Financial Intelligence Unit Act: Enhancing Cooperation with Foreign Counterparts

The government has introduced new measures to strengthen cooperation between the local financial intelligence unit (FIU) and its foreign counterparts, aimed at combating financial crimes such as money laundering, terrorism financing, and other illicit activities.

Exchange of Information with Foreign FIUs

Under the revised regulations, the Director of the FIU is empowered to share information with foreign FIUs upon receiving a request for assistance. However, the Director must be satisfied that the foreign FIU is subject to adequate legal restrictions or further disclosures, including an undertaking of confidentiality and non-disclosure without consent.

Production and Obtaining of Information

The new regulations also provide for the exchange of information relevant to the investigation or prosecution of financial crimes, subject to agreements or arrangements with foreign governments, international organizations, or foreign FIUs. The Minister may enter into such agreements or arrangements to facilitate cooperation and information sharing.

Serving Notices

In addition, the Director may serve a notice on any person suspected of possessing or controlling information relevant to an investigation of a financial crime. Such notices may require individuals to provide information, produce documents, or answer questions related to the investigation.

Safekeeping of Documents

When a person is required to produce documents or records, the FIU must ensure their safe keeping. Authorized officers must return the documents or records to the person concerned within 30 days of receipt.

Key Provisions

• The Director may share information with foreign FIUs upon receiving a request for assistance.
• Foreign FIUs must be subject to adequate legal restrictions or further disclosures.
• The Minister may enter into agreements or arrangements with foreign governments, international organizations, or foreign FIUs to facilitate cooperation and information sharing.
• Authorized officers can obtain information and records from financial institutions under certain circumstances.
• Records protected by legal professional privilege are exempt from disclosure.
• Documents produced must be kept safe and returned within 30 days of receipt.

The revised regulations aim to enhance cooperation and information sharing between local and foreign financial intelligence units, ultimately contributing to the detection and prosecution of financial crimes.