Money Laundering Crackdown: Corporate Bodies Face Seizure and Liquidation
Strengthening Financial Sector’s Ability to Combat Money Laundering
In an effort to curb money laundering, the government has introduced new regulations that will see corporate bodies facing seizure and liquidation if a pattern of money laundering offenses is established. This follows the passage of the Anti-Money Laundering and Counter Terrorist Financing Act No.29.
Key Requirements for Reporting Persons
- Verify customer identity by obtaining official records such as birth certificates, passports, or other means of identification.
- Conduct enhanced due diligence measures for politically exposed persons, including:
- Obtaining senior management approval
- Taking reasonable measures to establish the source of wealth and source of funds
Record Keeping Requirements
- Maintain records of all transactions above a certain threshold, as published by the Minister in the Official Gazette.
- Records must include information such as:
- Nature of the transaction
- Identity of the parties involved
- Type and amount of currency involved
Reporting Suspicious Transactions
- If a reporting person suspects or has grounds to suspect a suspicious transaction, they must take reasonable measures to ascertain the purpose of the transaction and report it to the Financial Intelligence Unit (FIU) within 24 hours.
- Prepare a report in the manner prescribed by regulations and communicate the information to the FIU.
Consequences for Non-Compliance
- Individuals can be fined up to twice the market value of the property involved or imprisoned for a term not exceeding two years.
- Corporate bodies that fail to comply with the regulations will be liable to a fine three times the market value of the property involved.
Commitment to Transparency and Accountability
The government is committed to ensuring that the financial sector is transparent, accountable, and compliant with international standards on anti-money laundering and counter-terrorism financing. The Minister of Finance stated:
“We will not tolerate any form of money laundering or terrorism financing in our country. These new regulations are designed to ensure that our financial system is robust and able to withstand the challenges of modern-day threats.”
Expected Impact
The implementation of these regulations is expected to have a significant impact on the fight against money laundering and terrorism financing in the country, strengthening the financial sector’s ability to detect and report suspicious transactions.