Money laundering

Question 1

Conceal

Answer 1

Means conceal/disguise property,
a) to convert from one form to another
b) conceal/disguise the nature, source, location, disposition, ownership

Question 2

Deal with

Answer 2

To deal with in any manner:
a) dispose of (sale, purchase, gift, otherwise)
b) transfer possession
c) bring into NZ
d) remove from NZ

Question 3

Interest

Answer 3

a) legal or equitable estate
b) right, power or privilege

Question 4

Offence

Answer 4

Punishable under NZ law, including any act, wherever committed, which would be offence if committed in NZ

Question 5

Proceeds

Answer 5

Derived or realised, directly or indirectly, by any person from commission of offence

Question 6

Property

Answer 6

Any real or personal property, or interest in, including tangible and intangible

Question 7

Charges for money laundering

Answer 7

s243A C.A 61
Person may be charged under s243(2) or (3) regarding any property that is proceeds of offence, even though person:
a) has not been charged with that offence, or
b) has not been convicted of that offence

Question 8

Acts outside NZ

Answer 8

s245 C.A 61
1) s243 applies to an act outside NZ and alleged to constitute offence resulting in proceeds, only if -
a) act is offence under law of place where/when occurred.
b) is an act to s7 or s7A of this act
c) act provides is offence in NZ & no additional requirements exist for act to be offence where occurred.
2) if charged under s243 and ss1A applies, presumed to be offence at place where occurred unless defendant puts matter to issue.

Question 9

Money laundering cycle

Answer 9

Three stages:
Placement - cash enters financial system
Layering - money involved in a number of transactions
Integration - money mixed with lawful funds or integrated back into economy with appearance of legitimacy.

Question 10

Elements

Answer 10

• in respect of any property that is proceeds to offence
• engaged in money laundering transaction
• knowing or believing, all or part of property is proceeds of offence, or
• being reckless to whether or not proceeds of an offence

Question 11

Criminal Proceeds (Recovery) Act 2009

Answer 11

Purpose of s3
1- primary purpose to establish regime for property forfeiture
a) derived directly or intently from significant criminal activity, or
b) represents value of persons unlawfully derived income
2- criminal proceeds and instruments forfeiture regime established for purposes to-
a) eliminate chance to profit from significant criminal activity, &
b) deter s.c.a, &
c) reduce ability to continue to expand criminal enterprise, &
d) deal with matters associated with foreign restraining orders and foreign forfeiture orders that arise in NZ

Question 12

Assets forfeiture order (AFO)

Answer 12

Issued by High Court on successful application showing balance of probability that specific assets acquired have been tainted by s.c.a

Question 13

Tainted propert

Answer 13

s5 C.P(R).A 2009
a) any property, wholly or in part, been -
i- acquired as result of s.c.a or
ii- directly or indirectly derived from s.c.a
b) includes property acquired from more than 1 activity if 1 of the activities is s.c.a

Question 14

Qualifying instrument forfeiture offence

Answer 14

s5 C.P.(R).A 2009
- an offence with 5 + years imprisonment
- includes attempt to commit, conspiring to commit, being accessory if max term of activity is 5+ years

Question 15

Significant Criminal Activity

Answer 15

s6 C.P.(R).A 2009
An activity that if proceeded against, would amount to offending -
a) including 1 or more 5+ year imprisonment offence, or
b) from which proceeds, property or benefits of value of $30,000 or more acquired or derived directly or indirectly

Question 16

Unlawfully benefited from s.c.a

Answer 16

s7 C.P.(R).A 2009
- person unlawfully benefited from s.c.a if knowingly, directly or indirectly, derived a benefit, whether or not they undertook or was involved in s.c.a

Question 17

Instrument of crime

Answer 17

s5 C.P.(R).A 2008
a) property used to commit to facilitate commission of qualifying offence
b) qualifying offence is against s8(1) or (2A) of Terrorism Suppression Act 2002
c) in relation to property, proceeds of any disposition of that property or any property into which the property is converted after commission of offence

Question 18

s142B Sentencing Act 2002

Answer 18

Prosecutor to notify court of any relevant property that is instrument of associated crime.
If person convicted of offence and property used, prosecutor must notify to court in writing of -
a) details of that property
b) any other person with interest in that property

Question 19

Restraining order for property application

Answer 19

s26 C.P.(R).A 2009
Before application an assessment is required for-
Value of asset
Equity in asset
Third party interest
Cost of action in respect of property.

Question 20

Restraining order

Answer 20

Police commissioner delegated function solely to member of ARU. Only members of ARU may apply for restraining orders

Question 21

Specific property s26(1) C.P.(R).A 2009

Answer 21

Two criteria must be met:
- respondant charged with qualifying instrument forfeiture order (or satisfied will be charged within 48hrs)
- court satisfied RGTB property is subject of order, used to commit/facilitate of qualifying instrument forfeiture offence

Question 22

Interviewing suspects

Answer 22

• legitimate income
• illegitimate income
• expenditures
• assets
• liabilities
• financial records
• clarification of above document evidence

Question 23

Legislation - s243 (4) C.A 61

Answer 23

Person engages in money laundering transaction if, in concealing propert, or enable another to conceal,
a) deal with that property or
b) assist another directly or indirectly to deal with property.
(4A)
Despite above, prosecution not required to prove defendant had intent to
a) conceal property or
b) enable another to conceal propert

Question 24

Legislation - s243 (5) C.A 61

Answer 24

a) not necessary to prove defendant knew or believe property was proceeds to particular offence
b) not a defence that defendant believed property was proceeds of a particular offence when it was in fact proceeds of another offence

Question 25

Legislation - s243(3) C.A 61

Answer 25

Liable to imprisonment not exceeding 5 years, who obtains or has possession of any property being proceeds of offence committed by another
a) with intent to engage in money laundering and
b) knowing/believing is proceeds of offence or being reckless to that

Question 26

Legislation - s243(2) C.A 61

Answer 26

Liable for punishment not exceeding 7 years, regarding property that is proceeds to offence, engages in money laundering, knowing or believing is proceeds from offence or
Reckless to that knowledge or belief