FAQs

It is the processing of criminal proceeds in order to legitimize the ill-gotten gains of crime (FATF).

The Anti-Money Laundering and Combating Terrorist Financing Act 2012 defines Money Laundering as:

• the conversion or transfer of property knowing that such property is the proceeds of crime, for the purpose of concealing or disguising the illicit origin of the proceeds or helping any person who is involved in the commission of the predicate offence to evade the legal consequences of his or her actions;
• the concealment or disguise of the true nature, source, location, disposition, movement or ownership of rights in respect of property knowing that such property is the proceeds of crime;
• the acquisition, possession or use of property knowing at the time of receipt that such property is the proceed of crime or
• participation in, association with or conspiracy to commit, aiding and abetting, facilitating or counseling the commission of any of the above offences.

Traditionally, money laundering occurs in three stages:

• Placement: Introduction into the banking and financial system, funds derived from criminal activities. This is done by breaking down huge sums of money into smaller deposits just to avoid detection.
• Layering: distancing the money from its criminal source by engaging in series of transactions including transferring the money to other jurisdictions.
• Integration: recycling gains from illegal activities by placing them back into the legal economy. The laundered proceeds are distributed back to the criminal to be enjoyed.

The Anti-Money Laundering and Combating of Terrorist Financing Act 2012 states

A person who directly or indirectly;

• provides, whether by giving, lending or otherwise making available, or collects funds or property with the intention that they should be used, or having reasonable grounds to believe that they are to be used, in full or in part, in order to carry out a terrorist act;
• organizes or directs others to commit, attempts to commit or conspires to commit an offence, commits the offence of financing of terrorism