Money Laundering & Criminal Proceeds (Recovery) Act 2009

Question 1

Money Laundering

Legislation definitions

Conceal

Conceal: in relation to…

Answer 1

Section 243(1) CA61

Conceal: 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 of any interest in the property.

Question 2

Money Laundering

Legislation definitions

Deal with

Deal with in relation to…

Answer 2

S243(1) CA61

Deal with: in relation to property, means to deal with the property in any manner and by any means, and includes, without 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 New Zealand
(d) to remove the property from New Zealand.

Question 3

Money Laundering

Legislation definitions

Interest

Interest in relation to…

Answer 3

S243(1) CA61

Interest: in relation to property, means:

(a) a legal or equitable estate or interest in the property; or
(b) a right, power, or privilege in connection with the property.

Question 4

Money Laundering Cycle

Answer 4

Placement
Cash enters the financial system.
– An offender makes money from selling cannabis and then deposits these proceeds into an associate’s bank account.

Layering
Money is involved in a number of transactions.
– 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.
– 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 5

Investigative Procedure

What points to cover when interviewing a suspect

Answer 5

• suspect’s legitimate income
• suspect’s 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.

Question 6

Profit forfeiture order - Criminal proceeds definitions
Section 55, CPA 2009

Answer 6

Profit forfeiture order - Criminal proceeds definitions – SA – pg100
Section 55, CPA 2009
1) The High Court must make a profit forfeiture order if it is satisfied on the balance of probabilities that –
a) The respondent has unlawfully benefited from significant criminal activity within the relevant period of criminal activity; and
b) The respondent has interests in property

Question 7

Define the term money laundering.

The process of dealing…

Answer 7

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

Question 8

The elements of money laundering.

In respect of any…

Answer 8

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

Question 9

What is the purpose of the Criminal Proceeds (Recover) Act 2009?

…to establish a

Answer 9

…to establish a regime for the forfeiture of property

a) that has been derived directly or indirectly from significant criminal activity or
b) that represents the value of a person’s unlawfully derived income

Question 10

Who may apply for restraining orders (apart from those relating to instruments of crime), assets forfeiture orders and profit orders?

Answer 10

Only members of the Asset Recovery Unit.