Financial Crime World

Sudan’s Anti-Money Laundering and Counter-Terrorist Financing Legislation: Penalties for Individuals

Sudan’s Anti-Money Laundering and Counter-Terrorist Financing (AML-CTF) Act of 2014 outlines strict regulations against money laundering and terrorist financing for individuals and legal entities. In this article, we will examine the penalties for individuals under this Act.

Criminal Offence

  • Yes, Sudan’s AML-CTF Act makes it a criminal offence for individuals to engage in money laundering and terrorist financing. (Sec. 35 and 36)

To Whom Does the Legislation Apply?

  • The AML-CTF Act applies to individuals and entities active in sectors such as banking, finance, insurance, capital markets, real estate, minerals, and lawyering and accounting.

Prohibited Activities

Money Laundering

  • An individual commits money laundering if they know or have reason to believe that money is the proceeds of a crime and intentionally transfer, transport, exchange, acquire, own, possess, or utilize such money or proceeds. (Sec. 35(1))
  • No conviction of the underlying criminal activity is required for money laundering charges.

Terrorist Financing

  • Terrorist financing involves providing or raising money, of legal or illegal origin, with the intention that it be used for committing a terrorist act or by a terrorist organization. (Sec. 36(1))
  • Actions described in Sec. 36(1) are deemed to be terrorist financing, regardless of whether a terrorist act took place or whether the money was used to attempt or carry out such an act. (Sec. 36(2))

Intent and Knowledge

  • The violation of Sec. 35 and 36 requires specific intention, knowledge, and constructive knowledge, with varying levels tied to the type of act in issue.

Penalties

  • Individuals convicted of violating Sec. 35 or 36 face imprisonment for 5-10 years and a fine equal to double the amount of illegal money or proceeds in issue.
  • Corporate entities face fines ranging from SDG 50000-500000.

Territorial Reach

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

Additional Regulations and Obligations

  • Financial institutions and other entities must adopt protective rules and procedures for identifying customers and implementing the Know Your Customer (KYC) protocol.
  • Business regulators inspect and verify compliance with these rules and procedures.

Penalties for Non-compliance

  • Business associations that fail to comply with these protective rules and procedures risk fines.
  • Members of their boards of directors could also face imprisonment.

Enforcement Authorities and Contact Information

  • The Undersecretary, Ministry of Justice, serves as the main enforcement agent for international liaison and other purposes.
  • Contact details: Justice Tower, Gamhuria Avenue, PO Box 302, Postal Code 11111; T: +249 183 764 168; moj@mojj.gov.sd