Money Laundering and Terrorist Financing Prohibitions in Sudan: An Overview of the AML CTF Act

Sudan’s stance against money laundering and terrorist financing has become a significant topic of interest in the global quest to combat these illicit activities. In this article, we explore the key provisions of Sudan’s Anti-Money Laundering and Combatting of Terrorism Financing (AML CTF) Act.

Criminalizing Money Laundering and Terrorist Financing

• The AML CTF Act, enacted on June 18, 2014, criminalizes money laundering and terrorist financing in Sudan.
• Money laundering (Section 35) and terrorist financing (Section 36) are addressed separately.

Scope of Application

The AML CTF Act extends beyond the financial sector:

• Individuals and entities in various sectors, including real estate, minerals, law, and accounting, are subject to this legislation.

Prohibited Activities

Money laundering involves concealing the criminal origin of proceeds:

• Specific transactions, such as transferring, transporting, exchanging, acquiring, owning, possessing, or using proceeds, are prohibited.

Defining Money Laundering and Terrorist Financing

• Money laundering does not require proof of underlying criminal activity (Section 3).
• Terrorist financing comprises intentional provision of funds for terrorism-related activities (Section 4).

Required Intent or Knowledge

• The AML CTF Act recognizes varying degrees of intent: specific intention, knowledge, and constructive knowledge.

Penalties for Non-Compliance

Violating the AML CTF Act may result in severe penalties:

• Natural persons face imprisonment for 5 to 10 years and fines equal to double the ill-gotten gains.
• Corporate entities could be fined up to SDG 500,000.

Territorial Reach

• The AML CTF Act applies within the standard conflicts of law rules.
• It does not have extra-territorial reach.

Additional Regulations and Obligations

Entities and individuals active in certain sectors may face additional obligations:

• Reporting and registration requirements to counter money laundering and terrorist financing.

Consequences for non-compliance

• Failure to comply with the AML CTF Act’s protective rules may result in fines for businesses and imprisonment for their directors.
• The Sudan Financial Information Unit (FIU) is responsible for investigation and pursuit of non-compliant entities and individuals.

Enforcing Agencies and Contact Information

• The Undersecretary of Ministry of Justice serves as the AML CTF National Committee President.
• Enquiries related to international liaison and other purposes can be directed to:
  • Justice Tower, Gamhuria Avenue
  • PO Box 302, Postal Code 11111
  • T: +249 183 764 168
  • email: moj@mojj.gov.sd