A New Zealand court has sentenced a 46-year-old man to three years and four months in prison for laundering proceeds of drug-related crimes through a second-hand vehicle export business involving Nigeria.
The conviction followed an investigation by New Zealand Customs into an international operation that moved criminal funds through vehicle purchases, exports and overseas bank accounts.
The Auckland District Court handed down the sentence on Friday after the defendant pleaded guilty to three money laundering charges and one representative charge of knowingly providing false export information.
Start tomorrow informed
Save your place for the morning brief. We’ll start emailing when delivery goes live.
Free. Confirm by email. Unsubscribe anytime.
The case marks the first prosecution arising from a trade-based money laundering investigation by New Zealand Customs. A co-defendant is still facing court proceedings.
Investigators said the operation, codenamed Operation Ozark, ran between November 2020 and April 2024, using a second-hand vehicle and spare parts business to disguise money linked to drug offences.
During the period, cash associated with drug activities was allegedly used to purchase used vehicles and parts in New Zealand, which were subsequently exported to Nigeria in 101 separate shipments.
The goods were sold in Nigeria, with the proceeds deposited into an overseas business account.
Customs also found that the convicted man submitted false export declarations, understating the values of some vehicles and providing incorrect manufacturing years in certain cases.
The investigation further revealed that at least NZ459,600 was transferred to Nigerian bank accounts, while a joint search of the man's home in Auckland by Customs and the police uncovered at least NZ100,000 in cash.
The operation also exposed an alleged international drug trafficking network. Working with international partners, New Zealand Customs seized 12 packages destined for the country containing approximately 22.6 kilogrammes of methamphetamine and 34 grammes of cocaine.
The packages were intercepted both within New Zealand and overseas.
Acting Customs Investigations Manager, Nigel Barnes, said the case demonstrated how organised criminal groups exploit legitimate businesses and international trade to conceal illicit proceeds.
“Operation Ozark exposed an international cycle of offending, involving drugs destined for New Zealand, criminal funds used to buy goods here, vehicles and parts exported to Nigeria, and the proceeds deposited into overseas accounts,” he said.
Barnes explained that the network converted criminal cash into commercial goods before selling them overseas to make the proceeds appear legitimate.
He warned that money laundering enabled criminal organisations to finance additional drug shipments and sustain their operations.
“Profit is the lifeblood of transnational and serious organised crime. Disrupting illicit funds limits criminals’ ability to buy drugs, pay associates and finance further offending,” he said.
He added that Customs relied on trade records, border information and financial intelligence, alongside cooperation with domestic and international agencies, to identify suspicious transactions and dismantle criminal networks.
Discussion0