Niue's chief of police says the theft of about 26,000 US dollars is one of the largest he's seen since he began serving on the island.
A customs officer has been charged with allegedly taking money from departure taxes, and she faces up to five years imprisionment if found guilty.
The Chief of Police, Mark Chenery, has been on the island for 18-months and says it's one of the more serious crimes he's investigated.
"Certainly since I've been here it's one of the largest thefts that I've come across. The costoms officer's already appeared in the local court she's been remanded until May, a date yet to be confirmed in May when the NZ judge visits the island as he's bound to do every six months so that'll be when the next hearing occurs."
Mark Chenery says the police where alerted to the possible theft by the Treasury department.