Association offences (Money laundering) Flashcards
Definition of “Conceal”:
To conceal or disguise the property
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
Definition of “Deal with”:
To deal with the property in any manner and by any means
Includes:
To dispose of the property, whether by sale, purchase, gift or otherwise
To transfer possession of the property
To bring the property into NZ
To remove the property from NZ
Definition of “Interest”:
A legal or equitable estate or interest in the property; or
A right, power, or privilege in connection with the property
Definition of “Offence”:
Means an offence (or any offence described as a crime) that is punishable under NZ law, including any act, wherever committed, that would be an offence in NZ if committed in NZ
Definition of “Proceeds”:
In relation to an offence, means any property that is derived or realised, directly or indirectly, by any person from the commission of the offence.
Definition of “Property”?
Means real or personal property of any description, whether situated in NZ or elsewhere and whether tangible or intangible; and includes an interest in any such real or personal property.
What is the title of Section 243 Crimes Act 1961?
Money Laundering
What is stated under Section 243(2) Crimes Act 1961?
Subject to S244 and S245
7 years imprisonment
- Anyone who
- 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 proeprty is the proceeds of an offence.
What is stated under Section 243(3) Crimes Act 1961?
Subject to S244 and S245
5 years imprisonment
- Anyone who
- Obtains or has in his possession
- any property
- being property that is the proceeds of an offence committed by another person
(a) with intent to engage in a money laundering transaction in respect of that property; and
(b) 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.
When does someone “Engage in a money laundering transaction”?
Section 243(4) Crimes Act 1961
A person engages in a money laundering transaction 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.
When someone “Engages in a money laundering transaction” what does that prosecution not have to prove?
The prosecution is not required to prove that the defendant had intent to
- Conceal any property or
- Enable any person to conceal any property
What does the prosecution not need to prove for an offence against Section 243(2) and (3)?
Section 243(5) Crimes Act 1961
It is not necessary for the prosecution to prove that the defendant knew or believed that the property was the proceeds of a particular offence or particular class of offence.
What is not a defence for Section 243(2) and (3)?
Section 243(5) Crimes Act 1961?
It is no defence that the defendant believed any property to be the proceeds of a particular offence when in fact the property was the proceeds of another offence.
What does Section 243, 244 or 245 not limit?
Section 243(6) Crimes act 1961
Nothing in this section or in sections 244 or 245 limits or restricts the operation of any other provision of this Act or any other enactment
Section 243A Crimes Act 1961 - What is the title?
Charges for money laundering
When may someone be charged under Section 243(2) or (3)?
A person may be charged with money laundering for any property that is the proceeds of an offence even though the person who committed the offence
Has not been charged with that offence; or
Has not been convicted of that offence
What does Section 245 set out?
It sets out a defence to a charge of money laundering.
Section 245(1) Crimes Act 1961 provides the following:
(1) Section 243 applies to an act that has occurred outside NZ and that is alleged to constitute an offence resulting in proceeds only if -
(a) the act was an offence under the law of the place where and when it occurred, or
(b) It is an act to which Section 7 or 7A of this Act applies; or
(c) an enactment provides that the act is an offence in NZ, and no additional requirement exists for the act to be an offence in the place where and when it occurred.
What is presumed in a charge under Section 243?
Section 145(2) Crimes Act 1961
If a person is charged with a charge under Section 243 and subsection (1)(a) applies, it is to be presumed, unless that person puts the matter at issue, that the act was an offence under the law of the place where and when it occurred.
What is the meaning / definition of money laundering?
Money laundering is 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 are the three stages of the Money Laundering Cycle?
Placement
Layering
Integration
What is the description of “Placement” for the money laundering cycle?
Cash entering the financial system
What is an example of “Placement” for the money laundering cycle?
An offender makes money from selling cannabis and then deposits these proceeds into an associates bank account
What is the description of “Layering” for the money laundering cycle?
Money is involved in a number of transactions
What is an example of “Layering” for the money laundering cycle?
The associate transfers the money into an account held by a ‘shell’ company that the offender is the director of
What is the description of “Integration” for the money laundering cycle?
Money is mixed with lawful funds or integrated back into the economy, with the appearance of legitimacy
What is the example of “Integration” for the money laundering cycle?
The money is declared as revenue for the company, tax is paid, and then the offender pays himself director fees or a salary out of the company account
What are the elements of money laundering?
- 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
What does “Engages in a money laundering transaction” (element of money laundering) mean?
One must conceal property or enable another to conceal the property and then also deal with the property or assist with such dealing.
What does “Engages in a money laundering transaction” (element of money laundering) include?
Disposing or transferring the property
Bringing or removing the property from NZ
Changing it from one form to another (e.g. purchasing a vehicle)
What should the “Money laundering cycle” be used as?
A guide to understanding the overall process - it should not be used as a basis for all decisions about whether the elements of the offence of money laundering have been fulfilled.
