Money Laundering

Question 1

Three Stages of money Laundering

Answer 1

Placement - Cash enters the financial system. (Deposited into bank account)

Layering - Money is involved in a number of transactions. (Transferred into a shell company)

Integration - Money is mixed with lawful funds or integrated back into the economy, with the appearance of legitimacy. (money declared as revenue then payed to offender as salary)

Question 2

Meaning of money laundering

Answer 2

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

Question 3

Legislation - Money Laundering

Answer 3

S243(1)
Everyone is liable to a term - 7 Years
-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 4

property
that is the proceeds of an
offence -Meaning

Answer 4

Property is defined to include both tangible
and intangible property and interests in real
or personal property whether within or
outside NZ

Includes offences, acts, and omissions
committed overseas that would be an
offence in NZ if committed in this country

Question 5

“engages in” (a money

laundering transaction) - meaning

Answer 5

One must conceal property or enable another to conceal the property and then also deal with the property or assist with such dealing.

Note: This includes disposing or transferring the property; bringing or removing the property from NZ

Question 6

knowing or believing that
all or part of the property is
the proceeds of an offence - meaning

Answer 6

Knowledge is proven via direct evidence
(e.g. admission) and/or circumstantial
evidence.

Knowledge must exist when the property is 
dealt with (R v Kennedy53)

Question 7

Deal with - meaning

Answer 7

in relation to property, means to deal with the property in any manner and by any means, and includes, without limitation:

• Disposal
• Transfer possession
• Bring into or remove from NZ

Question 8

Proceeds - meaning

Answer 8

means any property that is derived or realised,

directly or indirectly, by any person from the commission of the offence.

Question 9

Conceal

Answer 9

in relation to property, means to conceal or disguise the property, and
includes, without limitation:
(a) to convert the property from one form to another:

Question 10

Offence meaning

Answer 10

means an offence that is punishable

under New Zealand law, including any act, wherever committed,

Question 11

Interest

Answer 11

(a) a legal or equitable estate or interest in the property;
or
(b) a right, power, or privilege in connection with the property