Plain language law

New Zealand law explained for everyone

Crimes Act 1961

Crimes against rights of property - Money laundering

243: Money laundering

You could also call this:

“This law explains what happens if you try to hide or use money from illegal activities.”

Money laundering is when you deal with money or property that comes from a crime. This can include things you do or don’t do.

To ‘conceal’ property means to hide it or disguise it. This can involve changing it from one form to another or hiding where it came from or who owns it.

‘Dealing with’ property means doing anything with it, like selling it, giving it away, moving it, or bringing it into or out of New Zealand.

If you knowingly deal with money or property from a crime, or if you’re not careful about whether it’s from a crime, you could go to prison for up to 7 years.

If you have money or property from someone else’s crime and you plan to use it for money laundering, you could go to prison for up to 5 years.

Money laundering involves hiding property or helping someone else hide property. The law doesn’t need to prove that you meant to hide the property.

When you’re charged with money laundering, it doesn’t matter if you knew exactly what crime the money came from. It’s also not a defence to say you thought the money came from one crime when it actually came from another.

This law applies to all crimes that are punishable in New Zealand, including drug crimes under the Misuse of Drugs Act 1975.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM330289.

Topics:
Crime and justice > Criminal law
Money and consumer rights > Banking and loans
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Part 10 Crimes against rights of property
Money laundering

243Money laundering

  1. For the purposes of this section and sections 243A, 244 and 245,—

    act includes an omission

      conceal, in relation to property, means to conceal or disguise the property; and includes, without limitation,—

      1. to convert the property from one form to another:
        1. 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, means to deal with the property in any manner and by any means; and includes, without limitation,—

          1. to dispose of the property, whether by way of sale, purchase, gift, or otherwise:
            1. to transfer possession of the property:
              1. to bring the property into New Zealand:
                1. to remove the property from New Zealand

                  interest, in relation to property, means—

                  1. a legal or equitable estate or interest in the property; or
                    1. a right, power, or privilege in connection with the property

                      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

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

                          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.

                          1. Subject to sections 244 and 245, every one is liable to imprisonment for a term not exceeding 7 years who, in respect of any property that is the proceeds 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.

                          2. Subject to sections 244 and 245, every one is liable to imprisonment for a term not exceeding 5 years who obtains or has in his or her possession any property (being property that is the proceeds of an offence committed by another person)—

                          3. with intent to engage in a money laundering transaction in respect of that property; and
                            1. 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.

                              1. For the purposes of this section, a person engages in a money laundering transaction if, in concealing any property or by enabling any person to conceal any property, that person—

                              2. deals with that property; or
                                1. assists any other person, whether directly or indirectly, to deal with that property.

                                  1. Despite anything in subsection (4), the prosecution is not required to prove that the defendant had an intent to—

                                  2. conceal any property; or
                                    1. enable any person to conceal any property.

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

                                      2. it is not necessary for the prosecution to prove that the defendant knew or believed that the property was the proceeds of a particular offence or a particular class of offence:
                                        1. it is no defence that the defendant believed any property to be the proceeds of a particular offence when in fact the property was the proceeds of another offence.

                                          1. Nothing in this section or in sections 244 or 245 limits or restricts the operation of any other provision of this Act or any other enactment.

                                          2. To avoid doubt, for the purposes of the definition of offence in subsection (1), New Zealand law includes, but is not limited to, the Misuse of Drugs Act 1975.

                                          Compare
                                          • 1961 No 43 ss 233, 257A(1)–(5)
                                          Notes
                                          • Section 243: replaced, on , by section 15 of the Crimes Amendment Act 2003 (2003 No 39).
                                          • Section 243(1): amended, on , by section 6 of the Crimes Amendment Act (No 4) 2011 (2011 No 85).
                                          • Section 243(1) act: inserted, on , by section 13(1) of the Crimes Amendment Act 2015 (2015 No 95).
                                          • Section 243(1) offence: inserted, on , by section 13(1) of the Crimes Amendment Act 2015 (2015 No 95).
                                          • Section 243(1) proceeds: amended, on , by section 13(2) of the Crimes Amendment Act 2015 (2015 No 95).
                                          • Section 243(1) serious offence: repealed, on , by section 13(3) of the Crimes Amendment Act 2015 (2015 No 95).
                                          • Section 243(2): amended, on , by section 13(4) of the Crimes Amendment Act 2015 (2015 No 95).
                                          • Section 243(3): amended, on , by section 13(4) of the Crimes Amendment Act 2015 (2015 No 95).
                                          • Section 243(3)(b): amended, on , by section 13(4) of the Crimes Amendment Act 2015 (2015 No 95).
                                          • Section 243(4): amended, on , by section 13(5) of the Crimes Amendment Act 2015 (2015 No 95).
                                          • Section 243(4A): inserted, on , by section 13(6) of the Crimes Amendment Act 2015 (2015 No 95).
                                          • Section 243(5)(a): amended, on , by section 13(7) of the Crimes Amendment Act 2015 (2015 No 95).
                                          • Section 243(5)(a): amended, on , by section 6 of the Crimes Amendment Act (No 4) 2011 (2011 No 85).
                                          • Section 243(5)(b): amended, on , by section 13(7) of the Crimes Amendment Act 2015 (2015 No 95).
                                          • Section 243(5)(b): amended, on , by section 6 of the Crimes Amendment Act (No 4) 2011 (2011 No 85).
                                          • Section 243(7): inserted, on , by section 13(8) of the Crimes Amendment Act 2015 (2015 No 95).