burn 430,000 discs annually, potentially generat<strong>in</strong>g <strong>NZ</strong>$2.6 million<br />
for the offenders <strong>in</strong>volved. Two <strong>in</strong>dividuals were arrested <strong>in</strong> relation to these seizures.<br />
The piracy operation was identified by <strong>NZ</strong>FACT <strong>in</strong>vestigators who discovered advertisements for<br />
pirated discs be<strong>in</strong>g offered for sale on the Skykiwi trad<strong>in</strong>g site. The offenders had moved three times<br />
<strong>in</strong> four months and on one occasion left a substantial amount of equipment beh<strong>in</strong>d purchas<strong>in</strong>g new<br />
equipment at the new address. While not organised <strong>in</strong> the traditional sense, this operation <strong>in</strong>volved a<br />
degree of sophistication, significant profit, as well as tax evasion.<br />
19
Bribery and corruption<br />
• New Zealand is <strong>in</strong>ternationally recognised as one of the least corrupt societies <strong>in</strong> the world.<br />
• There are isolated <strong>in</strong>cidents whereby bribery and corruption have facilitated organised crime group<br />
offend<strong>in</strong>g <strong>in</strong> New Zealand.<br />
International experience has shown that despite <strong>in</strong>creased scrut<strong>in</strong>y and surveillance at the border, as well as enhanced<br />
law enforcement effort, organised crime groups cont<strong>in</strong>ue to carry out crim<strong>in</strong>al activity such as illicit drug traffick<strong>in</strong>g,<br />
illegal migration and identity crime. This activity is facilitated <strong>in</strong> part by the corruption of public officials through the<br />
payment of bribes and extortion. Although there are few <strong>in</strong>cidents of corruption <strong>in</strong> New Zealand, organised crime groups<br />
cont<strong>in</strong>ue to look for ways to exploit weaknesses.<br />
New Zealand has implemented <strong>in</strong>ternational standards 28 that crim<strong>in</strong>alise corruption and promote transparency <strong>in</strong><br />
decision-mak<strong>in</strong>g as a way of combat<strong>in</strong>g corruption by organised crime groups. To date, New Zealand has been able to<br />
prevent and detect wide-spread corruption through a comb<strong>in</strong>ation of public antipathy to corrupt practices, effective<br />
legal frameworks and strong <strong>in</strong>tegrity systems 29 .<br />
28 New Zealand has ratified the UN Convention on Transnational <strong>Organised</strong> <strong>Crime</strong>, which is concerned with the corruption of domestic public officials, and the OECD Convention<br />
on Bribery of Foreign <strong>Public</strong> Officials <strong>in</strong> International Bus<strong>in</strong>ess Transactions, which is concerned with bribery of overseas public officials.<br />
29 ‘Integrity systems’ refers to those democratic <strong>in</strong>stitutional and constitutional arrangements that provide for transparency and public accountability. These <strong>in</strong>clude appropriate<br />
checks and balances between the executive, legislature and judiciary, respect for the rule of law, and an active civil society (<strong>in</strong>clud<strong>in</strong>g an <strong>in</strong>dependent free media, free and fair<br />
elections and participation <strong>in</strong> public affairs).<br />
20
EFFORTS TO DISRUPT AND DISMANTLE ORGANISED CRIME<br />
Collaboration - <strong>in</strong>ternational, government and private sector<br />
A number of law enforcement agencies <strong>in</strong> New Zealand work with <strong>in</strong>ternational partners, shar<strong>in</strong>g <strong>in</strong>formation and<br />
resources, to target transnational organised crime groups.<br />
To disrupt and dismantle organised crime <strong>in</strong> New Zealand, government and private sector partners cont<strong>in</strong>ue to<br />
collaborate. Draw<strong>in</strong>g on collective knowledge, expertise and resources ensures effective target<strong>in</strong>g of organised crime<br />
groups and members.<br />
<strong>Organised</strong> and F<strong>in</strong>ancial <strong>Crime</strong> Agency New Zealand<br />
Formed <strong>in</strong> July 2008, the <strong>Organised</strong> & F<strong>in</strong>ancial <strong>Crime</strong> Agency New Zealand (OFCA<strong>NZ</strong>) aims to attack national and<br />
transnational organised crime threats, and <strong>in</strong>crease cooperation between New Zealand Government agencies. OFCA<strong>NZ</strong><br />
has commenced a number of multi-agency taskforce operations target<strong>in</strong>g organised crime networks <strong>in</strong> New Zealand.<br />
Comb<strong>in</strong>ed Law Agency Group (CLAG)<br />
The Comb<strong>in</strong>ed Law Agency Group (CLAG) is a group of <strong>in</strong>telligence, enforcement and compliance professionals who<br />
collaborate on a whole of government approach to leverage comb<strong>in</strong>ed resources. CLAG partnerships are utilised to<br />
tackle the threats of cross-agency crime.<br />
Legislation<br />
Crim<strong>in</strong>al Proceeds (Recovery) Act 2009<br />
This Act enhances the crim<strong>in</strong>al forfeiture regime and <strong>in</strong>troduces a new civil regime to recover proceeds of crime. Under<br />
this legislation, a conviction is not required to trigger forfeiture proceed<strong>in</strong>gs for crim<strong>in</strong>al proceeds. It will simply be<br />
sufficient to prove on the balance of probabilities that a person has unlawfully benefited from significant crim<strong>in</strong>al<br />
offend<strong>in</strong>g.<br />
Anti-Money Launder<strong>in</strong>g (AML)/Counter<strong>in</strong>g the F<strong>in</strong>anc<strong>in</strong>g of Terrorism (CFT) Act 2009<br />
This Act will result <strong>in</strong> <strong>in</strong>creased scrut<strong>in</strong>y of a wider range of f<strong>in</strong>ancial <strong>in</strong>stitutions and transactions.<br />
<strong>Crime</strong>s Amendment Act 2009 and Sentenc<strong>in</strong>g Act 2009<br />
The <strong>Crime</strong>s Amendment Act 2009, and Sentenc<strong>in</strong>g Amendment Act 2009 <strong>in</strong>crease the penalty for participat<strong>in</strong>g <strong>in</strong><br />
an organised crim<strong>in</strong>al group, clarify the evidential requirements to prove that offence, and make participation <strong>in</strong> an<br />
organised crim<strong>in</strong>al group an aggravat<strong>in</strong>g factor at sentenc<strong>in</strong>g. The Local Government Amendment Act 2009 enables a<br />
District Court to issue a removal order if a property is regularly used by an offender or suspected offender and its fence,<br />
structure or vegetation is regarded as <strong>in</strong>timidat<strong>in</strong>g.<br />
Crim<strong>in</strong>al Investigations (Bodily Samples) Amendment Act 2009<br />
This Act amends the Crim<strong>in</strong>al Investigations (Bodily Samples) Act 1995 and allows the police to collect, without prior<br />
judicial approval, a bodily sample from any person that they <strong>in</strong>tend to charge with certa<strong>in</strong> specified offences.<br />
Search and Surveillance Bill<br />
This Bill aims to balance the values of law enforcement and human rights by provid<strong>in</strong>g consistent thresholds for the<br />
exercise of police search and surveillance powers. It also seeks to consolidate and rationalise these powers.<br />
21
Sentenc<strong>in</strong>g and Parole Reform Act <strong>2010</strong><br />
This Act came <strong>in</strong>to force on 1 June <strong>2010</strong> and provides for parole to be denied for repeat serious violent offenders and<br />
those convicted of the worst murders. It also requires the maximum term of imprisonment to be imposed on offenders<br />
who commit a third serious violent offence after hav<strong>in</strong>g received a first and a f<strong>in</strong>al warn<strong>in</strong>g by the court at the time of<br />
the previous convictions.<br />
Arms Amendment Bill (No 3)<br />
This Bill aims to improve controls on the sale, supply and ownership of firearms by <strong>in</strong>dividuals, and to better regulate<br />
their importation.<br />
Trade Marks (International Treaties and Enforcement) Amendment Bill 2008<br />
This Bill is an omnibus Bill to amend the Copyright Act 1994 and the Trade Marks Act 2002 to provide the Police, the<br />
New Zealand Customs Service and the M<strong>in</strong>istry of Economic Development with search and seizure powers to enforce the<br />
crim<strong>in</strong>al offences for deal<strong>in</strong>g <strong>in</strong> counterfeit goods and pirated works.<br />
22
<strong>Crime</strong>stoppers is an <strong>in</strong>dependent charity dedicated to provid<strong>in</strong>g a way for people to pass on <strong>in</strong>formation about crime to<br />
the authorities and rema<strong>in</strong> anonymous. If you have <strong>in</strong>formation that could help the New Zealand Police or any other law<br />
enforcement agency <strong>in</strong> their efforts to disrupt and dismantle organised crime and you would prefer to rema<strong>in</strong> anonymous,<br />
please call 0800 555111 or use the encrypted web form at:<br />
www.crimestoppers-nz.org