Swaziland Financial Institutions Act: Transaction Reporting and Record Keeping Requirements
The Swaziland Financial Institutions Act has introduced new regulations aimed at preventing money laundering and terrorist financing. The act requires financial institutions to maintain accurate records of transactions and report any suspicious activities to the relevant authorities.
Record Keeping Requirements
Under the act, all financial institutions are required to keep a record of every transaction they conduct. This includes information such as:
- Date and time of the transaction
- Parties involved in the transaction
- Amount transacted
The records must be kept for at least five years from the date of the transaction.
Suspicious Transaction Reporting
Financial institutions are also required to report any suspicious transactions to the Swaziland Financial Intelligence Centre (SFIC). A suspicious transaction is defined as a transaction that may be related to:
- Money laundering
- Terrorist financing
- Other illegal activities
The act requires financial institutions to report such transactions within two working days of forming a suspicion.
Threshold Reporting
In addition to reporting suspicious transactions, financial institutions are also required to report any cash transactions above a certain threshold. The Minister has the power to prescribe the amount above which such reports must be made.
Protection of Identity and Information
The act provides protection for individuals who report suspicious transactions or provide information in connection with an investigation. No person may disclose any information that will identify or is likely to identify:
- Any individual who has handled a transaction
- Any individual who prepared a report
- Any individual who provided information in connection with an investigation
Penalties for Non-Compliance
Financial institutions that fail to comply with the record keeping and reporting requirements of the act may be subject to penalties. These penalties may include:
- Fines
- Revocation of their operating license
The new regulations are aimed at ensuring that financial institutions play a responsible role in preventing money laundering and terrorist financing. By maintaining accurate records and reporting suspicious activities, these institutions can help prevent illegal activities and protect the integrity of the financial system.