Financial Intelligence Centre (Amendment)

Financial Intelligence Centre
(Amendment)
An Act to amend the Financial Intelligence Centre Act, 2010. [6th April, 2016
ENACTED by the Parliament of Zambia. 1. This Act may be cited as the Financial Intelligence Centre
(Amendment) Act, 2016, and shall be read as one with the Financial
Intelligence Centre Act, 2010, in this Act referred to as the principal
Act. 2.

tre
(Amendment) Act, 2016, and shall be read as one with the Financial
Intelligence Centre Act, 2010, in this Act referred to as the principal
Act. 2.

Section two of the principal Act is amended by—
(a) the insertion of the figure “(1)” between the figure 2 and
the words “in this Act”;
(b) the insertion in the definition of “suspicious transaction
report” immediately after the words “financing of
terrorism” wherever they appear, of the words “or
proliferation”;
(c) the deletion of the definitions of “bearer negotiable
instrument,” “beneficial owner”, “reporting entity” and
“wire transfer” and the substitution therefor of the
following:
“bearer negotiable instrument” includes a monetary
instrument in bearer form such as a traveller’s
cheque, negotiable instrument, cheque,
promissory note, money order, electronic funds
transfer and digital currency, that is—
(a) in bearer form;
(b) endorsed without restriction;
(c) made out to a fictitious payee or in such
form that title thereto passes upon
delivery;
Enactment
Short title
Act No. 46
of
2010
[No. 4 of 2016 165
Amendment
of
section 2
GOVERNMENT OF ZAMBIA
ACT
No. 4 of 2016
Date of Assent:5th April, 2016
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K22.00 each.

Date of Assent:5th April, 2016
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K22.00 each.

(d) an incomplete negotiable instrument,
including a bill of exchange, cheques
and money order signed, but with the
payee’s name omitted;
“beneficial owner” means an individual—
(a) who owns or effectively controls a client
of a reporting entity, including the
individual on whose behalf a transaction
is conducted; or
(b) who exercises effective control over a
legal person or trust;
“reporting entity” means—
(a) an institution regulated by a supervisory
authority; or
(b) an institution or designated non-financial
business or profession supervised by the
Centre pursuant to section five; and
“wire transfer” means a transaction carried out on
behalf of an originator who may be the
beneficiary, through a financial institution,
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 at
another financial institution;
(d) the insertion, in the appropriate places, of the following
new definitions:
“business relationship” means an association entered
into between a client and a reporting entity for
commercial or transactional purposes;
“client” means a person who has entered into a
business relationship or a single transaction with
a reporting entity;
“close associate” includes an individual who—
(a) is known to have joint beneficial
ownership or control of a legal entity
or legal arrangement, or any other close
business relation, with a politically-
exposed person; and
Financial Intelligence Centre
(Amendment)166 No.

y
or legal arrangement, or any other close
business relation, with a politically-
exposed person; and
Financial Intelligence Centre
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4 of 2016]

4 of 2016]

(b) has sole beneficial ownership or control
of a legal entity or legal arrangement
which is known to have been set up for
the benefit of a politically-exposed
person;
“designated non-financial business
or profession” includes—
(a) a motor vehicle dealer;
(b) a casino or gaming operator;
(c) a precious stone or metal dealer;
(d) a non-governmental organisation;
(e) a real estate agent;
(f) an accountant or auditor, who is a sole
practitioner or partner in an accounting
or auditing firm;
(g) a legal practitioner, who is a sole
practitioner or partner in a firm; or
(h) any other business or profession in which
the risk of money laundering and
terrorist financing exits, as the Minister
may by statutory instrument designate
on the advice of the Centre;
“high-risk customer” includes—
(a) a non-resident customer;
(b) a private banking customer;
(c) a legal person or legal arrangement that
is a personal asset holding vehicle;
(d) a politically-exposed person;
(e) a company that has a nominee
shareholder or shares in bearer form;
or
(f) a customer that performs a transaction
on behalf of another person, whether
the identity of such other person is
disclosed or not;
“immediate family member” in relation to an individual
includes—
(a) a spouse;
(b) a sibling;
Financial Intelligence Centre
(Amendment) [No.

d or not;
“immediate family member” in relation to an individual
includes—
(a) a spouse;
(b) a sibling;
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4 of 2016 167

4 of 2016 167

(c) a child and where applicable the spouse
of a child; and
(d) a parent;
“legal person” means an entity other than a natural
person that can establish a permanent customer
relationship with a financial institution or
otherwise own property;
“negotiable instrument” means an instrument such
as a cheque, bill of exchange or promissory note,
that embodies a right to payment and satisfies
the requirements for negotiability under a law
governing negotiable instruments;
“non-governmental organisation” has the meaning
assigned to it in the Non-Governmental
Organisations’ Act, 2009;
“originator” means the account holder or, where there
is no account, the person that places the order
to perform a wire transfer with a financial
institution;
“politically-exposed person” means—
(a) an individual who holds, or has held, public
office, and includes—
(i) a Head of State or Government;
(ii) a Minister;
(iii) a Deputy Minister;
(iv) a politician;
(v) a political party official;
(vi) a judicial official or other senior
official of a quasi-judicial body;
(vii) a military official;
(viii) a member of an administrative,
management or supervisory
body of a State owned
enterprise;
(b) an individual who is, or has been, entrusted
with a public function by a State, public
body or a local or international
organisation;
(c) an immediate family member of a person
referred to in paragraph (a); or
(d) a close associate of a person referred to
in paragraph (a);
Financial Intelligence Centre
(Amendment)168 No.

rson
referred to in paragraph (a); or
(d) a close associate of a person referred to
in paragraph (a);
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4 of 2016]
Act No 9 of
2009

4 of 2016]
Act No 9 of
2009

“political party” means an association or organisation
whose objectives include the contesting of
elections in order to form government or
influence the policy of the national or local
government;
“proliferation” means an act by any person who by
any means, directly or indirectly, willfully or
negligently provides funds or financial services
with the intention that the funds or financial
services should be used or knowing that they
are to be used in whole or in part, for the
manufacture, acquisition, possession,
development, export, trans-shipment, brokering,
transport, transfer, stockpiling or use of nuclear,
chemical or biological weapons and their means
of delivery and related materials, including both
technologies and dual use of goods used for non-
legitimate purpose;
“public function” means a function performed by a
public officer in a public body in an official
capacity in relation to the public body;
“public office” means an office occupied by a person
in a public body; and
(e) the insertion of the following:
(2) An individual is deemed to own or effectively
control a client if the individual—
(a) owns or controls, directly or indirectly,
including through trusts or bearer
shareholding for any legal person,
twenty-five percent or more of the
shares or voting rights of the entity;
(b) together with a connected person, owns
or controls, directly or indirectly,
including through trusts or bearer
shareholding for any legal person,
twenty-five percent or more of the
shares or voting rights of the entity;
(c) despite a less than twenty-five percent
share-holding or voting rights, receives
a large percentage of the person’s
declared dividends; or
Financial Intelligence Centre
(Amendment) [No.

cent
share-holding or voting rights, receives
a large percentage of the person’s
declared dividends; or
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4 of 2016 169

4 of 2016 169

(d) exercises control over the management
of the person in that person’s capacity
as executive officer, non-executive
director, independent non-executive
director, director, manager or partner;
3. (1) The principal Act is amended by the repeal of section
five and the substitution therefor of the following:
5. (1) The Centre is the sole designated national centre
authorised to receive, request for, analyse and disseminate
suspicious transaction reports, including information from
foreign designated authorities, made to the Centre under this
Act or any other written law.

suspicious transaction reports, including information from
foreign designated authorities, made to the Centre under this
Act or any other written law.

(2) Despite the generality of subsection (1), the functions
of the Centre are to—
(a) receive, request, analyse and evaluate suspicious
transaction reports and information from any
other source authorised under any written law
to make a suspicious transaction report including
a foreign designated authority to determine
whether there are reasonable grounds to
transmit reports for investigation by law
enforcement agencies or foreign designated
authorities;
(b) disseminate information to law enforcement
agencies where there are reasonable grounds
to suspect money laundering or financing of
terrorism or proliferation;
(c) provide information relating to suspicious
transactions to any foreign designated authority,
subject to such conditions as the Director-
General may determine, in accordance with this
Act;
(d) provide information, advice and assistance to law
enforcement agencies in furtherance of an
investigation;
(e) educate the public and reporting entities of their
obligations and inform them of measures to
detect, prevent and deter money laundering and
financing of terrorism or proliferation;
Financial Intelligence Centre
(Amendment)170 No.

f measures to
detect, prevent and deter money laundering and
financing of terrorism or proliferation;
Financial Intelligence Centre
(Amendment)170 No.

4 of 2016]
Functions of
Centre
Repeal and
replacement
of
section 5

4 of 2016]
Functions of
Centre
Repeal and
replacement
of
section 5

(f) provide information to investigating authorities,
supervisory bodies, law enforcement agencies
and any other competent authority to facilitate
law enforcement for prevention of money
laundering and financing of terrorism or
proliferation;
(g) ensure compliance with this Act and regulations,
directives, determinations, notices and circulars
issued by the Centre or supervisory authorities,
and give guidance to reporting entities to combat
money laundering or financing of terrorism or
proliferation activities;
(h) facilitate effective supervision and enforcement
of this Act by supervisory authorities; and
(i) perform such other functions as are necessary to
give effect to this Act.

supervision and enforcement
of this Act by supervisory authorities; and
(i) perform such other functions as are necessary to
give effect to this Act.

(3) The Centre may, in performing its functions under
this Act—
(a) cooperate and exchange information with, or enter
into an agreement or arrangement, in writing,
with a foreign designated authority, supervisory
authority, law enforcement agency or other
relevant authority to facilitate the discharge or
performance of its functions under this Act;
(b) conduct inquiries related to suspicious transacting
on behalf of foreign designated authorities
and notify them of the outcome;
(c) access, directly or indirectly, on a timely basis,
financial, administrative and law enforcement
information required for the better carrying out
of its functions under this Act;
(d) consult with any relevant person, legal person or
legal arrangement for the purpose of exercising
its functions and powers under this Act;
(e) request information and statistics from a
supervisory authority, law enforcement agency,
public body, regulatory agency, person or legal
arrangement for purposes of this Act or any
other law, where the information is required for
the discharge of its functions under this Act or
for purposes of the Act;
Financial Intelligence Centre
(Amendment) [No.4 of 2016 171

is required for
the discharge of its functions under this Act or
for purposes of the Act;
Financial Intelligence Centre
(Amendment) [No.4 of 2016 171

(f) request a law enforcement agency or competent
authority to report progress and outcomes on
matters referred to it by the Centre;
(g) in consultation with a supervisory authority, where
applicable, cause an inspection to be made by
an officer authorised by the Director-General
in writing;
(h) provide a law enforcement agency or supervisory
authority with information derived from an
inspection carried out pursuant to paragraph (g),
if there are reasonable grounds to suspect that
a transaction involves money laundering,
financing of terrorism or proliferation or any
other serious offence; and
(i) supervise and enforce compliance with this Act
or any directive made in terms of this Act by
reporting entities that—
(i) are not regulated or supervised by a
supervisory authority in terms of this
Act or any other law; or
(ii) are regulated or supervised by a
supervisory authority in terms of this
Act or any other law, if that supervisory
authority fails or neglects to enforce
compliance. (4) An officer authorised to conduct an inspection under
paragraph (g) of subsection (3) may exercise the powers of
an inspector provided for under section eleven B. 4.

horised to conduct an inspection under
paragraph (g) of subsection (3) may exercise the powers of
an inspector provided for under section eleven B. 4.

Section eight of the principal Act is amended by the deletion
of subsection (1) and the substitution therefor of the following:
(1) Subject to the other provisions of this Act, the functions
of the Board are to—
(a) monitor and review the administrative performance
of the Centre in the carrying out of its functions
under this Act;
(b) approve policies for the proper administration and
management of the Centre;
(c) review the implementation of cooperation agreements
between the Centre and domestic or foreign
designated authorities;
Financial Intelligence Centre
(Amendment)172 No. 4 of 2016]
Amendment
of
section 8

between the Centre and domestic or foreign
designated authorities;
Financial Intelligence Centre
(Amendment)172 No. 4 of 2016]
Amendment
of
section 8

(d) consider and approve the proposed budget of the
Centre; and
(e) perform such other functions as are necessary to
give effect to this Act. 5. Section nine of the principal Act is amended by the deletion
of subsection (3) and the substitution therefor of the following:
(3) The Director-General is responsible for—
(a) the administration and management of the Centre;
(b) appointing of the staff of the Centre;
(c) the performance of the functions of the Centre; and
(d) the implementation of the decisions of the Board. 6. The principal Act is amended by the repeal of section ten
and the substitution therefor of the following:
10.

tation of the decisions of the Board. 6. The principal Act is amended by the repeal of section ten
and the substitution therefor of the following:
10.

(1) The Director-General or an officer authorised by
the Director-General may, for the performance of the
Centre’s functions under this Act request—
(a) financial information from a reporting entity to be
provided within such time as the Director-General
or an officer authorised by the Director-General
may specify, which is relevant to enable the Centre
to fulfill its functions;
(b) a reporting entity to disclose whether—
(i) a person is or has been a client of the reporting
entity;
(ii) a person is acting or has acted on behalf of
a client of the reporting entity; or
(iii) a client of the reporting entity is acting or
has acted on behalf of another person;
(c) such further information as the centre may require
for the performance of the centre’s functions under
this Act;
(d) an employee or agent or former employee or former
agent of a reporting entity being inspected to—
(i) give to the inspector reasonable assistance
in connection with the inspection;
(ii) appear before the inspector for examination
concerning matters relevant to the
inspection; or
Financial Intelligence Centre
(Amendment)
Repeal and
replacement
of
section 10
Powers of
Director-
General
Amendment
of
section 9
[No.

inspection; or
Financial Intelligence Centre
(Amendment)
Repeal and
replacement
of
section 10
Powers of
Director-
General
Amendment
of
section 9
[No.

4 of 2016 173

4 of 2016 173

(iii) produce a book or document relating to the
affairs of the reporting entity. (2) Where the information requested under subsection
(1) is classified under the State Security Act, the Centre
may apply to a judge in chambers to determine whether
the information is likely to—
(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 confidential nature of the
Government. (3) Where the Director-General reasonably suspects
that a transaction relates to money laundering, financing
of terrorism or proliferation or any other serious offence
or the commission of a serious offence, the Director-
General may order a reporting entity to freeze an account
or suspend a transaction, as the case may be, for a period
not exceeding fifteen days.

ctor-
General may order a reporting entity to freeze an account
or suspend a transaction, as the case may be, for a period
not exceeding fifteen days.

(4) A person aggrieved with the decision of the
Director-General 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-General
and shall serve a notice on the Director-General to join
the proceedings but such order shall remain in full force
and effect until the judge determines otherwise. (5) A person who contravenes subsection (3) 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. (6) A person who contravenes the provisions of this
section commits an offence and is liable, upon conviction,
to—
(a) in case of a natural person, a fine not exceeding two
hundred thousand penalty units or to imprisonment
for a term not exceeding two years or to both; or
(b) in the case of a body corporate, a fine not exceeding
two hundred and fifty thousand penalty units. 7. Section eleven of the principal Act is amended by the deletion
of the word “Board” and the substitution therefor of the word
“Director-General”. Financial Intelligence Centre
(Amendment)174 No.

ded by the deletion
of the word “Board” and the substitution therefor of the word
“Director-General”. Financial Intelligence Centre
(Amendment)174 No.

4 of 2016]
Amendment
of
section 11
Cap. 111

4 of 2016]
Amendment
of
section 11
Cap. 111

8. The principal Act is amended by the insertion, immediately
after section eleven, of the following new sections:
11A. (1) The Centre shall for the purposes of ensuring
compliance with the provisions of this Act, establish an
inspectorate with the necessary technical staff and facilities
required to administer, monitor and enforce measures to detect,
prevent and deter money laundering and financing of terrorism
or proliferation. (2) The Director-General may, on such terms and
conditions as the Board may determine, appoint suitably
qualified persons as inspectors for the purposes of this Act. (3) The Director-General shall provide an inspector with
a certificate of appointment and an identity card, in the
prescribed form, which shall be prima facie evidence of the
inspector’s appointment as such. (4) An inspector shall, in performing any function under
this Act—
(a) be in possession of the certificate of appointment
referred to in subsection (3); and
(b) show the certificate of appointment to a person who
requests to see it or is subject to an inspection
under this Act.

ed to in subsection (3); and
(b) show the certificate of appointment to a person who
requests to see it or is subject to an inspection
under this Act.

(5) Where the head of a supervisory authority is permitted
by another law to appoint inspectors under that law, the head
of the supervisory authority may extend the appointment and
functions of the inspectors under that law to include the
undertaking of inspections in accordance with this Act. (6) An inspector whose appointment or functions are
extended under subsection (5) may, in undertaking inspections
under this Act, in addition to the functions conferred upon the
inspector under the other law, perform the functions of an
inspector under this Act. (7) An extension of appointment made pursuant to
subsection (5) shall be indicated in the certificate of
appointment issued by the head of the supervisory authority
to the inspector. (8) An inspector shall, on appointment, take an oath or
affirmation before the Director-General in the prescribed
manner and form. Financial Intelligence Centre
(Amendment)
Insertion of
sections 11A
and 11B
Inspectors
[No. 4 of 2016 175

r-General in the prescribed
manner and form. Financial Intelligence Centre
(Amendment)
Insertion of
sections 11A
and 11B
Inspectors
[No. 4 of 2016 175

11B.

11B.

(1) An inspector may, during the operating hours of
the reporting entity or designated non-financial business or
profession—
(a) enter and search any facility, plant, undertaking,
business or other premises of a reporting entity or
designated non-financial business or profession
where the inspector has reasonable grounds to
believe information or documents which are
relevant to an inspection are kept or an activity of
money laundering or financing of terrorism or
proliferation is being carried out or is likely to be
carried out;
(b) examine a document, record, material, matter,
substance or article found in a reporting entity or
an undertaking, business or other premises of a
designated non-financial business or profession that
has a bearing on an inspection;
(c) require information to be given about a document,
record, article, reporting entity, under-taking,
business or other premises by—
(i) the owner of the reporting entity, undertaking,
business or premises of a designated non-
financial business or profession;
(ii) the person in control of the reporting entity,
undertaking, business or premises of a
designated non-financial business or
profession;
(iii) the person who has control of the document,
article, record, reporting entity,
undertaking, business or premises of a
designated non-financial business or
profession; or
(iv) any other person who may have the
information;
(d) take extracts from, or make copies of, a book, record,
licence, permit or document found in a reporting
entity or undertaking, business or premises of a
designated non-financial business or profession that
has a bearing on an inspection;
Financial Intelligence Centre
(Amendment)176 No.

or premises of a
designated non-financial business or profession that
has a bearing on an inspection;
Financial Intelligence Centre
(Amendment)176 No.

4 of 2016]
Powers of
inspector

4 of 2016]
Powers of
inspector

(e) use a computer system in a reporting entity or
undertaking, business or premises of a designated
non-financial business or profession or require the
assistance of a person in a reporting entity,
undertaking, business or premises to use that
computer system to—
(i) search any data contained in, or available to,
the computer system;
(ii) reproduce any record from the data; or
(iii) seize any output from the computer for
examination and copying; and
(f) attach and, if necessary, remove from a reporting
entity or undertaking, business or premises of a
designated non-financial business or profession for
examination and safeguarding any document,
matter, material, substance or article that has a
bearing on an inspection;
(2) The books and records required to be produced shall
not, in the course of inspection, be removed from the premises
of the reporting entity or other premises at which they are
produced.

be produced shall
not, in the course of inspection, be removed from the premises
of the reporting entity or other premises at which they are
produced.

(3) An inspector who removes a document, matter,
material, substance or article from a reporting entity,
undertaking, business or premises under paragraph (g) of
subsection (1) shall—
(a) issue a receipt for the document, matter, material,
substance or article to the owner of, or person in
control of, the facility, plant, undertaking, business
or premises; and
(b) return the document, matter, material, substance or
article as soon as practicable if—
(i) the purpose for which it was removed is
achieved; or
(ii) the Director of Public Prosecutions advises
the Centre, in writing, that no prosecution
shall be instituted in relation to the matter,
material, substance or article. (4) A person who—
(a) delays or obstructs an inspector in the performance
of the inspector’s functions under this Act;
Financial Intelligence Centre
(Amendment) [No. 4 of 2016 177

or obstructs an inspector in the performance
of the inspector’s functions under this Act;
Financial Intelligence Centre
(Amendment) [No. 4 of 2016 177

Amendment
of
section 17
Amendment
of
section 16
(b) refuses to give an inspector such reasonable
assistance as the inspector requires for the
purposes of exercising the inspector’s powers;
(c) fails to give an inspector the information, document
or record required or gives an inspector false or
misleading information in answer to an inquiry
made by the inspector; or
(d) impersonates or falsely represents oneself to be an
inspector;
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. (5) An inspector shall furnish the Director-General with
a written report and any other information relating to an
inspection as the Director-General may require. (6) All information obtained in the course of the inspection
shall be treated as confidential and used solely for the purpose
of this Act. (7) Nothing in this section requires a person to disclose
or produce information or a document that is classified or
which falls under the State Security Act. 9.

in this section requires a person to disclose
or produce information or a document that is classified or
which falls under the State Security Act. 9.

The principal Act is amended in the heading of Part III by
the deletion of the words “Terrorist Financing” and the substitution
therefor of the words “Financing of Terrorism or Proliferation”. 10. Section sixteen of the principal Act is amended—
(a) in paragraph (e) of subsection (1) by the insertion
immediately after the word “terrorism” of the words
“or proliferation”;
(b) in subsection (3) by the insertion immediately after the
word “terrorism” of the words “or proliferation”;
(c) in paragraph (a) of subsection (4), by the insertion
immediately after the word “terrorism” of the words
“or proliferation”. 11. Section seventeen of the principal Act is amended in
paragraph (a) of subsection (1) by the insertion immediately after
the word “terrorism” of the words “or proliferation”. Financial Intelligence Centre
(Amendment)178 No. 4 of 2016]
Amendment
of
Heading
Cap. 111

after
the word “terrorism” of the words “or proliferation”. Financial Intelligence Centre
(Amendment)178 No. 4 of 2016]
Amendment
of
Heading
Cap. 111

12. Section eighteen of the principal Act is amended in
paragraph (a) by the insertion immediately after the word
“terrorism” of the words “or proliferation”. 13. Section nineteen of the principal Act is amended—
(a) in the marginal note, by the insertion immediately after
the word “customers” of the words “and politically-
exposed persons”;
(b) in paragraph (a) by the insertion immediately after the
word “terrorism” of the words “or proliferation”;
(c) in subparagraph (iii) of paragraph (b) by the deletion of
the words “terrorism financing” and the substitution
therefor of the words “financing of terrorism or
proliferation”’ and
(d) by the insertion of the words “and politically-exposed
person” immediately after the words “high risk
customer”, wherever the words appear. 14. Section twenty of the principal Act is amended in paragraph
(e) by insertion immediately after the word “terrorism” of the words
“or proliferation”. 15.

ction twenty of the principal Act is amended in paragraph
(e) by insertion immediately after the word “terrorism” of the words
“or proliferation”. 15.

(1) Section twenty-two of the principal Act is amended—
(a) in subsection (1), by the insertion immediately after the
word “Centre”of the words “a supervisory authority
and a law enforcement agency”;
(b) by the insertion, immediately after subsection (2), of the
following:
(3) A reporting entity shall keep the records
referred to in subsection (1) by way of original
documents in the form of hard copies or in an
electronic form in an electronic storage device. 16. Section twenty-three of the principal Act is amended by—
(a) the insertion immediately after the word “terrorism” of
the words “or proliferation”;
(b) the insertion, immediately after subsection (3), of the
following:
(4) A person shall not be appointed as a
compliance officer unless that person has—
(i) two years experience in the field of regulatory
compliance;
Financial Intelligence Centre
(Amendment)
Amendment
of
section 18
Amendment
of
section 19
Amendment
of section 20
Amendment
of
section 22
Amendment
of
section 23
[No. 4 of 2016 179

(Amendment)
Amendment
of
section 18
Amendment
of
section 19
Amendment
of section 20
Amendment
of
section 22
Amendment
of
section 23
[No. 4 of 2016 179

Insertion of
section 36A
Register of
reporting
entities
Amendment
of
section 37
(ii) not been convicted of an offence under this
Act or any other law; and
(iii) been approved by the Centre;
(c) the renumbering of subsections (4) and (5) as subsections
(5) and (6) respectively. 17. Section twenty-five of the principal Act is amended in
subsection (1) by—
(a) the deletion of the word “and” at the end of paragraph
(a); and
(b) the insertion after paragraph (b) of the following:
(c) examine all complex, unusual and large
transactions and patterns of transactions that
have no apparent economic or lawful purpose;
and
(d) examine the background and purpose of
transactions under paragraphs (a) and (b) and
make its findings in writing. 18. Section twenty-nine of the principal Act is amended in
subsection (1) by the deletion of the words “financial institution”
and the substitution therefor of the words “reporting entity”. 19.

t is amended in
subsection (1) by the deletion of the words “financial institution”
and the substitution therefor of the words “reporting entity”. 19.

(1) Section thirty-six of the principal Act is amended by
the insertion, immediately after subsection (4), of the following:
(5) A supervisory authority may appoint a suitably
qualified employee of the supervisory authority as an inspector
for purposes of monitoring compliance with this Act. (6) An inspector appointed pursuant to subsection (5)
shall have the same powers as an inspector appointed under
section eleven A. 20. The principal Act is amended by the insertion, immediately
after section thirty-six, of the following:
36A. The Centre shall maintain a register of all reporting
entities, which shall contain such particulars as are prescribed. 21. (1) Section thirty-seven of the principal Act is amended
by the deletion of subsection (2) and the substitution therefor of the
following:
Financial Intelligence Centre
(Amendment)180 No. 4 of 2016]
Amendment
of
section 25
Amendment
of
section 29
Amendment
of
section 36

of the
following:
Financial Intelligence Centre
(Amendment)180 No. 4 of 2016]
Amendment
of
section 25
Amendment
of
section 29
Amendment
of
section 36

(2) The Centre shall, upon application to the High Court
and satisfying the High Court that a reporting entity has
failed, without reasonable excuse, to comply in whole or in
part with any obligation under this Act, obtain an order
against the reporting entity, an officer or employee of the
reporting entity on such terms as the High Court considers
necessary to enforce compliance with such obligation. 22. The principal Act is amended by the insertion, immediately
after section thirty-seven, of the following:
37A. (1) A court may, on ex parte application made by
the Centre, make a monitoring order requesting a reporting
entity to make a transaction report to the Centre.

urt may, on ex parte application made by
the Centre, make a monitoring order requesting a reporting
entity to make a transaction report to the Centre.

(2) A monitoring order may state that a reporting entity
shall report transactions conducted by the specified reporting
entity and transactions conducted in respect of a specified
account or facility at the reporting entity if there are reasonable
grounds to suspect that—
(a) a person has transferred or may transfer the proceeds
of an unlawful activity through the reporting entity
or is using or may use the reporting entity for money
laundering or financing of terrorism or proliferation;
and
(b) the account or facility has received or may receive
the proceeds of an unlawful activity or is being or
may be used for money laundering or financing of
terrorism or proliferation. (3) A monitoring order lapses after ninety days from the
date it is made, except that before the expiry of the period,
the Centre may apply to the court to extend the order for a
further period not exceeding ninety days at a time if—
(a) the grounds on which the order is based still exist;
and
(b) the court is satisfied that the interest of justice may
best be served by monitoring the person, account
or facility referred to in subsection (1) and in the
manner provided for in this section. 37B.

ce may
best be served by monitoring the person, account
or facility referred to in subsection (1) and in the
manner provided for in this section. 37B.

The Director-General may, by notice in writing,
and after giving the reporting entity a reasonable opportunity
to be heard, require the reporting entity to comply by the date
or within the period specified therein, with any directive
contained in the notice in connection with any matter arising
out of a report issued following an inspection. Financial Intelligence Centre
(Amendment)
Insertion of
sections
37A, 37B
and 37C
Monitoring
order
Notice to
comply
[No. 4 of 2016 181

g an inspection. Financial Intelligence Centre
(Amendment)
Insertion of
sections
37A, 37B
and 37C
Monitoring
order
Notice to
comply
[No. 4 of 2016 181

Amendment
of
section 45
37C. (1) The Director-General may, where the Director-
General reasonably determines that any condition of a directive
issued under this Act has been breached, serve a compliance
order on the reporting entity requiring the reporting entity to
remedy the breach within the period stipulated in the order. (2) A compliance order issued under subsection (1)
may—
(a) suspend a business activity of a reporting entity or
person with immediate effect if the Director-
General considers that the suspension is necessary
to prevent or mitigate an imminent risk of
significant adverse effects of money laundering
and financing of terrorism or proliferation occurring;
or
(b) require the reporting entity or person to take
specified measures to prevent or abate any adverse
effect. (3) The Centre may, where a reporting entity fails to
comply with a compliance order take the necessary steps to
remedy the breach and recover the cost from the reporting
entity.

reporting entity fails to
comply with a compliance order take the necessary steps to
remedy the breach and recover the cost from the reporting
entity.

(4) A reporting entity or person in respect of which a
compliance order is served shall comply with the requirements
of the order by the date specified in the order and if no date
is specified, the person shall comply with the order
immediately. (5) A person who contravenes subsection (4) 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. (6) If the reporting entity or person fails to comply with
a requirement specified in the compliance order within the
specified time, the reporting entity or person is liable to a
further fine not exceeding two thousand penalty units for each
day or part of a day after the date specified in the order
during which the offence continues. 23. Section forty-five of the principal Act is amended by the
insertion, immediately after the words “twenty-nine”, of the words
“or thirty”. Financial Intelligence Centre
(Amendment)182 No. 4 of 2016]
Compliance
Order

ion, immediately after the words “twenty-nine”, of the words
“or thirty”. Financial Intelligence Centre
(Amendment)182 No. 4 of 2016]
Compliance
Order

24. The principal Act is amended by the insertion, immediately
after section forty-five, of the following:
45A. A person who intentionally or negligently conducts
multiple transactions separately with one or more reporting
entities in order to avoid the duty to report a transaction or in
breach of the duty to disclose information under this Act,
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. 25. The principal Act is amended by the insertion immediately
after section forty-nine, of the following:
49A. A person who unduly influences, obstructs, hinders,
interferes with or threatens or attempts to unduly influence,
obstruct, hinder, interfere with or threaten an official or
representative of the Centre, while in the performance of
their duties or the exercise of their powers in terms of this
Act, commits an offence 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. 49B.

, 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. 49B.

(1) The Centre or a supervisory authority may,
where a reporting entity is in breach of a provision of this Act
which is not a criminal offence impose one or more of the
following administrative sanctions:
(a) a caution not to repeat the conduct which led to the
non-compliance with a provision of this Act;
(b) a reprimand;
(c) a directive to take remedial action or to make specific
arrangements to redress identified non-compliance;
(d) the restriction or suspension of certain specified
business activities;
(e) publication of a public notice of any prohibition or
requirement imposed by the Centre or a supervisory
authority under this Part and of any rescission or
variation thereof, and the notice may, if the Centre
or supervisory authority considers necessary,
include a statement of the reason for the
prohibition, requirement, variation or rescission; and
(f) a financial penalty not exceeding one million penalty
units. Financial Intelligence Centre
(Amendment)
Insertion of
new
section 45A
Conducting
transaction
to avoid
reporting
duty
Insertion of
new
sections 49A
and 49B
Undue
influence,
obstruction,
hindrance,
interference
of officers
and other
staff
Administra-
tive
sanctions
[No.

nsertion of
new
sections 49A
and 49B
Undue
influence,
obstruction,
hindrance,
interference
of officers
and other
staff
Administra-
tive
sanctions
[No.

4 of 2016 183

4 of 2016 183

Repeal and
replacement
of
section 56
Centre to
issue
directives,
guidelines,
rules,
instructions,
etc. (g) a reporting entity or person may within thirty days
of receipt of administrative sanction, appeal to the
High Court against an administrative sanction
imposed by the Centre or a supervisory authority. (2) The factors to be considered by the Centre or a
supervisory authority when determining an appropriate
administrative sanction includes—
(a) the nature, duration, seriousness and extent of the
relevant non-compliance;
(b) whether the reporting entity or person has previously
failed to comply with any law;
(c) any remedial steps taken by the reporting entity or
person to prevent a recurrence of the non-
compliance;
(d) any steps taken or to be taken against the reporting
entity or person by—
(i) another supervisory authority; or
(ii) a professional association which the
reporting entity or person is a member;
(iii) any other relevant factors, including
mitigating factors.

; or
(ii) a professional association which the
reporting entity or person is a member;
(iii) any other relevant factors, including
mitigating factors.

(3) Before imposing an administrative sanction, the
Centre or supervisory authority shall give the reporting entity
or person fourteen days notice in writing specifying—
(a) the nature of the alleged non-compliance;
(b) the intention to impose an administrative sanction;
(c) amount or particulars of the intended administrative
sanction; and
(d) that the reporting entity or person may, in writing,
within a period specified in the notice, make
representations as to the reasons the administrative
sanction should not be imposed. 26. The principal Act is amended by deletion of section fifty-
six and the substitution therefor of the following:
56. (1) The Centre may, in the exercise of its functions
under this Act issue, in such manner as the Centre determines,
such instructions, directives, guidelines or rules to reporting
entities as it considers necessary for the better carrying out
of its functions under this Act or regarding the application of
this Act. Financial Intelligence Centre
(Amendment)184 No. 4 of 2016]

ter carrying out
of its functions under this Act or regarding the application of
this Act. Financial Intelligence Centre
(Amendment)184 No. 4 of 2016]

(2) An instruction, directive, guideline or rule issued by
the Centre under this section may—
(a) be either general or specific;
(b) be varied or revoked by subsequent instructions,
directions, guidelines or rules; and
(c) be given to such persons and in such manner as the
Centre considers appropriate. (3) The Centre may, where it considers appropriate,
require a supervisory authority to issue an instruction, direction,
guideline or rule regarding the application of this Act to a
reporting entity regulated or supervised by the supervisory
authority. (4) A supervisory authority that intends to issue an
instruction, direction, guideline or rule under subsection (3)
shall consult the Centre prior to issuing any instructions,
directions, guidelines or rules under this section.

guideline or rule under subsection (3)
shall consult the Centre prior to issuing any instructions,
directions, guidelines or rules under this section.

(5) Despite paragraph (e) of subsection (3) of section
five of the Act the Centre or a supervisory authority may in
writing direct a reporting entity to—
(a) provide the Centre or the supervisory authority, as
the case may be—
(i) with information, reports or statistical returns
specified in the notice, at the time or at
the intervals specified in the notice; and
(ii) within the period specified in the notice,with
any document in possession, custody or
under the control of a reporting entity;
(b) cease or refrain from engaging in an act, omission
or conduct in contravention of this Act;
(c) perform such act as may be necessary to remedy
alleged non-compliance with this Act; or
(d) take such other action necessary to meet any
obligation imposed by this Act. (6) The Centre or a supervisory authority may examine
a document submitted to it in terms of section five of the Act
and may make a copy thereof or of part thereof. Financial Intelligence Centre
(Amendment) [No. 4 of 2016 185

to it in terms of section five of the Act
and may make a copy thereof or of part thereof. Financial Intelligence Centre
(Amendment) [No. 4 of 2016 185

27. Paragraph 3(2) of Part I of the Schedule is amended by
deletion of the word “Minister” and the substitution therefor of the
word “President” wherever it appears.
28. The principal Act is amended by the deletion of the word
“Director” in all references to the Director of the Centre and the
substitution therefor of the word “Director-General”.
Financial Intelligence Centre
(Amendment)186 No. 4 of 2016]
Amendment
of Part I of
Schedule
General
amendment