Financial Intelligence Unit Act Amendments: Key Changes Explained

The Financial Intelligence Unit (FIU) Act has undergone several amendments since its inception, aimed at strengthening the country’s efforts against money laundering and improving collaboration with stakeholders.

Functions of Fiu Director

Under the revised law, the Director of the FIU is empowered to exercise his/her functions through designated persons or himself/herself. This move aims to increase efficiency and streamline decision-making processes.

Board Composition and Functions

The Board, responsible for overseeing the FIU’s activities, has undergone changes in its composition and mandate. The Chairperson must have a strong legal background, while two other members will bring expertise from the legal profession and financial services industry. The Board’s functions now include:

• Reviewing the FIU’s budget
• Issuing financial management instructions
• Advising the Director
• Reporting to the Minister on annual reports

Collaboration with Stakeholders

To combat money laundering effectively, the FIU is mandated to consult with relevant stakeholders, including:

• Law enforcement agencies
• Banks
• Financial institutions
• Cash dealers
• Professionals

This move aims to facilitate information sharing and coordination among key players.

Key Dates and Changes

The Financial Intelligence Unit Act has undergone several amendments since its inception:

• 2003: Section 10 amended
• 2006: Section 11(b) inserted
• 2011: Section 11(b) amended
• 2012: Section 12(4A) inserted
• 2013: Section 17(c) inserted
• 2016: Section 22 inserted
• 2019: Section 10 of Act 9 inserted

These amendments demonstrate the country’s commitment to enhancing its anti-money laundering efforts and maintaining a robust financial system.