A cache of leaked documents reveals how Worldclear, a small New Zealand financial firm, processed millions in transfers for high-risk clients between 2014 and 2019. The operation, based in the Waikato region, relied on manual workflows and failed to comply with several anti-money laundering requirements, according to inspectors.
The firm's clientele included a wanted American-Canadian later convicted of wire fraud, a Belarusian oligarch with ties to dictator Aleksandr Lukashenko, and a U.K. citizen convicted in the Cum-Ex tax swindle. Worldclear, with fewer than a dozen staff, targeted clients facing banking or payment problems. No evidence suggests Worldclear or its staff knowingly facilitated financial crimes.
Two minority shareholders in the firm had prior financial crime convictions. One, Mikael Magnusson, a Swede, is subject to a 2023 Interpol notice for a money laundering sentence in Panama. Magnusson did not respond to questions.
David Hillary, Worldclear's founder, denied wrongdoing. He stated the firm never "knowingly or recklessly facilitated criminal offending" or designed services to conceal illicit funds. Hillary added that characterizing a customer as high-risk does not imply such facilitation.
Leaked files include client lists, transaction records, and internal correspondence. Customers deposited money into Worldclear accounts held at banks in New Zealand, the U.S., and Europe. Experts say payment processors like Worldclear are often slow and expensive, but clients use them to obscure cash flows.
Ray Blake, a financial crime expert, noted that complexity aids those with something to hide. "It makes it harder for investigators...to untangle the transactions and figure out what has really happened," Blake said. Aaron Arnold, of RUSI's centre for finance and security, explained that using a provider in a trusted jurisdiction like New Zealand can reduce regulatory scrutiny and allow access to banking institutions otherwise unavailable.
New Zealand's Companies Office removed Worldclear from the financial service providers register in February 2019 for not confirming its operation. The firm continued to exist, but no evidence suggests activity after 2019. Hillary did not comment on its removal or subsequent operations. The firm's former 10th-floor office is now empty, with the building converting to a hotel.
Hillary launched Worldclear in 2014 to offer "transactional banking services to international corporate and institutional customers." Promotional articles quoted Hillary saying the firm aimed to meet demand for multi-currency payment clearing services, citing a "state-of-the-art banking facility" and backing from "major banks, accounting firms, and top-tier legal advisors." He claimed a "streamlined application process, while adhering to the highest security standards and AML (anti-money laundering) controls."
Internal data shows Worldclear used third-party software, including EBANQ, for client payment requests. Behind this interface, the company relied heavily on manual processes. Staff manually set up EBANQ accounts and "actioned" transfers. Spreadsheets reveal staff manually tracked client funds. Daily Excel workbooks contained warnings for employees to confirm balances and fix unreconciled transactions. Hillary did not comment on these workflows.
Despite the manual nature, the sums were large. A December 2017 internal document stated Worldclear "grown to process about NZ$500m in payment values per year," roughly $355 million.