Money laundering and criminal proceeds Flashcards
Define money laundering?
Money laundering is the process of dealing with proceeds of criminal activity in such a way as to make the proceeds appear to have been obtain legally.
What section outlines money laundering
Section 243 CA61
What is the charge wording for Section 243 (2)
- In respect to any property that is the proceeds of an offence
- engages in any money laundering transaction
- Knowing 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.
Define proceeds
243(1) Proceeds
Means any property derived, either directly or indirectly, by any person from the commission of an offence
Discuss the 3 ways money can be laundered
Placement
Cash enters the financial system, IE drug dealer places his money obtained from dealing into an associates account
Layering
Money is involved in a number of transactions, IE The associate transfers the money into an account held by a shell company that the offender is the director of.
Integration
Money is mixed with lawful funds or integrated back into the econimy, with the appearance of it be legal. IE The money is declared as revenue for the company, tax is paid and then the offender pays themselves a wage.
Element - in respect of any property that is the proceeds of an offence
Explanation - Property is defined to include both tangible and intangible property and interests in real or personal property whether within or outside NZ Includes offences, acts, and omissions committed overseas that would be an offence in NZ if committed in this country
Element - engages in a money laundering transaction
One must conceal the property or enable another to conceal the property.
This includes disposing or transferring the property.
EG. purchasing a vehicle
Knowing that all or part of the property is the proceeds of crime
Knowledge is proven by direct evidence and or circumstantial evidence. The knowledge must exist when the property is dealt with
Or being reckless as to whether the property is the proceeds of crime.
Recklessness is the conscious and deliberate taking of an unjustified risk. Cameron v R. Recklessness is established if
A/ there was a real probability that
i/his actions would bring about the proscribed result.
ii/that the prosrcibed circumstances existed
b/having regard for the risk those actions were unreasonable.
Define proceeds
in relation to an offence, means any property that is derived or realised, directly or indirectly, by any person from the commission of an offence.
Define offence
Means an act that is punishable under NZ law, or any act that, where ever conducted, would be an offence if conducted in NZ.
What is the section and purpose of the criminal procedures act 2009
Section 3
(1) the primary purpose of this act is to establish a regime for the forfeiture of property
(a) that has been derived directly or indirectly from significant criminal activity
(b) that represents the value of a person unlawful income.
What is tainted propertry
Any property acquired from significant criminal activity criminal activity
Any property derived directly or indirectly from significant criminal activity.
Define significant criminal activity
Any offence that would amount to a maximum of 5 years imprisonment
Or
From which property, proceeds or benefits of over $30,000 have been derived or acquired directly or indirectly.
What is meant by PROCEEDS as it relates to S243, Money laundering
any property derived, directly or indirectly, by any person from the commission of an offence.
