Financial Crime World

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Anti-Money Laundering Regulations

Record Keeping (Section 16)

A financial institution or person carrying on a scheduled business is required to keep accurate and detailed records of its business transactions. This includes:

  • Examining business transaction records
  • Taking notes of whole or part of the business transaction records
  • Making copies of the whole or part of the business transaction records when necessary
  • Asking questions related to the business transaction records

Written Request for Information (Section 17)

If a request is made under section 16, the financial institution or person carrying on a scheduled business shall:

  • Permit a member of the Unit or authorized person to enter the premises and take action specified in section 16(a)-(c)
  • Answer any questions related to the business transaction records

Compliance with Instructions (Section 18)

A financial institution or person carrying on a scheduled business is required to comply with instructions issued by the Unit under section 4(1)(g) of the Financial Intelligence Unit Act, 2011.

Reporting Suspicious Transactions (Section 19)

A financial institution or person carrying on a scheduled business shall pay attention to:

  • Complex, unusual, or large business transactions
  • Unusual patterns of transactions
  • Insignificant but periodic transactions with no apparent economic or lawful purpose
  • Electronic funds transfers without complete originator information
  • Relations and transactions with persons from countries that have not adopted comprehensive anti-money laundering legislation

Standard for Reasonable Suspicion (Section 20)

The question whether a reasonable suspicion has been formed shall be determined objectively, having regard to all the facts and surrounding circumstances.

Confidentiality (Section 21)

A director, officer, or employee of a financial institution or person carrying on a scheduled business who has made a suspicious transaction report shall not disclose that fact or any information regarding the contents of a suspicious transaction report to any other person, except for:

  • Carrying out the provisions of this Act
  • Legal proceedings, including any proceeding before a judge in chambers
  • Complying with the terms of an Order of a Court
  • The Authority carrying out its powers and duties under the Financial Services Unit Act, 2008

Liability for Contravention (Section 22)

A financial institution or person carrying on a scheduled business that contravenes section 16 or 17 or subsection (1) or (2) of section 19 is liable to a fine of two hundred and fifty thousand dollars or imprisonment for a term of three years.

Protection from Liability (Section 23)

Where a suspicious transaction report is made in good faith, the person making the report shall not be liable for any loss or damage suffered by any other person as a result of the report.