Money Laundering Flashcards
Money Laundering
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 acquired.
Money Laundering
Engages in…
Elements
S243(2) CA61
Every one is liable to imprisonment for a term 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]].
Money Laundering
With intent to engage in…
Elements
S243(3) CA61
Every one is liable to imprisonment for a term not exceeding 5 years who obtains or has in his or her 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]].
Money Laundering
Legislation definitions:
Money Laundering Transaction
S243(4) CA 1961
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
Money Laundering
Legislation definitions:
Deal with
S243(1) CA61
Deal with: in relation to property, 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 New Zealand
(d) to remove the property from New Zealand.
Money Laundering
Legislation definitions:
Conceal
243(1) CA61
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 another:
(b) to conceal or disguise the nature, source, location, disposition, or ownership of the property or of any interest in the property.
Money Laundering
Legislation definitions:
Interest
S243(1) CA61
Interest: in relation to property, means:
(a) a legal or equitable estate or interest in the property; or
(b) a right, power, or privilege in connection with the property.
Money Laundering
Legislation definitions:
Offence
S243(1) CA61
Offence: means an offence (or any offence described as a crime) that is punishable under New Zealand law, including any act, wherever committed, that would be an offence in New Zealand if committed in New Zealand.
Money Laundering
Legislation definitions:
Proceeds from an offence
S243(1) CA61
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.
Three stages of money laundering cycle
- Placement
- Layering
- Integration
Money Laundering Cycle
Definition and Example
1) Placement
Cash enters the financial system.
Example:
An offender makes money from selling cannabis and then deposits these proceeds into an associate’s bank account.
Money Laundering Cycle
Definition and Example
2) Layering
Money is involved in a number of transactions.
Example:
The associate transfers the money into an account held by a ‘shell’ company that the offender is the director of.
Money Laundering Cycle
Definition and Example
3) Integration
Money is mixed with lawful funds or integrated back into the economy, with the appearance of legitimacy.
Example:
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.
Caselaw:
R v Harney
Recklessness
R v Harney
Recklessness means the conscious and deliberate taking of an unjustified risk. In New Zealand it involves proof that the consequence complained of could well happen, together with an intention to continue the course of conduct regardless of risk
R v Kennedy
Guilty Knowledge
R v Kennedy
The guilty knowledge that the thing has been stolen or dishonestly obtained must exist at the time of receiving.
