MONEY LAUNDERING & CRIMINAL PROCEEDS Flashcards

1
Q

What is Money Laundering?

A

The process of making criminal proceeds appear to have been legitimately acquired.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the 3 stages of money laundering:

A

(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).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Money Laundering (liability):

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Must there first be a conviction recorded so as to allow for the seizure of assets and monies accumulated through significant criminal activity?

A

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.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is an AFO

A

Assets Forfeiture Order

(1) Issued by the HIGH COURT
(2) upon APPLICATION
(3) Assets TAINTED by significant criminal activity.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is TAINTED property?

A

Acquired whole or in part, directly or indirectly, as a result of significant criminal activity.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is a QUALIFYING INSTRUMENT OFFENCE?

A

An offence punishable by 5 years or more. Includes attempts, parties to, and accessory to the offence.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is SIGNIFICANT CRIMINAL ACTIVITY?

A

(1) Punishable by 5 years or more, or
(2) $30,000 or more acquired.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What does it mean to UNLAWFULLY BENEFIT FROM CRIMINAL ACTIVITY?

A

KNOWINGLY benefited whether or not they were involved in the significant criminal activity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is a PROFIT FOREFEITURE ORDER?

A

(1) Ordered by the HIGH COURT
(2) BALANCE OF PROBABILITIES
(3) Respondant unlawfully BENEFITED
(4) Respondant has INTERESTS in PROPERTY

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is an INSTRUMENT OF CRIME?

A

PROPERTY used to commit or facilitate a QUALIFYING instrument Forfeiture offence. (E.g 8(1) or 8(2A) Terrorism Suppression Act 2002).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Is there a RESPONSIBILITY to NOTIFY the Court of any INSTRUMENT OF CRIME eligible for consideration for forefeiture?

A

Yes, it is the prosecutors responsibility.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What must the prosecutor include when notifying the court of qualifying instrument forfeiture:

A

(1) Details of the property
(2) Details of anyone (other than the offender) who has an interest in the property.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Who must be consulted before restraining property?

A

The Financial Crime Group as they are the ones who will incur the cost.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What must occur before Criminal proceeds action be taken?

A

A Restraining order is the first step

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

How much of the property is subject to forfeiture if only part of it was used to facilitate significant criminal activity?

A

All.

17
Q

Can the court order that part of a property be forfeited to the crown in respect of an Instrunet Forefeiture Order?

A

Yes.

18
Q

Who only can apply for Restraining Orders, Asset Forfeiture Orders, and Profit Orders? And what is the exception?

A

The Asset Recovery Unit, with exception to INSTRUMENT ORDERS.

19
Q

How long is a Restraining Order valid for?

A

1 year.

20
Q

The asset recovery assessment process involves 4 elements, list them:

A

(1) The VALUE of the asset
(2) EQUITY in the asset
(3) Any THIRD PARTY INTEREST in the asset
(4) The COST of action in respect of the asset