Money Laundering

Question 1

Conceal

Answer 1

In relation to any property, means to conceal or disguise the property, and includes, without limitation:

(a) to convert the property from one form to another.
(b) to conceal or disguise the nature, source, location, disposition, or ownership of the property or any interest in the property.

Question 2

Deal with

Answer 2

Means to deal with the property in any manner and by any means, and 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 NZ.
(d) to remove the property from NZ

Question 3

Interest

Answer 3

Means

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

Question 4

Offence

Answer 4

Means an offence/crime punishable under NZ law, including any act, wherever committed, that would be an offence in NZ if committed in NZ.

Question 5

Proceeds

Answer 5

Means any property that is derived or realised, directly or indirectly, by any person from the commission of the offence.

Question 6

Property

Answer 6

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.

Question 7

S243

2), (3

Answer 7

(2) Subject to Ss 244 and 245, every one is liable to a term of imprisonment not exceeding 7 years 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 property is the proceeds of an offence.
(3) Subject to Ss 244 and 245, every one is liable to imprisonment for a term not exceeding 5 years who obtains or has in his/her possession any property (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, etc.

Question 8

Money Laundering Cycle:

Placement
Layering
Integration

Answer 8

Cash enters the financial system - an offender makes money from selling cannabis and then deposits these proceeds into an associate’s bank account.

Money is involved in a number of transactions - the associate transfers the money into an account held by a “shell” company that the offender is a director of.

Money is mixed with lawful funds or integrated back into the economy, with the appearance of legitimacy - the money is declared as revenue for the company, tax is paid and then the offender pays himself directors fees or a salary out of the company account.