This resource provides an overview of financial crime risks associated with illicit tobacco activity and highlights indicators. It draws on international observations to support law enforcement efforts, by outlining how illicit tobacco activity generates and launders criminal proceeds, why it matters, and how it can be identified.
The resource highlights key transactional, behavioural, and customer risk indicators associated with illicit tobacco activity, including the common stages of illicit tobacco activity. It also explores the broader risks and harms associated with illicit tobacco activity, including undermining financial integrity, distorting legitimate markets, depriving the government of revenue, rapid scalability of markets and social and community harm.
The resource aims to support reporting entities in identifying and responding to illicit tobacco activity through enhanced monitoring, risk based controls, and timely reporting, helping to prevent the establishment or expansion of illicit tobacco networks of this typology within New Zealand’s financial system. This resource is also useful for any organisation that encounters illicit tobacco activity.