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Money Laundering Act Aims to Crack Down on Criminal Activity

The Anti-Money Laundering and Counter Terrorist Financing Act No.29 has introduced stricter regulations for businesses to prevent money laundering and terrorist financing. According to the new act, corporations and their officers can be seized and liquidated if a pattern of money laundering offenses is established.

Verify Customer Identity

Under the new law, reporting persons - including banks, financial institutions, and other businesses that deal with large amounts of cash - are required to verify the identity of their customers. This includes:

  • Obtaining official records such as birth certificates, passports, or articles of association for corporate customers
  • Additional measures may be necessary for politically exposed persons, who are individuals holding public office or positions of power

Maintain Customer Records

Reporting persons must establish and maintain records of all transactions, including the nature of the evidence obtained to verify customer identity. These records must be kept for at least five years from the date of completion of the relevant business or transaction.

Report Suspicious Transactions

If a reporting person suspects a suspicious transaction, they must report it to the Financial Intelligence Unit (FIU) within 24 hours and before any suspicious transaction is carried out. The report must include:

  • Information on the purpose of the transaction
  • The origin and destination of the funds
  • The identity of any ultimate beneficiary

Consequences of Non-Compliance

The new law makes it a criminal offense for reporting persons to fail to comply with these regulations. Convicted individuals can face:

  • Fines up to twice the market value of the property involved
  • Imprisonment for up to two years
  • Corporate offenders can be fined three times the market value of the property involved

Enhanced Transparency and Accountability

The Anti-Money Laundering and Counter Terrorist Financing Act No.29 aims to increase transparency and accountability in financial transactions. By introducing stricter regulations, the government hopes to curb criminal activity and protect the integrity of the financial system.

Source: Government Gazette