Money Laundering

Question 1

Definition of deal with in relation to money laudnering?

Answer 1

To deal with the property in any manner and by any means, and includes without limitation

• to dispose of the property
• transfer possession of the property
• bring the property into NZ
• remove the property from NZ

Question 2

In relation to money laundering, what is the prosecution not required to prove in relation to concealing property?

Answer 2

That the defendant had an intention to conceal or enable any person to conceal any property.

Question 3

Definition of interest in relation to money laudnering?

Answer 3

• a legal or equitable estate or interest in the property or

- a right, power or privilege in connection with the property

Question 4

Definition of offence in relation to money laudnering?

Answer 4

Means an offence that is punishable under NZ law including any act where ever committed that would be an offence in NZ if committed in NZ

Question 5

What is not a defence in relation to offending relating to property that is proceeds of crime?

Answer 5

That the defendant believed any property to be the proceeds of a particular offence when it was the proceeds of another offence.

Question 6

In relation to money laundering, what is layering?

Answer 6

Money is involved in a number of transactions

eg: the associate transfers the money into an accoutn held by a shell company that the offender is the director of.

Question 7

Definition of Property in relation to money laudnering

Answer 7

means any real or personal property of any description, whether situated in NZ or elsewhere and whether tangible or intangible and includes an interest in any such real or personal property

Question 8

When being prosecuted for an offence against Money laundering sections (2) and (3), what is not necessary for the prosecution to prove?

Answer 8

That the defendant knew or believed that the property was the proceeds of a particular offence or class of offence.

Question 9

In relation to money laundering, what is integration?

Answer 9

Money is mixed with lawful funds or integrated back into the econopmy, with the appearance of legitimacy.

eg: the money is decalred as revenue for the company and the offender pays themself and taxes

Question 10

Put simply, what is money laundering?

Answer 10

Is 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 11

Definition of conceal in relation to money laudnering?

Answer 11

To conceal or disguise and includes without limitation

• to convert the property from one form to another
• to conceal or disguise the nature, source, location, disposition, or ownership of the property or any interest in the property

Question 12

In relation to money laundering, what is placement?

Answer 12

Cash enters the financial system

eg: offender makes my from selling cannabis and deposits this money into an associates bank account

Question 13

What are the three phases of money laundering?

Answer 13

Placement, layering and integration

Question 14

Where a person is charged with money laundering and the act is committed outside NZ and the act was an offence in the place it was committed, what is relevant about this fact?

Answer 14

That it will be presumed that it is an offence in the place it was committed unless the defendant puts the matter in issue.

Question 15

When does an offence of money laundering apply when committed outside NZ?

Answer 15

Only if

• The offence was an offence in the country which it was committed or
• it is an act which s7 or s7A applies or
• an enactment provides that the act is an offence in NZ and no additional requirements exist for the act to be an offence in the place where it occurred

Question 16

When does a person engage in money laundering transactions?

Answer 16

When concealing or enabling any person to conceal any property, that person

• deals with that property or
• Directly or indirectly assists any other person to deal with that property.

Question 17

When can a person be charged in relation to proceeds of crime when the offender who committed the offence hasn’t been charged?

Answer 17

Even if the offender who committed the offence hasn’t been charged or convicted of the offence, a person can still be convicted of an offence relating to the proceeds of the offence.

Question 18

Definition of proceeds in relation to money laudnering

Answer 18

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 19

In relation to the money laundering phases, when is a person guilty of money laundering?

Answer 19

Within any one of the three phases as NZ’s definition is much wider than the international money laundering cuycle.