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Financial Institutions and Cash Dealers Required to Report Suspicious Transactions

In a bid to combat money laundering and other financial crimes, the Solomon Islands Government has introduced new regulations requiring financial institutions and cash dealers to report suspicious transactions.

Reporting Requirements

According to the regulations, financial institutions and cash dealers are required to:

  • Take reasonable measures to identify the purpose of a transaction, the origin and destination of funds involved, and the identity and address of any ultimate beneficiary.
  • Prepare a report in accordance with section 14(2) and communicate the information contained therein to the Financial Intelligence Unit (FIU) within three working days.

Internal Reporting Procedures

Financial institutions and cash dealers are also required to:

  • Establish and maintain internal reporting procedures to identify persons to whom an employee should report any information that may give rise to knowledge or suspicion of money laundering.
  • Provide training to their employees on recognizing and handling money laundering transactions.

Prevention Measures

The regulations require financial institutions and cash dealers to establish and maintain internal reporting procedures to prevent money laundering, including:

  • Making employees aware of the laws relating to money laundering in Solomon Islands.
  • Providing training on recognizing and handling money laundering transactions.

Penalties for Non-Compliance

Financial institutions and cash dealers that fail to comply with the regulations may face penalties, including:

  • Fines
  • Imprisonment

Individuals who are found guilty of money laundering or other related offences may also face severe penalties, including:

  • Fines
  • Imprisonment

Seizure and Detention of Suspicious Imports or Exports of Currency

The regulations provide for the seizure and detention of currency that is being imported into or exported from Solomon Islands if it exceeds a certain amount or if there are reasonable grounds for suspecting that it is derived from a money laundering offence.

Implementation Date

The new regulations will take effect on [insert date] and will apply to all financial institutions and cash dealers operating in Solomon Islands.