Money Laundering & Criminal Proceeds Recovery

Question 1

Money Laundering

Answer 1

Process of dealing with the proceeds of criminal activity in such a way as to make the proceeds appear to have been legitimately acquired.

Illicit proceeds may be laundered to avoid detection of criminal activity, to persevere the fruits of crime, or to further a criminal enterprise. The essence of the activity is concealment.

Question 2

Money Laundering Cycle

Answer 2

Placement - Cash enters the financial system

Layering - Money is involved in a number of transactions

Integration - Money is mixed with lawful funds or integrated back into the economy, with the appearance of legitimacy

Question 3

Elements of Money Laundering

Answer 3

• In respect of any property that is 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

Question 4

Criminal Proceeds Recovery

Answer 4

When asset recovery legislation was introduced its intent was to facilitate action in stripping assets and wealth from individuals and groups involved in organised crime.

Primary purpose of the Criminal Proceeds Recovery Act is to establish a regime for the forfeiture of property that has been derived directly or indirectly from significant criminal activity or that represents the value of a persons unlawfully derived income.

Question 5

Tainted Property

Answer 5

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.

Question 6

Significant Criminal Activity

Answer 6

An activity engaged by a person that is a criminal offence:

• That consists of or includes 1 or more offences that are punishable by a maximum term of imprisonment of 5 years or more
• From which property, proceeds or benefits of value of $30,000 or more have directly or indirectly been acquired or derived.

Question 7

Assets Foretifeiture Order (AFO)

Answer 7

Issued by the High Court on application that shows the balance of probability that specific assets which have been acquired have been tainted by significant criminal activity

Question 8

Purpose of the Forfeiture Regime

Answer 8

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

Question 9

Obligation of Prosecutor to Notify Court

Answer 9

Section 142B of the Sentencing Act 2002 places obligations on the prosecutor to consider notifying the court of any relevant property that is an instrument of crime so that forfeiture of that property can be considered as part of the sentencing process.

Question 10

Instrument of Crime

Answer 10

Includes vehicle and property used in the facilitation of the offence committed.

Question 11

Assessment Process

Answer 11

When making an application for a restraining order regarding an instrument of crime, there is an assessment process to be followed:

• 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 12

Orders

Answer 12

The Criminal Proceeds (Recovery) Act empowers the Commissioner of Police to apply for restraining orders, assets forfeiture orders and profit orders. The Commissioner has delegated these functions solely to members in Asset Recovery Units.

Question 13

Suspect Interviews

Answer 13

• 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