Money Laundering & Criminal Proceeds (Recovery) Act 2009 Flashcards Preview

CIB006 - Association Offences > Money Laundering & Criminal Proceeds (Recovery) Act 2009 > Flashcards

Flashcards in Money Laundering & Criminal Proceeds (Recovery) Act 2009 Deck (20)
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1

What are the three stages of the money laundering cycle?

Placement phase - when cash enters the financial system
Layering phase - money is involved in a number of transactions
Integration phase - money is mixed with lawful funds r integrated back into the economy, with the appearance of legitimacy

2

What is money laundering?

Money laundering 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.

3

Elements of money laundering
S243(2)

-engages in a money laundering transaction
-with property that is the proceeds of a serious offence
-Knowing, believing or being reckless as to whether or not the property is the proceeds of a serious offence

4

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

The primary purpose is to establish a regime for the forfeiture of property that has been derived directly or indirectly from significant criminal activity or that represents the value of a persons unlawfully derived income

5

Who issues an assets forfeiture order?

High Court on application

6

Tainted property

any property which has, wholly or in part, been acquired as a result of significant criminal activity or directly or indirectly derived from significant criminal activity and includes property acquired as a result of more than one activity as long as one of those activities is a significant criminal activity.

7

Significant criminal activity

offending that consists of or includes 1 or more offences punishable by 5 years imprisonment or
from which property, proceeds or benefits exceed $30000 or more

8

What is considered in the application process for assets?

-value of asset
-equity in the asset
-third party interest in asset
-cost of action in respect of asset

9

Interviewing suspect about money laundering or proceeds recovery.

-suspects legitimate income
-suspects illegitimate income
-expenditure
-assets
-liabilities

10

Instrument of crime

Instrument of crime includes vehicles and property used in the facilitation of the offence committed.

11

Proceeds

any property derived or realised, directly or indirectly by any person from the commission of the offence

12

Interest

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

13

Money Laundering Act and Section

Crimes Act 1961, Section 243

14

Elements of money laundering
section 243(3)

-Obtains or has in his or her possession
-any property being property that is the proceeds of a serious offence committed by another person
-with intent to engage in money laundering transaction in respect of that property
-Knowing, believing or being reckless as to whether or not the property is the proceeds of a serious offence

15

Serious offence

5 years imprisonment +

16

Defence to money laundering

A defence if the person charged proves that the act to which the charges relate were done by that
person in good faith. Defence if shown money derived from an activity which took place overseas
& the activity was not an offence in country where it took place

17

Affidavit from OC to include

OC details, Offender details, charges, criminal convictions, SW – describe the nature of the
offending discovered at or involving the property (assets) concerned. Property – describe property
sought to be restrained & value.
Show offender owns , has custody / control over it
Note: where the value of the asset is high you need to demonstrate that the offending was at more
of a commercial level. Outline an admissions made during the interview

18

Restraining Order - who can apply

CPR Act 2009 empowers the commissioner of police to apply for restraining orders, asset forfeiture
orders & profit orders. Commissioner has delegated these functions solely to members in asset
recovery units and only these members may apply.

19

What is required to be proved by the Prosecution in relation to a charge of money laundering? (four elements)

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

20

Unlawfully benefited from criminal activity

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 activity)