Registrars’ Role Expanded in Fight Against Money Laundering and Terrorism Financing
In a significant move aimed at strengthening the country’s fight against money laundering and terrorism financing, Parliament has passed amendments to the Financial Intelligence Unit Act.
New Provisions Enhance Reporting Requirements
The amendments, which came into effect yesterday, expand the role of registrars in reporting suspicious transactions and increase penalties for non-compliance. Under the new provisions, registrars are now required to:
- Inform the Director of the Financial Intelligence Unit (FIU) if they have acquired knowledge of any information that may be relevant to a criminal or fraudulent investigation
- Register with FIU within a specified time frame and in a prescribed form and manner
New Reporting Requirements for Registrars
The changes also introduce new reporting requirements for registrars, including:
- Informing the FIU of any clients they have dealt with
- Reporting any transactions that may be suspicious or of concern
- Maintaining records of their transactions
- Providing feedback to the FIU on a regular basis
Increased Penalties for Non-Compliance
The amendments also increase penalties for non-compliance, including:
- Fines of up to 5 million rupees
- Imprisonment for up to 10 years for those who fail to comply with the reporting requirements
Measures to Prevent Tipping-Off and Enhance Cooperation
In addition, the changes introduce new measures to prevent tipping-off, which is the unauthorized disclosure of information that may compromise an investigation. The amendments also provide for greater cooperation between registrars and supervisory authorities in the fight against money laundering and terrorism financing.
Key Changes
- Registrars now required to inform FIU of any information acquired that may be relevant to a criminal or fraudulent investigation
- New reporting requirements for registrars, including feedback to FIU on a regular basis
- Increased penalties for non-compliance, including fines and imprisonment
- Measures introduced to prevent tipping-off
- Greater cooperation between registrars and supervisory authorities
Enhancing the Effectiveness of Anti-Money Laundering and Anti-Terrorism Financing Regime
The amendments are aimed at enhancing the effectiveness of the country’s anti-money laundering and anti-terrorism financing regime, as well as improving international cooperation in these areas.