Money Laundering & Criminal Proceeds (Recovery) Act 2009

Question 1

*Def of money laundering

Answer 1

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 2

S/A Three stages of the Money Laundering Cycle

Answer 2

**Placement: **Cash enters the financial system. (makes money from dealing and deposits money into associates bank)

Layering: Money is involved in a number of transactions (associate transfers money into the offenders company account)

Integration: Money is mixed with lawful funds or integrated back into the economy, with the appearance of legitimacy. (Money is declared as revenue for the company, tax is paid and then the offender pays himself director fees).

Question 3

M/C - Section 243(1), Crimes Act 1961 - Interest in property DEF:

M/C

Answer 3

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

S/A & M/C Section 243(1), Crimes Act 1961 Offence DEF

S/A

Answer 4

means an offence or any offence described as a crime, that is punishable under New Zealand law, including any act, wherever committed, that would be an offence in New Zealand if committed in New Zealand. -

(Imprisonment for term of 5 years or more)

Question 5

Section 243(1), Crimes Act 1961 - Property DEF:

S/A

Answer 5

means real or personal property, of any description, whether situated in New Zealand or elsewhere, tangible or intangible and includes an interest in any real or personal property.

Question 6

(S/A) Engages in Money Laundering (Elements)
Section 243(2), Crimes Act 1961

Answer 6

• Every one who
• 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,
• Being reckless as to whether or not the property is the proceeds of an offence.

Question 7

Tainted Property

worded by mean as when is property tainted to understand for study purposes

Answer 7

Any property that has wholly or in part been:
1. Acquired/derived as a result of 1 or more significant criminal activity
2. Directly or indirectly

Question 8

S/A Meaning of Significant criminal activity -
S6 Criminal Proceeds Act 2009

S/A

Answer 8

Is defined as activity engaged in by a person that if proceeded against as a criminal offence would amount to offending.

(a) includes 1 or more offences punishable by a max prison 5 years or more; OR
(b) Property, proceeds, or benefits of a value of $30,000 or more have, directly or indirectly, been acquired or derived.

Question 9

*Meaning of when a person unlawfully benefited from significant criminal activity
S6 Criminal Proceeds Act 2009

Answer 9

A person has unlawfully benefited from significant criminal activity if the person has knowingly, directly or indirectly, derived a benefit from significant criminal activity (whether or not that person undertook or was involved in the significant criminal activity).

Question 10

M/C Profit Forfeiture Order
S55 Criminal Proceeds (Recovery) Act 2009

m/c

Answer 10

(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 11

S/A Before preparing such an application an assessment process is required. The assessment procedure is conducted to determine???

Answer 11

• the 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

*What must occur before Criminal Proceeds action can be taken

And what belief is required.?

M/C

Answer 12

A restraining order is the first step in the asset seizure process.

In the case of tainted property and benefits from crime an application made to the High Court must show reasonable grounds for belief that the property is tainted – that it has been acquired, or directly or indirectly derived, from “significant criminal activity”.

Question 13

M/C Restraining Orders

m/c

Answer 13

Only members of assest recovery units may apply for an restraining order, assessts forfeiture orders and profit orders

Question 14

How long is a restraining order valid for?

Answer 14

1 year from date on which the order is made

Question 15

Investigative Procedure

What points to cover when interviewing a suspect?

S/A

Answer 15

• 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 16

Definition and Example

Placement

Answer 16

Cash enters the financial system.

An offender makes money from selling cannabis and then deposits these proceeds into an associate’s bank account.

Question 17

Definition and Example

Layering (Offering)

Answer 17

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.

Question 18

Definition and Example

Integration

Answer 18

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 19

When considering a principal charge of Money Laundering what are the 4 elements required?

Answer 19

• Dealing with property or assisting in such dealing
• The source of the property being the proceeds of an offence punishable by 5 years imprisonment or more committed by another person
• Knowledge or belief that the property was the proceed of such an offence, or reckless as to whether it was the proceeds of such an offence
• An intention to conceal the property