MONEY LAUNDERING & CRIMINAL PROCEEDS Flashcards
What is Money Laundering?
The process of making criminal proceeds appear to have been legitimately acquired.
What are the 3 stages of money laundering:
(1) PLACEMENT - Cash enters the financial system. (Drug proceeds placed into an associate’s bank)
(2) LAYERING - Money is involved in a number of transactions. ( e.g. money then transferred to a shell company).
(3) INTEGRATION - Money is mixed with lawful funds or integrated back into the economy with the appearance of legitimacy. (Money declared as profit and tax paid. Then paid back to the offender as a salary).
Money Laundering (liability):
CA61 s243(2) Money Laundering
In respect of any PROPERTY
That is the proceeds of any OFFENCE
Engages in a money laundering transaction (ACTUS REAUS)
KNOWING or believing that all or part of the property is the proceeds of an offence. (MENS REA)
Or being reckless as to whether or not the property is the proceeds of an offence
Must there first be a conviction recorded so as to allow for the seizure of assets and monies accumulated through significant criminal activity?
No. It is a civil based process where the Crown must prove on the balance of probabilities that the wealth was accumulated in this way.
What is an AFO
Assets Forfeiture Order
(1) Issued by the HIGH COURT
(2) upon APPLICATION
(3) Assets TAINTED by significant criminal activity.
What is TAINTED property?
Acquired whole or in part, directly or indirectly, as a result of significant criminal activity.
What is a QUALIFYING INSTRUMENT OFFENCE?
An offence punishable by 5 years or more. Includes attempts, parties to, and accessory to the offence.
What is SIGNIFICANT CRIMINAL ACTIVITY?
(1) Punishable by 5 years or more, or
(2) $30,000 or more acquired.
What does it mean to UNLAWFULLY BENEFIT FROM CRIMINAL ACTIVITY?
KNOWINGLY benefited whether or not they were involved in the significant criminal activity
What is a PROFIT FOREFEITURE ORDER?
(1) Ordered by the HIGH COURT
(2) BALANCE OF PROBABILITIES
(3) Respondant unlawfully BENEFITED
(4) Respondant has INTERESTS in PROPERTY
What is an INSTRUMENT OF CRIME?
PROPERTY used to commit or facilitate a QUALIFYING instrument Forfeiture offence. (E.g 8(1) or 8(2A) Terrorism Suppression Act 2002).
Is there a RESPONSIBILITY to NOTIFY the Court of any INSTRUMENT OF CRIME eligible for consideration for forefeiture?
Yes, it is the prosecutors responsibility.
What must the prosecutor include when notifying the court of qualifying instrument forfeiture:
(1) Details of the property
(2) Details of anyone (other than the offender) who has an interest in the property.
Who must be consulted before restraining property?
The Financial Crime Group as they are the ones who will incur the cost.
What must occur before Criminal proceeds action be taken?
A Restraining order is the first step
