Attempting to smuggle cash out of the country should generally result in all the money being confiscated the High Court ruled, sending back to the District Court consideration of $24,800 found on a traveller flying out of Auckland for Sydney.
Dohyun Jeon was charged with breaches of both the Customs Act and money-laundering legislation when checking in for a Sydney flight in September 2019. He did not complete a border cash report required when taking more than $10,000 out of the country. He belatedly made disclosure when a search of his baggage was underway. He declared $13,700 in cash. A total of $13,800 was found in his baggage and his wallet. He denied having any more cash. Another $11,000 cash was found in an envelope in his pocket. He told Customs the money came from casino winnings, money given him by his parents and proceeds from sale of a watch.
At a District Court hearing, Jeon pleaded guilty saying the money came from employment as a project manager for property development company On Point Construction Ltd and that conviction for money-laundering would affect his work since many construction projects require project managers to first get a clean police report.
The judge discharged Leon without conviction, ordering all but $3000 be returned. Customs appealed. Forfeiture of only $3000 was too lenient, it said, weakening the legislation’s effectiveness.
In the High Court, Justice Wylie agreed Jeon’s offending was at the lower end of the scale; discharge without conviction could stand. But the question of forfeiture was sent back to the District Court for reconsideration. Return of any money at all requires evidence of disproportionate hardship resulting from forfeiture.
Customs Service v. Jeon – High Court (24.03.21)
21.057