7. Money Laundering Flashcards
When does a person engage in a money laundering transaction, s43(4)?
if, in concealing any property or by enabling any person to conceal any property, that person
a) Deals with that property; or
b) Assists any other person, whether directly or indirectly, to deal with that property.
What is the definition of money laundering?
the process of dealing with the proceeds of criminal activity in such a way as to make the proceeds appear to have been legitimately acquired.
What is the definition of conceal?
means to conceal or disguise the property and includes:
• To convert the property from one form to another
• To conceal or disguise the nature, source, location, disposition or ownership of the property or of any interest in the property.
What is the definition of deal with?
means to deal with the property in any manner and by any means and includes:
• To dispose of the property, whether by sale, purchase, gift or otherwise
• To transfer the possession of the property
• To bring the property into NZ
• To remove the property from NZ
What is the definition of interest?
- A legal or equitable estate or interest in the property
* A right, power or privilege in connection with the property
What is the definition of proceeds?
means any property that is derived or realised , directly or indirectly, by any person from the commission of the offence.
What are the three stages of money laundering?
- Placement – cash enters the financial system
- Layering – money is involved in a number of transactions
- Integration – money is mixed with lawful funds or integrated back into the economy with the appearance of legitimacy.
What is the purpose of the Criminal Proceeds (Recovery) Act?
to establish a regime for the forfeiture of property –
• That has been derived directly or indirectly from significant criminal activity
• That represents the value of a persons unlawfully derived income.
What does the criminal proceeds and instruments forfeiture regime propose to do?
- Eliminate the chance for persons to profit from undertaking or being associated with significant criminal activity
- Deter significant criminal activity
- Reduce the ability of criminals to continue or expand criminal enterprise
- Deal with matters associated with foreign restraining orders and foreign forfeiture orders that arise in NZ
What is the definition of tainted property?
a) means any property that has, wholly or in part, been
i. acquired as a result of significant criminal activity; or
ii. directly or indirectly derived from significant criminal activity; and
b) includes any property that has been acquired as a result of, or derived from, more than 1 activity if at least 1 of those activities is a significant criminal activity.
What is covered by instruments of crime?
includes vehicles and property used in the facilitation of the offence committed.
Before preparing an application for a restraint of an instrument of crime, an assessment is required to determine what?
- Value of the asset
- Equity in the asset
- Any third party interest in the asset
- The cost of action in respect of the asset
What must occur before Criminal Proceeds actions can be taken?
For tainted property and benefits of crime, an application for a restraining order to the High Court must show reasonable grounds for belief that the property is tainted – that it has been acquired from significant criminal activity.
What is meant by significant criminal activity?
activity that would amount to offending that consists of:
- 1 or more offences punishable by 5+ years imprisonment, or
- from which property, proceeds, or benefits of a value of $30,000+ have been acquired or derived.
What points should be covered when speaking to a suspect?
- Suspects legitimate income
- Suspects illegitimate income
- Expenditure
- Assets
- Liabilities
- Acquisition of financial records
- Clarification of documentary evidence
