Financial Crime World

No Agreement Reached between Financial Intelligence Unit and Foreign State/International Organisation

Background

Despite ongoing negotiations, no agreement has been reached between the Financial Intelligence Unit (FIU) and a foreign state/international organisation regarding the terms and conditions of disclosure of reports and information.

Negotiations Stalled

Sources close to the negotiations have revealed that the FIU had been seeking an arrangement that would ensure the confidentiality of the reports and information shared with the foreign state/international organisation, which is used for intelligence purposes only. However, the parties involved could not agree on the stipulations.

Financial Intelligence Unit Act

The Financial Intelligence Unit Act requires that any report or information disclosed to a third party shall be used for intelligence purposes only and treated in a confidential manner. It also prohibits further disclosure without the express consent of the FIU.

  • The Act aims to provide a legal framework for the detection, investigation, and prosecution of financial crimes such as money laundering and terrorism financing.
  • The Act was passed last year to ensure effective monitoring and combating of financial crimes.

Appointments

The appointment process for the Director of the Financial Intelligence Unit has been completed. According to sources, the President appointed [Name] as the first Director of the FIU, who will serve a five-year term renewable by the President.

  • The Director will be responsible for overseeing the day-to-day activities of the FIU and ensuring that it performs its functions effectively.
  • The appointment is subject to approval by the Public Appointments Committee.

Other staff members of the FIU have also been appointed, including:

  • At least one legal practitioner
  • Another person with a sound financial, economic or accounting training and experience

Removal from Office

The Financial Intelligence Unit has established guidelines for the removal from office of its Director, which can only be done on grounds of misconduct, incapacity, or incompetence. The President may suspend the Director pending an inquiry or investigation into alleged wrongdoing.

Confidentiality Emphasis

In related news, the FIU has emphasized the importance of confidentiality in carrying out its duties. Under Section 16 of the Act, all staff members are required to take and subscribe an oath of confidentiality before beginning their duties.

  • Any breach of this requirement is punishable by a fine of K100,000 and imprisonment for two years.
  • The FIU will only disclose information or matter obtained in the performance of its duties under exceptional circumstances, such as for the purpose of detecting, investigating, or prosecuting financial crimes.