Money Laundering

Question 1

What is money laundering?

Answer 1

The process by which income & assets derived from illegal activity are converted into or disguised as apparently legitimate income.
The essence of the activity is concealment.

Question 2

Ingredients of Money Laundering.

Sec.243(2) C.A.61

Answer 2

Every one is liable to imprisonment for a term not exceeding 7 years who in respect of any property that is the proceeds of a serious offence engages in a money laundering transaction, knowing or believing that all or part of the property is the proceeds of any serious offence, or being reckless as to whether or not the property is the proceeds of a serious offence.

Question 3

‘Conceal’ Sec.243(1)

Answer 3

In relation to property, means -

(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.

Question 4

‘Deal With’ Sec.243(1)

Answer 4

In relation to property, means to deal with the property in any manner & by any means, & includes -

(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 in NZ;
(d) to remove the property from NZ

Question 5

Explain ‘Interest’.

Answer 5

In relation to property, means -

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

Question 6

Define ‘serious offence’.

Answer 6

An offence punishable by imprisonment of 5 years or more.

Question 7

Explain ‘Proceeds’.

Answer 7

In relation to a serious offence, means -

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

Question 8

What is a defence to a charge of money laundering?

Answer 8

Sec.244 C.A.61
The act was done in good faith for the purpose of enforcing the Crimes Act 1961, the CP(R) Act 2009, or the Financial Transactions Reporting Act 1996.

Sec.245 C.A.61
It is also a defence if it is shown that the money was derived from an activity which took place overseas, & the activity was not an offence in the country where it took place.

Question 9

What must the prosecution prove?

Answer 9

That property wasn’t simply concealed, but that there was an intention by the defendant to conceal the property.