Money Laundering Test Flashcards
(19 cards)
Define “conceal” under Section 243(1) Crimes Act 1961
Conceal: in relation to property, means to conceal or disguise the property, and includes, without limitation:
(a) to convert the property from one form to another
(b) to conceal or disguise the nature, source, location, disposition, or ownership of the property or of any interest in the property.
Define “deal with” under Section 243(1) Crimes Act 1961
Deal with: in relation to proeprty, means to deal with the proeprty in any manner and by any means, and includes, without limitation:
(a) to dispose of the property, whether by sale, purchase, gift or otherwise
(b) to transfer posession of the property
(c) to bring the property into New Zealand
(d) to remove the property from New Zealand
Define “interest” under Section 243(1) Crimes Act 1961
Interest: 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.
Define “offence” under Section 243(1) Crimes Act 1961
Offence: 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.
Define “proceeds” under Section 243(1) Crimes Act 1961
Proceeds: in relation to an offence, means any property that is derived or realised, directly or indirectly, by an y person from the commission of the offence.
Define “property” under Section 243(1) Crimes Act 1961
Property: means real or personal property of any description, whether situated in New Zealand or elsewhere and whether tangible or intangible; and includes an interest in any such real or personal property.
What are the three phases of the Money Laundering Cycle?
- Placement: Cash enters the financial system.
Example: an offender makes money from selling cannabis and then deposits these proceeds into an associate’s bank account. - Layering: Money is involved in a a number of transactions.
Example: The associate transfers the money into an account held by a ‘shell’ company that the offender is the director of. - Integration: Money is mexed with lawful funds or integrated back into the economy, with the appearance of legitimacy.
Example: 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.
What are the elements of money laundering
- In respect of any property that is the prceeds 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
- or being reckless as to whether or not the property is the proceeds of an offence
When interviewing a suspect about money laundering or criminal proceeds matters, what points should be considered?
- 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
What is significant criminal activity
Criminal Proceeds (Recovery) Act 2009, Section 6
Significant criminal activity is defined as activity engaged in by a person that if proceeded against as a criminal offence would amount to offending-
(a) that consists of, or includes, 1 or more offences punishable by a maximum term of imprisonment of 5 years or more; or
(b) from which property, proceeds, or benefits of a value of $30,000 or more have, directly or indirectly, been acquired or derived.
What is a qualifying instrument forfeiture offence?
Criminal Procceds (Recovery) Act 2009, Section 5
Qualifying instrument forfeiture offence
(a) means an offence punishable by a maximum term of imprisonment of 5 years or more; and
(b) Includes an attempt to commit, conspiring to commit, or being an accessory to an offence if the maximum term of imprisonment for that attempt, conspiracy, or activity is 5 years or more.
What is an instrument of crime
Instrument of crime means-
(a) property used (wholly or in part) to commit or facilitate the commission of a qualifying instrument forfeiture offence.
(b) includes funds allocated for the purposes of committing that offence; and
(c) the proceeds of any disposition of that property or any other property into which that property is converted, after the commission of the qualifying instrument forfeiture offence.
When has a person unlawfully benefitted
Criminal Proceeds (Recovery) Act 2009, Section 7
A person has unlawfully benefited from significant criminal activity if the person has knowlingly, directly or indirectly, derived a benefit from a significant criminal acivity (whether or not that person undertook or was involved in the significant criminal activity).
Profit forfeiture order - Criminal Proceeds (Recovery) Act 2009, Section 55
(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.
What was held in Pulman v Commission of Police
The Court held that the purpose of the forfeiture regime was not only to prevent the ability of a person to actually profit from undertaking significant criminal activity but also the “chance” that they may be able to do so and also to deter significant criminal activity.
Pulman had therefore unlawfully benefited as soon as he received the cash from the purchasers. How he then dealth with that cash was irrelevant.
What must happen before Criminal Proceeds action can be taken?
A restraining order is the first step in the asset seizure process. In the case of tainted property and benefits from crim an application made to teh 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”.
An application for restraint of instrument of crime requires an affidavit from the officer in charge. What must be outlined in this affidavit?
- Officer in Charge - details.
- Offender(s) - details, charges, criminal convictions.
- Search warrant - describe the nature of the offending discovered at or involving the property (asset) concerned.
- Admissions made during interview(s).
- Property: - describe pproperty sought to be restrained and its value, show that offender owns, has custody or control.
Define “Tainted Property” under Section 5 of the Criminal Proceeds (Recovery) Act 2009
Tainted property
(a) means any property that has, wholly or in part, been
(i) acquired as a result of significant criminal activity; or
(ii) directly or indirectly derived from significant criminal actifity; 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.
Who may apply for restraining orders
Only members of Asset Recovery Units may apply for restraining orders (apart from those relating to Instruments of Crime), assets forfeiture orders and profit orders.
