Money Laundering Offences: Corporate Bodies and Individuals Held Accountable

A New Era of Accountability

In a significant move, corporate bodies and individuals involved in money laundering activities are facing severe consequences under new legislation. The law is clear: those who engage in these illegal activities will be held accountable for their actions, regardless of whether the company or individual has been convicted of the offence.

Corporate Bodies Liable for Money Laundering

Under the new legislation, corporate bodies can be held liable for money laundering even if they have not been convicted of the offence. This means that companies found to be involved in money laundering activities will face severe penalties, including:

• Seizure and liquidation of assets
• Fines and other monetary penalties
• Reputation damage and loss of public trust

Individuals Also Accountable

Not only corporate bodies but also individuals who engage in money laundering activities are being held accountable. Individuals who commit money laundering offences can face:

• Fines up to twice the market value of the property involved
• Imprisonment for a term not exceeding two years
• Reputation damage and loss of public trust

Reporting Suspicious Transactions

In an effort to prevent and detect money laundering, reporting persons are required to report suspicious transactions within 24 hours. This includes:

• Taking reasonable measures to ascertain the purpose of the transaction
• Identifying the origin and ultimate destination of the funds or property involved
• Determining the identity and address of any ultimate beneficiary

Consequences of Non-Compliance

Failure to comply with these requirements can result in severe penalties, including:

• Fines up to twice the market value of the property involved
• Imprisonment for a term not exceeding two years
• Reputation damage and loss of public trust

Internal Reporting Procedures

Reporting persons are also required to establish and maintain internal reporting procedures, including:

• Designating a person to whom employees can report suspicious transactions
• Providing reasonable access to information relevant to determining whether sufficient basis exists to report the matter
• Requiring the designated person to report all suspicious transactions

Additional Preventive Measures

In addition to these requirements, reporting persons are also required to take appropriate measures to:

• Make employees aware of domestic law relating to money laundering and terrorist financing
• Provide employees with training in the recognition and handling of transactions relating to money laundering or terrorist financing
• Ensure that no person shall open or operate an account with a reporting person in a false, disguised or anonymous name

The Way Forward

The new legislation is aimed at combating money laundering and terrorist financing by holding corporate bodies and individuals accountable for their actions. It is expected that these measures will help to prevent and detect money laundering activities and bring those responsible to justice.