Cash Search and Seizure Powers Expanded to Combat Money Laundering
The St Helena Government has expanded its cash search and seizure powers to combat money laundering and terrorist financing. This new law aims to prevent the misuse of cash and disrupt criminal networks.
Enhanced Cash Search and Seizure Powers
Under the new regulations, customs officers and police constables have been granted authority to seize cash suspected of being linked to criminal activity. The definition of cash has been expanded to include not only physical currency but also:
- Cheques
- Traveller’s cheques
- Postal orders
- Bankers’ drafts
- Bearer bonds
- Shares
These powers can be exercised with or without prior approval from a justice of the peace or senior officer, depending on the circumstances.
Conditions for Seizure
Cash may be seized if customs officers and police constables have reasonable grounds for suspecting that it is:
- Criminal property
- Intended to be used in criminal conduct
The seized cash can be detained for up to 48 hours initially. If the detention period exceeds 48 hours, an order from a magistrates’ court can extend it for a maximum of three months.
Procedures After Seizure
Seized cash must be paid into an interest-bearing account and held there until its forfeiture or release. If the cash is released, it will be returned to its original owner minus any accrued interest.
A written report must be submitted to the Attorney General by the customs officer or constable who exercised the powers. The court may also order the release of detained cash if it is satisfied that the conditions for detention are no longer met.
Impact and Reactions
St Helena’s Financial Secretary welcomed the new regulations, stating that they will help prevent the misuse of cash and disrupt criminal networks. Anti-money laundering experts have praised the law, saying it will make it more difficult for criminals to hide their illicit gains.
However, some critics have raised concerns about the potential impact on legitimate businesses and individuals, particularly those in remote areas with limited access to banking services.
Advice to Residents
As the law takes effect, residents of St Helena are advised to familiarize themselves with the new regulations and ensure that any cash transactions they conduct comply with the requirements.