Money Laundering Flashcards
Money Laundering
General Concept.
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.
Performed by criminals to protect their assets from and avoid leaving evidence for law enforcement.
Money Laundering
Offence in (2)
Elements
Sec 243(2) CA61
Every one who, in respect of any property
That is the proceeds of an offence,
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.
Money Laundering
Offence in (3)
Elements
Sec 243(3) CA61
Every one 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 a 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
Definition: Money Laundering Transaction
Sec 243(4) CA 1961
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 with that property.
Money Laundering
Definition: Conceal
Sec 243(1) CA61
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
Definition: Deal with
Sec 243(1) CA61
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 the property
(c) to bring the property into New Zealand
(d) to remove the property from New Zealand.
Money Laundering
Definition: Interest
Sec 243(1) CA61
Interest: in relation to property, means:
(a) a legal or equitable estate or interest in the property; or
(b) a right, power, or privilege in connection with the property.
Money Laundering
Definition: Offence
Sec 243(1) CA61
Offence: means an offence (or any offence described as a crime) that is punishable under New Zealand law, including any act, wherever committed, that would be an offence in New Zealand if committed in New Zealand.
Money Laundering
Definition: Proceeds
Sec 243(1) CA61
Proceeds: in relation to an offence, means any property that is derived or realised, directly or indirectly, by any person from the commission of the offence.
Money Laundering Cycle
Step 1
Definition and Example
Step 1 - Placement.
Cash enters the financial system.
An offender makes money from selling cannabis and then deposits these proceeds into an associate’s bank account.
Money Laundering Cycle
Step 2
Definition and Example
Step 2 - Layering.
Money is involved in a number of transactions.
The associate transfers the money into an account held by a ‘shell’ company that the offender is the director of.
Money Laundering Cycle
Step 3
Definition and Example
Step 3 - Integration.
Money is mixed with lawful funds or integrated back into the economy, with the appearance of legitimacy.
The money is declared as revenue for the company, tax is paid, and then the offender pays himself director fees or a salary out of the company account.
Case Law
Cameron v R.
Cameron v R.
Recklessness is established if:
(a) the defendant recognised that there was a real possibility that:
(i) his or her actions would bring about the proscribed result; and/or
(ii) that the proscribed circumstances existed; and
(b) having regard to that risk those actions were unreasonable.
Case Law
R v Kennedy.
R v Kennedy
The guilty knowledge that the thing has been stolen or dishonestly obtained must exist at the time of receiving.
Money Laundering
Investigative Procedure - Suspect Interview
- suspect’s legitimate income
- suspect’s illegitimate income
- expenditure
- assets
- liabilities
- acquisition of financial records, from banks, financing companies, loan sharks, family trust documents
- clarification of documentary evidence located, as per above.
