People

Thailand serves as a source, transit and a destination country for human trafficking. Labour and sex traffickers exploit women, men, LGBTQ+ individuals, and children from various countries. The COVID-19 pandemic initially decreased the demand for trafficking victims but resulted in increased vulnerability for those exposed. Victimization worsened due to the pandemic’s financial impact, and children from families that lost employment became increasingly at risk of trafficking. Some parents or brokers force children to sell items, beg or work in domestic service in urban areas. Trafficking networks are supported by corrupt officials, and employers exploit workers in various industries using debt-based coercion and deceptive recruitment practices, as well as other means. Vessel owners, brokers and senior crew subject men and boys to forced labour on fishing boats, without adequate food, water or medical supplies. Thailand also serves as a transit hub for people trafficked into cyber-scam operations in neighbouring countries.

Human smuggling remains a serious and ongoing problem in Thailand. The country serves as a transit hub for smuggled individuals seeking either exit or entry from Thailand. Most individuals are smuggled to Thailand from neighbouring countries, such as Myanmar, Laos, Cambodia and Vietnam. Heightened border controls and other measures have increased the level of sophistication and costs associated with human smuggling across borders, which greatly affects victims. State-embedded actors and private sector employees continue to facilitate Thailand’s human smuggling market by providing fraudulent travel and identification documents, particularly across shared borders between Thailand and its immediate neighbours.

Extortion practices in Thailand tend to be linked to abusive cybercrime content. Children and adolescents are acknowledged as being particularly vulnerable to such crimes, with online ‘sextortion’ of children having become a widespread concern in the country. There have also been reports of foreign workers facing extortion in the country. In other cases, local businesspeople become victims of such practices.

Trade

Thailand is a major transit point for arms trafficking, as weapons often pass through the country to reach Myanmar – where they are used by ethnic armed groups and criminals. Thailand is also a destination country for arms from Cambodia. The country is also becoming a source of firearms due to the proliferation of online black markets, making it easy to access illicit handguns. Despite strict gun laws, licenses can be purchased from corrupt officials and discounted firearms are sold on the black market. The lack of commitment to countering arms trafficking is due in part to the involvement of many members of the security establishment. Thailand is also known for its expertise in firearm modification and craft production, which is being shared on social media and is spreading to neighbouring countries. Thailand ranks first in South East Asia in terms of civilian gun possession, with less than half of those guns being authorized. This has led to an increase in violence on the streets, including turf wars among street gangs. The crisis in neighbouring Myanmar is feared to be reviving the arms black market in Thailand. Additionally, it has been alleged that officials distribute illegal arms in the south of the country to protect itself from separatist rebels.

Counterfeit goods are also a serious issue in Thailand, with both domestic and foreign actors involved in the production and trade of fake products. Physical counterfeit goods are readily available, and e-commerce platforms and social media are increasingly being used as channels for this illegal trade. Thailand has been placed on a watchlist for intellectual property violations. The increase in demand for medical equipment caused by the COVID-19 pandemic has fueled the production of counterfeit goods in Thailand, as well as the trans-shipment of illegal products from the country.

Thailand is also a major hub for the illicit trade of excise goods, including liquor, tobacco and playing cards. Both domestic and foreign criminals, as well as state-embedded actors, such as the police, are involved in this trade, with over a quarter of cigarettes sold in the country being illegal contraband. The profit from this trade is generated through local demand, with street vendors operating openly in Thailand’s cities and towns. Recently, unrecorded alcohol consumption in Thailand has reached record highs, indicating high levels of illicit trade. The price of smuggled whiskey is half that of legally sold whiskey. The ban on the sale of alcoholic beverages during the COVID-19 pandemic has driven consumers to the black market. Despite efforts by public authorities, the illicit trade of excise goods remains a significant challenge for the country.

Environment

Flora crimes are significant in the country, with profits accruing to both nationals and foreign criminals. The trafficking of rosewood is a major problem in eastern Thailand. Despite law enforcement efforts, illegal logging and trafficking of Siamese rosewood have been on the rise, allegedly transiting through Cambodia, Laos and Vietnam on its way to the Chinese market. There are also concerns that government officials in charge of protected areas have contributed to deforestation by allowing illegal logging and timber trading.

Thailand also has one of the largest illegal wildlife trade markets in the world, involving a range of animals and products, such as African and Asian rhino horn, tiger skin, elephant ivory, pangolin, captive-bred tigers, reptiles, birds and mammals, including tiger cubs, bear cubs and primate babies. The country is a source, transit and destination area for these illegal wildlife trades, with Thailand's seaports and postal services facilitating deliveries to other countries, particularly China and Vietnam, where tourists are known to purchase illegal wildlife products. Tourism is a key driver of wildlife crime in Thailand, with unsuspecting tourists targeted by tour operators and guides who work with black market traders. The internet has become a significant channel for facilitating the trade of live animals, animal parts and wildlife products in Thailand, with social media being one of the most commonly used online platforms. Foreign organized criminal groups have been involved in poaching in Thailand, and corrupt state-embedded officials are known to play a role in facilitating illegal wildlife trafficking operations.

Thailand is an attractive transit and destination country for oil and fuel markets, as well as precious stones, due to its strategic location and multiple entry points. The country is a major market for gemstones, particularly rubies and sapphires, which may have been trafficked from their countries of origin by transnational organized crime networks. One smuggling route is from Myanmar to Thailand, where 'mules' carry a few gems at a time and deliver them to a dealer in a Thai border town after crossing an official border. Corruption of authorities may also be enabling the smuggling of non-renewable resources as, in some cases, smugglers pay bribes to officials, allowing them to cross the border. The illegal trade in precious stones poses serious environmental and human rights concerns, as it can lead to the exploitation of workers, and environmental degradation in source countries.

Drugs

Thailand is a transit and destination country for the heroin trade in South East Asia, with the Golden Triangle area, in particular, being heavily used for drug trafficking during the COVID-19 pandemic. Although Thailand has eliminated opium farming and heroin production, the latter continues in neighbouring Myanmar, with heroin and other drugs often being smuggled through Laos to Thailand and onwards. Corruption among officials in Thailand contributes to the heroin trade, and local heroin use has contributed to significant public health concerns, particularly in relation to the transmission of HIV and other blood-borne viruses. Thailand’s cocaine-trafficking market is moderate and is dominated by international players and networks rather than domestic groups. West and East African criminal networks heavily influence the cocaine market, with authorities conducting operations to disband cocaine-trafficking activities involving loosely organized crime groups with individuals from Guinea and Nigeria, as well as Thailand.

Thailand recently decriminalized cannabis, making cultivation, distribution, possession, sale and consumption legal, within certain regulations. The move is the latest step in Thailand’s plan to promote cannabis as a cash crop, given that about a third of its labour force works in agriculture. Cannabis is cultivated domestically and constitutes a moderate criminal market. Conversely, the country is a major transit and destination hub for synthetic drugs, with methamphetamine, also known as ‘Yaba’, being the most used drug. Synthetic drug trafficking was significant during the COVID-19 pandemic, with the Golden Triangle area being a major route. The country is one of the main routes for methamphetamines from Myanmar reaching the Asia-Pacific region, with several shipments bound for Australia and Japan being seized recently. Technology has aided the illegal trade of synthetic drugs, which are sold on social media platforms and delivered by private delivery services. Thailand’s borders are notoriously porous, and corruption among the country’s police and border force is known to contribute to the market. Domestic and international criminal groups are involved in the synthetic drug trade, including those based in China, Taiwan and Myanmar. Over the past two decades, methamphetamines have supplanted opium and heroin to become the dominant illegal drug in the region, which is reflected domestically in Thailand. Although the total amount of methamphetamine seized has dropped, the country has seen a notable increase in supply, which has led to a sharp decline in prices.

Cyber Crimes

Cybercrime in Thailand has been on the rise lately, especially since the more widespread adoption and reliance on technology during the COVID-19 pandemic. Various industries have been affected, including legal services, construction, wholesale and retail, and healthcare. The main cyber threats expected to emerge are ransomware attacks, attacks related to the metaverse, the exploitation of flaws in application programming interfaces and critical infrastructure attacks. Among these, ransomware attacks are projected to become the most serious cyber threat. The country is vulnerable in this regard due to the absence of appropriate monitoring and reporting, which further exacerbates the problem. Critical digital infrastructure attacks are also considered key cyber threats facing the country, especially in the financial, utility and healthcare sectors, where confidential and lucrative data can be targeted by attackers.

Financial Crimes

Thailand is grappling with an escalating issue of financial crimes, including fraud, tax evasion and embezzlement. These crimes involve a range of individuals, from those embedded within the state to those in the private sector. Scammers have been able to utilize advanced technologies to perpetrate their activities, such as romance scams, Ponzi schemes and voice phishing scams. Criminal actors, both domestic and foreign, are involved in cyber-enabled financial crimes. Financial fraud and online shopping scams are the most frequently reported types of fraud. Criminals often use untraceable mule accounts to collect the proceeds of their crimes, and victims are often lured into investment schemes that promise unrealistic returns. Since the COVID-19 pandemic, call centre scams have increased significantly, with the country’s elderly population being a target of such criminal activities. There is also evidence of a strong link between transnational human trafficking and industrial-scale financial fraud, with organized crime groups luring hundreds of people from across South East Asia, and around world, to engage in fraudulent activities.

Criminal Actors

Foreign criminal groups have been operating in Thailand for over a century, and they currently engage in activities such as human and drug trafficking, and fraud through call centres. Thailand has long been known as a haven for foreign criminals, with the Golden Triangle serving as a centre for drug production and Vietnamese actors involved in smuggling elephant ivory, rhino horn and other endangered species. Currently, Chinese, Korean and Taiwanese criminals are significantly involved in online gambling and call centre scams based in Pattaya, with these targeting Chinese nationals with false investment opportunities. There is no evidence about native Thai mafia-style groups. Rather, such groups operating in the country are linked to foreign criminal diasporas.

Criminal networks remain active in human trafficking, money laundering and drug trafficking across Thailand, with network members often involved in multiple areas of transnational crime. The recent reintroduction of local elections, after more than seven years, has sparked concerns about the return of criminal gangs, following a surge in violence linked to political actors using criminals to further their interests.

State-embedded corruption facilitates trafficking and undermines anti-trafficking efforts. High levels of perceived corruption have made NGOs hesitant to work with the government, and some police officers are suspected of compromising investigations and failing to provide sufficient evidence to prosecute trafficking cases. Law enforcement officials have been wary of investigating influential offenders, including those with connections to high-ranking government officials. Although some officials have been investigated for complicity in trafficking, the government has often relied on administrative punishments instead of criminal prosecution.

Transnational organized crime by Thailand’s private sector is mostly conducted by small-scale, informal, loose and flexible networks. Such actors play various roles in criminal markets such as illegal fishing, human exploitation and romance, investment and phone scams. They may be forced to participate as active members of transnational criminal groups, or brokers who recruit economically vulnerable people with false promises of employment and a better life.

Leadership and governance

Governance and civil liberties in Thailand have been reportedly deteriorating. The government has been accused of suppressing opposition voices and pro-democracy protests, raising questions about its democratic stance. Although the government has expressed its willingness to combat organized crime, conviction rates remain low, and there are concerns about state involvement enabling smuggling and trafficking. Corruption suspicions have also arisen regarding COVID-19 vaccine procurement. While the government has made efforts to address cybercrime, critics argue that these efforts are being used as a pretext to curtail freedom of expression and censor online content. Corruption at the state level remains a major problem. The government’s transparency and accountability are hampered by ineffectual management and a reluctance to publicly disclose assets. High-level decisions continue to be made opaquely due to the military’s influence on the government’s legislative majority, leading to issues such as corruption, cronyism and nepotism. Bribery and gifts are also widespread in business, law enforcement and the legal system, creating systemic problems in tackling human trafficking, money laundering and other crimes.

Despite being party to treaties aimed at tackling transnational organized crime, Thailand has not made significant progress in combatting various criminal markets over the past two years. Rampant bribery of public officials and in law enforcement agencies, as well as the military’s monopoly control, pose significant challenges in combatting organized crimes, although policies and laws addressing criminal markets are in place.

Criminal justice and security

While judicial independence is guaranteed by the constitution, the courts in Thailand are widely seen as politicized and corrupt. The Constitutional Court, in particular, has been accused of favouring the military and has extensive powers, including the ability to dissolve political parties, overturn elected officials and veto legislation.

Despite specific laws to prevent organized crimes and several specialized anti-trafficking officers, various criminal markets remain at high levels in the country. The slow pace of police reform, as well as limited transparency within the force, has led to a general lack of trust in agents. Moreover, both the police and the military have been accused of widespread corruption and often act with impunity, which is further compounded by the lack of any laws explicitly prohibiting torture.

Thailand’s numerous borders make the country vulnerable to smuggling and trafficking. And while its border agencies collaborate with their counterparts in neighbouring countries in combatting transnational crime, corruption remains a challenge to Thailand’s territorial integrity. The police also lack the necessary capacity and equipment to effectively tackle cybercrime.

Economic and financial environment

Thailand has been in the process of amending its anti-money laundering law to align it with internationally accepted policies and practices. The aim of these amendments is to strengthen regulation and investigation processes so as to combat increasingly complex money laundering schemes. The proposed amendments will subject crowdfunding platforms to increased scrutiny as they are deemed vulnerable to money laundering. The effectiveness of these measures remains to be seen.

Thailand’s government is encouraging foreign investment by offering tax and non-tax incentives, making it easier for foreign investors to expand their presence in Asia. Certain initiatives have made significant strides in transforming the economy by prioritizing research, development, creative thinking and innovation. However, corruption and bribery continue to be pervasive in the business sector, and criminal groups are extending loans with interest rates that exceed the legal limit.

Civil society and social protection

Thailand’s government’s efforts to identify and assist victims of human trafficking are moderate due to limited personnel, expertise and corruption. Although multidisciplinary teams have been established to identify and refer victims to support services, the implementation of these procedures has been inconsistent throughout the country. Additionally, the frequent rotation of police officers has prevented stable anti-trafficking expertise, and some officials fail to recognize trafficking cases. Despite these challenges, the government has established hotlines and one-stop services for victims of organized crime. While Thailand’s government has made efforts to prevent human trafficking, and coordinate policies and strategies across agencies, these prevention methods may not be sufficient to address the scale of the problem, particularly the online sexual exploitation of children. Outreach activities have been conducted to raise awareness of trafficking among schoolchildren, teachers and community leaders.

Although Thailand’s civil society remains vibrant, groups focused on defending human rights, promoting democracy and freedom of expression continue to face restrictions, criminalization and prosecution under sedition and lèse-majesté laws. Academic freedom is constrained, with universities monitoring and cancelling discussions on politically sensitive topics, and activist initiatives on campuses remain constrained. The government has introduced a new draft law that includes intrusive provisions to track the activities and resources of civil society organizations and seeks to impose new controls over civic space. While Thailand has made significant improvements in consolidating freedom of the press, this area remains weak.

People

New Zealand is a transit and destination country for human trafficking, but the issue is not very prevalent and the government has reduced its efforts to combat this crime. Vulnerable workers from Pacific Island countries, Asia and Latin America are forced into labour in the agricultural, dairy, construction, viticulture, food service and hospitality sectors. Aboard foreign-flagged fishing vessels, men from South East Asia are subjected to forced labour, including debt bondage. Some people who come to New Zealand with the promise of employment in venues such as restaurants and beauty parlours are forced to work in brothels. Some children have also been victims of commercial sexual exploitation. Social networks are playing an increasing role in the recruitment of victims. The COVID-19 pandemic increased the reluctance of many foreign nationals to leave New Zealand, and those who breached their visa conditions were more vulnerable to workplace exploitation.

Incidents of human smuggling are also low. While the problem does exist, it is not common due to New Zealand’s geographic isolation and the absence of land borders with other countries. People arrive in the country mainly through air travel, so abduction and coercion are less prominent. Indeed, effective border controls and strong governance make New Zealand an unattractive destination for human smugglers and there have been no incidents in recent times. New Zealand has a small population and is known for being accepting of foreign nationals. Previous reports indicated that people from South West Asia are smuggled through New Zealand, as travellers who transit the country can qualify for an Australian visa. Individuals can either enter with a fraudulent passport from a visa-free country, or have their boarding pass swapped by criminals in the transit lounge of an airport. Extortion and protection racketeering are predominantly prevalent among organized crime groups active in the country.

Trade

Arms trafficking in New Zealand is difficult to quantify due to the large number of unregistered firearms in circulation. With unregistered firearms in homes, organized criminals target properties to get hold of them for their activities. Increasing possession of firearms by gangs has increased violence and competition over territories in the drug trade. Due to the profitability of the trade, the demand and the price of firearms has increased. Currently, almost all privately-owned firearms remain unregistered, making it difficult for police to control. Despite government efforts – including the creation of a registry and the adoption of strict ownership obligations – gun crime is on the rise.

Counterfeit goods are not commonly found in New Zealand. However, there are concerns that counterfeit car parts are being imported alongside legitimate aftermarket parts, making them difficult to trace. Also, counterfeit watches, bags and clothing are present in the market, but are not prevalent. Regarding the trade in illicit goods, cigarettes and alcoholic beverages are the main concern for the government. The country recently passed legislation that implements an annually rising legal smoking age, effectively banning smoking for future generations. Before this law was passed, the country had some of the highest cigarette prices in the world due to excise taxes. This led to an increase in the smuggling of cut-price cigarettes by international crime syndicates. Customs officials reported that criminal groups have started to focus more of their activities on contraband tobacco products. With the ban on cigarettes, a general reduction in demand for tobacco is expected over time, but in the short-term there may be an increase in the sourcing of illicit tobacco and vaping products.

Environment

Timber harvesting is well-regulated in New Zealand, supported by the country’s independent judicial system and its strong legislative and regulatory frameworks. This, combined with strong law enforcement, has made illegal logging rare, with incidents involving only small quantities of timber. To prevent illegal wood entering the market, the government has partnered with Australia to encourage industry certifications in source countries where illegal timber is common.

New Zealand has some poaching issues. The threatened jewelled gecko is the main target for wildlife poaching and illegal export, along with other exotic species like kea, kaka, tuatara, and various frog species. Fauna crime incidents mainly involve foreign actors. Moreover, the country's extensive network of islands has made its exclusive economic zone (EEZ) for fishing one of the largest in the world. With less than 10% declared as protected areas, New Zealand is vulnerable to illegal, unreported and unregulated (IUU) fishing. Despite these challenges, maritime law enforcement is strong. While the country's trade in ivory may not be as significant as other nations, it appears to have increased dramatically since 2016. Most of the ivory arrives from South Africa, Zimbabwe, Botswana and some from Mozambique. Ivory can also be re-exported from Great Britain and Australia. Usually, ivory is sold in auction houses that do not require proof of origin for the items on sale. Other fauna commodities include saiga horns from Malaysia, show shells, coral, elephant feet, primate skulls and dried seahorses.

New Zealand's rare nephrite jade, also known as pounamu or greenstone, has become a lucrative target for illegal trade on the black market. Concerns are growing about large-scale smuggling operations from isolated beaches and rivers on the west coast. By law, pounamu found on tribal land belongs to the residents, but the increasing demand has led to more smuggling activities. Reports about this crime suggest that pounamu is occasionally traded for methamphetamine. Pounamu aside, non-renewable resource crimes are not currently an area of concern in New Zealand thanks to the country’s tightly controlled industries, limited corruption and small population.

Drugs

Consumption of heroin remains low and stable. Due to the country's geographical isolation, heroin mostly arrives in commercial air cargo. (Alternative transportation methods include sea travel in containers and on yachts, and in light aeroplanes.) In 2021, police discovered home-bake heroin labs in the country for the first time since the mid-1980s, indicating that there is a local market for the drug. But that market seems small due to the drug's high cost and the fact that it is typically consumed through needle injection, which is not a popular choice among potential users. The non-medical use of pharmaceutical opioids is becoming a concern for authorities.

Like heroin, cocaine use is limited in New Zealand due to its high price. However, drug seizures have been increasing. In 2022, for example, New Zealand recorded the largest cocaine seizure in the country’s history. The gap between the amount of drugs seized and local use of the drug indicates that New Zealand and other Pacific Island countries mostly serve as transit points for cocaine headed to Australia, the largest drug market in the region and one of the world's most lucrative for cocaine. Asian triads, Latin American cartels, Australian motorcycle gangs and local organized crime groups cooperate to make the trans-Pacific drug trade possible. Cocaine typically arrives in the country via air and sea.

Cannabis remains the most widely used illicit substance in New Zealand, with a slight increase observed. Much of it is grown and trafficked locally. Cannabis is primarily sold through social networks, but it is also available in semi-public drug houses known as 'tinny' houses, which are popular with adolescents. Cannabis from abroad mostly originates in, or transits through, Australia, the United States, Canada, the Netherlands and South Africa. Only a small number of people who use cannabis medicinally obtain it legally.

Synthetic drugs are a significant threat to New Zealand, with increasing use and greater shipping options. Methamphetamine is the most prevalent street drug. Due to high demand, the drug is a key driver of several violent crimes such as robberies and burglaries. Additionally, the wealth generated by this drug is transforming New Zealand gangs into more sophisticated criminal groups with national and transnational partners in Asia and Australia, among others. The lower price of methamphetamine suggests high availability, but it also indicates that no gang has a monopoly on the drug market. The recreational use of ketamine in New Zealand has the potential to overtake cocaine in popularity. Organized criminal groups have increased supply. Although ketamine is unlikely to replace MDMA or methamphetamine as the synthetic party drug of choice, seizures over the past six years have more than doubled.

Cyber Crimes

Cybercrime is becoming an increasingly serious threat in New Zealand: reports indicate that more than a third of New Zealanders have fallen victim to cybercrime in 2020. Despite many people taking more precautions online, surveys have revealed that they feel more vulnerable since the outbreak of the COVID-19 pandemic. Cybercriminals are taking advantage of people working remotely and exploiting the increased digital footprint of individuals and businesses. The scale and impact of ransomware and other types of cyber extortion have also increased significantly.

The New Zealand government's response to cybercrime is described as fragmented and underfunded. Authorities are still grappling with how to respond to national and international cyber incidents on a whole-of-government scale. There is a need for sufficient upskilling of government staff, including police, to enable them to respond effectively to a wide range of cyber threats.

The frequency and impact of cyber extortion, including ransomware and data theft, have both increased. Cybercriminals are using Monero as their preferred cryptocurrency for ransom payments, as transactions made with this cryptocurrency are more difficult to track than with Bitcoin and other options. The frequency of cyberattacks doubled in 2021, highlighting the urgent need for greater investment in cybersecurity measures.

Financial Crimes

New Zealand is considered a major conduit for financial crimes. The main threats facing the country are fraud and tax evasion. Another area that needs to be addressed is the lack of a register for trusts or for ultimate beneficial ownership. Such a register would support the customer due diligence frameworks already in place, and it would increase the visibility of potential financial crimes. Financial crimes like e-commerce imitation scams, pyramid schemes, investment scams and credit card fraud have also been increasingly reported in the country. Although New Zealand has robust legislation to tackle financial crimes, it still faces challenges due to a shortage of experienced financial crime specialists. The belief that corruption in the country is negligible has made financial crime a low-priority issue.

Criminal Actors

New Zealand's organized crime scene is mainly dominated by loosely structured criminal networks with several operating within the country’s borders. These networks are primarily involved in human trafficking and drug trafficking, especially in bigger cities. Moreover, criminal networks focusing mainly on cyber-criminality are becoming more active in New Zealand with increasing attacks against essential services, critical infrastructure providers, government entities and large corporations. Another worrying trend for the government is the rise of Islamophobia and far-right extremist groups, promoted by social networks, following the Christchurch terror attacks in 2019. The views of these groups are likely to cross over into criminal territory and influence criminal activity. New Zealand networks are actively cooperating with their international counterparts in their illicit activities. Being linked to transnational crime groups is pushing local groups to reorganize and professionalize their structures. They have not only expanded across the country but internationally, too. Foreign actors are also an integral part of the criminal markets in the country. For instance, major drug finds in New Zealand have implicated Asian syndicates, Australian motorcycle gangs and Latin American cartels. Human trafficking is likewise linked to foreign actors, as recruitment agencies and unregulated job brokers in the country collaborate with counterparts in South East Asia and India. There are also traditional ethnic and motorcycle gangs involved in different criminal activities, although the common thread is drugs – particularly methamphetamines. While there are structures and leaders, they are not always tightly managed. Nevertheless, they can be considered as ‘mafia-style’ groups as the profits from drug trafficking are allowing them to expand in size and reach.

The private sector in New Zealand (including the financial, legal, accounting, real estate and retail sectors) offers opportunities for money launderers to move large amounts of illegitimate funds while providing anonymity. New Zealand professionals offer high-risk legal services to overseas clients, further compounding the issue. In recent years, there have been a few cases of attempted or actual infiltration of police, and/or corruption of individual police members by organized crime. However, there is currently no evidence of systematic corruption of police or border control or direct involvement of law enforcement in criminal markets.

Leadership and governance

New Zealand is considered one of the most stable countries in the world, with a high level of respect for political rights and civil liberties. The country has a reputation for conducting free and fair elections, but concerns have been raised regarding discrimination against minority populations such as the Māori. Reports have also surfaced about foreign influence in politics and education. Despite these issues, New Zealand's separation of powers, rule of law, lack of corruption and good transparency are noteworthy. Although New Zealand is recognized as one of the least corrupt countries in the world, the absence of an anti-corruption body is a cause for concern. On the other hand, the country's budget transparency is widely praised, as it provides extensive information to both citizens and parliament.

New Zealand has a strong international presence and is party to more than 1 900 international treaties. The country actively cooperates with Australia to detect illegal vessels and plays host to various sub-committees and negotiations regarding free trade agreements with the United Kingdom, the European Union and China. The legal framework against organized crime in New Zealand is robust, with policies and laws related to human trafficking, arms trafficking, flora and fauna protection and more. However, deficiencies have been identified in the country's arms possession policies, due to the high number of armed civilians in the country and inferior anti-money laundering legislation and enforcement. The latter is a threat to the country as it faces a potential influx of illicit funds due to increasing drug trafficking.

Criminal justice and security

New Zealand's judiciary is recognized as having one of the lowest risks of corruption in the world. The country is a leader in restorative justice efforts, which focus on re-education and behaviour change rather than punishment for offenders. However, despite due-process protection for defendants and detainees, the duration of pre-trial detention has increased due to stricter bail requirements and more relaxed time limits for the conclusion of cases. While prison conditions generally meet international standards, some facilities are ill-equipped to house detainees with disabilities or mental health issues. Indigenous people are disproportionately represented in the penal system.

The New Zealand police force is divided into 12 districts and has effective mechanisms in place to prevent and detect corruption, with no reported incidents of impunity. However, authorities have reported a lack of resources in certain cases, and occasional procedural confusion that has resulted in prosecutors charging some suspected traffickers under different statutes, such as labour violations. The police have also been accused of racially profiling Māori people and young people through the use of a mobile app connected to the national intelligence system. There have been calls for more officers – to improve the police-to-population ratio – and calls for better financial intelligence within the police.

New Zealand's remote and isolated islands, along with tight border controls, make it less vulnerable to major transnational crimes. These crimes do still occur, with drug trafficking and the import and export of illicit goods mostly facilitated by the country’s reliance on shipping and fishing vessels. The New Zealand customs force is adequately equipped to deal with border security threats and the country also employs various measures to tackle biodiversity risks such as illegally imported animals. Officials are motivated to ensure that international fisheries are managed well. Although the risk of human smuggling via boat is low, it still occurs and the government continually reviews its border enforcement regulations and visa restrictions. Despite an increase in cyberattacks and scams during the post-pandemic period, law enforcement is moderately trained and equipped to prevent and counter these activities.

Economic and financial environment

New Zealand is not a major international banking centre due to its geographical isolation and strong law enforcement. As a result, the scale of money laundering is believed to be low. However, there is evidence to suggest that some drug funds and proceeds from commercial crimes are increasingly being laundered in the country. New Zealand's open economy and free flow of capital and people make it vulnerable to transnational organized crime groups seeking to move funds through its financial system and legal structures. While independent analysis shows that New Zealand has made significant progress towards addressing its anti-money laundering deficiencies, areas such as banking, real estate, professional services and financial intelligence have been identified as ‘significant’ in terms of their scale, role and vulnerability. Although the overall risk of money laundering in the country is low, it has increased in recent years.

New Zealand's developed economy, high quality of life and economic freedom make the country attractive to criminal networks seeking new markets. Despite ongoing challenges to set New Zealand’s economy on a sustainable growth path, government policies to protect jobs during the pandemic helped the economy to recover rapidly. In the third quarter of 2021, the unemployment rate fell to its lowest level since 2007, and the employment rate rose to its highest level on record. To achieve its financial stability objectives, the reserve bank in New Zealand has begun to tighten monetary and macroprudential policies. Together with policy measures to increase housing supply, this should help moderate housing price inflation. While the fiscal deficit has begun to fall from the highs reached during the first wave of the COVID-19 shock, additional consolidation measures may help to put public finances in order. As capacity constraints take effect and macroeconomic policies are tightened, economic growth is expected to slow. Similarly, growth in consumption is expected to ease to a more sustainable pace as employment growth slows.

Civil society and social protection

The New Zealand government has taken a comprehensive approach against human trafficking, forced labour and slavery, focusing on prevention, protection and enforcement in line with the country's international obligations. Only a small number of victims have been identified, but the government has been diligent in its identification efforts and has provided protection to those victims. Legal alternatives are provided to foreign victims to prevent their removal to countries where they may face hardship or retribution. The law gives immigration officers discretionary powers to protect victims from facing criminal charges or sanctions, and the police provide protection for witnesses who feel threatened or intimidated, even going so far as to help victims create new identities.

Similarly, several measures have been taken across central and local governments to prevent people from becoming involved in organized crime. Certain institutions implement programmes that hold serious and persistent youth offenders accountable for their actions, along with addressing the root causes of the offences and thereby reducing the likelihood of young people adopting a life of crime. Moreover, measures are being taken to reduce the influence of gangs within prisons, and to reduce the chance of gang members reoffending. Labour inspections, including in brothels, are common in the country to prevent trafficking. While these initiatives are positive, money laundering is still an area of concern as there are still several constraints when it comes to preventing this crime.

New Zealand has a vibrant civil society and there are no significant restrictions on the ability of NGOs to operate and solicit funds. Anti-corruption institutions and independent organizations actively collaborate with civil society, and several NGOs are working on human trafficking issues. The country has a free and robust independent media sector, although the profit motives of certain media groups sometimes undermine the sector’s independence and pluralism. Journalists generally work in a safe environment, free from violence and intimidation, although they do face online harassment. Journalists experienced violence, insults and death threats during protests against COVID-19 restrictions in early 2022, which was a rare occurrence in the country. Workers in New Zealand enjoy the freedom to organize and bargain collectively, and trade unions actively engage in political debates and campaigns.