Financial Crime World

Financial Intelligence Boosted as Reporting Entities Share Critical Information

In an effort to combat financial crimes and terrorism, reporting entities are now required to submit Suspicious Transaction Reports (STRs) to the Financial Intelligence Agency (FIA). Failure to do so can result in criminal charges.

Anti-Money Laundering Act Requirements

Under the Anti-Money Laundering Act (AMLA), real estate agents are obligated to report any transactions or activities that may be related to money laundering or financing of terrorism. This includes reporting if they know or have reasonable grounds to suspect that funds are being used for illegal purposes.

Time-Sensitive Reporting

According to Section 9 of the AMLA, an STR must be submitted within two days of identifying a suspicious transaction. Additionally, Regulation 12(7) and (8) requires real estate agents to report immediately if a designated entity attempts to enter into or continue a business relationship.

Designated Entities

A designated entity is any individual or entity listed by the United Nations Security Council as being associated with terrorism. The list can be accessed on the UN website.

Knowledge and Suspicion

The reporting criteria are based on two main elements: knowledge and suspicion.

  • Knowledge: refers to actual awareness of illegal activities.
  • Suspicion: is inferred from reasonable grounds. If a real estate agent actually knows that their client is engaged in money laundering or financing terrorism, they must report it immediately. However, if they have only suspicions but no concrete evidence, they still have an obligation to report.

Drawing Conclusions

The second criterion requires reporting entities to draw conclusions based on objective facts and circumstances. This means that even if a real estate agent does not consciously know about illegal activities, they must still report if they should reasonably suspect something is amiss.

Reporting Suspicious Transactions

Real estate agents must report any transactions or activities that may be related to money laundering or financing of terrorism. These reports must include the following information:

  • The nature and date of the transaction
  • The parties involved in the transaction
  • The amount of funds involved
  • Any other relevant details

Importance of Reporting

The FIA has emphasized the importance of reporting suspicious transactions, as it is a critical tool in detecting and preventing financial crimes.

Consequences of Non-Compliance

Failure to report knowledge or suspicion of crime proceeds or terrorist property is a criminal offense, punishable by law. Real estate agents who fail to report such information may be guilty of money laundering or financing terrorism.

Compliance Is Essential

It is essential for all real estate agents to familiarize themselves with the AMLA and reporting requirements to ensure compliance and prevent financial crimes.