1. Poca & money laundering
2019 Certificate in Forensic Investigation Techniques,
Saturday 31 Aug 2019

2. Statutory Crimes generally associated with Forensic Investigation
Prevention and Combating of Corrupt Activities Act 12 of 2004 (PACOCA)
General crime of corruption / Specific forms of corruption within the public & private sectors.
Prevention of Organised Crime Act 121 of (POCA)
Crimes relating to racketeering / money laundering / criminal gang activity;
Asset forfeiture provisions.

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4. Part 2: Prevention of Organised Crime Act 121 of 1998 (POCA)

5. Introduction to PoCa
To introduce measures to combat organised crime, money laundering and criminal gang activities;
To prohibit certain activities relating to racketeering activities;
To provide for the prohibition of money laundering and for an obligation to report certain information;
To criminalise certain activities associated with gangs;

6. Introduction to PoCa
To provide for the recovery of the proceeds of unlawful activity;
For the civil forfeiture of criminal assets that have been used to commit an offence or assets that are the proceeds of unlawful activity;
To provide for the establishment of a Criminal Assets Recovery Account;

7. Introduction to PoCA
POCA sets out reasons why organised crime, money laundering and gang activities must be addressed:
There is a rapid growth of these activities both nationally and internationally + organised crime has internationally been identified as an international security threat;

8. Introduction to PoCA
POCA sets out reasons why organised crime, money laundering and gang activities must be addressed:
These activities infringe on the rights of the people as enshrined in the Bill of Rights especially the right of every person to be protected from fear; intimidation; physical harm caused by the criminal activities of violent gangs and individuals;

9. Introduction to POCA
In broad terms the POCA makes provision for 3 types of offences:
Offences relating to Racketeering – Chapter 2
Offences relating to Money-Laundering – Chapter 3
Offences relating to Criminal Gang – Chapter 4
In addition, POCA deals with the PROCEEDS OF UNLAWFUL ACTIVITIES – confiscation, restraint & realization of assets and eventual forfeiture thereof.

10. RACKETEERING

11. Introduction to POCA - racketeering
Read chapter 2, section 2 - Offences relating to Racketeering Activities:
What is Racketeering?
Racketeering is when organized groups run illegal businesses, known as “rackets,” or when an organized crime ring uses legitimate organizations to embezzle funds.

12. Introduction to POCA - racketeering
Read chapter 2, section 2 - Offences relating to Racketeering Activities:
A racket is often a repeated or continuous criminal operation. Originally and often still specifically, a racket was a criminal act in which the perpetrator or perpetrators fraudulently offer a service to solve a nonexistent problem, a service that will not be put into effect, or a service that would not exist without the racket.

13. Introduction to POCA - racketeering
Read chapter 2, section 2 - Offences relating to Racketeering Activities:
What is Racketeering?
A protection racket is a form of extortion whereby racketeers offer to "protect" property from damage in exchange for a fee, while also being responsible, in part or in whole, for the property damage.

14. Introduction to POCA - racketeering
Read chapter 2, section 2 - Offences relating to Racketeering Activities:
A fencing racket is an operation specializing in the resale of stolen goods.
Money laundering and other creative accounting practices that are misused in ways to disguise sources of illegal funds.

15. Introduction to POCA - racketeering
Read chapter 2, section 2 - Offences relating to Racketeering Activities:
What is Racketeering?
Theft operations, including: burglary, home invasion, robbery, identity theft, auto theft, art theft, car hijacking, truck hijacking, organized retail crime, shoplifting, and copyright infringement (including the sale of counterfeit goods)

16. Introduction to POCA - racketeering
Read chapter 2, section 2 - Offences relating to Racketeering Activities:
What is Racketeering?
Kidnapping
Murder and murder-for-hire
Bribery and police corruption
Drug trafficking & Prostitution

17. Introduction to POCA - racketeering
Read chapter 2, section 2 - Offences relating to Racketeering Activities:
In the now-infamous film "The Wolf of Wall Street," the character Jordan Belfort asks a room full of salesmen to sell him a pen. After everyone in the room tries to pitch him the pen, one of them asks Jordan to write his name, forcing him to ask for the pen. The short exercise concludes by citing the importance of “creating a need when none exists to conduct a sale and earn.”

18. Introduction to POCA - racketeering
Read chapter 2, section 2 - Offences relating to Racketeering Activities:
Racketeering works similarly. Racketeers offer a deceitful service to fix a problem that otherwise wouldn't exist. The term derives from the word racket, a criminal activity that cheats individuals out of their money.

19. Introduction to POCA - racketeering
When Is a Person Guilty of Racketeering?
If they have any property which they know is linked to any illegal business activity. If a court finds that the person ought reasonably to have known that their property was being used in illegal activities, then that person is also considered guilty of a crime. This means that ignorance is no defence!
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20. Introduction to POCA - racketeering
Read chapter 2, section 2 - Offences relating to Racketeering Activities:
What Is the Punishment for Racketeering?
The punishment for racketeering-related crimes can be high. Any person convicted of racketeering can get fined for up to R1 000 million or be imprisoned for life.

21. Introduction to POCA - racketeering
Read chapter 2, section 2 - Offences relating to Racketeering Activities:
If a regional court thinks that a criminal ought to be fined for more that R100 million, or be imprisoned for more than 30 years, then the court will stop proceedings and hand the case over to the High Court.

22. MONEY LAUNDERING

23. Introduction to POCA – money laundering
Read chapter 3, section 4 - Offences relating to Money- laundering:
What is money-laundering?
is the process by which criminals disguise the original ownership and control of the proceeds of criminal conduct by making such proceeds appear to have derived from a legitimate source.

24. Introduction to POCA – money laundering
Read chapter 3, section 4 - Offences relating to Money- laundering:
What is money-laundering?
Before: it is problematic for criminals to use the illicit money because they cannot explain where it came from and it is easier to trace it back to the crime.
After: it becomes difficult to distinguish money from legitimate financial resources, and the funds can be used by criminals without detection.

25. Introduction to POCA – money laundering
Read chapter 3, section 4 - Offences relating to Money- laundering:
What is money-laundering?
One problem of criminal activities is accounting for the proceeds without raising the suspicion of law enforcement agencies. Considerable time and effort may be put into strategies which enable the safe use of those proceeds without raising unwanted suspicion. Implementing such strategies is generally called money laundering.

26. Introduction to POCA – money laundering
Read chapter 3, section 4 - Offences relating to Money- laundering:
What is money-laundering?
Laws against money laundering were created to use against organized crime during the period of Prohibition in the US during the 1930s. Organized crime received a major boost from Prohibition and a large source of new funds that were obtained from illegal sales of alcohol.

27. Introduction to POCA – money laundering
Read chapter 3, section 4 - Offences relating to Money- laundering:
In the 1980s, the war on drugs - money-laundering rules in an attempt to seize proceeds of drug crimes in order to catch the organizers and individuals running drug empires.
The September 11 attacks in 2001, which led to the Patriot Act in the US and similar legislation worldwide, led to a new emphasis on money laundering laws to combat terrorism financing.

28. Introduction to POCA – money laundering
Read chapter 3, section 4 - Offences relating to Money- laundering:
Origins of money-laundering?
The term "money laundering" is said to have originated with the Italian mafia and such criminals as Al Capone who allegedly purchased 'Laundromats' to commingle (or mix) their illegal profits from prostitution and bootlegged liquor sales with legitimate business sales from the 'Laundromats' to obscure their illegal profit.

29. Introduction to POCA – money laundering
Money-laundering can be broken down into three stages:
Stage 1 = Placement – the initial entry of illicit money into the financial system
Stage 2 = Layering – the process of separating the funds from their source, often using anonymous shell companies
Stage 3 = Integration – the money is returned to the criminal from legitimate-looking source

30. Introduction to POCA – money laundering
Read chapter 3, section 4 - Offences relating to Money- laundering:
When Is a Person Guilty of Money-laundering?
A person is guilty of a money-laundering offence if they know or ought to have known that they have acquired any property or proceeds derived from unlawful activity. This means that anyone who owns or is linked to ill-gotten gains can be found guilty of money-laundering.

31. Introduction to POCA – money laundering
They can also be found guilty in the following situations:
If they enter into an agreement with another person who is linked to ill-gotten gains, or if they do anything that is linked with illegally derived property.
If they try to hide or disguise the nature, source or location of such property; or
If they help another person who is guilty of a money- laundering crime.

32. Introduction to POCA – money laundering
Any person convicted of an offence contemplated in section 4, 5 or 6 shall be liable to a fine not exceeding R 100 million, or to imprisonment for a period not exceeding 30 years

33. Introduction to POCA – money laundering
Read chapter 3, section 7 - Failure to report suspicion regarding proceeds of unlawful activities:
Any person who carries on a business or is in charge of a business undertaking who suspects or ought reasonably to have suspected that any property which comes into his or her possession or the possession of the said business undertaking is. or forms part of. the proceeds of unlawful activities; etc must report his or her suspicion.

34. Introduction to POCA – money laundering
Read chapter 3, section 7 - Failure to report suspicion regarding proceeds of unlawful activities:
This means that anybody who buys or rents or is involved in any deal linked to property which they suspect has been illegally acquired (or contributes to unlawful activities) must report their suspicion within a reasonable time.
Any person convicted of an offence contemplated in this section, shall be liable to a fine, or to imprisonment for a period not exceeding 15 years.

35. GANG ACTIVITIES

36. Introduction to POCA – Criminal gang
Read chapter 4, section 9 - Offences relating to Criminal Gang Activities:
Any person who actively participates in or is a member of a criminal gang and who wilfully aids and abets any criminal activity committed for the benefit of, at the direction of, or in association with any criminal gang; OR threatens any act of violence or any criminal activity by a criminal gang or with the assistance of a criminal gang; OR

37. Introduction to POCA – Criminal gang
Read chapter 4, section 9 - Offences relating to Criminal Gang Activities:
OR threatens any specific person or persons in general, with retaliation in any manner or by any means whatsoever, in response to any act or alleged act of violence, shall be guilty of an offence.

38. Introduction to POCA – criminal gang
Read chapter 4, section 9 - Offences relating to Criminal Gang Activities:
Who Is a Member of a Criminal Gang?
When deciding if a person is a member of a criminal gang, a court must take the following into account:
whether the person admits to being a member of the gang;

39. Introduction to POCA – criminal gang
Read chapter 4, section 9 - Offences relating to Criminal Gang Activities:
Who Is a Member of a Criminal Gang?
if the person is identified as a gang member by a parent or guardian;
whether the person lives in the gang’s territory and adopts their style of dress and other mannerisms;

40. Introduction to POCA – criminal gang
Read chapter 4, section 9 - Offences relating to Criminal Gang Activities:
Who Is a Member of a Criminal Gang?
if the person has been arrested more than once with other gang members for crimes typically committed by the gang; and
whether the person is identified as a member of the gang by physical evidence such as photographs and other documentation.

41. Introduction to POCA – criminal gang
Read chapter 4, section 9 - Offences relating to Criminal Gang Activities:
What Is the Punishment for Gang-Related Crimes?
Inciting or encouraging another person to take part in gang activities or to join a gang warrants a fine or imprisonment for a period of up to 3 years.

42. Introduction to POCA – criminal gang
Read chapter 4, section 9 - Offences relating to Criminal Gang Activities:
What Is the Punishment for Gang-Related Crimes?
All the other gang-related crimes are punishable by fine or imprisonment of up to 6 years
See the added terms of imprisonment, if schools are nearby.

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44. The end