Money Laundering Flashcards
Definition of conceal under s243 CA 61
Conceal: in relation to property, means to conceal or disguise the property, and includes, without limitation:
A) to convert the property from one form to the other
B) 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 s243 CA 61
Deal with: in relation to property, means to deal with the property in any manner and by any means, includes, without limitation :
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 New Zealand
D) to remove the property from New Zealand
Define Interest as per s243 CA 61
Interest : in relation to property means
A) a legal or equitable estate or interest in the property
B) a right, power, or privilege in connection with the property
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
Property
Means real or personal property of any description
Whether Tangible or intangible
And includes an interest in any such real or personal property
Meaning 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 aqquired
Money Laundering cycle
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
The elements of Money Laundering
Money Laundering
S243(2) CA 61
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
Tainted property
Tainted property means
Means 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, directly or indirectly derived from, more than 1 activity if at least 1 of those activities is a significant criminal activity
Qualifying instrument forfeiture offence
A) means an offence punishable by a maximum term of imprisonment of 5 years or more
B) includes attempt to commit, conspiring to commit, or being accessory to an offence if the maximum term for that attempt or conspiracy is 5 years or more
Unlawfully benefited from criminal activity
A person has unlawfully benefited from significant criminal activity if the person has knowingly, directly or indirectly, derived a benefit from significant criminal activity. (whether that person was involved in the significant criminal activity or not)
Assessment process
The assessment process is conducted to determine
- The value of the assets
- Equity in the assets
- Any third party interests in the assets
- The cost of action in respect of the asset.
Affidavit required for application
Officer in charge
-details
Offenders
- details
- charges
- criminal convictions
Search warrant - describe nature of offending at or involving the property concerned. Where asset value is high you need to demonstrate that the offending was at a more commercial level
Admissions made during interview
Property
- describe property sought to be restrained and its value
- show that offender owns, has custody or control
Suspect interviews about money laundering where proceeds of crime action is being considered,
What do you need to cover
- Suspects legitimate income
- Suspects illegitimate income
- Expenditure
- Assets
- Assets
- Liabilities
- Acquisition of financial records, from banks, financing companies, loan sharks, family trust documents
- Clarification of documentary evidence located, as per above
