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CIB 006 - Association > Money Laundering > Flashcards

Flashcards in Money Laundering Deck (11)
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1

Define money laundering

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

2

Explain the money laundering cycle

Placement:
Cash enters the financial system, e.g. money from a drug buy goes into a mule account.

Layering:
The money is involved in a series of transactions. e.g. the mule deposits the money into a company account owned by the offender.

Integration:
Money is integrated back into the economy with the appearance of legitimacy. E.g. the offender claims the money as revenue of the company.

3

What are the elements of money laundering?

Section 243 Crimes Act 1961:
1) In respect of any property that is the proceeds of an offence.
2) Engages in money laundering transaction
3a) Knowing or believing that all or part of the property is the proceeds of an offence.
OR
3b) Being reckless as to whether the property is the proceeds of an offence.

4

What is an asset forfeiture order?

Issued by the High Court where, on the balance of probabilities, it is proved that specific assets are tainted by significant criminal activity.

5

Define tainted property

Any property which has wholly or in part been acquired as a result of significant criminal activity, or directly directly or indirectly derived from significant criminal activity. - s5 Criminal Proceeds (Recovery) Act 2009

6

What is a qualifying instrument forfeiture offence?

Any offence which is punishable by a term of imprisonment of five years or more and includes attempting, conspiring, or being an accessory to that offence.- s5 Criminal Proceeds (Recovery) Act 2009

7

Define 'significant criminal activity' in relation to asset forfeiture.

Offending that punishable by more than five years in prison or from which property of more than $30,000 has been acquired or derived. - s6 Criminal Proceeds (Recovery) Act 2009

8

When can a profit forfeiture order be made?

When the High Court is satisfied on the balance of probabilities that the respondent has unlawfully benefited from significant criminal activity within the relevant period of criminal activity and the respondent has interests in the property. - s55 Criminal Proceeds (Recovery) Act 2009

9

What is an instrument of crime?

Property used to commit or facilitate the commission of a qualifying instrument forfeiture offence.

10

Which members of Police can apply for restraining orders, asset forfeiture orders and profit orders?

The Criminal Proceeds (Recovery) Act 2009 empowers the Commissioner to make these orders. The commissioner has delegated the use of these powers to Asset Recovery Units only.

11

What topics should be covered when interviewing a suspect in relation to money laundering or asset recovery action?

- The suspect's legitimate income.
- The suspect's illegitimate income.
- Expenditure
- Assets
- Liabilities
- Acquisition of financial records, from banks, financing companies, loan sharks, family trust documents etc.
- Clarification of documentary evidence in respect of the above.