Defence lawyer Graeme Newell sought bail for his client who had no criminal history anywhere in the world and police had seized both his British and Australian passports.
Williams is the sole caregiver for his 5-year-old daughter. Mr Newell said separating a young child from her father was clearly detrimental. She had been in the custody of CYFS since his arrest.
Mr Newell submitted the chances of Williams leaving New Zealand without his passports - and the passport of his daughter - and interfering with the ongoing operation while under strict bail conditions were remote. "He's stuck here."
In opposing bail, police prosecutor Eddie Iosefa outlined some of the evidence gathered against Williams during the five-month covert inquiry.
He said Williams used a false passport in the name of Timothy Bolton to transfer $2 million from a Queen St foreign exchange outlet to overseas accounts in Thailand, the United States and China in the 12 months leading up to his arrest. Money was also transferred around accounts in Singapore and Hong Kong.
Williams moved to New Zealand in November - around the time the original Operation Ark arrests were made - and was alleged to have worked closely with the millionaire businessman at the top of the syndicate, known as "The Boss".
Mr Iosefa said Williams' daughter was in an "unfortunate situation".
Bugged conversations recorded Williams scolding her because she distracted him while counting "loads of cash", said Mr Iosefa. He also alleged that Williams took his daughter with him on drug deals and CYFS was now applying for a court order for custody.
Another bugged conversation recorded Williams talking about cash and passports in a safety deposit box in case he had to flee the country, said Mr Iosefa.
In response, Mr Newell said he was "blindsided" by the allegation of the $2 million transfers which had not been disclosed to him. He asked Judge Stan Thorburn for the evidence to be given to him and more time to take instructions from his client.
Judge Thorburn gave a "strong indication" that bail would be declined but agreed the case should be adjourned until Tuesday.
Williams has an IT background and lived for seven years in Thailand before moving to Auckland.
Detectives investigating "The Banker" said he took sophisticated measures to cover his tracks, including using "military grade" encryption of his emails and cellphones. He also allegedly used Skype software on his computer so his conversations could not be electronically intercepted.
Detective Senior Sergeant Chris Cahill said the alleged drug dealing targeted in the investigation involved multimillion-dollar sales, with one dealer alone by his own records purchasing $4.5 million of pills.
"There is a lot of ignorance amongst users of these drugs, about what the pills contain and the level of danger associated with using them," Mr Cahill said.
"[The arrests] will have an impact on the supply of harmful drugs that are regularly leading to hospital admissions."
Mr Cahill says the manufacturers and importers are constantly altering the chemical makeup of the drugs in an attempt to circumvent the law and avoid detection.
The pills come in various colours with stamped logos and retail for between $40 and $50.
