KIRIBATI: GOVERNMENT MOVES TO CLARIFY FINANCIAL CRIMES DEFINITION

Strengthening Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Regime

The Government of Kiribati has passed the Proceeds of Crime (Amendment) Act 2005, aimed at clarifying the definition of money laundering and strengthening the country’s AML/CFT regime.

Clarification of Money Laundering Definition

• The legislation specifies that it is an offence to deal with the proceeds of crime.
• This move ensures that individuals and entities involved in such activities are held accountable for their actions.

Changes to Financial Intelligence Unit

• The Financial Intelligence Unit has been redefined to focus on financial intelligence gathering and analysis, rather than just tracking assets.
• The amendments clarify the grounds upon which a person can be held to have committed the offence of money laundering.

Monetary Penalties and Increased Maximum Penalty for Corporations

• Monetary penalties are introduced for false statements made in applications for forfeiture orders.
• The maximum penalty for corporations found guilty of money laundering is increased compared to individuals.

Requirements for Financial Institutions and Cash Dealers

• Financial institutions and cash dealers must record details of transactions above a minimum amount.
• The circumstances under which reports may not be required can be changed as prescribed by the Attorney-General.

Solicitor-General’s Comments

“This legislation will help to prevent and detect financial crimes, including money laundering and terrorist financing.”

Effective Date

The Proceeds of Crime (Amendment) Act 2005 comes into effect on July 21, 2005.