Anti Money Laundering Act

ANTI-MONEY LAUNDERING ACT. ARRANGEMENT OF SECTIONS. Section PART I PRELIMINARY. 1. Interpretation. 2. Jurisdiction. PART II CRIMINALISATION OF THE LAUNDERING OF PROCEEDS OF CRIME. 3. Prohibition of money laundering. 4. Evidence of state of mind. 5. Separate crime. PART III MONEY LAUNDERING PREVENTION MEASURES. 6. Identification of clients, customers, other persons and other anti-money laundering measures. 7. Maintenance of records. 8. Recording and reporting cash and monetary transactions. 9. Monitoring and reporting of suspicious transactions. 10. Cross border movements of currency and negotiable bearer instruments. 11. Availability of records. 12. Admissibility of records. 13. Electronic funds transfers. 14. Obligations of confidentiality not an impediment. 15. Immunity from liability. 16. Refraining from doing business with money launderers. 17. Continuing the transaction. PART IV FINANCIAL INTELLIGENCE AUTHORITY. 18. Establishment of the Authority. 19. Objectives. 20. Functions. 21. General powers of the Authority. 22. Independence of the Financial Intelligence Authority. 23. Financial Intelligence Authority Board. 24. Functions of the Board. 25. Composition of the Board. 26.

nce of the Financial Intelligence Authority. 23. Financial Intelligence Authority Board. 24. Functions of the Board. 25. Composition of the Board. 26.

Tenure and removal of members of the Board. 27. Meetings and procedures of the Board. 28. Executive Director. 29. Functions of the Executive Director. 30. Removal or suspension from office. 31. Appointment of the Deputy Executive Director. 32. Staff. 33. Declaration of Assets. 34. Oath of Secrecy. 35. Reports to the Board. 36. Reports to the Minister. 37. Receipt of reports and information. 38. Disclosure and use of information. 39. Contracts and agreements. 40. Legal proceedings. 41. Funds of the Authority. 42. Fiscal year of the Authority. 43. Audit. PART V SEIZURE, FREEZING AND FORFEITURE OF ASSETS IN RELATION TO MONEY LAUNDERING. Production orders. 44. Application for production order. 45. Issuance of production order. 46. Authority to inspect, copy and retain under the production order. 47. Relief from the court. 48. Production orders in relation to foreign crimes. Document search warrant. 49. Authority to search for and seize documents relevant to locating property. 50. Application for document search warrant. 51. Issuance of document search warrant. 52. Preconditions for a document search warrant. 53. Particulars of document search warrant. 54.

rch warrant. 51. Issuance of document search warrant. 52. Preconditions for a document search warrant. 53. Particulars of document search warrant. 54.

Authority to seize documents and other evidence. 55. Search warrants in relation to foreign crimes. Monitoring orders. 56. Application for monitoring order. 57. Issuance of monitoring order. 58. Particulars of monitoring order. 59. Preconditions for monitoring order. 60. Monitoring orders not to be disclosed. Warrant for tainted property. 61. Authority to search and seize tainted property. 62. Application for tainted property search warrant. 63. Issuance of search warrant. 64. Charge not a prerequisite to issuance. 65. Particulars of search warrant. 66. Authority to seize other tainted property or evidence. 67. Emergency searches and seizures. 68. Record of property seized. 69. Return of seized property. 70. Search for and seizure of tainted property in relation to foreign crimes. Restraining orders. 71. Application for restraining order. 72. Contents of application for restraining order. 73. Issuance of the restraining order. 74. Contents of restraining order. 75. Undertakings by the Government. 76. Notice of application for restraining order. 77. Service of restraining order. 78. Registration of restraining order. 79. Setting aside disposition. 80. Duration of restraining order.

ning order. 77. Service of restraining order. 78. Registration of restraining order. 79. Setting aside disposition. 80. Duration of restraining order.

81. Review of restraining orders. 82. Extension of restraining orders. Confiscation and pecuniary penalty orders. 83. Application for confiscation order or pecuniary penalty order. 84. Notice of Application. 85. Procedure for confiscation order where a person dies or absconds. Confiscation. 86. Confiscation order on conviction. 87. Effect of confiscation order. 88. Voidable transfers. 89. Protection of third parties. 90. Discharge of confiscation order on appeal and quashing of conviction. 91. Payment instead of a confiscation order. Pecuniary penalty orders. 92. Pecuniary penalty order on conviction. 93. Rules for determining benefit and assessing value. 94. Statements relating to benefits from commission of crime. 95. Amount recovered under pecuniary penalty order. 96. Lifting the corporate veil. 97. Discharge of pecuniary penalty orders. Realisation of property. 98. Realisation of property. 99. Application of proceeds of realisation and other sums. 100. Treatment of realisable property in bankruptcy or winding up. 101. Disposition of confiscated property. 102. Property of foreign crimes. 103. Special Account. 104. Management of restrained and confiscated property.

1. Disposition of confiscated property. 102. Property of foreign crimes. 103. Special Account. 104. Management of restrained and confiscated property.

PART VI INTERNATIONAL COOPERATION. 105. International agreement. 106. General provisions. 107. Request for mutual legal assistance. 108. Judgment as evidence. 109. Request for confiscation. 110. Transfer of proceeds of crime to requesting State. 111. Other mutual assistance. 112. Disposal of confiscated property. 113. Extradition. 114. Provisions common to requests for mutual assistance and for extradition. 115. Witnesses in custody. PART VII OFFENCES AND PENALTIES. 116. Prohibition of money laundering. 117. Tipping-off. 118. Falsification, concealment, etc. of documents. 119. Failure to identify persons. 120. Failure to keep records. 121. Facilitating money laundering. 122. Destroying or tampering with records. 123. Refusal, omission, neglect or failure to give assistance. 124. Failure to report cash transactions. 125. Failure to report suspicious or unusual transactions. 126. Failure to report conveyance of cash into or out of Uganda. 127. Failure to send a report to authority. 128. Failure to comply with orders made under the Act. 129. Contravening a restraining order. 130. Misuse of information. 131. Obstructing an official in performance of functions. 132.

made under the Act. 129. Contravening a restraining order. 130. Misuse of information. 131. Obstructing an official in performance of functions. 132.

Influencing testimony. 133. General noncompliance with requirements of this Act and conducting transactions to avoid reporting duties. 134. Unauthorised access to computer system or application or data. 135. Unauthorised modification of contents of computer system. 136. Penalties. 137. Defences. PART VIII MISCELLANEOUS. 138. Act not to limit powers of investigating authorities or supervisory bodies. 139. Amendment of Schedules. 140. Immunity. 141. Regulations. First Schedule Currency Point. Second Schedule List of Accountable Persons. ANTI-MONEY LAUNDERING ACT. Commencement : 1 November, 2013.

. Regulations. First Schedule Currency Point. Second Schedule List of Accountable Persons. ANTI-MONEY LAUNDERING ACT. Commencement : 1 November, 2013.

An Act to provide for the prohibition and prevention of money laundering, the establishment of a Financial Intelligence Authority and a Financial Intelligence Authority Board in order to combat money laundering activities; to impose certain duties on institutions and other persons, businesses and professions who might be used for money laundering purposes; to make orders in relation to proceeds of crime and properties of offenders; to provide for international cooperation in investigations, prosecution and other legal processes of prohibiting and preventing money laundering; to designate money laundering as an extraditable offence; and to provide for other related matters. PART I PRELIMINARY. 1. Interpretation.

laundering; to designate money laundering as an extraditable offence; and to provide for other related matters. PART I PRELIMINARY. 1. Interpretation.

In this Act, unless the context otherwise requires— "accountable person" means any person listed in the Second Schedule to this Act; "authorised officer" means the Executive Director or Deputy Executive Director of the Financial Intelligence Authority, a prosecutor of the Director of Public Prosecutions, or a police officer of the rank of assistant inspector of police or higher; "Authority" means the Financial Intelligence Authority established under Part IV; "beneficial owner" means any natural or legal person or any other entity including any charitable organisation, natural or juridical, including but not limited to a corporation, partnership, trust or estate, joint stock company, association, syndicate, joint venture or any other unincorporated organisation or group, capable of acquiring rights or entering into obligations; "Board" means the Financial Intelligence Authority Board established under Part IV; "cash" means coins and bank notes of Uganda or of another country that are designated as legal tender and that circulate as and are customarily used and accepted as a medium of exchange in the country of issue; "competent authority" means investigative, prosecuting, judicial, regulatory or supervisory authorities of the Government of Uganda and includes the Financial Intelligence Authority; "confiscation" , which includes forfeiture where applicable, means the permanent deprivation of property by an order of court; "court" means the High Court; "crime" means— ( a ) any activity that is a crime, offence or violation under the laws of Uganda; ( b ) any activity outside the jurisdiction of Uganda which, had it taken place in Uganda, would be a crime, offence or violation under the laws of Uganda.

any activity outside the jurisdiction of Uganda which, had it taken place in Uganda, would be a crime, offence or violation under the laws of Uganda.

"currency point" has the value given to it in the First Schedule of this Act in relation to currency point; "defendant" means a person charged with a crime, whether or not he or she has been convicted, and includes, in the case of a proceeding for a restraining order under sections 71 to 82, a person who is about to be charged with a crime; "document" means any record of information and includes— ( a ) anything on which there is a writing; ( b ) anything on which there are marks, figures, symbols, or perforations having meaning for persons qualified to interpret them; ( c ) anything from which sounds, images or writings can be produced, with or without the aid of anything else; ( d ) a map, plan, drawing, photograph or similar thing; ( e ) an electronic document.

ings can be produced, with or without the aid of anything else; ( d ) a map, plan, drawing, photograph or similar thing; ( e ) an electronic document.

"financial institution" means a person who carries on or transacts in the business of a bank or a credit institution, as defined in the Financial Institutions Act, or an insurance company licensed under the Insurance Act; "freezing" or "seizure" means temporarily prohibiting the transfer, conversion, disposition or movement of property or temporarily assuming custody or control of property on the basis of an order issued by a court; "gift" means any transfer of property by a person to another person directly or indirectly— ( a ) after the commission of a crime; ( b ) for a consideration the value of which is significantly less than the value of the consideration provided by the first person; and ( c ) to the extent of the difference between the market value of the property transferred and the consideration provided by the transferee; "gift caught by this Act" means a gift made by the defendant at any time after the commission of the crime, or if more than one, the earliest of crimes, to which the proceedings for the time being relate, and the court considers it appropriate in all circumstances to take the gift into account; "material" means documentary material of any kind and includes information stored in a computer, disc, cassette, or on microfilm, or preserved by any mechanical or electronic device; "Minister" means the Minister responsible for Finance, Planning and Economic Development; "monetary instrument" includes currency of any state or country, travelers cheques, bearer negotiable instruments, bearer investment securities, bearer securities, stock on which title is passed on delivery and similar material; "monetary transaction" means a transaction that is conducted or concluded using a monetary instrument; "money laundering" is the process of turning illegitimately obtained property into seemingly legitimate property and it includes concealing or disguising the nature, source, location, disposition or movement of the proceeds of crime and any activity which constitutes a crime under section 116 of this Act; "occasional transaction" means any transaction involving cash that is conducted by any person other than through an account in respect of which the person is a customer; "payable-through accounts" means correspondent accounts that are used directly by third parties to transact business on their own behalf.

a customer; "payable-through accounts" means correspondent accounts that are used directly by third parties to transact business on their own behalf.

"person" means any natural or legal person or any entity (including any charitable organisation), natural or juridical, including but not limited to a corporation, partnership, trust or estate, joint stock company, association, syndicate, joint venture, or other unincorporated organisation or group, capable of acquiring rights or entering into obligations; "politically exposed persons" means individuals who are or have been entrusted with prominent functions in a country, for example Heads of State or of government, senior politicians, senior government, judicial or military officials, senior executives of state owned corporations, and important party officials as well as family members or close associates of such individuals; "proceeds" means any economic advantage including property derived from or obtained, directly or indirectly, from the committing of a crime, and includes property later successively converted, transformed or intermingled, as well as income, capital or other economic gains derived from such property at any time after the committing of the crime; "property" means assets of every kind whether corporeal or incorporeal, movable or immovable, tangible and legal documents or instruments evidencing title to or interest in such assets; "provisional measures" means those actions set out in sections 44 to 82 of this Act; "realisable property" means any property held by a defendant and any property held by a person to whom a defendant has directly or indirectly made a gift caught by this Act; "realisation" means converting any kind of property into money, such as by sale; "recognisance" means a bond or obligation, entered into and recorded before a court or magistrate, by which a person engages himself to perform some act or observe some condition such as to appear when called upon, pay a debt or keep the peace; "record" means any material on which data are recorded or marked and which is capable of being read or understood by a person, computer system or other device; "requesting State" means any State which makes a request under the provisions of Part VI; "shell bank" means a bank incorporated in a jurisdiction in which it has no physical presence and which is unaffiliated with a regulated financial group; "suspicious transaction" refers to a transaction which is inconsistent with a customer's known legitimate business or personal activities or with the normal business for that type of account or business relationship, or a complex and unusual transaction or complex or unusual pattern of transaction; "tainted property" means property used in or in connection with the commission of a crime or constituting the proceeds of crime; "transaction with no apparent or visible legitimate economic purpose" includes— ( a ) a transaction that gives rise to a reasonable suspicion that it may involve the laundering of money or the proceeds of any crime and is made in circumstances of unusual or unjustified complexity; ( b ) a transaction whose form or features suggest that it might be intended for an illegal purpose, or the economic purpose of which is not discernible; ( c ) a customer relationship with the financial institution that does not appear to make rational economic sense, eg., a customer having a large number of accounts with the same bank, frequent transfers between different accounts or inordinately high liquidity; ( d ) a transaction in which assets are withdrawn immediately after being deposited, unless the customer's business activities furnish plausible reason for immediate withdrawal; ( e ) a transaction that cannot be reconciled with the usual activities of the customer(s) of the financial institution or branch office in question, and in which the reason for the customer's choice of that particular financial institution or branch cannot be ascertained; ( f ) a transaction which, without plausible reason, results in the intensive use of what was previously a relatively inactive account, such as a customer's account which shows virtually no normal personal or business related activities but is used to receive or disburse unusually large sums which have no obvious purpose or relationship to the customer or his business; ( g ) a transaction which is incompatible with the financial institution's knowledge and experience of the customer in question or with the purpose of the business relationship.

s incompatible with the financial institution's knowledge and experience of the customer in question or with the purpose of the business relationship.

2. Jurisdiction. (1) Notwithstanding the provisions of any other law, Uganda shall have jurisdiction over the crimes under this Act when— ( a ) the crime is committed within the territory of Uganda; ( b ) the crime is committed on board a vessel that is flying the flag of Uganda or an aircraft that is registered under the laws of Uganda at the time the crime is committed; ( c ) the crime is committed by a national of Uganda or a stateless person, who has his or her habitual residence in Uganda; ( d ) the crime is a crime under paragraph ( g ) of section 116 of this Act committed outside the territory of Uganda with the objective of committing a crime under paragraphs ( a ) up to ( f ) of section 116 of this Act within the territory of Uganda. (2) The crimes provided for in Part II of this Act shall be investigated by a competent authority, tried, judged and sentenced by a court regardless of whether or not the crimes occurred outside the territory of Uganda. PART II CRIMINALISATION OF THE LAUNDERING OF PROCEEDS OF CRIME. 3. Prohibition of money laundering.

e crimes occurred outside the territory of Uganda. PART II CRIMINALISATION OF THE LAUNDERING OF PROCEEDS OF CRIME. 3. Prohibition of money laundering.

It is prohibited for any person to intentionally— ( a ) convert, transfer, transport or transmit property, knowing or suspecting that such property to be the proceeds of crime, for the purpose of concealing or disguising the illicit origin of the property or of assisting any person who is involved in the commission of the crime generating the proceeds to evade the legal consequences of his or her actions; or ( b ) conceal, disguise or impede the establishment of the true nature, source, location, disposition, movement or ownership of or rights with respect to property, knowing or suspecting that such property to be the proceeds of crime; or ( c ) acquire, possess, use or administer property, knowing, at the time of receipt, that the property is the proceeds of crime; or ( d ) act to avoid the transaction reporting requirements provided in Part III of this Act; or ( e ) assist another to benefit from known proceeds of crime; or ( f ) use known proceeds of crime to facilitate the commission of a crime; or ( g ) participate in, associate with, conspire to commit, attempt to commit, aid and abet, or facilitate and counsel the commission of any of the acts described in paragraphs ( a ) to ( f ).

nspire to commit, attempt to commit, aid and abet, or facilitate and counsel the commission of any of the acts described in paragraphs ( a ) to ( f ).

4. Evidence of state of mind. Knowledge, intent or purpose required as an element of the crime of money laundering set out in this Part may be inferred from objective factual circumstances. 5. Separate crime. The crime of money laundering under this Act— ( a ) is a crime distinct from and in addition to other crimes under the laws of Uganda, including the crime generating the proceeds subject to the money laundering; and ( b ) may be charged without the person having been convicted of the crimes generating the proceeds of money laundering. PART III MONEY LAUNDERING PREVENTION MEASURES. 6. Identification of clients, customers, other persons and other anti-money laundering measures.

ering. PART III MONEY LAUNDERING PREVENTION MEASURES. 6. Identification of clients, customers, other persons and other anti-money laundering measures.

An accountable person— ( a ) who maintains accounts for clients or customers, shall maintain such accounts in the true name of the account holder, and shall not open or keep anonymous accounts or accounts which are in fictitious or incorrect names; ( b ) shall not initiate a business relationship or carry out an occasional transaction, including the opening of a new account or issuing a passbook, entering into a fiduciary transaction, renting a safe deposit box, performing a cash transaction over 1,000 currency points, or conducting a wire transfer, without undertaking customer due diligence measures, including obtaining, recording and verifying by reliable means— (i) the identity of the client, including true name, address including postal and residential, employment, and occupation; (ii) the client's representative capacity, if any; (iii) if the client is acting on behalf of another person, the identity of that other person and the client's authority to act on behalf of that other person; (iv) if another person is acting on behalf of the client, the identity of that other person, and the other person's authority to act on behalf of the client; and (v) such other identifying information as may be specified by the Minister, upon the advice of the Board and the Authority; ( c ) shall undertake further customer due diligence measures to— (i) verify the customer's identity using reliable, independent source documents, data or information, such as passports, birth certificates, driver's licenses, identity cards, voters roll cards, utility bills, bank statements, partnership contracts and incorporation papers or other identification documents prescribed by regulations made under this Act, in addition to documents providing convincing evidence of legal existence and the powers of legal representatives; (ii) verify the identity of the beneficial owner of the account, in the case of legal persons and other arrangements, including taking reasonable measures to understand the ownership, control and structure of the customer obtaining information concerning provisions regulating the power to bind the legal person and verifying that any person purporting to act on behalf of the customer is so authorised, and to identify those persons; (iii) obtain information on the purpose and intended nature of the business relationship; and (iv) conduct ongoing due diligence on the business relationship and scrutiny of transactions undertaken throughout the course of the relationship to ensure that the transactions being conducted are consistent with the accountable person's knowledge of the customer and the customer's business, including, where necessary, the source of funds; ( d ) shall verify the identity of the customer and beneficial owner before or during the course of establishing a business relationship or conducting a transaction for an occasional customer, and complete the verification as soon as reasonably practicable following the establishment of the relationship where the money laundering risks are effectively managed and where it is essential not to interrupt the normal conduct of business; ( e ) shall apply to each of its customers due diligence measures, but may determine the extent of such measures on a risk sensitive basis depending on the type of customer, business relationship or transaction, and— (i) for higher risk categories, shall perform enhanced due diligence; (ii) in certain circumstances, where there are low risks, may apply reduced or simplified measures; ( f ) shall undertake enhanced customer due diligence measures to determine the true identity of the client if— (i) there are any doubts that a client is acting on his or her own behalf, particularly in the case of a juridical person who is not conducting any commercial, financial, or industrial operations in Uganda where it has its headquarters or domicile; (ii) there are any doubts about the veracity or adequacy of obtained customer identification data; (iii) there is a suspicion of money laundering or terrorist financing; ( g ) shall, in addition to normal due diligence measures, in relation to politically exposed persons— (i) have appropriate risk management systems to determine whether a customer is a politically exposed person; (ii) establish appropriate guidelines to monitor business relations with such customers; (iii) take reasonable measures to establish the source of wealth or funds; (iv) conduct ongoing monitoring of the business relations; and (v) obtain the approval of senior management before establishing a business relationship with the customer; ( h ) shall, in addition to normal due diligence measures, in relation to cross-border correspondent banking and other similar relationships— (i) gather sufficient information about a respondent institution to understand fully the nature of the respondent's business and to determine from publicly available information the reputation of the institution and the quality of supervision, including whether it has been subject to a money laundering or terrorist financing investigation or regulatory action; (ii) assess the respondent institution's anti-money laundering and terrorist financing controls; (iii) document the respective responsibilities of the accountable person and the respondent institution; (iv) with respect to payable through accounts, be satisfied that the respondent institution has verified the identity of and performed ongoing due diligence on the customers having direct access to accounts of the correspondent and that it is able to provide relevant customer identification data upon request to the correspondent bank; (v) refuse to enter into, or continue, a correspondent banking relationship with shell banks or a respondent institution that is known to permit its accounts to be used by shell banks; and (vi) obtain approval from senior management before establishing a new correspondent relationship; ( i ) shall not, when unable to comply with the provisions of this section, open the account, commence the business relationship, or conduct the transaction, or shall terminate the business relationship, and consider making a suspicious transactions report in relation to the customer as provided in section 9; ( j ) shall apply the provisions of this section to existing customers on the basis of materiality and risk, and shall conduct due diligence on such existing relationship at appropriate times; ( k ) shall develop programmes against money laundering and terrorist financing, including— (i) the development of internal policies, procedures, and controls, including appropriate compliance management arrangements, and adequate screening procedures to ensure high standards when hiring employees; (ii) an ongoing employee training programme; (iii) an audit function to test the system; ( l ) shall take measures to prevent criminals or their associates from holding or being the beneficial owner of a significant or controlling interest or holding a management function in such accountable person; ( m ) who maintains accounts for clients or customers shall appoint a Money Laundering Control Officer to oversee its anti-money laundering and control of terrorist financing programmes and the Minister upon advice from the Authority, may, by regulation, determine the managerial position and related responsibilities of such an officer; ( n ) who relies on an intermediary or a third party to undertake its obligations under this section or to introduce business to it shall— (i) immediately obtain the necessary information required by section 7; (ii) ensure that copies of identification data and other relevant documentation relating to the requirements in section 7 are made available to it from the intermediary or the third party upon request, without delay; (iii) satisfy itself that the intermediary or third party is regulated and supervised and has measures in place to comply with the requirements set out in section 7.

tself that the intermediary or third party is regulated and supervised and has measures in place to comply with the requirements set out in section 7.

7. Maintenance of records.

7. Maintenance of records.

An accountable person shall— ( a ) establish and maintain for at least 10 years the information obtained about the true identity of the person on whose behalf a business relationship is initiated or a transaction is conducted; ( b ) establish and maintain, during the period in which business relations are in effect, and for at least 10 years after their conclusion, in readily recoverable form, the records of the information and documentation required under this Part; ( c ) establish and maintain records on customer identification, account files, and business correspondence as determined by the Minister, upon advice of the Authority, for at least five years after the account has been closed; and ( d ) establish and maintain records to enable the reconstruction of transactions required to be reported under this Act, for at least 10 years after the conclusion of the transaction, including the— (i) dates; (ii) amounts involved; (iii) types of currency involved; (iv) parties to the transaction and their addresses; (v) accounts involved; (vi) nature of the transaction; (vii) manner in which the identity of the client and the person acting on behalf the client was established; (viii) the name of the person who obtained the information; and (ix) the documents obtained to verify identity; ( e ) establish and maintain the records required in this section in electronic form.

information; and (ix) the documents obtained to verify identity; ( e ) establish and maintain the records required in this section in electronic form.

8. Recording and reporting cash and monetary transactions. (1) For each cash and monetary transaction involving a domestic or foreign currency exceeding 1,000 currency points, an accountable person shall record the cash or monetary transaction on the form designated as Form A as may be appended to regulations made by the Minister, on the advice of the Authority. (2) The information required by Form A shall be recorded, accurately and completely, by the accountable person on the day the transaction has occurred and the Form A shall be maintained for a period of 10 years from the date of the transaction. (3) Multiple cash and monetary transactions which altogether exceed the prescribed amount shall be treated as a single transaction if they are undertaken by or on behalf of any one person during any one day or such other period prescribed by the Minister, upon advice of the Authority, and shall be recorded on Form A as if they were a single transaction under this section. (4) Transactions conducted on their own account between accountable persons subject to supervision by authorities of the Government of Uganda are not required to be recorded on Form A.

r own account between accountable persons subject to supervision by authorities of the Government of Uganda are not required to be recorded on Form A.

(5) A copy of the Form A completed under the requirements of this section shall be filed with the Authority, within such time as is prescribed by the Minister, upon advice of the Authority. 9. Monitoring and reporting of suspicious transactions.

he Authority, within such time as is prescribed by the Minister, upon advice of the Authority. 9. Monitoring and reporting of suspicious transactions.

(1) An accountable person shall— ( a ) pay special attention to all complex, unusual or large transactions, whether completed or not, and to all unusual patterns of transaction which have no apparent economic or lawful purpose; ( b ) pay special attention to— (i) transactions made on behalf of a person whose identity has not been established to the satisfaction of the officer or employee performing the transaction; (ii) business relations and transactions with persons in jurisdictions that do not have adequate systems in place to prevent or deter money laundering or the financing of terrorism; (iii) electronic funds transfers, other than electronic funds transfer referred to in subsections 13(2) and (3) that do not contain complete originator information; ( c ) upon suspicion that a transaction described in subsection (1)( a ) and ( b ) could constitute or be related to illegal activities, including facilitating the transfer of the proceeds of crime, seeking to avoid the reporting duty under this section, the financing of terrorism, and evasion of the duty to pay any tax or duty— (i) examine as far as possible and seek information as to the origin and destination of the money, the background and purpose of the transaction or business relationship, and the identity of the transacting parties, including any ultimate beneficiary; (ii) as soon as practicable, after forming the suspicion or receiving the information, but not later than two working days, report the suspicious transaction to the Authority, on the form designated as Form B as may be appended to the regulations made by the Minister, on the advice of the Authority and shall be accompanied by copies of documentation directly relevant to that suspicion and the grounds on which it is based; ( d ) upon making a report or giving any information to the Authority under subsection (1)( c )(ii), if requested by the Authority, give the Authority any further information it has about the transaction or attempted transaction or the parties to the transaction; ( e ) exercise particular vigilance with regard to transactions originating from jurisdictions which do not impose sufficient obligations with regard to customer identification or the monitoring of transactions.

ns originating from jurisdictions which do not impose sufficient obligations with regard to customer identification or the monitoring of transactions.

(2) Where a supervisory authority or an auditor of an accountable person suspects or has reasonable grounds to suspect that information that it has concerning any transaction or attempted transaction may be— ( a ) related to the commission of an offence, a money laundering offence or an offence of the financing of terrorism; ( b ) relevant to an act preparatory to an offence of the financing of terrorism; ( c ) an indication of money laundering or the financing of terrorism, the supervisory authority or the auditor shall, as soon as practicable after forming that suspicion or receiving the information, but no later than two working days, report the transaction or attempted transactio This section of the article is only available for our subscribers. Please click here to subscribe to a subscription plan to view this part of the article. Home | About Us |--> Terms & Conditions | Privacy Statement | Publishing Services | Contact Us Sitemap --> --> Copyright 2019. Blackhall Publishing. All Rights Reserved. Design and Developed By : Indiafin Technologies Ltd .