Money Laundering Flashcards
Money Laundering
Conceal
Section 243(1) Crimes Act 1961
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
Deal with
Section 243(1) Crimes Act 1961
Deal with: in relation to property, means to deal with the property in any manner and by any means, and includes, without limitations:
(a) dispose of the property, whether by sale, purchase, gift or otherwise
(b) transfer possession of the property
(c) to bring the property into NZ
(d) to remove the property from NZ.
Money Laundering
Interest
Section 243(1) Crimes Act 1961
Interest: in relation to property, means:
(a) a legal or equitable estate or interest in the property; or
(b) a right, power, privilege in connection with the property.
Money Laundering
Offence
Section 243(1) Crimes Act 1961
Offence: means an offence that is punishable under NZ law, including any act, wherever committed, that would be an offence in NZ if committed in NZ.
Money Laundering
Proceeds
Section 243(1) Crimes Act 1961
Proceeds: In relation to an offence, means any property that is derived or realised, directly or indirectly, from any person from the commission of the offence.
Money Laundering
Property
Section 243(1) Crimes Act 1961
Property: means any real or personal property of any description, whether in NZ or elsewhere, whether tangible or intangible, and includes an interest in any such real or personal property.
Money Laundering
Subsection 2
Elements
Section 243(2) Crimes Act 1961
Liable to maximum 7 Years Imprisonment, who,
In respect of any property that is the proceeds of an offence,
engages in money laundering,
knowing or believing that all or part of the property is the proceeds of an offence, or being reckless as to whether the property is the proceeds of an offence.
Money Laundering
Subsection 3
Section 243(3) Crimes Act 1961
5 Years Imprisonment, 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 money laundering in respect of that property
(b) knowing or believing that all or part of the property is the proceeds of an offence, or being reckless as to whether the property is the proceeds of an offence.
Money laundering
Subsection 4
Section 243(4) Crimes Act 1961
For the purposes of this section, a person engages in a money laundering transaction if, 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 wit that property.
Money Laundering Definition
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.
There cycles of Money Laundering
Placement
Description:
Cash enters the financial system.
Example:
An offender makes money from selling cannabis and then deposits these proceeds into an associate’s bank account.
There cycles of Money Laundering
Layering
Description:
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.
There cycles of Money Laundering
Integration
Description:
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’s fees or a salary out of the company account.
