Money Laundering & Criminal Proceeds (Recovery) Act 2009

Question 1

What is meant by the term ‘proceeds’ as it relates to S243, Money Laundering?

Answer 1

Proceeds: in relation to an offence, means any property that is derived or realised, directly or indirectly, by any person from the commission of the offence.

Question 2

What is the definition of an “offence” in respect of money laundering?

Answer 2

Offence: means an offence (or any offence described as a crime) that is punishable under NZ law, including any act, wherever committed, that would be an offence in NZ if committed in NZ.

Question 3

What is the purpose of the assessment process when preparing an application for a restraining order relating to an instrument of crime?

Answer 3

The assessment process is conducted to determine:

• 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 4

What is the definition of ‘tainted property’ in relation to Criminal Proceeds (Recovery) Act?

Answer 4

Tainted property

(a) means 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; and
(b) includes any property that has been acquired as a result of, or directly or indirectly derived from, more than 1 activity if at least 1 of those activities is a significant criminal activity.

Question 5

What are the three phases of the money laundering cycle?

Answer 5

The three phases in the UNODC Money Laundering Cycle are:

1. placement (cash enters the financial system)
2. layering (money is involved in a number of transactions)
3. integration (money is mixed with lawful funds or integrated back into the economy, with the appearance of legitimacy)