Title: Vanuatu High Court Imposes Custodial Sentences for Money Laundering Offenses: Charles Sumbe and Maepeza Namataku Kalsaria

Background

On August 2, 2018, at the Vanuatu High Court, Judge Olivier A. Saksa handed down a landmark ruling imposing custodial sentences on two individuals - Charles Sumbe and Maepeza Namataku Kalsaria - for their involvement in money laundering offenses.

Charles Sumbe

Sentencing of Charles Sumbe

Charles Sumbe, a Luganville resident, admitted guilt to 15 counts of money laundering. He received proceeds of crime through his ANZ Bank account in various transactions between February 2 and 10, 2016, amounting to VT 2,182,184 and US$ 6,000,000 (Total: VT 2,184,228,184). The maximum penalty for money laundering under section 11 (3) (a) of the Proceeds of Crime Act is a fine of VT 10 million or imprisonment for 10 years or both.

Background of Offense

The background facts of the offense included the dishonest withdrawal and attempted transfer of funds out of the country from two ANZ Bank accounts which had been hacked into during a short period of nine days.

Maepeza Namataku Kalsaria

Sentencing of Maepeza Namataku Kalsaria

Maepeza Namataku Kalsaria, also a Luganville resident, admitted guilt to four counts of money laundering. He and Sumbe were connected in transfers between their respective bank accounts. Kalsaria received VT 500,000 from Sumbe and transferred it to Malaysia via Western Union in February 2016.

Severity of Money Laundering Offenses

Judge Saksa took into consideration the severity of the money laundering offenses and underlined them in his ruling by citing previous cases:

• Preetika Aruwesh Lata (Fiji, HAC 118 of 2014) case imposed a sentence of five years for one count of money laundering involving $285,680,960 which was only partially recovered.
• Similar cases from Hong Kong and Fiji indicated that money laundering was a serious offense deserving imprisonment.

Sentences and Conclusion

Sentences

Judge Saksa sentenced Sumbe to an end sentence of 2 years imprisonment, while Kalsaria received an end sentence of 16 months. Both sentences came with no suspension and immediately took effect. Both defendants have the right to appeal within 14 days if they do not accept the ruling.

Conclusion

These sentences aim to reflect the seriousness of the money laundering offenses, condemn the unlawful actions, deter future offenses, protect financial institutions, and serve as appropriate punishments for the offenders.