New Zealand's reputation as a country without corruption is making us a target for money laundering.

Police estimate about $1.3 billion of illicit funds ended up here last year.

That money is mostly connected to fraud, tax offending and drug trafficking, and doesn't include proceeds from international crime.

Transparency International chairwoman Suzanne Snively told Kate Hawkesby that money is easier to hide here than in other parts of the world.

"People think if they come and hide here they won't be found because people won't think to look at New Zealand as a place for these illicit funds to stay."

LISTEN TO THE FULL INTERVIEW WITH KATE HAWKESBY ABOVE