Financial Crime World

Financial Intelligence Unit Acts to Boost Cooperation with Foreign Authorities

The Financial Intelligence Unit (FIU) has been amended to strengthen cooperation between local and foreign authorities in investigating and prosecuting financial crimes.

Enhanced Cooperation through Information Sharing

Under the new provisions, the Director of the FIU can exchange information or provide other forms of cooperation with foreign financial intelligence units or associations of units only if there are reasonable grounds to believe that the information would be relevant to an investigation or prosecution for a financial crime. The Director must also enter into a contract, memorandum of understanding, or other agreement with the foreign unit or association before sharing any information.

Conditions and Restrictions

Any information shared by the FIU is subject to certain conditions and restrictions, including:

  • Protection of personal data
  • Prevention of unauthorized disclosure

New Powers for Investigation and Prosecution

The Act gives the Director the power to serve a notice on a person requiring them to provide information relevant to an investigation of a financial crime. The notice may require the person to produce documents or answer questions, and failure to comply with the notice can result in penalties.

Key Provisions

  • The Director can exchange information or provide cooperation only if there are reasonable grounds to believe that the information would be relevant to an investigation or prosecution for a financial crime.
  • The Director must enter into a contract, memorandum of understanding, or other agreement with the foreign unit or association before sharing any information.
  • Any information shared by the FIU is subject to certain conditions and restrictions, including the protection of personal data and prevention of unauthorized disclosure.
  • The Act gives the Director the power to serve a notice on a person requiring them to provide information relevant to an investigation of a financial crime.
  • Failure to comply with a notice served under the Act can result in penalties.

Purpose of the Act

The purpose of the Financial Intelligence Unit Act is to:

Enhance Cooperation and Combat Financial Crimes

  • Strengthen cooperation between local and foreign authorities in combating financial crimes
  • Provide greater protections for personal data
  • Prevent the misuse of financial systems by criminals

By enhancing cooperation and providing greater protections, the FIU can better assist law enforcement agencies in investigating and prosecuting financial crimes, ultimately contributing to a safer and more secure financial environment.