Title: New Anti-Money Laundering Laws in Sierra Leone: Regulating Car Dealers, NGOs, Shipping Companies, and Clearing Agencies
Freetown — Sierra Leone’s Parliament passed the Anti-Money Laundering and Combating of Financing of Terrorism (Amendment) Act, 2019, marking a significant step forward in the country’s efforts to combat money laundering and terrorism financing. The new legislation expands the regulatory scope of the 2012 act to include car dealers, non-profit organizations, shipping companies, and clearing/forwarding agencies.
Key Points of the New Act
- Expanded Regulatory Scope: Car dealers, non-profit organizations, shipping companies, and clearing/forwarding agencies are now regulated under the Anti-Money Laundering (AML) laws.
- Aligned with International Guidelines: The Act aims to align Sierra Leone’s regulations with international guidelines set by the Financial Action Task Force (FATF).
- New Definitions and Provisions: The Act introduces new provisions and definitions to enhance the regulatory framework.
Amendments to the Previous Law
Additions to the First Schedule
- Car dealers
- Non-profit organizations
- Shipping companies
- Clearing/forwarding agencies
Burden of Proof
The requirement for the prosecution to prove that a suspect had the intention of using financing for terrorism purposes has been removed.
Financial Terrorist
The definition of financing of terrorism in Section 1 of the Act now includes ‘foreign terrorist fighter.’
Reporting Frequency
Reporting institutions are now required to submit suspect transaction reports once every three months (quarterly).
Offense Definitions
A new provision has been introduced in Section 16, stating that a person who finances or provides any form of support to terrorists, terrorist groups, terrorist organizations, or foreign terrorist fighters commits an offense.
Currency Declaration
The penalty for entering or leaving Sierra Leone with large sums of cash or negotiable bearer instruments without declaration has been raised.
Reporting Deadlines
The period for reporting seizure or forfeiture of property under Section 75 has been increased from ten working days to thirty working days. The period for seizure and detention of property under Section 76 has been extended from six months to eighteen months.
Approval and Enforcement
The Minister of Finance, Jacob Jusu Saffa, approved the Bill on behalf of the government. This amendment aims to strengthen Sierra Leone’s regulatory framework and enhance its ability to combat money laundering and financing of terrorism effectively.