Financial Crime World

Regulation 19: Reporting Suspicious Transactions

Overview

Regulation 19 of the Anti-Money Laundering and Combating Terrorism Financing Regulations outlines the requirements for financial institutions and financial service-providers to report suspicious transactions. This regulation is a crucial component in preventing and detecting money laundering and terrorism financing activities.

Key Requirements

Reporting Obligation

  • A financial institution or financial service-provider must report a suspicious transaction if they suspect or have reasonable grounds to suspect that the transaction involves funds which are the proceeds of a serious offence listed in Schedule 4.
  • The report must be submitted immediately upon forming the suspicion, and in any case, not later than 7 days.

Suspicious Transaction Reporting Form

  • The report must be made on a suspicious transaction reporting form prescribed pursuant to section 18 of the Act.

Additional Information

  • If the Unit requests additional information, it must be submitted within a reasonable time, and in any event not later than 14 days of the request for additional information.

Record-Keeping

  • A financial institution or financial service-provider must keep a record of:
    • A copy of a suspicious or attempted transaction report
    • A copy of additional information submitted

Confidentiality

  • The contents of the suspicious transaction report and that the financial institution or financial service-provider has made such a report must not be disclosed to anyone, including the client or customer.

Immunity

  • There is immunity from criminal or civil proceedings for a financial institution or financial service-provider which submits a suspicious or attempted transaction report in good faith.

Conclusion

Regulation 19 emphasizes the importance of reporting suspicious transactions to prevent and detect money laundering and terrorism financing activities. By following these key requirements, financial institutions and financial service-providers can play a crucial role in protecting their customers and the community from these illicit activities.