Money laundering and criminal proceeds Flashcards
Section 243(1), Crimes Act 1961 - Conceal
In relation to property, means to conceal or disguise the property, and includes:
- To convert the property from one form to another
- To conceal or disguise the nature, source, location, disposition, or ownership of the property or of any interest in the property
Three stages of money launder cycle
- Placement: Cash enters the financial system. (Makes money from dealing and deposits money into associates bank)
- Layering: Money is involved in a number of transactions (associate)
- Intergration: Money is mixed with lawful funds or intergrated back into the economy, with the appearance of legitimacy. (Money is declared as revenue for the company, tax is paid and then the offender pays himself director fees)
Assessment process before application for restraint of instrument of crime, used to determine
- The value of the asset
- Equity in the asset
- Any third-party interest in the asset
- The cost of action in respect of the asset
Information required in an affidavit for an application for a restraining order relating to an instrument of crime.
- Officer in charge details
- Offenders details, charges, criminal convictions
- Search warrant: describe the nature of the offending discovered at or involving the property (asset) concerned. Note: Where the value of the assess is high you need to demonstrate that the offending was at more of a commercial level.
- Admissions made during interview.
- Property: describe property sought to be restrained and its value and show that offender owns, has custody or control
When interviewing a suspect about money laundering or where proceeds recovery action is to be considered, consider the following point (S/A)
- Suspect’s legitimate income
- Suspect’s illegitimate inome
- Expenditure
- assets
- liabillities
- Acquisitions of financial records, from banks, financing companies, loan sharks, family trust documents
- Clarification of documentary evidence located as per above
Who can complete restraint applications?
Only members of assest recovery may apply for restraining orders.
Knowledge and belief required for money laundering.
- Must prove that the offender had knowledge or belief that the property was proceeds of any serious offence (5+ years) or
- Reckless as to whether it was the proceeds of such an offence
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
- To dispose of the property, whether by sale, purchase, gift, or otherwise
- To transfer possession of the property
- To bring the property into New Zealand
- To remove the property from New Zealand
Section 243(1), Crimes Act 1961 - interest
In relation to property means:
- A legal or quitable estate or interest in the property or
- A right power, or priviliege in connection with the property
Section 243(1), Crimes Act 1961 - Offence
Means an offence or any offence described as a crime, that is punishable under New Zealand Law, including any act, whether committed, that would be an offence in New Zealand if committed in New Zealand.
Section 243, Crimes Act 1961 - Proceeds
In relation an offence means, any property, that is derived or realied, directly or indirectly, by any person, from the commission of the offence.
Section 243(1), Crimes Act 1961 - Property
Mean real or personal property, of any description, whether situated in New Zealand or elsewhere, tangible or intangible and includes any interest in any real or person property.
Section 243(2), Crimes Act 1961 - Engages in money launder (Elements)
- Everyone 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 any offence
- Being reckless as to whether or not the property is the proceeds of an offence.
Defintion of money laundering
The process by which income and assets derived from illegal activity are converted into or disguised as legitamate income.
