Laws of Zambia Active 2010Financial Intelligence Centre 2010
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Financial Intelligence Centre [No. 46 of 2010 665
THE FINANCIAL INTELLIGENCE CENTRE
ACT, 2010
ARRANGEMENT OF SECTIONS
PART I
PRELIMINARY
Section
1. Short title and commencement
2. Interpretation
PART II
THE FINANCIAL INTELLIGENCE CENTRE
3. Establishment of Financial Intelligence Centre
4. Seal of Centre
5. Functions of Centre
6. Extent of Centre’s autonomy
7. Board of Centre
8. Functions of Board
9. Director
10. Powers of Director
11. Officers and other staff
12. Immunity of officers
13. Disapplication of secrecy obligations
14. Immunity from execution of judgements
PART III
PREVENTION OF MONEY LAUNDERING, TERRORIST FINANCING AND
OTHER SERIOUS OFFENCES
ecrecy obligations
14. Immunity from execution of judgements
PART III
PREVENTION OF MONEY LAUNDERING, TERRORIST FINANCING AND
OTHER SERIOUS OFFENCES
15. Prohibition of establishment of anonymous accounts
16. Customer identification requirements
17. Reliance on identification by third party
18. Customers not physically present
19. High risk customers
20. Identification and account-opening for cross border
correspondent banking relationships
21. Inability to fulfil customer identification obligations
22. Record-keeping
23. Internal programmes to combat money laundering, financing
of terrorism and other serious offences
24. Ongoing due diligence
25. Special monitoring of certain transactions
26. Obligations regarding wire transfers
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka. Price K16,000 each
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d from the Government Printer,
P.O. Box 30136, 10101 Lusaka. Price K16,000 each
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666 No. 46 of 2010] Financial Intelligence Centre
27. Compliance with obligations by foreign subsidiaries and
branches
28. Prohibition against shell banks
29. Obligation to report suspicious transactions
30. Obligation to report currency transactions
31. Disclosing information regarding compliance
32. Inapplicability of confidentiality provisions
33. Prohibition against tipping off
34. Protection of identity of persons and information relating to
suspicious transaction reports
35. Exemption from liability for good faith reporting of
suspicious transactions
36. Duties of supervisory authorities
37. Powers to enforce compliance
38. Financial instrument reporting at borders
39. Prohibition of publication of, or disclosure of, information to
unauthorised persons
40. Communication with foreign competent authorities
41. No order for production of information
PART IV
OFFENCES AND PENALTIES
horities
41. No order for production of information
PART IV
OFFENCES AND PENALTIES
42. Failure to comply with identification requirements
43. Failure to maintain or provide access to records
44. Failure to fulfil due diligence obligations or maintain internal
controls
45. Failure with regard to suspicious transaction or other
reporting
46. False or misleading statement
47. Confidentiality violation
48. Setting up shell bank
49. General penalty
PART V
GENERAL PROVISIONS
50. Mutual legal assistance
51. Extradition
52. Offences by body corporate or unincorporate body
53. Offences committed outside jurisdiction
54. Monitoring effectiveness of system
55. Annual Report
56. Centre to issue guidelines
57. Retention of records
58. Regulations
SCHEDULE
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Financial Intelligence Centre [No. 46 of 2010 667
GOVERNMENT OF ZAMBIA
ACT
No. 46 of 2010
Date of Assent: 24th November, 2010
ACT
No. 46 of 2010
Date of Assent: 24th November, 2010
An Act to establish the Financial Intelligence Centre and
provide for its functions and powers; provide for the duties
of supervisory authorities and reporting entities; and
provide for matters connected with, or incidental to, the
foregoing.
[29th November, 2010
ENACTED by the Parliament of Zambia. Enactment
PART I
PRELIMINARY
1. This Act may be cited as the Financial Intelligence Centre Short title
Act, 2010, and shall come into operation on such date as the Minister and
may, by statutory instrument, appoint. commencement
shall come into operation on such date as the Minister and
may, by statutory instrument, appoint. commencement
An Act to establish the Financial Intelligence Centre and
provide for its functions and powers; provide for the duties
of supervisory authorities and reporting entities; and
provide for matters connected with, or incidental to, the
foregoing.
[29th November, 2010
ENACTED by the Parliament of Zambia. Enactment
PART I
PRELIMINARY
1. This Act may be cited as the Financial Intelligence Centre Short title
Act, 2010, and shall come into operation on such date as the Minister and
may, by statutory instrument, appoint. commencement 2.
all come into operation on such date as the Minister and
may, by statutory instrument, appoint. commencement 2.
In this Act, unless the context otherwise requires— Interpretation
“ account ” means any facility or arrangement by which a
reporting entity does any of the following:
(a) accepts deposits of funds or other assets;
(b) allows withdrawals or transfers of funds or other
assets; or
(c) pays negotiable or transferable instruments or
orders drawn on, or collects negotiable or
transferable instruments or payment orders on
behalf of, any other person;
and includes any facility or arrangement for a safety deposit
box or for any other form of safe deposit;
“ bearer negotiable instrument ” includes any monetary
instrument in bearer form such as a traveller’s
cheque, negotiable instrument, including a cheque,
promissory note and money order, that is either in
bearer form, endorsed without restriction, made
out to a fictitious payee, or otherwise in such form
that title thereto passes upon delivery;
“ beneficial owner ” means—
(a) a natural person who ultimately owns or controls
the rights to or benefits from property, including
the person on whose behalf a transaction is
conducted; or
(b) a person who exercises ultimate effective control
over a legal person or legal arrangement;
a transaction is
conducted; or
(b) a person who exercises ultimate effective control
over a legal person or legal arrangement;
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"Centre" means the Financial Intelligence Centre established
under section three;
"customer" means any of the following:
(a) the person for whom a transaction or account is
arranged, opened or undertaken;
(b) a signatory to a transaction or account;
(c) any person to whom an account or rights or
obligations under a transaction have been
assigned or transferred;
(d) any person who is authorised to conduct a
transaction or control an account.;
(e) any person who attempts to take any of the actions
referred to in paragraphs (a) to (d); or
(f) such other person as may be prescribed by the
Minister;
"currency" means the coin and paper money of the Republic,
or of a foreign country, that is designated as legal tender or
is customarily used and accepted as a medium of
exchange;
"data message" has the meaning assigned to it in the
Electronic Communications and Transactions Act, 2009;
"Director" means the person appointed as such under section
nine;
"financial institution" has the meaning assigned to it in the
Banking and Financial Services Act;
"financial instrument" means an instrument capable of
representing a monetary value, and includes money, bonds,
bills and notes;
"foreign designated authority" means the authority designated
for the receipt, requesting, analysis and dissemination of
disclosures of suspicious transaction reports in a foreign
country;
"funds or other assets" means financial assets, property of
every kind, whether tangible or intangible, moveable or
immovable, however acquired, and legal documents or
instruments in any form, including electronic or digital,
evidencing title to, or interest in, such funds or other assets,
including but not limited to bank credits, travellers cheques,
bank cheques, money orders, shares, securities, bonds,
drafts or; letters of credit, and any interest, dividends or
other income on or value accruing from or generated by
such funds or other assets;
etters of credit, and any interest, dividends or
other income on or value accruing from or generated by
such funds or other assets;
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Financial Intelligence Centre [No. 46 of 2010 669
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Financial Intelligence Centre [No. 46 of 2010 669
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Financial Intelligence Centre [No. 46 of 2010 669 “ law enforcement agency ” means—
(a) the Zambia Police Force, established under the Constitution;
Cap. 1
(b) the Zambia Security Intelligence Service established under the Zambia Security Intelligence Service Act;
Cap. 109
(c) the Immigration Department established under the Immigration and Deportation Act, 2010;
Act No. 18 of 2010
(d) the Drug Enforcement Commission, established under the Narcotic Drugs and Psychotropic Substances Act;
Cap. 96
(e) the Anti-Money Laundering Investigations Unit established under the Prohibition and Prevention of Money Laundering Act, 2001;
Act No. 14 of 2001
(f) the Anti-Corruption Commission established under the Anti-Corruption Act, 2010;
Act No.
ntion of Money Laundering Act, 2001;
Act No. 14 of 2001
(f) the Anti-Corruption Commission established under the Anti-Corruption Act, 2010;
Act No.
3 of 2010
(g) the Zambia Revenue Authority established under the Zambia Revenue Authority Act; and
Cap 321
(h) any other investigative institution that the Minister may, by statutory instrument, designate;
“ law enforcement officer ” means an officer of a law enforcement agency;
“ legal arrangement ” means to express trusts or other similar legal arrangements;
“ legal practitioner ” has the meaning assigned to it in the Legal Practitioners Act;
Cap. 30
“ money laundering ” has the meaning assigned to it in the Prohibition and Prevention of Money Laundering Act, 2001;
Act No. 14 of 2001
“ officer ” means an officer of the Centre or a law enforcement officer authorised by the Centre to carry out a function under this Act;
Act No. 19 of 2010
“ private body ” means any person or organisation other than a public body, and includes a voluntary organisation, a charitable institution, company, partnership or a club;
“ proceeds of crime ” has the meaning assigned to it in the Forfeiture of Proceeds of Crime Act, 2010, and the Prohibition and Prevention of Money Laundering Act, 2001;
Act No.
he meaning assigned to it in the Forfeiture of Proceeds of Crime Act, 2010, and the Prohibition and Prevention of Money Laundering Act, 2001;
Act No.
14 of 2001
“ public body ” means the Government, any Ministry or Department of the Government, a local authority, commission or other body appointed by the Government, established by, or under, any written law or in which the Government has an interest;
“ record ” means any material on which information is recorded or marked and which is capable of being read or understood by a person, or by an electronic system or other device;
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"reporting entity " means an institution regulated by a
supervisory authority and required to make a suspicious
transaction report under this Act;
" sanction " includes a fine, suspension, de-registration or
any other penalty that may be prescribed by, or under, this
Act, but does not include imprisonment;
Act No. 19 of
" serious offence " has the meaning assigned to it in the
2010
Forfeiture of Proceeds of Crime Act, 2010;
No. 19 of
" serious offence " has the meaning assigned to it in the
2010
Forfeiture of Proceeds of Crime Act, 2010;
" shell bank " means a bank that has no physical presence in
the country in which it is incorporated and licensed, unless
such bank is wholly owned by one or more financial
institutions forming part of a regulated financial services
group that is subject to effective consolidated supervision;
Cap. 360
Act No. 24 of
" supervisory authority" means—
1998
Act No. 28
(a) the Governor of the Bank of Zambia appointed
of 1996
under the Bank of Zambia Act;
Cap. 354
(b) the Registrar of Co-operatives appointed under
the Co-operatives Act, 1998;
( c) the Registrar of Pensions and Insurance appointed
under the Pension Scheme Regulation Act,
1996;
( d) the Commissioner appointed under the Securities
Act;
Act No. 15 of
(e) the Registrar appointed under the Patents and
2010
Companies Registration Agency Act, 2010;
o. 15 of
(e) the Registrar appointed under the Patents and
2010
Companies Registration Agency Act, 2010;
(f) the Commissioner of Lands;
(g) the Zambia Development Agency, established
Act No. 11 of
under the Zambia Development Agency Act,
2006
2006;
Act No. 23 of
(h) the licensing committee established under the
2007
Tourism and Hospitality Act, 2007;
Act No. 21 of
(i) the Registrar of Estate Agents appointed under
2000
the Estate Agents Act, 2000;
Cap. 31
(j) the Law Association of Zambia established under
the Law Association of Zambia Act;
Act No. 13 of
(k) the Zambia Institute of Chartered Accountants
2008
established under the Accountants Act, 2008;
and
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(f) any other authority established under any written
law as a supervisory authority or as the Minister
may prescribe;
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(f) any other authority established under any written
law as a supervisory authority or as the Minister
may prescribe;
“ suspicious transaction report ” means a report submitted on
suspected money laundering, financing of terrorism or other
serious offence or attempted money laundering, financing
of terrorism or other serious offence, whether in form of a
data message or otherwise;
“ terrorism ” has the meaning assigned to it in the Anti-
Terrorism Act, 2007;
Act No. 21
“ transaction ” means a purchase, sale, loan, pledge, gift, of 2007
transfer, delivery or other disposition, or the arrangement
thereof, and includes—
(a) opening of an account;
(b) any deposit, withdrawal, exchange or transfer of
funds in any currency whether in cash or by
cheque, payment order or other instrument or
by electronic or other non-physical means;
(c) the use of a safety deposit box or any other form
of safe deposit;
(d) entering into any fiduciary relationship;
(e) any payment made or received in satisfaction, in
whole or in part, of any contractual or other
legal obligation;
elationship;
(e) any payment made or received in satisfaction, in
whole or in part, of any contractual or other
legal obligation;
(f) any payment made in respect of a lottery, bet or
other game of chance;
(g) establishing or creating a legal person or legal
arrangement;
(h)entering into a transaction involving real property;
and
(i) such other transaction as may be prescribed by
the Minister, by statutory instrument; and
“ wire transfer ” means any transaction carried out on behalf
of an originator through a financial institution or payment
system including an institution that originates the wire
transfer and an intermediary institution that participates in
completion of the transfer by electronic means with a view
to making an amount of money available to a beneficiary.
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Sure, here is the transcription of the document:
672 No. 46 of 2010] Financial Intelligence Centre
PART II
THE FINANCIAL INTELLIGENCE CENTRE
672 No. 46 of 2010] Financial Intelligence Centre
PART II
THE FINANCIAL INTELLIGENCE CENTRE
Establishment 3. (1) There is hereby established the Financial Intelligence
of Financial Centre which shall be a body corporate with perpetual succession
Intelligence and a common seal, capable of suing and being sued in its corporate
Centre name, and with power, subject to the provisions of this Act, to do all
such things as a body corporate may, by law, do or perform.
(2) The Schedule applies to the Centre.
Seal of Centre 4. (1) The seal of the Centre shall be such device as may be
determined by the Board and shall be kept by the Secretary.
(2) The affixing of the seal shall be authenticated by the
Chairperson or the Vice Chairperson and any other person authorised
in that behalf by a resolution of the Board.
(3) Any document purporting to be made under the seal of the
Centre or issued on behalf of the Centre shall be received in evidence
and shall be deemed to be so executed or issued, as the case may
be, without further proof, unless the contrary is proved.
and shall be deemed to be so executed or issued, as the case may
be, without further proof, unless the contrary is proved.
Functions of 5. (1) The Centre shall be the sole designated agency responsible
Centre for the receipt, requesting, analysing and disseminating of the
disclosure of suspicious transaction reports.
(2) Notwithstanding the generality of subsection (1), the functions
of the Centre are to—
(a) receive, request and analyse suspicious transaction reports
required to be made under this Act or any other written
law, including information from any foreign designated
authority;
(b) analyse and evaluate suspicious transaction reports and
information so as to determine whether there is sufficient
basis to transmit reports for investigation by the law
enforcement agencies or a foreign designated authority;
(c) disseminate information to law enforcement agencies,
where there are reasonable grounds to suspect money
laundering or financing of terrorism;
gencies,
where there are reasonable grounds to suspect money
laundering or financing of terrorism;
(d) provide information relating to suspicious transactions in
accordance with this Act to any foreign designated
authority, subject to such conditions as the Director may
determine;
(e) provide information, advice and assistance to law
enforcement agencies in furtherance of an investigation;
(f) enter into any agreement or arrangement, in writing,
with a foreign designated authority which the Board
considers necessary or desirable for the discharge or
performance of its functions;
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Financial Intelligence Centre [No. 46 of 2010 673
(g) conduct inquiries on behalf of foreign designated authorities
and notify them of the outcome;
(h) inform the public and reporting entities of their obligations
and measures that have been or might be taken to detect,
prevent and deter money laundering and financing of
terrorism;
their obligations
and measures that have been or might be taken to detect,
prevent and deter money laundering and financing of
terrorism;
(i) access directly or indirectly, on a timely basis financial,
administrative or law enforcement information, required
for the better carrying out of its functions under this
Act; and
(j) perform such other functions as are necessary to give
effect to this Act.
. 6. (1) Subject to subsection (2), the Centre shall not, in the Extent of
performance of its functions under this Act or any other law, be Centre's
subject to the direction or control of any person or authority. autonomy
(2) The Minister may, in writing, give to the Centre such
directions as the Minister considers necessary in the public interest
and the Centre shall give effect to those directions to the extent
that they are not inconsistent with this Act.
7. (1) There shall be a Board of the Centre which shall consist Board of
of the following part-time members: Centre
(a) the Chairperson;
(b) the Vice-Chairperson; and
(c) three other persons.
rt-time members: Centre
(a) the Chairperson;
(b) the Vice-Chairperson; and
(c) three other persons.
(2) A person shall not be qualified to be appointed to the Board
unless the person has not less than ten years experience in a field
connected with financial analysis, law, accounting, forensic auditing,
financial investigation, law enforcement or any other field as the
Minister may determine.
(3) The Board members shall be appointed by the President.
(4) The Director shall be the secretary to the Board.
(5) The Schedule applies to the Board.
8. (1) Subject to the other provisions of this Act, the functions Functions of
of the Board are to— Board
(a) carry out the functions of the Centre;
(b) issue policy directives to reporting entities regarding their
obligations under measures that have been or might be
taken to detect, prevent and deter the commission of
any offences connected to proceeds of crime;
(c) enter into and facilitate cooperation agreements with
foreign designated authorities; and
(d) perform such other functions as are necessary to give
effect to this Act.
eements with
foreign designated authorities; and
(d) perform such other functions as are necessary to give
effect to this Act.
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674 No. 46 of 2010] Financial Intelligence Centre
(2) Notwithstanding subsection (1), the Board may delegate to
the Director or to any committee of the Board, any of its functions
under this Act.
Director 9. (1) The Board shall, subject to the approval of the Minister,
appoint a Director who shall be the chief executive officer of the
Centre, on such terms and conditions as the Board may determine.
(2) A person shall not be qualified to be appointed Director unless
the person has not less than ten years experience in a field connected
with financial analysis, law, accounting, forensic auditing, financial
investigation, law enforcement or any other field as the Board may
determine.
(3) The Director shall be—
(a) responsible for the management and administration of
the Centre;
(b) a full time officer; and
(c) responsible for the implementation of any matters referred
to the Director by the Board.
(4) The Director shall not, while the Director holds the office
of Director, discharge the duties of any other office of emolument
in the Republic.
(4) The Director shall not, while the Director holds the office
of Director, discharge the duties of any other office of emolument
in the Republic.
(5) The Director may, subject to any specific or general direction
of the Board, make standing orders providing for —
(a) the control, direction and administration of the Centre;
(b) the discipline, training, classification and promotion of
officers of the Centre;
(c) the duties of officers of the Centre; or
(d) such other matters as the Director may consider necessary
or expedient for preventing the abuse of power or
neglect of duty by officers or other staff.
(6) The Director shall, on appointment, take an oath or
affirmation before the Chief Justice in the prescribed manner and
form.
Powers of 10. (1) For the performance of the Centre’s functions under
Director this Act, the Director may request for financial information from a
reporting entity as is relevant to enable the Centre to fulfil its
functions:
Provided that if the information is classified under the State
Cap. 111 Security Act, the Centre may apply to a judge in chambers to
determine whether the information is likely to—
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Financial Intelligence Centre [No. 46 of 2010 675
ly to a judge in chambers to
determine whether the information is likely to—
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Financial Intelligence Centre [No. 46 of 2010 675
(a) prejudice the security, defence or international
relations of the Republic; or
(b) involve the disclosure of any matter or deliberations
of a secret or confindential nature of the
Government.
(2) Where the Director reasonably suspects that a transaction
relates to money laundering, terrorist financing or any other serious
offence or the commission of a serious offence, the Director may
order a reporting entity to freeze an account or suspend a
transaction, as the case may be, for a period not exceeding ten
days:
Provided that a person aggrieved with the decision of the
Director to freeze an account or suspend a transaction may
after seventy-two hours apply to a judge in chambers to
discharge the order of the Director and shall serve a notice
on the Director to join the proceedings but such order shall
remain in full force and effect until the judge determines
otherwise.
on the Director to join the proceedings but such order shall
remain in full force and effect until the judge determines
otherwise.
(3) A person who contravenes subsection (2), commits an
offence and is liable, upon conviction, to a fine not exceeding three
hundred thousand penalty units or to imprisonment for a period not
exceeding three years, or to both.
11. (1) The Board may appoint, on such terms and conditions as it may determine, such officers and other staff as may be
necessary to assist the Director in the performance of the Director's
functions under this Act.
(2) The Director may, if satisfied that it is in the best interest of
the Centre, terminate the appointment of any officer of the Centre
and shall assign the reasons therefor, subject to any directions by
the Board.
(3) The Centre may engage the services of such advisors and
experts as it considers necessary.
(4) The advisors, experts and other members of staff shall on
appointment, take an oath or affirmation before the Director in the
prescribed manner and form.
advisors, experts and other members of staff shall on
appointment, take an oath or affirmation before the Director in the
prescribed manner and form.
12. An action shall not lie against the Director, officers or staff
of the Centre or any person acting under the authority of the
Director for anything done or omitted to be done in good faith in
the discharge of any functions, duties or powers under this Act.
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676 No. 46 of 2010] Financial Intelligence Centre
13. The provisions of this Act shall have effect notwithstanding
any obligation as to secrecy or other restriction on the disclosure of
information imposed under any written law or otherwise.
Immunity 14. Where any judgment order is obtained against the Centre,
from no execution, attachment or process of any nature, shall be issued
execution or against the Centre or against any property of the Centre, but the
judgments Board shall cause to be paid out of its revenues such amount as
may, by the judgment order, be awarded against the Centre to the
person entitled to such amount.
PART III
PREVENTION OF MONEY LAUNDERING, TERRORIST FINANCING AND
OTHER SERIOUS OFFENCES
ded against the Centre to the
person entitled to such amount.
PART III
PREVENTION OF MONEY LAUNDERING, TERRORIST FINANCING AND
OTHER SERIOUS OFFENCES
Prohibition 15. A reporting entity shall not establish or maintain an
of anonymous account or any account in a fictitious name.
establishment
of
anonymous Customer
accounts 16. (1) A reporting entity shall identify its customers and verify
Customer its customers' identities by means of reliable and independent source
identification documents or information, where —
requirements (a) opening an account for, or otherwise establishing a business
relationship with, a customer;
(b) the customer, who is neither an account holder nor in an
established business relationship with a financial
institution, wishes to carry out a transaction in an amount
equal to, or above, such amount as may be prescribed,
whether conducted as a single transaction or several
transactions that appear to be linked:
Provided that if the amount of the transaction is
unknown, the customer’s identification shall be
verified as soon as the amount of the transaction has
reached the prescribed amount;
(c) notwithstanding paragraph (b), the customer wishes to
carry out a domestic or international wire transfer of
monetary amounts in the amount equal to, or above, the
prescribed amount;
he customer wishes to
carry out a domestic or international wire transfer of
monetary amounts in the amount equal to, or above, the
prescribed amount;
(d) doubts exist about the veracity or adequacy of previously
obtained customer identification information; or
(e) there is a suspicion of money laundering, financing of
terrorism or any other serious offence involving the
customer or the customer’s account.
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Financial Intelligence Centre [No. 46 of 2010 677
(2) For the purposes of this Part, " independent source
document or information " means a passport, a driver’s licence, a
national identification document or a certified certificate of
incorporation or such other information as the Minister may
prescribe.
(3) A reporting entity shall identify and verify the identity of
each customer, and obtain other information required by this section
before it establishes an account or a business relationship, or before
it carries on further business, if it suspects money laundering,
financing of terrorism or any other serious offence or doubts the
veracity or adequacy of previously obtained customer identification
information.
ng,
financing of terrorism or any other serious offence or doubts the
veracity or adequacy of previously obtained customer identification
information.
(4) The Minister may prescribe the circumstances in which
the verification of identity may be completed as soon as reasonably
practicable after the commencement of the business if—
(a) the risk of money laundering or financing of terrorism is
effectively managed; and
(b) a delay in verification is essential not to interrupt the
normal conduct of business.
(5) A reporting entity shall, with respect to each customer,
obtain and verify, as part of its obligation under subsection (1)—
(a) for a natural person, the full name and address, and date
and place of birth;
(b) for a legal person, the corporate name, head office address,
identities of directors, proof of incorporation or similar
evidence of legal status and legal form, provisions
governing the authority to bind the legal person, and such
information as is necessary to understand the ownership
and control of the legal person;
nd the legal person, and such
information as is necessary to understand the ownership
and control of the legal person;
(c) for legal arrangements, the name of the trustees, the settler
and the beneficiary of express trusts, and any other
parties with authority to manage, vary or otherwise
control the arrangement;
(d) in addition to the identity of a customer, the identity of
any person acting on behalf of the customer, including
evidence that such person is properly authorised to act
in that capacity;
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(e) information on the intended purpose and nature of each
business relationship; and
(f) sufficient information about the nature and business of
the customer to permit the reporting entity to fulfill its
obligations under this Act.
(6) A reporting entity shall, as part of its obligations under
subsections (1) and (5), identify the beneficial owner and shall take
such reasonable measures as are necessary to verify the identity
of the beneficial owner:
(1) and (5), identify the beneficial owner and shall take
such reasonable measures as are necessary to verify the identity
of the beneficial owner:
Provided that the Minister may prescribe the circumstances,
such as the ownership of publicly held corporations, in which
such identification and verification is not necessary.
(7) A reporting entity shall apply the identification and verification
requirements stipulated under subsections (1) and (5) to customers
and beneficial owners with which it had a business relationship at
the time of the coming into force of this Act on a risk sensitive
basis depending on the type and nature of the customer, business
relationship, product or transactions, or as may otherwise be
prescribed by the Minister.
17. (1) A reporting entity may rely on an intermediary or other
third party to perform the customer identification required under
subsection (1) of section sixteen, where—
(a) there is no suspicion of money laundering, the financing
of terrorism or any other serious offence;
(b) information on the identity of each customer and beneficial
owner is provided immediately on opening of the account
or commencement of the business relationship; and
(c) the reporting entity is satisfied that the third party—
diately on opening of the account
or commencement of the business relationship; and
(c) the reporting entity is satisfied that the third party—
(i) is able to provide, without delay, copies of
identification information and other documents
relating to the obligation of due diligence upon
request; and
(ii) is established in, or is subject to, the jurisdiction
of a State where such person is subject to the
requirements equivalent to those specified in this
Act, and is supervised for compliance with those
requirements in a manner equivalent to those
applicable in the Republic.
Reliance on
identification
by third
party
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Financial Intelligence Centre [No. 46 of 2010 679
applicable in the Republic.
Reliance on
identification
by third
party
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Financial Intelligence Centre [No. 46 of 2010 679
(i) is able to provide, without delay, copies of
identification information and other documents
relating to the obligation of due diligence upon
request; and
(ii) is established in, or is subject to, the jurisdiction
of a State where such person is subject to the
requirements equivalent to those specified in this
Act, and is supervised for compliance with those
requirements in a manner equivalent to those
applicable in the Republic.
Reliance on
identification
by third
party
[Page 15]
Financial Intelligence Centre [No. 46 of 2010 679 (2) The third party referred to in paragraph (c) of subsection (1)
shall not claim professional privilege or a similar principle or rule
with respect to the customer identification and beneficial ownership
information and documentation involved. (3) The Minister may, on the recommendation of the Centre,
prescribe those jurisdictions that the Minister considers fulfill the
terms of subparagraph (ii) of paragraph (c) of subsection (1).
of the Centre,
prescribe those jurisdictions that the Minister considers fulfill the
terms of subparagraph (ii) of paragraph (c) of subsection (1).
(4) Notwithstanding any other provision in this section, a
reporting entity relying on a third party has the ultimate responsibility
for compliance with this Act, including all of the due diligence and
reporting requirements thereof. 18. A reporting entity shall, where it conducts any business
relationship or executes transactions with a customer that is not
physically present for purposes of identification—
(a) take adequate measures to address the specific risk of
money laundering, financing of terrorism and any other
serious offence;
(b) ensure that the due diligence conducted is no less effective
than where the customer appears in person; and
(c) require additional documentary evidence or supplementary
measures to verify or certify the documents supplied by
the customer, or confirmatory certification from financial
institutions or other documentary evidence or measures
as may be prescribed. 19. A reporting entity shall have appropriate risk management
systems to—
stitutions or other documentary evidence or measures
as may be prescribed. 19. A reporting entity shall have appropriate risk management
systems to—
Customers
not
physically
present
High risk
customers
(a) identify customers whose activities may pose a high risk
of money laundering and financing of terrorism and shall
exercise enhanced identification, verification and ongoing
due diligence procedures with respect to such customers;
and
(b) determine if a customer or a beneficial owner is a high
risk customer and if so shall—
(i) obtain approval from senior management of the
reporting entity before establishing a business
relationship with the customer, or later, as soon
as an existing customer is identified as a high
risk customer;
(ii) take all reasonable measures to identify the source
of wealth and funds and other assets of the
customer; and
(iii) provide increased and ongoing monitoring of the
customer and the business relationship to prevent
money laundering, terrorism financing or the
[Page 16]
680 No. 46 of 2010] Financial Intelligence Centre
er and the business relationship to prevent
money laundering, terrorism financing or the
[Page 16]
680 No. 46 of 2010] Financial Intelligence Centre
commission of any other serious offences and
to permit the reporting entity to fulfil its
obligations under this Act, including all of its due
diligence and reporting requirements.
Identification 20. A financial institution shall, where it enters into any cross
and account border correspondent banking relationship—
opening for
cross border (a) identify and verify the identification of respondent
correspondent institutions with which it conducts correspondent banking
banking relationships;
relationship
(b) collect information on the nature of the respondent
institution’s activities;
(c) based on publicly available information, evaluate the
respondent institution’s reputation and the nature of
supervision to which it is subject;
(d) obtain approval from senior management of the reporting
entity before establishing a correspondent banking
relationship;
(e) evaluate the controls implemented by the respondent
institution with respect to anti money laundering and
combating the financing of terrorism;
(f) establish an agreement on the respective responsibilities
of each party under the relationship;
ndering and
combating the financing of terrorism;
(f) establish an agreement on the respective responsibilities
of each party under the relationship;
(g) in the case of a payable through account, ensure that the
respondent institution has verified its customer’s identity,
has implemented mechanisms for ongoing monitoring
with respect to its clients, and is capable of providing
relevant identifying information on request;
(h) not enter into, or continue, business relations with a shell
bank; and
(i) not enter into, or continue, business relations with a
respondent financial institution in a foreign country if
the respondent institution permits its accounts to be used
by a shell bank.
Inability to 21. A reporting entity that fails or is likely to fail to fulfill the
fulfill requirements of sections sixteen to twenty with respect to any
customer customer shall not establish an account for, or maintain the business
identification relationship with, that customer, and shall make a report to the
obligations Centre in accordance with this Act.
[Page 17]
Financial Intelligence Centre [No. 46 of 2010 681
er, and shall make a report to the
obligations Centre in accordance with this Act.
[Page 17]
Financial Intelligence Centre [No. 46 of 2010 681
22. (1) A reporting entity shall maintain all the books and
records with respect to its customers and transactions as set out in
subsection (2), and shall ensure that such records and the underlying
information are available, on a timely basis, to the Centre.
Record
keeping
(2) The books and records referred to in subsection (1) shall
include, as a minimum—
able, on a timely basis, to the Centre.
Record
keeping
(2) The books and records referred to in subsection (1) shall
include, as a minimum—
(a) account files, business correspondence and copies of
documents evidencing the identities of customers and
beneficial owners obtained in accordance with the
provisions of this Act, which shall be maintained for not
less than ten years after the business relationship has
ended;
(b) records on transactions sufficient to re-construct each
individual transaction for both account holders and non-
account holders, which shall be maintained for not less
than ten years from the date of the transaction;
(c) the findings set in writing pursuant to paragraph (c) of
subsection (1) of section twenty-five and related
transaction information, which shall be maintained for
at least ten years from the date of the transaction; and
(d) copies of all suspicious transaction reports made pursuant
to section twenty-nine, including any accompanying
documentation, which shall be maintained for at least
ten years from the date the report was made.
23. (1) A reporting entity shall develop and implement
programmes for the prevention of money laundering, financing of
terrorism and any other serious offence.
eporting entity shall develop and implement
programmes for the prevention of money laundering, financing of
terrorism and any other serious offence.
Internal
programmes
to combat
money
laundering
financing of
terrorism
and other
serious
offences
(2) The programmes referred to in subsection (1) shall include
the following:
(a) internal policies, procedures and controls to fulfil obligations
pursuant to this Act;
(b) adequate screening procedures to ensure high standards
when hiring employees;
(c) ongoing training for officers and employees to make them
aware of the laws relating to money laundering, the
financing of terrorism any any other serious offence, to
assist them in recognising transactions and actions that
may be linked to money laundering, financing of
terrorism and any other serious offence and instruct
them in the procedures to be followed in such cases;
(d) policies and procedures to prevent the misuse of
technological developments including those related to
electronic means of storing and transferring funds or
value;
[Page 18]
Certainly, here is the transcribed text from the document:
682 No. 46 of 2010] Financial Intelligence Centre
nsferring funds or
value;
[Page 18]
Certainly, here is the transcribed text from the document:
682 No. 46 of 2010] Financial Intelligence Centre
(e) mechanisms for preventing money laundering, financing
of terrorism, financial crime and any other serious offence
generally; and
(f) independent audit arrangements to review and verify
compliance with and effectiveness of the measures taken
in accordance with this Act.
(3) A reporting entity shall designate a compliance officer at
management level to be responsible for the implementation of, and
ongoing compliance with, this Act by the reporting entity.
(4) A compliance officer designated pursuant to subsection (3)
shall have ready access to all the books, records and employees of
the reporting entity necessary to fulfil the responsibilities specified
under this Act.
(5) The Minister may prescribe the type and extent of measures
that reporting entities shall undertake with respect to each of the
requirements in this section having regard to the risk of money
laundering, financing of terrorism and any other serious offence
and the size of the business or profession.
ection having regard to the risk of money
laundering, financing of terrorism and any other serious offence
and the size of the business or profession.
Ongoing due 24. A reporting entity shall exercise ongoing due diligence with
diligence respect to any business relationship with a customer which shall
include—
(a) maintaining current information and records relating to
the customer or beneficial owner; and
(b) ensuring the obligations pursuant to sections nineteen and
twenty relating to high risk customers and correspondent
banking relationships are fulfilled.
Special 25. (1) A reporting entity shall—
monitoring of
certain (a) pay special attention to business relations and transactions
transactions with persons, including legal persons and arrangements,
from or in countries that do not or insufficiently apply
the relevant international standards to combat money
laundering, the financing of terrorism and any other
serious offence; and
tional standards to combat money
laundering, the financing of terrorism and any other
serious offence; and
(b) take such specific measures as may be prescribed to
counter the risks with respect to business relations.
(2) The findings referred to in subsection (1), shall be maintained
as specified in section twenty-two and shall be made available
promptly if requested by the Centre, a supervisory authority or law
enforcement agency.
Obligations 26. (1) A financial institution undertaking any wire transfers
regarding equal to, or above, such amount as may be prescribed shall—
wire
transfers (a) identify and verify the identity of the originator;
(b) obtain and maintain the account number of the originator,
or in the absence of an account number, a unique
reference number;
[Page 19]
Financial Intelligence Centre [No. 46 of 2010 683
in the absence of an account number, a unique
reference number;
[Page 19]
Financial Intelligence Centre [No. 46 of 2010 683
(c) obtain and maintain the originator's address or, in the
absence of address, the national identity number, or date
and place of birth; and
(d) include information from paragraphs (a) to (c) in the
message or payment form accompanying the transfer.
(2) Notwithstanding the requirements of subsection (1), a financial
institution is not required to verify the identity of a customer with
which it has an existing business relationship where it is satisfied
that it already knows and has verified the true identity of the
customer.
(3) Where a financial institution acts as an intermediary in a
chain of payments, it shall re-transmit all of the information it received
with the wire transfer.
(4) The Minister may, on the recommendation of the Centre, by
statutory instrument, modify the requirements set out in subsection
(1) —
(a) with respect to domestic wire transfers, as long as the
regulations provide for full originator information to be
made available to the beneficiary financial institution and
appropriate authorities by other means; and
information to be
made available to the beneficiary financial institution and
appropriate authorities by other means; and
(b) with respect to cross border transfers where individual
transfers from a single originator are bundled in a batch
file, as long as the regulations provide for the originator's
account number or unique reference number to be
included, and that the batch file contains full originator
information that is fully traceable in the recipient country.
(5) Subsections (1) and (2) shall not apply to transfers executed
as a result of credit card or debit card transactions or to transfers
between financial institutions acting for their own account:
Provided that the credit card or debit card number accompanies
the transfer resulting from the transaction.
(6) Where a financial institution referred to in subsection (1)
receives wire transfers that do not contain the complete originator
information required under that subsection, it shall take measures
to obtain and verify the missing information from the ordering
institution or the beneficiary.
required under that subsection, it shall take measures
to obtain and verify the missing information from the ordering
institution or the beneficiary.
(7) A financial institution shall, where it fails to obtain any missing
information, refuse acceptance of the transfer and report it to the
Centre.
27. (1) A financial institution shall require its foreign branches
and majority owned subsidiaries to implement the requirements of
this Part to the extent that domestic applicable laws of the host
country so permit.
Compliance
with
obligations
by foreign
subsidiaries
and branches
[Page 20]
684 No. 46 of 2010] Financial Intelligence Centre
(2) A financial institution shall, where the laws of the country
where its branch or majority owned subsidiary is situated prevent
compliance with the obligations stipulated under this Part, advise
its supervisory authority, which may take such steps as it believes
to be appropriate to accomplish the purposes of this Act.
Prohibition 28. A shell bank shall not be established or permitted to operate
against shell in or through the territory of Zambia.
banks
this Act.
Prohibition 28. A shell bank shall not be established or permitted to operate
against shell in or through the territory of Zambia.
banks
Obligation 29. (1) Subject to the provisions of subsections (2) and (3), a
to report reporting entity or a director, principal officer, partner, professional
suspicious or employee of a financial institution, that suspects or has reasonable
transactions grounds to suspect that any property—
(a) is the proceeds of crime; or
(b) is related or linked to, or is to be used for, terrorism,
terrorist acts or by terrorist organisations or persons
who finance terrorism;
shall, not later than three working days after forming the suspicion,
submit a report setting out the suspicions to the Centre.
(2) Subsection (1) shall apply to attempted transactions.
(3) Notwithstanding subsection (1), a legal practitioner, a notary
public or an accountant shall submit a report under subsection (1)
if—
section (1), a legal practitioner, a notary
public or an accountant shall submit a report under subsection (1)
if—
(a) the legal practitioner, notary public or accountant engages,
on behalf of or for a client, in a financial transaction
associated with an activity specified in relation to such
professionals under this Act; and
(b) the relevant information upon which the suspicion is based
was not received from, or obtained on, a client—
(i) in the course of ascertaining the legal position of
the client; or
(ii) in performing their task of defending or
representing that client in, or concerning judicial,
administrative, arbitration or mediation
proceedings, including advice on instituting or
avoiding proceedings, whether such information
is received or obtained before, during or after
such proceedings.
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Financial Intelligence Centre [No. 46 of 2010 685
is received or obtained before, during or after
such proceedings.
[Page 21]
Financial Intelligence Centre [No. 46 of 2010 685
(4) A financial institution shall refrain from carrying out a
transaction which it suspects to be related to money laundering,
financing of terrorism or any other serious offence.
(5) The Centre shall issue guidelines on the procedures for and
form in which the suspicious transaction reports shall be submitted
and shall publish guidance in order to assist reporting entities to
fulfil their obligations under this section.
30. A reporting entity shall, promptly but not later than three
working days, submit a report to the Centre on any currency
transaction in an amount equal to or above the prescribed amount,
whether conducted as a single transaction or several transactions
that appear to be linked.
31. Where it appears to a supervisory authority that a reporting
entity, or any of its directors, officers or employees, is not complying,
or has not complied, with the obligations set out in this Act, it shall
immediately inform the Centre accordingly.
32. No secrecy or confidentiality provision in any other law
shall prevent a reporting entity from fulfilling its obligations under
this Act.
dingly.
32. No secrecy or confidentiality provision in any other law
shall prevent a reporting entity from fulfilling its obligations under
this Act.
33. (1) A reporting entity or any director, partner, officer,
principal or employee of the reporting entity shall not disclose to its
customer or a third party that a report or any other information
concerning suspected money laundering, financing of terrorism or
any other serious offence shall be, is being or has been, submitted
to the Centre, or that a money laundering, financing of terrorism or
any other serious offence investigation is being, or has been, carried
out, except in the circumstances set out in subsection (2) or where
otherwise required by law to do so.
(2) Subsection (1) shall not apply to a disclosure which—
(a) is made to carry out a function that a person has relating
to the enforcement of any provision of this Act or of
any other law; or
(b) in the case of a legal practitioner or accountant acting as
an independent professional, when seeking to dissuade
a client from engaging in an illegal activity;
that a suspicious transaction report shall be made, is being made
or has been made to the Centre.
a client from engaging in an illegal activity;
that a suspicious transaction report shall be made, is being made
or has been made to the Centre.
(3) A person who contravenes subsection (1) commits an offence
and is liable, upon conviction, to a fine not exceeding five hundred
thousand penalty units or to imprisonment for a period not exceeding
five years, or to both.
Obligation to
report
currency
transactions
Disclosing
information
regarding
compliance
Inapplicability
of
confidentiality
provisions
Prohibition
against
tipping off
[Page 22]
686 No. 46 of 2010] Financial Intelligence Centre
fidentiality
provisions
Prohibition
against
tipping off
[Page 22]
686 No. 46 of 2010] Financial Intelligence Centre
Protection of 34. (1) Except for the purposes of the administration of this
identity of Act, a person shall not disclose any information to identify or that
persons and is likely to identify the person who prepared or made a suspicious
information transaction report, or handled the underlying transaction.
relating to
suspicious (2) A person shall not be required to disclose a suspicious
transaction transaction report or any information contained in the report or
reports provided in connection with it, or the identity of the person preparing
or making such a report or handling the underlying transaction in
any judicial proceeding unless the court is satisfied that the disclosure
of the information is necessary in the interests of justice.
roceeding unless the court is satisfied that the disclosure
of the information is necessary in the interests of justice.
Exemption 35. (1) Criminal, civil, disciplinary or administrative proceedings
from liability for breach of banking or professional secrecy or contract shall not
for good lie against a reporting entity, its directors, principals, officers, partners,
faith professionals or employees who, in good faith, submit reports or
reporting of provide information in accordance with the provisions of this Act.
suspicious
transactions (2) Civil, criminal or disciplinary proceedings shall not be brought
against a person who—
(a) discloses or supplies any information in any report made
under this Act; or
(b) supplies any information in connection with a report,
whether at the time the report is made or afterwards, in
respect of—
rt,
whether at the time the report is made or afterwards, in
respect of—
(i) the disclosure or supply, or the manner of the
disclosure or supply, by that person, of the
information referred to in paragraph (a); or
(ii) any consequences that follow from the disclosure
or supply of that information, unless the
information was disclosed or supplied in bad
faith.
Duties of 36. (1) Where a supervisory authority has reasonable grounds
supervisory to believe that a business transaction indicates that a person has or
authorities may have been engaged in money laundering, the financing of
terrorism or any other serious offence, it shall disclose, or cause to
be disclosed, that information to the Centre.
terrorism or any other serious offence, it shall disclose, or cause to
be disclosed, that information to the Centre.
(2) A supervisory authority shall monitor and ensure compliance
by reporting entities with their obligations under this Act.
(3) A supervisory authority may—
(a) compel the production of any information from reporting
entities required for purposes of this Act; and
(b) impose sanctions for any failure by reporting entities to
comply with their obligations under this Act.
[Page 23]
Financial Intelligence Centre [No. 46 of 2010 687
(4) A supervisory authority may publish such directives as it
may, in consultation with the Centre, determine which are necessary
for reporting entities to comply with their reporting obligations under
this Act.
38. (1) An officer of a reporting entity shall take all Powers to
reasonable steps to ensure the reporting entity’s compliance with enforce
its obligations under this Act. compliance
teps to ensure the reporting entity’s compliance with enforce
its obligations under this Act. compliance
(2) The Centre, upon application to the High Court and satisfying
the Court that a reporting institution has failed without reasonable
excuse to comply in whole or in part with any obligations in this
Act, shall obtain an order against any or all of the officers or
employees of that reporting entity on such terms as the Court
considers necessary to enforce compliance with such obligations.
(3) Notwithstanding subsection (2), the Centre may direct or
enter into an agreement with any reporting entity that has, without
reasonable excuse, failed to comply, in whole or in part, with any
obligations in this Part to implement any action plan to ensure
compliance with its obligations under this Part.
mply, in whole or in part, with any
obligations in this Part to implement any action plan to ensure
compliance with its obligations under this Part.
(4) A person who contravenes the provisions of subsection (1)
or subsection (2) commits an offence and is liable, upon conviction,
to a fine not exceeding four hundred thousand penalty units or to
imprisonment for a period not exceeding four years, or to both.
(5) In determining whether a reporting entity or an officer or
employee of a reporting entity has complied with any of the
requirements of subsection (1), a court may take account of the
directives issued by a supervisory authority.
(6) A reporting entity may, in addition to the penalties set out in
this section be liable to additional administrative sanctions imposed
by a supervisory authority.
entity may, in addition to the penalties set out in
this section be liable to additional administrative sanctions imposed
by a supervisory authority.
38. (1) Notwithstanding any other written law, a person leaving Financial
or entering Zambia with an amount in cash, negotiable bearer instrument
instruments or both, exceeding such value as the Minister may reporting at
prescribe by statutory instrument, shall declare to a customs officer borders
such amount in such form as may be prescribed.
(2) A person who contravenes subsection (1) commits an offence
and is liable, upon conviction, to a fine not exceeding one hundred
thousand penalty units or to imprisonment for a period not exceeding
one year, or to both.
(3) A declaration required to be made or given under subsection
(1) shall, for the purposes of the Customs and Excise Act be deemed
to be a declaration in a matter relating to customs. Cap. 322
[Page 24]
688 No. 46 of 2010] Financial Intelligence Centre
a declaration in a matter relating to customs. Cap. 322
[Page 24]
688 No. 46 of 2010] Financial Intelligence Centre
(4) A customers officer may seize any cash, negotiable bearer
instruments or both, which are liable to seizure, in terms of Part
XII of the Customs and Excise Act.
Cap. 322
Prohibition 39. (1) A person shall not, without the consent in writing given
of by, or on behalf of, the Board, publish or disclose to any unauthorised
publication person, otherwise than in the course of duties of that person, the
or
disclosure contents of any document, communication or information
of whatsoever, which relates to or which has come to the knowledge
information of that person in the course of that person's duties under this Act.
to
unauthorised
persons (2) A person who contravenes subsection (1) commits an
offence and is liable, upon conviction, to a fine not exceeding two
hundred thousand penalty units or to imprisonment for a period not
exceeding two years, or to both.
able, upon conviction, to a fine not exceeding two
hundred thousand penalty units or to imprisonment for a period not
exceeding two years, or to both.
(3) A person who, having any information which to the
knowledge of that person, has been published or disclosed in
contravention of subsection (1), unlawfully publishes or
communicates the information to any other person, commits an
offence and is liable, upon conviction, to a fine not exceeding two
hundred thousand penalty units or to imprisonment for a period not
exceeding two years, or to both.
able, upon conviction, to a fine not exceeding two
hundred thousand penalty units or to imprisonment for a period not
exceeding two years, or to both.
(3) A person who, having any information which to the
knowledge of that person, has been published or disclosed in
contravention of subsection (1), unlawfully publishes or
communicates the information to any other person, commits an
offence and is liable, upon conviction, to a fine not exceeding two
hundred thousand penalty units or to imprisonment for a period not
exceeding two years, or to both. Communication 40.
o a fine not exceeding two
hundred thousand penalty units or to imprisonment for a period not
exceeding two years, or to both. Communication 40.
Notwithstanding any other written law, the Centre may
with communicate anything disclosed to it under this Act to a foreign
foreign designated authority if—
competent
authorities (a) the Director considers the disclosure necessary to enable
the foreign designated authority to discharge its functions
of receipt, requesting, analysis and dissemination of
suspicious transaction reports;
(b) there exists an arrangement between Zambia and the
foreign State under which the foreign designated
authority has agreed to communicate to Zambia, upon
Zambia's request, information received by the foreign
designated authority that corresponds to anything
required to be disclosed to the Centre under this Act; or
(c) the Centre is satisfied that the foreign designated authority
has given appropriate undertakings—
(i) for protecting the confidentiality of anything
communicated to it; and
(ii) for controlling the use that will be made of the
thing disclosed, including an undertaking that it
will not be used as evidence in any proceedings.
i) for controlling the use that will be made of the
thing disclosed, including an undertaking that it
will not be used as evidence in any proceedings.
No order for 41. Notwithstanding the provisions of any other written law,
production no order for the production of information, document or evidence
of shall be issued in respect of the Centre or against the Minister,
information Director, officers or other staff of the Centre or any person engaged
pursuant to this Act.
[Page 25]
Financial Intelligence Centre [No. 46 of 2010 689
PART IV
OFFENCES AND PENALTIES
f the Centre or any person engaged
pursuant to this Act.
[Page 25]
Financial Intelligence Centre [No. 46 of 2010 689
PART IV
OFFENCES AND PENALTIES
No order for 41. Notwithstanding the provisions of any other written law,
production no order for the production of information, document or evidence
of shall be issued in respect of the Centre or against the Minister,
information Director, officers or other staff of the Centre or any person engaged
pursuant to this Act.
[Page 25]
Financial Intelligence Centre [No. 46 of 2010 689
PART IV
OFFENCES AND PENALTIES 42. A person who intentionally or negligently—
(a) fails to undertake the identification of customers or
otherwise to fulfill the customer identification and risk
management requirements in accordance with section
sixteen;
(b) opens an anonymous account or an account in a fictitious
name for a customer in violation of section fifteen; or
(c) fails to fulfill the obligations relating to the obtaining of
information for and processing of a wire transfer as
required under section twenty-six;
commits an offence and is liable, upon conviction, to a fine not
exceeding one million penalty units or to imprisonment for a period
not exceeding ten years, or to both.
and is liable, upon conviction, to a fine not
exceeding one million penalty units or to imprisonment for a period
not exceeding ten years, or to both.
Failure to
comply
with
identification
requirements
43. A person who intentionally or negligently—
(a) fails to maintain books and records as required by section
twenty-two;
(b) destroys or removes any records or books; or
(c) fails to make information available in a timely manner in
response to a lawful request for any books or records;
commits an offence and is liable, upon conviction, to a fine not
exceeding two hundred thousand penalty units or to imprisonment
for a period not exceeding two years, or to both.
able, upon conviction, to a fine not
exceeding two hundred thousand penalty units or to imprisonment
for a period not exceeding two years, or to both.
Failure to
maintain or
provide
access to
records
44. A person who intentionally or negligently—
(a) fails to conduct due diligence with respect to customers,
accounts and transactions in compliance with section
twenty-four;
(b) fails to comply with the obligations for special monitoring
set out in section twenty-five; or
(c) fails to maintain internal control programmes in compliance
with section twenty-three;
commits an offence and is liable, upon conviction, to a fine not
exceeding five hundred thousand penalty units or to imprisonment
for a period not exceeding five years, or to both.
le, upon conviction, to a fine not
exceeding five hundred thousand penalty units or to imprisonment
for a period not exceeding five years, or to both.
Failure to
fulfill due
diligence
obligations
or maintain
internal
controls
45. A person who intentionally or negligently fails to submit a
report to the Centre as required by section twenty-nine commits
an offence and is liable, upon conviction, to a fine not exceeding
seven hundred thousand penalty units or to imprisonment for a period
not exceeding seven years, or to both.
, upon conviction, to a fine not exceeding
seven hundred thousand penalty units or to imprisonment for a period
not exceeding seven years, or to both.
Failure with
regard to
suspicious
transaction
or other
reporting
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