Money Laundering And Criminal Proceeds Act 2009

Question 1

Define conceal under S243(1) CA61

Answer 1

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 any interest in the property

Question 2

Define deal with under section 243(1)

Answer 2

Deal with in relation to any property, means to deal with the property in any manner and by any means and includes with out 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 NZ
D- to remove the property from NZ

Question 3

Section 243(1) CA61 define interest

Answer 3

Interest in relation to property means
A- legal or equitable estate or interest in the property
Or
B - a right power or privilege in connection with with the property

Question 4

Define offence under section 243(1)

Answer 4

Means an offence (or any offence described as a crime) that is punishable under NZ law, including any act, wherever committed l, that would be an offence in NZ if committed in NZ

Question 5

Define proceeds under section 243(1)

Answer 5

In relation to any offence means property that is derived or realised, directly or indirectly by any person from the commission of the offence

Question 6

Define property in relation to S 243(1)

Answer 6

Any real or personal property of any description whether situated in NZ or elsewhere and whether tangible or intangible and includes any interest in such real or personal property

Question 7

What are three phases of the money laundering cycle

Answer 7

Placement - cash enters the financial system, example offender makes cash selling drugs and deposits proceeds into an associates bank account
Layering - Money is involved in a number of transactions, example the associate transfers the money onto an account held by “shell” company that the offence is the director of
Integration money is mixed with lawful funds or integrated 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 fees or a salary out of the company account

Question 8

What is meant by term ‘proceeds’ as it relates to 243, Money laundering

Answer 8

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

Question 9

What is the definition of an offence in respect of money laundering

Answer 9

Offence means an offence (or any offence described as a crime) that is punishable under NZ law, including any act, wherever committed, that would be an offence in NZ if committed in NZ.

Question 10

What is the purpose of the assessment process when preparing an application for a restraining order relating to an instrument of crime

Answer 10

Conducted to determine
Value of the asset
Equity in the asset
Any third party interest in the asset
The cost of action in respect of the asset

Question 11

What does tainted property mean

Answer 11

Any property that has, wholly or in part been
Acquired as a result of significant criminal activity
Or
Directly or indirectly derived from significant criminal activity and
Includes any property that has been acquired as a result of, or directly or indirectly derived from, more than one of those activities is a significant criminal activity

Question 12

What are the three cycles of money laundering

Answer 12

Placement
Layering (shell company)
Integration