Financial Crime World

Record Keeping and Reporting Requirements Under the Money Laundering Act 8 (Prevention) 2011

Record Keeping

Financial institutions and persons carrying on scheduled businesses are required to maintain accurate records of their business transactions. According to Section 16, these records must be kept in accordance with the following guidelines:

  • Maintenance of Business Transaction Records: Financial institutions and persons carrying on scheduled businesses must keep comprehensive records of all business transactions.
  • Examination and Inspection: The Unit or a person authorized by the Unit may examine, take notes of, make copies of, or ask questions about these business transaction records at any time.
  • Consequences of Non-Compliance: Failure to maintain accurate records or comply with these requirements is an offense.

Reporting Suspicious Transactions

Financial institutions and persons carrying on scheduled businesses are required to report suspicious transactions to the Unit in a timely and accurate manner. The following guidelines must be followed:

  • Reporting Requirements: Financial institutions and persons carrying on scheduled businesses must report suspicious transactions to the Unit in a form approved by the Director of the Unit.
  • Content of Report: The report must include all particulars known regarding the transaction, including the grounds for suspicion and be signed or otherwise authenticated.
  • Consequences of Non-Compliance: Failure to comply with these requirements is an offense.

Compliance with Instructions

Financial institutions and persons carrying on scheduled businesses are required to comply with instructions issued by the Unit under Section 4(1)(g) of the Financial Intelligence Unit Act, 2011. The following guidelines must be followed:

  • Compliance Requirements: Financial institutions and persons carrying on scheduled businesses must comply with all instructions issued by the Unit.
  • Consequences of Non-Compliance: Failure to comply may result in a written warning or offense.

Reasonable Suspicion

The question of whether a reasonable suspicion has been formed shall be determined objectively, having regard to all the facts and surrounding circumstances.

These guidelines highlight the importance of record keeping and reporting requirements for financial institutions and persons carrying on scheduled businesses under the Money Laundering Act 8 (Prevention) 2011.