The following summary of the legislative requirements under the FIAMLA 2002 applies to you if you fall under any of the definitions listed below.
Under the Banking Act 2004 :-
“financial institution” means any bank, non-bank deposit taking institution or cash dealer licensed by the central bank;
“bank” means a company incorporated under the Companies Act 2001, or a branch of a company incorporated abroad which is licensed by the central bank to carry on banking business.
“non-bank deposit taking institution” means an institution other than a bank that has been authorised by the central bank to conduct deposit taking business.
“cash dealer” means a person licensed by the central bank to carry on the business of foreign exchange dealer or money-changer.
“foreign exchange dealer” means any person licensed as such by the central bank to carry on the business of -
(a) buying and selling foreign currency, including spot and forward exchange transactions and wholesale money market dealings; and
(b) a money-changer;
OBLIGATIONS OF FINANCIAL INSTITUTIONS
In order to combat money laundering and the financing of terrorism, every financial institution must take measures to ensure that neither it nor any services offered by it is capable of being used to commit or facilitate the commission of a money laundering offence.
In addition, financial institutions have, in terms of the FIAMLA, a duty to verify the true identity of the customers and other persons with whom they conduct transactions. Under the Banking Act 2004, financial institutions may open accounts for deposits of money only where they are satisfied that they have established the identity of the person in whose name the funds are to be credited.
Financial institutions are also required to adopt internal reporting procedures, including the appointment of a Money Laundering Reporting Officer and to implement internal controls and other procedures to combat money laundering and the financing of terrorism.
Lodging of Reports of Suspicious Transactions
Every financial institution has a duty under the FIAML to forthwith make a report to the FIU of any transaction which the financial institution has reason to believe may be a suspicious transaction. The FIU has devised a form to that effect. Financial institutions are required to use that form which is available at the FIU to report suspicious transactions.
Contents of the Report
Every report lodged with the Financial Intelligence Unit must include the following –
The identification of the party or parties to the transaction;
The amount of the transaction,
the description of the nature of the transaction and all the circumstances giving rise to the suspicion;
The business relationship of the suspect to the financial institution; Where the suspect is an insider,
any information as to whether the suspect is still affiliated with the financial institution;
Any voluntary statement as to the origin, source or destination of the proceeds;
The impact of the suspicious activity on the financial soundness of the reporting institution or person; and
The names of all the officers, employees or agents dealing with the transaction.