• delphine.nowanowski@univ-reims.fr

Seminar 4

1/ Grammar: let’s complete exercises 4,5 & 6 p. 28.

CORRECTION

2/ DOCUMENT 4

Three Elements That Must Be Proven in a Money Laundering Case

By Sanction Scanner, sanctionscanner.com (adapted)

Money laundering is the process of transforming criminal funds into legal properties. Money laundering occurs when someone takes money earned by illegal activities and disguises it as money obtained through noncriminal activity. The funds received by illegal activity are referred to as “dirty money” because it is referred to as “laundering.” The person needs to make it seem as if the money comes from a legitimate source.
[…] For a suspect to be charged and sentenced for money laundering, three different pieces of evidence must be provided by the prosecution.First of all, the prosecution must prove the defendant was aware that the money involved was derived from a fraud. One should be aware that they were ‘laundering’ money that came from a criminal action to be named a criminal. Otherwise, you have not done money laundering if you “laundered” money that you did not suspect was derived from the commission of a crime. However, keep in mind that the prosecutor’s burden of evidence is comparatively low. They need to prove that you were aware that it was obtained unlawfully in some manner – not that you know where it came from. They can prove this with circumstantial proof.
Second, the prosecutors must prove a financial activity must have been started or completed by the defendant. A purchasing, donation, transfer, loan, withdrawal, exchange of money, an extension of credit, purchase or sale of a safe-deposit box, the transaction between accounts, or any other form of payment, transfer, or distribution to, by, or through a financial entity is legally classified as a “financial transaction.” The prosecutor must show that you were involved at the beginning or end of one of these transfers.
Third, to accuse anyone of money laundering, the court must show that the suspect did participate in the following three phases of money laundering:Transfer: The suspect must have placed a large amount of money of unlawfully acquired funds in a financial company. Federal law establishes the maximum amount of cash that can be deposited without triggering suspicion of money laundering. If the institution has noted that the consumer owns a cash-rich company such as a restaurant, a cash transfer of more than $10,000 will raise a red flag. Layering: Once the suspected suspicious money has cleared in a financial institution, the suspect may have participated in misleading financial practices to make the income appear to be part of his or her regular business activities. A prosecution can provide evidence in the form of a set of wire transfers to various companies in and out of the country. Implementation: The convict must have taken the money back into the local economy identified as legal fees after numerous transactions had processed purportedly illegal cash.
The prosecutor must prove what was done with the money in a money laundering case. They need to link the crime to the people involved and the illegal activity that began it all. The prosecutors must prove that the people who handled the money knew it came from unlawful activities and planned to hide it and make it seem as if it came from a legal source. The prosecutor must show an additional measure and a higher degree of activity. This keeps it lively because the defense has another level of challenge any time a new level is introduced that the government must verify.
To be convicted of money laundering, a person should be the one who carried out the illegal operation from which the funds were obtained. It might appear that if the prosecution cannot prove the individual committed the crime, they cannot be charged with attempting to make money appear legal, although this is rarely the case. An individual would not have to be linked to an illegal crime for the law to apply. The person would not have to be the one who did the unlawful action if they knew the money was clearly illegal.
In other words, anyone who works as a money launderer or accountant for a criminal conspiracy will be charged with both the core crime and money laundering. They could be found guilty of both. Money laundering is often misunderstood as requiring the individual to commit the underlying crime. Another fallacy is that a person cannot be accused of underlying offenses if they are merely engaging in money laundering. That is also not valid since a person may be charged with fraud if they are involved in a chain of criminal activity. Convicted accomplices face the same penalty as those who have committed the crime.
[…] When defendants are found guilty of money laundering, their sentence would be determined in part by the number of different offenses they committed, the amount of money involved in the deals, and whether the defendant has a criminal background. A single first conviction can carry a sentence of up to a year in prison. The criminal could face years in jail if convicted of various crimes. Moreover, a person who is convicted of money laundering has a legal right to a defense against corruption claims, regardless of the seriousness of the charges.

UNDERSTANDING – PART I

VOCABULARY (from the title to line 34)

Fournir :14. Une vente :
Conscient :15. Un coffre-fort :
Impliquer :16. Déclencher :
Provenir de :17. Posséder :
Sinon :18. Déclencher un signal d’alarme :
Garder à l’esprit :19. Empilage :
La charge de la preuve :20. Aboutir, arriver :
Illégalement :21. Trompeur, qui induit erreur :
Indirect(e) (preuve) :22. Un revenu :
Achever :23. Une série de :
Un achat :24. Un virement bancaire :
Un crédit (contracté) :25. Une mise en œuvre :
Un retrait :26. Des frais de justice :

RIGHT OR WRONG. Tick the correct box and justify your answer by quoting the text.

  1. Money-laundering is to turn illegal money into legal money coming from respectable activities.

R  W  Line: …1… & 4-5……..

Quote: ……Money laundering is the process of transforming criminal funds into legal properties & “The person needs to make it seem as if the money comes from a legitimate source……………………………………………………………………………………….

  1. To be a successful fraudster, you need to make this money appear as illegitimate.

R  W  Line: … 4-5………..

Quote: …The person needs to make it seem as if the money comes from a legitimate source………………………………………………………………………………………….

  1. One condition to be charged with money-laundering is to prove that the accused was aware the money came from an illegal source.

R  W  Line: ……8-9……..

Quote: …… the prosecution must prove the defendant was aware that the money involved was derived from a fraud.……………………………………………………………………………………….

  1. The burden of evidence lies on the defendant’s knowledge of the origin of the dirty money.

R  W  Line: ……12-13……..

Quote: ……They need to prove that you were aware that it was obtained unlawfully in some manner – not that you know where it came from……………………………………………………………………………………….

  1. All the pieces of evidence in money-laundering cases must de direct.

R  W  Line: …13-14………..

Quote: ……They can prove this with circumstantial proof.……………………………………………………………………………………….

  1. Another condition implies the suspect has been involved in the criminal activity from the beginning to the end.

R  W  Line: ……15-16……..

Quote: …… the prosecutors must prove a financial activity must have been started or completed by the defendant. ……………………………………………………………………………………….

  1. To be accused, a suspect has to have participated in both layering and implementation, the two most important phases of the process.

R  W  Line: …21-22, 28-29 & 31-32………..

Quote: ……to accuse anyone of money laundering, the court must show that the suspect did participate in the following three phases of money laundering:
Layering: Once the suspected suspicious money has cleared in a financial institution, the suspect may have participated in misleading financial practices
Implementation: The convict must have taken the money back into the local economy identified as legal fees……………………………………………………………………………………….

  1. The smartest way not to raise suspicion is to transform sums of money of less than ten thousand dollars.

R  W  Line: …26-27………..

Quote: …… If the institution has noted that the consumer owns a cash-rich company such as a restaurant, a cash transfer of more than $10,000 will raise a red flag. -> Theoretically, it means you have no red flag raised if it less than $10,000… however: .……Federal law establishes the maximum amount of cash that can be deposited without triggering suspicion of money laundering.……-> It all depends on the total amount of cash deposited on the account defined by federal law.…………………………………………………………………………….

  1. The following phase is easier to handle since wire transfers cannot be used by the prosecution.

R  W  Line: ……29-30……..

Quote: …… A prosecution can provide evidence in the form of a set of wire transfers to various companies in and out of the country. ……………………………………………………………………………………….

  1. Dirty money becomes clean money when it is reinjected in respectable economic activities.

R  W  Line: ……28……..

Quote: ……Once the suspected suspicious money has cleared in a financial institution -> Once it is reinjected, it is laundered – hence clean……………………………………………………………………………………….

UNDERSTANDING – PART II

VOCABULARY (from line 34 to the end)

Soi-disant, prétendument :8. Sous-jacent :
Manipuler, toucher à :9. Une erreur :
Reconnaître coupable :10. Un complice :
Être inculpé de :11. Si oui ou non :
Appliquer (la loi) :12.Revendication, déclaration :
Un comptable :13.Malgré
Principal :

RIGHT OR WRONG. Tick the correct box and justify your answer by quoting the text.

  1. Not only does the prosecution prove the involvement of the accused but also that he or she were aware the money was dirty, and they intended to make it appear legal.

R  W  Line: ……34-36……..

Quote: ………The prosecutors must prove that the people who handled the money knew it came from unlawful activities and planned to hide it and make it seem as if it came from a legal source…………………………………………………………………………………….

  1. Only the head of the illegal operation resulting in money laundering may be convicted.

R  W  Line: ……50-51……..

Quote: … Convicted accomplices face the same penalty as those who have committed the crime.………………………………………………………………………………………….

  1. However, any accomplices involved in the chain of the criminal activity will face the same penalty.

R  W  Line: ……50-51……..

Quote: ……Convicted accomplices face the same penalty as those who have committed the crime.…………………………………………………………………………………………….

  1. The sentences concerning money laundering are always the same whatever the defendant’s criminal background.

R  W  Line: ……52-54……..

Quote: ……their sentence would be determined in part by the number of different offenses they committed, the amount of money involved in the deals, and whether the defendant has a criminal background.……………………………………………………………………………………….

  1. A defendant facing a money laundering charge for the first time will face a year in prison maximum.

R  W  Line: …54-55………..

Quote: …A single first conviction can carry a sentence of up to a year in prison. ………………………………………………………………………………………….