By Eugene Bingham
Suitcases stuffed with American dollars have been detected at Auckland Airport during investigations into claims of money-laundering by the Russian Mafia.
Airport customs officers recently found passengers carrying bundles of greenbacks, some of them unused and in original wrapping.
The discoveries have alarmed authorities and come against a background of
growing worldwide concern.
An international report warned that legitimate-looking businesses in the South Pacific were being used as middle agencies by Russian criminals.
In New Zealand, the Reserve Bank and the Serious Fraud Office are among authorities monitoring the situation.
And intelligence agencies in the US, Canada, Australia and Britain are liaising with their counterparts here as they track the movement of funds and Russians connected to the Mafia.
Police are aware of suspicious electronic transactions through New Zealand banks involving millions of dollars at a time.
It is understood that at least one bank, WestpacTrust, has been approached by suspects trying to open credit-card accounts which might later facilitate money-laundering.
Auckland fraud squad detectives have begun an investigation into the activities of an alleged Russian criminal living in the city.
The inquiry was prompted by a series of financial transactions reported to the police.
One of the biggest problems for investigators is proving that money is coming from crime.
Authorities are tight-lipped about details of the suitcases of US cash, but one source said taking action was sometimes difficult. It was not illegal to bring in large sums, although passengers must declare amounts of more than $10,000 to Customs.
New Zealand has been involved in advising South Pacific neighbours of ways to bolster their banking systems to prevent organised crime laundering its proceeds.
Officials have approached a number of nations, including Samoa, Nauru, Vanuatu and the Cook Islands, under the umbrella of the International Financial Action Task Force.
The task force said Russian organised crime had been financially active in the Islands.
But the Russian Ambassador, Sergei Belyaev, doubted it had a presence here. "It is a surprise to me. Such allegations pose a lot of problems for Russians who live in New Zealand."
