Money Laundering Offence Under Criminal Code (Cth) Section 400.9
Section 400.9 says that a person will be guilty of money laundering if they possess or deal with (deposits funds into a bank account for example) money or property and it is reasonable to suspect that the money or property is derived, either in whole or in part, from the commission of an indictable offence against a federal law, a state or territory law, or a foreign law.
Section 400.9 (2) contains a list of circumstances in which money or property will be deemed to be reasonably suspected to be proceeds of a relevant offence.
Subsection (5) contains a defence whereby if an accused can prove that they had no reasonable ground to suspect the money or property was derived from unlawful activity, the offence does not apply. The accused person must prove this is the case.
Section 400.9 is the most commonly used charge. In sections 400.3 to 400.8, the prosecution must prove that the money is actually proceeds of crime; whereas in s.400.9, the prosecution need only prove that the money is suspicious.
Section 400.9 carries a maximum penalty of 3 years imprisonment for an amount of $100,000 or more. The maximum penalty is 2 years imprisonment if the amount is less than $100,000.
Sections 400.3 to 400.8
Sections 400.3 to 400.8 attract higher penalties, up to 25 years jail for dealing in $1,000,000 or more, and up to 20 years for money laundering of $100,000 or more.
Companies that contravene Division 400 face maximum fines five times higher than those for an individual.
Subsection (5) contains a defence whereby if an accused can prove that they had no reasonable ground to suspect the money or property was derived from unlawful activity, the offence does not apply. The accused person must prove this is the case.
Money Laundering Offences: Sections 400.3 – 400.8 of the Criminal Code (Cth)
There are in total 43 separate money laundering offences which vary depending on the value of the property, the accused person’s state of mind, the alleged conduct (for example dealing with or hiding or disguising the property), and the number of occasions police say it occurred.Section 400.9 is the most commonly used charge. In sections 400.3 to 400.8, the prosecution must prove that the money is actually proceeds of crime; whereas in s.400.9, the prosecution need only prove that the money is suspicious.
Money Laundering Penalties
Section 400.9Section 400.9 carries a maximum penalty of 3 years imprisonment for an amount of $100,000 or more. The maximum penalty is 2 years imprisonment if the amount is less than $100,000.
Sections 400.3 to 400.8
Sections 400.3 to 400.8 attract higher penalties, up to 25 years jail for dealing in $1,000,000 or more, and up to 20 years for money laundering of $100,000 or more.
Companies that contravene Division 400 face maximum fines five times higher than those for an individual.
