A major police investigation into money laundering through cash wages in the construction sector has led to seven more arrests, adding to a total of 16 so far.

Operation Beach, run by the Financial Crime Group, is uncovering how organised crime groups allegedly use cash payments to disguise millions of dollars from drug trafficking and other illegal activities.

Police executed nine search warrants this morning across Auckland, including Murrays Bay and Whenuapai, seizing tens of thousands in cash, illegal drugs, and luxury goods.

Detective Inspector Chris Allan says the arrests show how vulnerable high-cash industries can be.

“Sectors that use cash in high volumes are susceptible to exploitation by organised crime groups who look to inject proceeds of crime into labourers’ wages at legitimate construction projects,” he said.

He warned that cash wage payments do not just avoid tax, they can be criminal.

“Cash wage payments create a fertile ground for money laundering, tax evasion and exploitation of vulnerable workers.”

Earlier stages of the operation saw $1 million seized and 16 people charged with money laundering, drug, and immigration offences.

MBIE is assisting where migrant workers may be involved.

For Coast businesses, especially those hiring trades or contractors, the message is clear: pay properly and keep records.

Police are urging employers and workers to report any suspicious cash practices to help stop organised crime from infiltrating legitimate work.

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