Money laundering and Criminal Proceeds Recovery Act 2009 Flashcards
What are the element of Money Laundering 243(2)?
Money Laundering, s243(2)
- 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.
What to consider when interviewing a suspect for money laundering?
When interviewing a suspect about money laundering or where proceeds recovery action is to be considered, consider the following points.
- Suspects legitimate income
- Suspects 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.
Define proceeds in relation to a serious offence?
Proceeds in relation to a serious offence means any property that is derived or realised, directly or indirectly, by any person from the commission of an offence.
Define the money laundering cycle?
Placement- Cash enters the financial system.
Example- An offender makes money selling cannabis and then deposits these proceeds into an associates account.
Layering- 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.
Integration- 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 fees or a salary out of the company account.
Define tainted property?
Tainted Property
- Means 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 1 activity if at least 1 of those activities is a significant criminal activity.
What is a significant criminal activity?
Significant criminal activity
- Means an offence punishable by 5 years or more imprisonment. or
- From which property, proceeds, or benefits of a value of $30,000 or more have, directly or indirectly, been acquired or derived.
Qualifying instrument forfeiture offence?
Qualifying instrument forfeiture offence
- Means an offence punishable by a maximum term of imprisonment of 5 years or more, or
- Includes an attempt to commit, conspiring to commit, or being an accessory to an offence if the maximum term of imprisonment for that attempt, conspiracy, or activity is 5 years or more.
Profit forfeiture order is applicable when?
The high court must make a profit forfeiture order if it is satisfied on the balance of probabilities that-
- The respondent has unlawfully benefited from significant criminal activity with the relevant period of criminal activity.
- The respondent has interest in property.
What was held in R v Pulman?
Prevent and chance
In this case the court held that the purpose of the forfeiture regime was not only to prevent the ability of a person to actually profit from undertaking significant criminal activity but also the “chance” that they may be able to do so and also to deter significant criminal activity.
Pulman had therefore unlawfully benefited as soon as he received the cash from the purchasers. How he then dealt with that cash was irrelevant. His appeal was dismissed.
Define instrument of Crime?
Instrument of crime- Property used (wholly or in part) to commit or facilitate the commission of a qualifying instrument forfeiture offence.
Includes any property in which the property obtained is converted into.
