Risk-assessment obligations and decisions for countries

Lecture 4. Legal requirements for a national AML/CFT regime

Key words

· Adverse implications of ML

· dual criminality

· objective factual circumstances

· state of mind of a money launderer

· knowledge

· intent

· purpose

· aim

· agreement

· perpetrator

· self-laundering

· confiscation

· provisional measures

· bona fide third parties

· freezing

· seizure

· non-conviction based confiscation

· corporate liability

· lawful origin of property

· criminal conviction

· civil liability

· criminal liability

· administrative liability

· common law tradition

· civil law tradition

· contamination effect

Key Questions

· What are the arguments against holding the perpetrator of the predicate offence liable for laundering the proceeds?

· Why some scholars insist that the perpetrator of the predicate offence should be held liable for money laundering?

· List adverse macroeconomic implications of wide-spread money laundering.

· Which risks and damages of money laundering are law-abiding intermediaries facing?

· Define the contamination effect of money laundering.

· How does wide-spread money laundering influences the average yield and risk ratios of investments?

· Define dual criminality.

· What is the difference between the minimum standard and the broader approach to applying dual criminality test?

· Where the intent and knowledge required to prove the offence of ML may be inferred from?

· Define the term “objective factual circumstances”.

· Which three parts of a money launderer’s state of mind are listed in the Vienna and Merida conventions?

· Which convention allows to determine money launderer’s state of mind on the grounds of his suspicion that the property was proceeds from crime? What are the other grounds of such determination listed in the same article of the convention?

· What is the difference between confiscation and provisional measures?

· Define bona fide third parties. Why should their rights not be prejudiced during confiscation of property?

· What is the reason for confiscating the property of corresponding value?

· Why is it important to confiscate the instrumentalities used in money laundering?

· What is the difference between freezing and seizure of property?

· Why is it important to have mechanisms that allow competent authorities to effectively manage seized or confiscated property?

· Give an example of confiscating proceeds from money laundering.

· Under what circumstances is it possible to confiscate proceeds of money laundering without a criminal conviction?

· What are the three general qualities of all sanctions directed at money launderers and financiers of terrorism?

· What is the reason for imposing measures of criminal liability on legal persons?

· What law tradition should a country have, to allow it to impose criminal liability measures on entities involved in money laundering?

4.1. An extension liability for money laundering to the predicate offence perpetrator: the adverse implications for the economy

Date: 2015-01-29; view: 1260