Anti-money laundering operation sees police restrain $140 million of company's funds

June 22, 2020
That’s the warning from cyber-security experts.

New Zealand Police has secured the largest restraint of funds in its history after taking control of $140 million from Canton Business Corporation and its owner Alexander Vinnik, in an anti-money laundering operation.

Canton and its owner, Alexander Vinnik, previously operated US-based cryptocurrency exchange BTC-e that allegedly had no anti-money laundering controls and policies.

This resulted in criminals and cyber criminals laundering proceeds from a range of criminal activities including computer hacking, ransomware attacks, theft, fraud, corruption and drug crime through the company, according to police.

“New Zealand Police has worked closely with the Internal Revenue Service of the United States to address this very serious offending,” Police Commissioner Andrew Coster said.

“These funds are likely to reflect the profit gained from the victimisation of thousands, if not hundreds of thousands, of people globally as a result of cyber-crime and organised crime.”

The global nature of money laundering means there is always a risk New Zealand companies will inadvertently become involved, but the funds' seizure proved New Zealand would not be a safe haven for the profits of crime, Commissioner Coster said.

“The global criminal community need to understand New Zealand’s financial system, and companies established here, are not the places to try to hide illicit income,” he said.

“This restraining order also demonstrates that New Zealand Police are actively conducting investigations with our international partners and that we have the expertise to investigate money laundering at the most serious level.

The order application was made by the Asset Recovery Unit during Alert Level 4, Commissioner Coster said.

The investigation is ongoing, pending an application to the High Court seeking forfeiture of these funds.

In the last 11 months, the Asset Recovery Unit had restrained a total of $165.4 million in cash and bank accounts, and nearly $63 million worth of assets and property, police said.

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