Money Laundering Flashcards
Money Laundering - Legislation
(1) Offence
243 Crimes Act 1961
(1) - For the purpose of this section, 243A, 244, and 245 - Act includes any omission,
Offence: means an offence punishable by NZ law, includes any act wherever committed, that would be an offence if committed in NZ.
Money Laundering - Legislation
(2)
243 Crimes Act 1961
(2) -
Subject to section 244 & 245, everyone is liable for a term not exceeding 7yrs who, in respect of any property that is the proceeds of an offence,
engages in 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 - Legislation
(3)
243 Crimes Act 1961
(3) -
Subject to section 244 & 245, everyone is liable for a term ot exceeding 5yrs who obtains or has in his/her possession any property (being property that is the proceeds of an offence committed by another person)
a) with intent to engage in 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
(4) & (4A)
243 Crimes Act 1961
(4) A person engages in money laundering transaction if, in concealing any property or by enabling any person to conceal property, that person-
a) deals with that property, or
b) assists any other person, whether directly or indirectly, to deal with that property.
(4A) Dispute anything in ss(4), the prosecution is not required to prove that the defendant had an intent to -
a) conceal any property, or
b) enable any person to conceal any property.
Money Laundering - Legislation
(5)
243 Crimes Act 1961
(5) In Any prosecution for an offence against ss(2) or ss(3) -
a) it is not necessary for the prosecution to prove that the defendant knew or believed that the property was the proceeds of a particular offence, or Class or offence.
b) It is no defence that the defendant believed any property to be the proceeds of a particular offences when in fact it was the proceeds of another offence.
Charges for Money Laundering - Legislation
243A Crimes Act 1961
A person may be charged under 243(2) or (3) in respect of any property that is the proceeds of an offence to which s243(2) or (3) applies even though the person who committed the offence -
a) has not been charged with that offence, or
b) has not been convicted of that offence.
Application of section 243 to acts outside NZ - legislation
245 Crimes Act 1961
(1) Section 243 applies to an act that has occurred outside of NZ and that is alleged to constitute an offence resulting in proceeds only if -
a) the act was an offence under the law of the place where and when it occurred, or
b) It is an act to which s7 or s7A of this Act applies, or
c) an enactment provides that the is an offence in NZ, and no additional requirements exist for the act to be an offence in the place where and when it occurred.
(2) If a person is charged with an offence under s243 and ss (1)(a) applies, it is to presumed, unless that person puts the matter at issue, that the act was an offence under the law of the place where and when it occurred.
Meaning of Money Laundering
Is the process of dealing with the proceeds of criminal activity (e.g. income, assets) in such a way as to make the proceeds appear to have been legitimately acquired.
Three stages of Money Laundering Cycle.
Placement
Cash enters a 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.
Elements of Money Laundering
243(2) Crimes Act 1961
- Any property that is the proceeds of an offfence
- 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.
Engages in a Money laundering transaction. - EXPLAIN
One must conceal property or enable another to conceal property and then also deal with the property or assist with such dealings.
Includes disposing or transferring the property; bringing or removing the property from NZ; or changing it from one form to another (e.g. purchasing a vehicle)
Knowing or believing that all or part of the property is the proceeds of an offence. - How can it be proved, when must knowledge exist.
Knowledge is proven by direct evidence (e.g. admission) and/or circumstantial evidence.
Knowledge must exist when the property is being dealt with ( R v Kennedy)
Being reckless as to whether or not the property is the proceeds of an offence. - EXPLAIN
Reckless is the conscious and deliberate taking of an unjustified risk. (Cameron v R)
Conceal - Money Laundering
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.
Deal with- Money Laundering
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 property,
c) to bring the property into NZ,
d) to remove the property from NZ.
