Organised-Crime-in-NZ-2010-Public-Version

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People smuggling has emerged as a major organised crime problem in Australia. There is a risk of future seaborne people smuggling attempts targeting New Zealand. The success of any venture is dependant on a number of factors including the determination of the smugglers, the seaworthiness of the vessel, the weather, as well as required food and fuel provisions. Proactive law enforcement intervention will also hinder the success of any venture. Illegal migration continues to be facilitated by application fraud, the use of irregular travel documentation or the contravention of permits once an individual is in New Zealand. The presence of foreign nationals working illegally in New Zealand’s sex industry has also been identified. The abuse of legitimate entry to New Zealand by organised crime groups is likely to continue as border controls tighten in regard to illegal migration. Such groups are often involved in the production and use of false, fraudulent or stolen documents to support legitimate applications to gain entry and remain in New Zealand. It is likely organised crime groups will produce increasingly sophisticated documentation in support of elaborate scams to deceive immigration authorities. CASE STUDY In 2004, a male Malaysian national was one of the first individuals to be convicted of people smuggling in New Zealand. The investigation related to the smuggling of Malaysian and Thai nationals into New Zealand to work illegally in the horticulture industry. Upon arranging entry into New Zealand through Auckland International Airport and transiting the workers to Blenheim, the offender retained his employees’ passports and provided sub-standard accommodation. The offender was subsequently convicted and sentenced on 12 immigration charges relating to people smuggling and sentenced to two years imprisonment. Identity crime • Identity crime is often essential to facilitate successful, and sometimes large-scale, offending. • Information and Communications Technology, including the Internet, are used as a means to facilitate, as well as commit, identity crime. • Organised crime groups and specialists continue to use fraudulent identity documents to commit a range of offending. The misuse of personal identity information, commonly referred to as identity crime 16 , describes illicit activity that forms part of an offence. It is important to examine identity crime as a separate illegal market because it remains poorly understood and facilitates a range of criminal activity. The misuse of personal identity information can directly expedite an offence by allowing a deception to occur. This is evidenced in many financial and immigration frauds. While identity crime is described as an ‘enabler’, it is often essential to facilitate successful, and sometimes large-scale, offending. Cash and gold bars retrieved from an identity crime offender’s property. 16 Internationally, terms relating to the misuse of identity vary widely and can include identity theft, identity fraud and identity crime. 14
Information and Communications Technology, including the Internet, provides avenues that assist identity crime offending. For example, technology provides the means to produce high quality manufactured identity documents, while the increasing online storage of personal information and online transaction systems are also being exploited. Online identity crime activity, currently based around phishing 17 , account compromise and credit card fraud, is often committed against New Zealanders by offenders based elsewhere in the world. The scope and reach of this offending can be vast with minimal financial outlay. Many items used in the production of false identity documents are widely available on the Internet, including card readers, card encoders, card printers and over-laminates used to produce cloned credit cards. Organised crime groups and their specialists continue to use fraudulent identity documents to facilitate a range of offending, commonly linked to fraud and illegal migration. An example in 2009 related to the fraudulent reporting of ‘lost’ passports that were then used to gain illegal entry into Australia. Of note is the fact that identity documents, including passports and driver licences, continue to be targeted in thefts and burglaries in New Zealand. Financial crime Money laundering • Organised crime groups are involved in money laundering in New Zealand. • The complexity of money laundering methods depends largely on the sophistication of the offenders involved. • New legislation will result in increased scrutiny of financial institutions and transactions, and it well enable law enforcement to more easily seize proceeds of crime. Money laundering is the process by which income and assets used in, and derived from, illegal activity are converted into, or disguised, as apparently legitimate income. Organised crime groups launder proceeds of crime to avoid detection, preserve profit, further their criminal enterprise and support their lifestyle. The primary aim of organised criminal activity is the pursuit of profit. Therefore, combating money laundering is fundamental to effectively addressing serious and organised crime. Money laundering is a criminal offence and separate to the original (or predicate) offence 18 that generated the proceeds of crime. In essence, money laundering occurs whenever a criminal deals with the proceeds of a serious crime 19 with the purpose of concealing the origins, and with the knowledge that the proceeds have been derived from serious crime. There is no reliable estimate as to the extent of proceeds of crime. However, organised crime is financially motivated and therefore it is likely that the criminal proceeds laundered are of substantial value. Most money laundering occurs through the regulated financial system. The complexity of the money laundering depends on the sophistication of the offenders involved. For example, the laundering of proceeds of crime can range from the sale of a stolen item 20 and the deposit of the money into a retail bank account, through to multiple transfers of illicit drug money through shelf companies’ 21 trust accounts. Organised crime groups in New Zealand have been observed using a range of money laundering methods including: • Use of the retail banking sector, credit cards, cheques, stored value cards, promissory notes etc. • Cash conversion. • Currency exchange. 17 Phishing commonly involves sending fake emails to a victim purporting to come from a legitimate source and requesting information (such as bank account details and/or passwords), or directing a victim to a fake Internet website where this information can be captured. 18 Predicate offence refers to a serious offence (or specified drug offence) from which the proceeds can be laundered. 19 In this context, serious crime is defined as an offence punishable by five years imprisonment or more or an offence committed overseas that, if committed in New Zealand, would be punishable by five years imprisonment or more - Section 243 (1) Crimes Act 1961. 20 Under New Zealand legislation, stolen property must have a value of NZ$1,000 or more before it can be laundered. 21 A shelf company is a legal company that exists in name only and does not perform or operate in anyway. 15
Page 1 and 2: Organised Crime in New Zealand 2010
Page 3 and 4: CONTENTS INTRODUCTION..............
Page 5 and 6: ORGANISED CRIME GROUPS AND MEMBERS
Page 7 and 8: ILLEGAL MARKETS Illicit drugs Metha
Page 9 and 10: Organised crime continues to be lin
Page 11 and 12: Burglary, theft and links to organi
Page 13: Illegal trade, possession and use o
Page 17 and 18: Electronic crime (e-crime) • Cybe
Page 19 and 20: Intellectual Property (IP) crime (c
Page 21 and 22: EFFORTS TO DISRUPT AND DISMANTLE OR
Page 23: Crimestoppers is an independent cha

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