Greens offer legislative support to stop international corporate fraud

The Green Party is offering political support to the Government to move more quickly to close down loopholes in current company law that allows companies registered in New Zealand to be used as vehicles for international fraud.

"Our current law makes it too easy for companies registered in New Zealand to be set up to facilitate crime, such as money laundering, tax evasion, and fraud," Green Party Co-leader Russel Norman said today.

"We're offering our support in Parliament to introduce legislation to close these loopholes."

As of this morning, six of the suspected front companies were still registered on the Companies Office website. The companies all share a common business address in residential Auckland, offer financial services, and have links to a Panamanian financier alleged to be involved in crime in other jurisdictions.

"We're damaging our reputation as a good place to do business due to Government inaction," said Dr Norman.

"Commerce Minister Simon Power has been aware of the problem for some time, as answers to Green Party questions have shown. I can't understand why the Government hasn't moved more quickly to close down these loopholes and provide better resources for enforcement of our current laws.

"The lack of enforcement of current company law has meant our company enforcement agencies have been unable to help international agencies in trying to combat international fraud."

For a full transcript of the Minister of Commerce's answers to Dr Norman's questions:

http://www.greens.org.nz/misc-documents/transcript-parliamentary-questions-corporate-fraud