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Sudan Enacts Stringent AML/CFT Regulations to Combat Financial Crimes

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Khartoum - The government of Sudan has enacted the Anti-Money Laundering and Combatting of Terrorism Financing (AML CTF) Act in 2014, a comprehensive legislation aimed at preventing and combating money laundering and terrorist financing activities in the country.

Background

The AML CTF Act is designed to prevent and combat money laundering and terrorist financing activities in Sudan. The law makes it a criminal offense to engage in these activities, with penalties including imprisonment for 5-10 years and fines equal to double the amount of illegal money or proceeds.

Scope of the Law

The legislation applies to natural and legal persons active in the financial sector, including:

  • Banks
  • Insurance companies
  • Capital markets
  • Real estate
  • Minerals
  • Law firms
  • Accounting firms

Definitions

The AML CTF Act defines money laundering as:

  • Intentionally transferring, transporting, exchanging, acquiring, owning, possessing, or utilizing money or proceeds of crime with the intention to conceal or whiten its criminal origin.

Terrorist financing is defined as:

  • Providing or raising money with the intention of using it for committing a terrorist act.

Establishing Violations

To establish a violation, specific intent, knowledge, and constructive knowledge are required. The Act also allows for conviction of money laundering without proof of underlying criminal activity.

Extra-Territorial Reach

The AML CTF Act has extra-territorial reach within the limits of standard conflicts of law rules, but does not have universal jurisdiction. Businesses and individuals operating in certain sectors or undertaking specific activities are subject to additional anti-money laundering and counter-terrorism financing regulations, including:

  • Registration obligations
  • Reporting obligations

Consequences of Non-Compliance

Failure to comply with these obligations exposes businesses to fines and members of their boards of directors to imprisonment.

Financial Information Unit (FIU)

The AML CTF Act establishes a Financial Information Unit (FIU) responsible for:

  • Receiving complaints
  • Ordering discovery
  • Lodging complaints against offending parties

National Committee for Combating Money Laundering and Financing of Terrorism

The National Committee for Combating Money Laundering and Financing of Terrorism, established under the Act, operates under the auspices of the President of Sudan and is responsible for:

  • Developing strategies
  • Planning
  • Implementing the AML CTF regime

Main Enforcement Agent

The Undersecretary of the Ministry of Justice serves as the main enforcement agent, responsible for international liaison and other purposes.

Contact Information

For more information, please contact the Ministry of Justice at:

Justice Tower, Gamhuria Avenue, PO Box 302, Postal Code 11111 T: +249 183 764 168 Email: moj@mojj.gov.sd

Conclusion

The AML CTF Act is a significant step forward in Sudan’s efforts to combat financial crimes and prevent the misuse of its financial system for illegal activities. The legislation demonstrates the government’s commitment to upholding international standards and best practices in anti-money laundering and counter-terrorism financing.