Fi­nan­cial Ac­tion Task Force Rec­om­men­da­tion: Record Keep­ing

The Star (St. Lucia) - - LOCAL - By The At­tor­ney Gen­eral’s Cham­bers and the Na­tional Anti-Money Laun­der­ing Over­sight Com­mit­tee (NAMLOC)

Record keep­ing is a be­drock for proper busi­ness ad­min­is­tra­tion. Rec­om­men­da­tion 11 of the Fi­nan­cial Ac­tion Task Force (FATF) 40 Rec­om­men­da­tions, cov­ers record keep­ing. Fi­nan­cial In­sti­tu­tions and busi­nesses en­gaged in other busi­ness ac­tiv­i­ties, such as jew­ellers, lawyers and real es­tate agents are re­quired to main­tain records on do­mes­tic and in­ter­na­tional trans­ac­tions. These records may in­clude busi­ness cor­re­spon­dences, in­for­ma­tion on un­usual large

trans­ac­tions, ac­count files and in­for­ma­tion ob­tained whilst con­duct­ing cus­tomer due dili­gence such as copies of of­fi­cial iden­ti­fi­ca­tion. The in­for­ma­tion col­lected should be in such de­tail as to fa­cil­i­tate the re­con­struc­tion of in­di­vid­ual trans­ac­tions if re­quired by a do­mes­tic com­pe­tent au­thor­ity, such as the Fi­nan­cial In­tel­li­gence Au­thor­ity (FIA). This rec­om­men­da­tion re­quires in­for­ma­tion to be kept for at least five years af­ter the con­clu­sion of the busi­ness re­la­tion­ship and this should be en­shrined in law. Fi­nan­cial in­sti­tu­tions and en­ti­ties en­gaged in other busi­ness ac­tiv­i­ties should be able, when a re­quest is made by the com­pe­tent au­thor­ity, to pro­duce the records promptly.

This rec­om­men­da­tion is cov­ered un­der the Money Laun­der­ing (Pre­ven­tion) Act, Cap.12.20. Sec­tion 16 (1)(a) of the Act states, “A fi­nan­cial in­sti­tu­tion or a per­son en­gaged in other busi­ness ac­tiv­ity shall, es­tab­lish and main­tain trans­ac­tion records for both do­mes­tic and in­ter­na­tional trans­ac­tions for a pe­riod of seven years af­ter the com­ple­tion of the trans­ac­tion recorded”. Sec­tion 16(8) of the Act man­dates that records are to be kept in a for­mat that al­lows for easy re­trieval, to as­sist in in­ves­ti­ga­tion and pros­e­cu­tion of money laun­der­ing of­fences.

Fail­ure to com­ply with these re­quire­ments con­sti­tute an of­fence and upon conviction an in­di­vid­ual can be fined no less than one hun­dred thou­sand dol­lars, but not ex­ceed­ing five hun­dred thou­sand dol­lars or im­pris­on­ment of seven to fifteen years or both.Dur­ing the on­site visit from Septem­ber 16-27, 2019, the as­ses­sors from the Caribbean Fi­nan­cial Ac­tion Task Force (CFATF) will seek to de­ter­mine from fi­nan­cial in­sti­tu­tions and per­sons en­gaged in other busi­ness ac­tiv­i­ties whether these re­quire­ments are be­ing met. The list of busi­nesses that fall within the cat­e­gory of Other Busi­ness Ac­tiv­i­ties can be found in Sched­ule

2 of the Money Laun­der­ing (Pre­ven­tion) Act, Cap. 12.20. Ad­di­tional in­for­ma­tion on this rec­om­men­da­tion can ob­tained from the CFATF’s web­site at www.cfatf-gafic.org.

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