NZ police warn gangs launder millions in drug cash through construction firms

New Zealand police have warned the construction industry that organised crime gangs are laundering hundreds of millions of dollars in drug profits through building businesses, exploiting cash-paid labour systems that are "not robust enough." The scheme involves gangs providing cash to subcontractors who pay workers "cash in hand," avoiding tax and employer obligations. The subcontractors then invoice construction projects, with payments funnelled through shell companies back to the gangs, allowing them to undercut legitimate operators by significant margins. The discovery emerged from Operation Scuba, which targeted the Comancheros gang, leading to a 10-year prison sentence for accountant Khieng Chiv for laundering nearly $7.8 million. Police have since established a multi-agency working group, with officials considering mandatory electronic wage payments in high-risk industries to combat the problem.