Money Laundering Offences: New Laws Take Effect
A significant step forward in the fight against money laundering has been taken with the introduction of stricter laws aimed at curbing this illegal activity. The legislation, which came into effect yesterday, targets individuals and corporate bodies that facilitate or engage in money laundering.
New Obligations for Individuals and Corporate Bodies
Under the new laws, a person will be deemed to have committed an offence of money laundering if their agent or officer commits such an act during the course of business or employment, unless they can prove that the offence was committed without their knowledge or consent. Furthermore, the legislation allows for the seizure and liquidation of corporate bodies found to have engaged in a pattern of money laundering offences.
Reporting Person Obligations
The new laws place significant obligations on reporting persons, such as banks and financial institutions. These entities are required to:
- Verify the identity of their customers, including those who are politically exposed persons (PEPs)
- PEPs include government officials, politicians, and other individuals who may be more susceptible to bribery or corruption
- Obtain official records that include documents such as:
- Birth certificates
- Passports
- Proof of business registration
- For PEPs, additional measures must be taken to establish the source of wealth and funds, as well as their business dealings
Suspicious Transactions Reporting
The legislation also requires reporting persons to report suspicious transactions to the Financial Intelligence Unit (FIU). This includes:
- Transactions that involve unusual or unexplained movements of funds
- Transactions that may be linked to money laundering or terrorist financing
Reporting persons who fail to comply with these obligations risk severe penalties, including fines and imprisonment. In addition, they must establish internal reporting procedures to ensure that employees are aware of the signs of suspicious activity and know how to report it.
Training and Awareness
To combat money laundering effectively, reporting persons must also provide their employees with training on:
- The recognition and handling of transactions related to money laundering or terrorist financing
- Domestic laws relating to these crimes
- Procedures for reporting suspicious activity
The new laws are designed to strengthen the country’s financial system and prevent the misuse of its financial institutions by criminals. The government has pledged to work closely with reporting persons to ensure that they comply with the new obligations and to provide support in their efforts to combat money laundering.