New Zealand Legislation: Acts

12B Laundering proceeds of drug offences

• (1) In this section,—

  conceal, in relation to property,—

  • (a) means to conceal or disguise the property; and

  • (b) includes (without limitation)—

    • (i) to convert the property from one form to another:

    • (ii) to conceal or disguise the nature, source, location, disposition, or ownership of the property or of any interest in the property

  deal with, in relation to property,—

  • (a) means to deal with the property in any manner and by any means; and

  • (b) includes (without limitation)—

    • (i) to dispose of the property, whether by way of sale, purchase, gift, or otherwise:

    • (ii) to transfer possession of the property:

    • (iii) to bring the property into New Zealand:

    • (iv) to remove property from New Zealand

  interest, in relation to property, means—

  • (a) a legal or equitable estate or interest in the property:

  • (b) a right, power, or privilege in connection with the property

  proceeds, in relation to a specified drug offence, means any property that is derived or realised, directly or indirectly, by any person from the commission of the offence

  property—

  • (a) means real or personal property of any description, whether situated in New Zealand or elsewhere and whether tangible or intangible; and

  • (b) includes an interest in any such real or personal property

  serious offence has the same meaning as it has in section 243 of the Crimes Act 1961

  specified drug offence—

  • (a) means an offence against section 6 or section 9 or section 12A or section 12AB; and

  • (b) includes any act, wherever committed, which if committed in New Zealand would constitute an offence against any of those sections.

  (2) Subject to subsections (6) to (8), every person commits an offence and is liable on conviction on indictment to imprisonment for a term not exceeding 7 years who, in respect of any property that is the proceeds of a specified drug offence, engages in a money laundering transaction, knowing or believing that all or part of the property is the proceeds of a specified drug offence, or being reckless as to whether or not the property is the proceeds of a specified drug offence.

  (3) Subject to subsections (6) to (8), every person commits an offence and is liable on conviction on indictment to imprisonment for a term not exceeding 5 years who obtains or has in his or her possession any property (which property is the proceeds of a specified drug offence committed by another person)—

  • (a) with intent to engage in a money laundering transaction concerning that property; and

  • (b) knowing or believing that all or part of the property is the proceeds of a specified drug offence, or being reckless as to whether or not the property is the proceeds of a specified drug offence.

  (4) For the purposes of this section, a person engages in a money laundering transaction if that person—

  • (a) deals with any property; or

  • (b) assists any other person, whether directly or indirectly, to deal with any property—

  for the purpose of—

  • (c) concealing that property; or

  • (d) enabling another person to conceal that property.

  (5) In any prosecution for an offence against subsection (2) or subsection (3),—

  • (a) it is not necessary for the prosecution to prove that the accused knew or believed that the property was the proceeds of a particular specified drug offence or a particular class of specified drug offence:

  • (b) it is no defence that the accused believed any property to be the proceeds of a particular specified drug offence, when in fact the property was the proceeds of another specified drug offence.

  (6) It is a defence to a charge under this section if the act to which the charge relates was done by that person, in good faith, for the purpose of or in connection with—

  • (a) the enforcement or intended enforcement of this section or any other provision of this Act or any other enactment relating to a specified drug offence or any other serious offence; or

  • (b) the enforcement or intended enforcement of the Proceeds of Crime Act 1991; or

  • (ba) the enforcement or intended enforcement of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009; or

  • (c) the enforcement or intended enforcement of the Financial Transactions Reporting Act 1996.

  (7) Subject to subsection (8), this section does not apply if—

  • (a) any property is alleged to be the proceeds of a serious offence; and

  • (b) the act that is alleged to constitute that serious offence was committed outside New Zealand; and

  • (c) the act was not, at the time of its commission, an offence under the law of the place where the act was done.

  (8) If a person is charged with an offence against this section and the act that is alleged to constitute the serious offence resulting in proceeds was committed outside New Zealand, it is to be presumed, unless the person charged puts the matter at issue, that the act was an offence under the law of the place where the act was done.

  (9) Nothing in this section limits or restricts the operation of any other provision of this Act or any other enactment.

  Section 12B: inserted, on 12 May 1998, by section 5 of the Misuse of Drugs Amendment Act 1998 (1998 No 14).

  Section 12B(1) serious offence: amended, on 1 October 2003, by section 34 of the Crimes Amendment Act 2003 (2003 No 39).

  Section 12B(1) specified drug offence paragraph (a): amended, on 22 June 2005, by section 11 of the Misuse of Drugs Amendment Act 2005 (2005 No 81).

  Section 12B(2): substituted, on 1 October 2003, by section 34 of the Crimes Amendment Act 2003 (2003 No 39).

  Section 12B(3): substituted, on 1 October 2003, by section 34 of the Crimes Amendment Act 2003 (2003 No 39).

  Section 12B(6)(ba): inserted, on 17 October 2009, by section 161(2) of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (2009 No 35).