Financial Crime World

Title: Sudan’s Crackdown on Money Laundering and Terrorist Financing: An Overview of the AML CTF Act

Introduction

Amidst growing global concerns over financial crimes, Sudan has taken significant steps to combat money laundering and terrorist financing within its borders. In this article, we provide an overview of the key elements of Sudan’s Anti-Money Laundering and Combatting of Terrorism Financing (AML CTF) Act.

Does Sudan Have Legislation Against Money Laundering and Terrorist Financing?

Yes, Sudan does have legislation in place to criminalize money laundering and terrorist financing. The AML CTF Act, which was enacted on June 18, 2014, outlines the offenses under Sections 35 and 36.

Scope of the Legislation

To Whom Does the Legislation Apply?

The legislation applies to both natural and legal persons operating in Sudan’s financial sector, including banking, finance, insurance, capital markets, and other sectors like real estate, minerals, lawyering, and accounting.

Key Prohibitions

Section 35 - Money Laundering

Section 35 of the AML CTF Act prohibits intentional actions to conceal criminal proceeds or assist in the original crime. This can include:

  • Transferring, transporting, exchanging, acquiring, or utilizing criminal money
  • Punishments for the underlying offense do not exempt offenders from money laundering penalties

Section 36 - Terrorist Financing

Section 36 of the AML CTF Act defines money laundering and terrorist financing as:

  • Providing or raising funds, of either legal or illegal origin, for use in terrorist activities
  • Such transactions are deemed as terrorist financing, regardless of whether or not a terrorist act has occurred

Penalties and Levels of Intent

Violating Sections 35 and 36 can result in imprisonment for natural persons for 5-10 years and a fine equal to double the value of the illegal money or proceeds. For corporate entities, the fine is up to SDG 500,000-5,000,000. The legislation acknowledges different levels of intention, including specific intention, knowledge, and constructive knowledge.

Extra-territorial Reach and Additional Regulations

Extra-Territorial Reach of the Legislation

The AML CTF Act has no extra-territorial reach but is applicable within the standard conflicts of law rules.

Additional Regulations and Obligations

Businesses and individuals operating in certain sectors must comply with protective rules and procedures, such as KYC protocols and document archiving. Failure to comply can result in fines and potential imprisonment for the directors.

Enforcement Authorities

The main enforcement authority for international liaison and other purposes is the Undersecretary, Ministry of Justice, who also serves as the president of the AML CTF National Committee. Their contact details are:

  • Address: Justice Tower, Gamhuria Avenue, PO Box 302, Postal Code 11111
  • T: +249 183 764 168
  • Email: moj@mojj.gov.sd

Conclusion

With these measures in place, Sudan is making strides to strengthen its anti-financial crime regime and reduce the risk of illicit activities within its borders.