Association Offences - Money Laundering

Question 1

Elements of Money Laundering

Answer 1

Money Laundering Section 243(2) CA1961

• In respect of any property that is the proceeds of an offence
• engages in a money laundering transaction
• knowing or believing that all or part of the property is the proceeds of an offence or;
• Being reckless as to whether or not the property is the proceeds of an offence.

Question 2

What must occur before criminal proceeds action taken?

Answer 2

A restraining order is first step in the asset seizure process. Application must show reasonable grounds to believe property has been acquired or directly or indirectly derived from significant criminal activity (Offence holding 5+ years imprisonment).

Question 3

Definition of significant criminal activity?

Answer 3

Means:

• an offence punishable by imprisonment for a term of 5 years if that offence were to be committed in New Zealand
• Property, proceeds or benefits valued at $30,000+

Question 4

What points covered off when interviewing suspect for money laundering

Answer 4

• Suspect’s legitimate income
• Suspect’s illegitimate income
• Expenditure
• Assets
• Liabilities
• Acquisition of financial records from banks, loan sharks, finance companies, family trust documents
• Clarification of documentary evidence located, as above

Question 5

What are the three phases of the money laundering cycle?

Answer 5

1. Placement - Cash enters the financial system
2. Layering - Money is involved in a number of transactions
3. Integration: Money is mixed with lawful funds

Question 6

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

Answer 6

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

Question 7

What must high court satisfy when making a profit forfeiture?

Answer 7

Must satisfy on balance of probabilities that:
* the respondent has unlawfully benefited from significant criminal activity, and
* the respondent has interests in property

Question 8

Meaning of unlawful benefit

Answer 8

A person, knowingly, directly or indirectly, derived a benefit from significant criminal activity.

Question 9

Define Tainted Property

Answer 9

Tainted property means any property that is wholly or in part Acquired or Derived as a result of significant criminal activity, directly or indirectly.

Question 10

Four points prove money laundering?

Answer 10

• dealing with property or assisting with such dealing
• source of the property being the proceeds of an offence punishable by 5yrs imprisonment or more
• committed by another person
• knowledge or belief that the property was the proceeds of such an offence, or recklessness as to whether it was the proceeds of such an offence an intention to conceal the property

Question 11

Define Conceal

Answer 11

means to conceal or disguise the property, and includes;

a. To convert the property from one form to another or

b. To conceal or disguise the nature, source, location, disposition, or ownership of the property or of any interest in the property.

Question 12

Define Deal with

Answer 12

Deal with in relation to property, means to deal with the property in any manner and by any means, and includes, without limitations:
a) To dispose of the property, whether by sale, purchase, gift or otherwise
b) To transfer possession of the property
c) To bring the property into NZ
d) To remove the property from NZ

Question 13

Define Proceeds

Answer 13

Any property that is obtained directly or indirectly by any person from the commission of an offence