7. Progress Test 7

Question 1

What is meant by the term proceeds as it relates to Section 243 Money Laundering?

Answer 1

Proceeds, in relation to an offence means any property derived or realised directly or indirectly by any person from the commission of an offence.

Question 2

What is the definition of OFFENCE in respect of money laundering?

Answer 2

Means an offence that is punishable under the NZ Law including any act, wherever committed, that would be an offence in New Zealand if committed in NZ.

Question 3

What is the purpose of the assessment process when preparing an application for a restraining order relating to an instrument of crime?

Answer 3

• Value of the asset
• Equity of the asset
• Any third party interest in the asset
• The cost of the action in respect of the asset

Question 4

What is the definition of the tainted property in relation to Criminal Proceeds Act?

Answer 4

Tainted Property means:

Property that has, in whole or in part

• acquired as a result of significant criminal activity Or
• directly or indirectly derived from significant criminal activity AND
• includes any property acquired as a result of OR directly or indirectly from more than 1 criminal activity if at least 1 of those activities is a significant criminal activity.

Question 5

What are the three phases of the money laundering cycle?

Answer 5

1. Placement
2. Layering
3. Integration