Money Laundering

Question 1

What are the three stages of money laundering?

Answer 1

Placement -
Introduces illegally obtained money into a financial systems IE - taking ‘hot’ cash to a casino to trade for chips

Layering -
Disguising the audit trail, making it difficult to track the money to its source.
IE - money that is deposited into an NZ bank account then sent overseas in a series of small and complex transactions

Integration -
Transfer the now ‘legitimate’ money into useable forms.
IE - purchasing of property or other assets

Question 2

What does Section 243(2) Crimes Act 1961 relate to?

Answer 2

• Engages in a money laundering transaction
• with property that is the proceeds of serious crime
• knowing or believing that property to be proceeds of serious crime or being reckless whether or not it was proceeds of serious crime