FINANCIAL INTELLIGENCE CENTRE ACT
Arrangement of Sections
> Section
PART I
PRELIMINARY
1. Short title
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-General
10. Powers of Director-General
11. Officers and other staff
11A Inspectors
11B Powers of Inspector
12. Immunity of officers
13. Disapplication of secrecy obligations
14. Immunity from execution of judgments
PART III
PREVENTION OF MONEY LAUNDERING, FINANCING OF TERRORISM OR PROLIFERATION 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. Risk management
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 or proliferation and other serious offence
24. Ongoing due diligence
25. Special monitoring of certain transactions
26. Obligations regarding wire transfers
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
36A. Register of reporting entities
37. Powers to enforce compliance
37A. Monitoring order
37B. Notice to comply
37C. Compliance Order
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
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
45A. Conducting transaction to avoid reporting duty
46. False or misleading statement
47. Confidentiality violation
48. Setting up shell bank
49. Generally penalty
49A. Undue influence, obstruction, hindrance, interference of officers and other staff
49B. Compounding of offences
49C. Administrative sanctions
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 directives, guidelines, rules, instructions, etc.
57. Retention of records
58. Regulations
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.
[1st April, 2011]
Act 46 of 2010,
Act 4 of 2016,
Act 16 of 2020,
SI 22 of 2011.
[General Note— (1) Section 28 of the Act 4 of 2016 deleted the word "Director" in all references to the Director of the Centre and substituted therefor the word "Director-General".
(2) Section 22 of the Act 16 of 2020 deleted the word "financial institution" wherever it appeared and substituted therefor the word "financial service provider".]
PART I
PRELIMINARY
This Act may be cited as the Financial Intelligence Centre Act.
(1) In this Act, unless the context otherwise requires—
"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;
"accountable institution" includes—
(a) a motor vehicle dealer;
(b) a property development services provider;
(c) a safe deposit or custody services provider;
(d) a co-operative society;
(e) a travel agent; and
(f) any other institution that the Minister may prescribe, on the recommendation of the Centre;
[Ins by s 2(c) of Act 16 of 2020.]
"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;
(d) an incomplete negotiable instrument, including a bill of exchange, cheques and money order signed, but with the payee’s name omitted;
[Subs by s 2(c) of Act 4 of 2016.]
"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;
[Subs by s 2(c) of Act 4 of 2016.]
"business relationship" means an association entered into between a client and a reporting entity for commercial or transactional purposes;
[Ins by s 2(d) of Act 4 of 2016.]
"Centre" means the Financial Intelligence Centre established under section 3;
"citizen" has the meaning assigned to the word in the Constitution;
[Ins by s 2(c) of Act 16 of 2020.]
"client" means a person who has entered into a business relationship or a single transaction with a reporting entity;
[Ins by s 2(d) of Act 4 of 2016.]
...
["close associate" rep by s 2(a) of Act 16 of 2020.]
"competent authority" includes—
(a) a law enforcement agency;
(b) a supervisory authority;
(c) the National Prosecution Authority established under the National Prosecutions Authority Act;
(d) the Patents and Companies Registration Agency established under the Patents and Companies Registration Agency Act;
(e) the Commissioner of Lands;
(f) the Zambia Development Agency established under the Zambia Development Agency Act;
(g) the Registrar of co-operatives appointed under the Co-operatives Act;
(h) the Registrar of Societies appointed under the Societies Act;
(i) the Registrar of Non-Governmental Organisations appointed under the Non-Governmental Organisations Act;
(j) the Zambia Security Intelligence Service established under the Zambia Security Intelligence Act;
(k) a designated foreign authority; and
(l) any other authority that the Minister may prescribe, on the recommendation of the Centre;
[Ins by s 2(c) of Act 16 of 2020.]
"currency" means the legal tender of the Republic or of a foreign country that is customarily used and accepted as a medium of exchange and may be represented in coin, paper, electronic or virtual form;
[Subs by s 2(b) of Act 16 of 2020.]
"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;
"data message" has the meaning assigned to it in the Electronic Communications and Transactions Act;
"designated non-financial business or profession" includes—
(a) a casino, gaming or gambling operator;
(b) a trust or company service provider which, as a business, provides any of the following services to third parties—
(i) acting as an agent for the establishment of legal persons;
(ii) acting as, or arranging for another person to act as a director or secretary of a company, a partner in a partnership or a similar position in relation to other legal persons;
(iii) providing a registered office, business address or accommodation, correspondence or administrative address for a company, a partnership or any other legal person or arrangement;
(iv) acting as, or arranging for another person to act as, a trustee of an express trust; or
(v) acting as, or arranging for another person to act as, a nominee shareholder for another person;
(c) a legal practitioner, notary, other independent legal professional and accountant when they prepare for, or carry out, a transaction for a client concerning the following activities—
(i) buying and selling of real estate;
(ii) managing of client money, securities or other assets;
(iii) management of bank, savings or securities accounts on behalf of clients;
(iv) organisation of contributions for the creation, operation or management of companies; or
(v) creation, operation or management of legal persons or arrangements, and buying and selling of business entities;
(d) an estate agent dealing in real estate, involved in a transaction for a client concerning the letting, buying and selling of real estate;
(e) a dealer in precious metals;
(f) a dealer in precious stones; and
(g) any other business or profession in which the risk of money laundering and financing of terrorism or proliferation or any other serious offence exists as the Minister may, on the recommendation of the Centre, prescribe;
[Ins by s 2(c) of Act 16 of 2020.]
"director" has the meaning assigned to the word in the Companies Act;
[Ins by s 2(c) of Act 16 of 2020.]
"Director-General" means the person appointed as such under section 9;
[Am by s 28 of Act 4 of 2016.]
"financial instrument" means an instrument capable of representing a monetary value, and includes money, bonds, bills and notes;
"financial service provider" has the meaning assigned to the words in the Banking and Financial Services Act and includes a virtual asset service provider;
[Ins by s 2(c) of Act 16 of 2020.]
"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;
...
["high-risk customer" rep by s 2(a) of Act 16 of 2020.]
...
["immediate family member" rep by s 2(a) of Act 16 of 2020.]
"intermediary institution" means an institution which participates in a transfer of funds that takes place through more than one institution but is not an ordering institution or a beneficiary institution;
[Ins by s 2(c) of Act 16 of 2020.]
"law enforcement agency" means—
(a) the Zambia Police Service, established under the Constitution;
(b) the National Anti-Terrorism Centre established under the Anti-Terrorism and Non-Proliferation Act;
(c) the Immigration Department established under the Immigration and Deportation Act;
(d) the Drug Enforcement Commission, established under the Constitution;
(e) the Anti-Money Laundering Investigations Unit established under the Prohibition and Prevention of Money Laundering Act;
(f) the Anti-Corruption Commission established under the Constitution;
(g) the Zambia Revenue Authority established under the Zambia Revenue Authority Act; and
(h) any other investigative institution that the Minister may, on the recommendation of the Centre, prescribe;
[Subs by s 2(b) of Act 16 of 2020.]
"law enforcement officer" means an officer of a law enforcement agency;
"legal arrangement" means to express trusts or other similar legal arrangements;
"legal person" means an entity other than a natural person that can establish a permanent customer relationship with a financial service provider or otherwise own property;
[Ins by s 2(d) of Act 4 of 2016; am by s 22 of Act 16 of 2020.]
"legal practitioner" has the meaning assigned to it in the Legal Practitioners Act;
"money laundering" has the meaning assigned to it in the Prohibition and Prevention of Money Laundering Act;
"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;
[Ins by s 2(d) of Act 4 of 2016.]
"non-governmental organisation" has the meaning assigned to it in the Non-Governmental Organisations' Act;
[Ins by s 2(d) of Act 4 of 2016.]
"officer" means an officer of the Centre or a law enforcement officer authorised by the Centre to carry out a function under this Act;
"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 service provider;
[Ins by s 2(d) of Act 4 of 2016.]
"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;
[Ins by s 2(d) of Act 4 of 2016.]
...
["politically-exposed person" rep by s 2(b) of Act 16 of 2020.]
"precious metal" has the meaning assigned to the words in the Mines and Minerals Development Act;
[Ins by s 2(c) of Act 16 of 2020.]
"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 and the Prohibition and Prevention of Money Laundering Act;
"proliferation" means an act by any person who by any means, directly or indirectly, wilfully 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, transhipment, 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;
[Ins by s 2(d) of Act 4 of 2016.]
"proliferation financing" has the meaning assigned to the words in the Anti-Terrorism and Non-Proliferation Act;
[Ins by s 2(c) of Act 16 of 2020.]
"prominent influential person" means—
(a) an individual who is or has, been entrusted with a prominent public function by a State or an international or local body or organisation but is not of middle or junior ranking and includes—
(i) a head of State or of Government;
(ii) a minister;
(iii) a member of an executive organ of a political party;
(iv) a magistrate, judge and other senior officials of quasi judicial bodies;
(v) a senior military official;
(vi) a senior government official; and
(vii) a member of the board or an official in senior management of an administrative or supervisory body, or a state owned enterprise or statutory body;
(b) an immediate family member of an individual under paragraph (a) and includes—
(i) a spouse;
(ii) a sibling;
(iii) children and their spouses; and
(iv) parents; and
(c) a known close associate of an individual under paragraph (a) and includes—
(i) any individual who is known to have joint beneficial ownership or control of a legal entity or legal arrangement, or any other close business relationship, with an individual referred to in paragraph (a);
(ii) any individual who 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 an individual referred to in subparagraph (a); and
(iii) any individual who is closely connected to an individual referred to under paragraph (a), either socially or professionally;
[Ins by s 2(b) of Act 16 of 2020.]
"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;
"public function" means a function performed by a public officer in a public body in an official capacity in relation to the public body;
[Ins by s 2(d) of Act 4 of 2016.]
"public office" means an office occupied by a person in a public body;
[Ins by s 2(d) of Act 4 of 2016.]
"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;
"reporting entity" means an institution required to make reports under this Act which is regulated by a supervisory authority, and includes a financial service provider, a designated non-financial business or profession or a virtual asset service provider;
[Subs by s 2(b) of Act 16 of 2020.]
"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;
"senior management" means the executive committee or management team comprising a core group of individuals who are responsible and accountable for effective management of a reporting entity and includes board of directors;
[Ins by s 2(c) of Act 16 of 2020.]
"serious offence" has the meaning assigned to it in the Forfeiture of Proceeds of Crime Act;
"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 service provider forming part of a regulated financial services group that is subject to effective consolidated supervision;
"supervisory authority" means—
(a) the Bank of Zambia established under the Constitution;
(b) the Pensions and Insurance Authority established under the Pension Scheme Regulation Act;
(c) the Securities and Exchange Commission established under the Securities Act;
(d) the licensing committee established under the Tourism and Hospitality Act;
(e) the Registrar of Estate Agents appointed under the Estate Agents Act;
(f) the Law Association of Zambia established under the Law Association of Zambia Act;
(g) the Zambia Institute of Chartered Accountants established under the Accountants Act;
(h) the Centre;
(i) Chief Registrar of Lands appointed under the Lands and Deeds Registry Act;
(j) any other authority established under any written law as a supervisory authority; and
(k) an authority that the Minister may prescribe;
[Subs by s 2(b) of Act 16 of 2020.]
"suspicious transaction report" means a report submitted on suspected or attempted money laundering, financing of terrorism or proliferation or any other serious offence whether in form of a data message or otherwise;
[Subs by s 2(b) of Act 16 of 2020.]
"terrorism" has the meaning assigned to the word in the Anti-Terrorism and Non-Proliferation Act;
[Ins by s 2(c) of Act 16 of 2020.]
"transaction" means a purchase, sale, loan, pledge, gift, 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;
(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;
"virtual asset" means convertible virtual asset such as crypto currency or other digital means of exchange where the virtual asset is accepted by a person as a means payment for goods or services, a unit of account, a store of value or a commodity;
[Ins by s 2(c) of Act 16 of 2020.]
"virtual asset service provider" means any person who as a business conducts one or more of the following activities or operations for or on behalf of another person—
(a) exchange between virtual assets and fiat currencies;
(b) exchange between one or more forms of virtual assets;
(c) transfer of virtual assets;
(d) safekeeping and administration of virtual assets instruments enabling control over virtual assets;
(e) participation in and provision of financial services related to an issuer’s offer and sale of a virtual asset; and
(f) provision of intermediary services for the buying and selling of virtual assets, including through the use of virtual asset vending machine facilities; and
[Ins by s 2(c) of Act 16 of 2020.]
"wire transfer" means a transaction carried out on behalf of an originator who may be the beneficiary, through a financial service provider, 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 service provider.
["wire transfer" subs by s 2(c) of Act 4 of 2016.]
(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, 25 per cent 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, 25 per cent or more of the shares or voting rights of the entity;
(c) despite a less than 25 per cent share-holding or voting rights, receives a large percentage of the person’s declared dividends; or
(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.
[S 2(2) ins by s 2(e) of Act 4 of 2016.]
PART II
THE FINANCIAL INTELLIGENCE CENTRE
3. Establishment of Financial Intelligence Centre
(1) There is hereby established the Financial Intelligence Centre which shall be a body corporate with perpetual succession and a common seal, capable of suing and being sued in its corporate 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.
(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.
(1) The Centre is the designated National Centre for receipt, from reporting entities, and analysis of suspicious transaction reports, and any other information relevant to money laundering, and terrorism or proliferation financing and serious offences relating to money laundering, and terrorism or proliferation, including information from designated foreign authorities, made to the Centre under this Act or any other written law and for the dissemination of the results of that analysis.
(2) Despite the generality of sub-section (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 designated foreign authority to determine whether there are reasonable grounds to transmit reports for investigation by law enforcement agencies or designated foreign authorities;
(b) disseminate information, spontaneously or on request, to law enforcement agencies and other competent authorities, where there are reasonable grounds to suspect money laundering or financing of terrorism or proliferation;
(c) provide information relating to suspicious transactions to any designated foreign authority, subject to conditions that the Director-General may determine, in accordance with this Act;
(d) conduct strategic analysis to identify related trends and patterns relating to money laundering, financing of terrorism or proliferation or any other serious offence related to money laundering, financing of terrorism or proliferation;
(e) provide information, advice and assistance to law enforcement agencies in furtherance of an investigation;
(f) educate the public and reporting entities of their obligations and inform them of measures to detect, prevent and deter money laundering, financing of terrorism or proliferation or any other serious offence relating to money laundering, financing of terrorism or proliferation;
(g) provide information to supervisory bodies, law enforcement agencies and any other competent authority to facilitate law enforcement for prevention of money laundering, financing of terrorism or proliferation or any other serious offence related to money laundering, financing of terrorism or proliferation;
(h) ensure compliance by reporting entities with this Act, Regulations, directives, determinations, notices and circulars issued by the Centre or supervisory authorities;
(i) give guidance to reporting entities to combat money laundering, financing of terrorism or proliferation activities or any other serious offence related to money laundering, financing of terrorism or proliferation on a risk sensitive basis; and
(j) facilitate effective risk based supervision and enforcement of this Act by supervisory authorities.
(3) The Centre may, in performing its functions under this Act—
(a) co-operate and exchange information with, or enter into any agreement or arrangement, in writing with a supervisory authority or designated foreign authority, law enforcement agency, competent authority or designated foreign authority as the Centre considers necessary or desirable for the performance of its functions under this Act;
(b) conduct inquiries related to suspicious transactions 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 under the 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 written law, where the information is required for the discharge of its functions under this Act or for purposes of the Act;
(f) request a law enforcement agency or competent authority to report progress and outcomes on a matter 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 under 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;
(i) collaborate and co-ordinate with relevant competent authorities on risk based supervision or monitoring of non-governmental organisations for compliance with the requirements relating to countering financing of terrorism or proliferation or any other serious offence; and
(j) supervise and enforce compliance with this Act by reporting entities that are—
(i) not regulated or supervised by a supervisory authority in terms of this Act or any other written law; or
(ii) regulated or supervised by a supervisory authority in terms of this Act or any other written law, if that supervisory authority fails or neglects to enforce compliance.
(4) An officer authorised to conduct an inspection under sub-section (3)(g) may exercise the powers of an inspector provided for under section 11B.
[S 5 subs by s 3 of Act 16 of 2020.]
6. Extent of Centre’s autonomy
(1) Subject to sub-section (2), the Centre shall not, in the performance of its functions under this Act or any other law, be subject to the direction or control of any person or authority.
(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.
(1) There shall be a Board of the Centre which shall consist of the following part-time members—
(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 10 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-General shall be the secretary to the Board.
(5) The Schedule applies to the Board.
(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 co-operation agreements between the Centre and domestic or foreign designated authorities;
(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.
[S 8(1) subs by s 4 of Act 4 of 2016.]
(2) Notwithstanding sub-section (1), the Board may delegate to the Director-General or to any committee of the Board, any of its functions under this Act.
(1) The Board shall, subject to the approval of the Minister, appoint a Director-General 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-General unless the person has not less than 10 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-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.
[S 9(3) subs by s 5 of Act 4 of 2016.]
(4) The Director-General shall not, while the Director-General holds the office of Director-General, discharge the duties of any other office of emolument in the Republic.
(5) The Director-General 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-General may consider necessary or expedient for preventing the abuse of power or neglect of duty by officers or other staff.
(6) The Director-General shall, on appointment, take an oath or affirmation before the Chief Justice in the prescribed manner and form.
10. Powers of Director-General
(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 fulfil 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
(iii) produce a book or document relating to the affairs of the reporting entity.
(2) Where the information requested under sub-section (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 15 days.
(4) A person aggrieved with the decision of the Director-General to freeze an account or suspend a transaction may after 72 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 sub-section (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.
[S 10 subs by s 6 of Act 4 of 2016.]
(1) The Director-General may appoint, on such terms and conditions that the Board may determine, such officers and other staff as may be necessary to assist the Director-General in the performance of the Director General’s functions under this Act.
[S 11(1) am by s 7 of Act 4 of 2016, s 4 of Act 16 of 2020.]
(2) The Director-General 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 Director-General.
[S 11(2) am by s 7 of Act 4 of 2016.]
(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-General in the prescribed manner and form.
(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.
{mprestriction ids="2,3,5"}
(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 sub-section (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 sub-section (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 sub-section (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.
[S 11A ins by s 8 of Act 4 of 2016.]
(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, undertaking, 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;
(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.
(3) An inspector who removes a document, matter, material, substance or article from a reporting entity, undertaking, business or premises under paragraph (g) of sub-section (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;
(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.
[S 11B ins by s 8 of Act 4 of 2016.]
An action shall not lie against the Director-General, officers or staff of the Centre or any person acting under the authority of the Director-General for anything done or omitted to be done in good faith in the discharge of any functions, duties or powers under this Act.
13. Disapplication of secrecy obligations
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.
14. Immunity from execution of judgments
Where any judgment order is obtained against the Centre, no execution, attachment or process of any nature, shall be issued against the Centre or against any property of the Centre, but the 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, FINANCING OF TERRORISM OR PROLIFERATION AND OTHER SERIOUS OFFENCES
[Heading am by s 9 of Act 4 of 2016.]
15. Prohibition of establishment of anonymous accounts
A reporting entity shall not establish or maintain an anonymous account or any account in a fictitious name.
16. Customer identification requirements
(1) A reporting entity shall identify its customers and verify its customers’ identities by means of reliable and independent source documents, data or information, when—
(a) opening an account for, or otherwise establishing a business relationship with a customer;
(b) a customer, who is neither an account holder nor in an established business relationship with a financial service provider, wishes to carry out a transaction in an amount equal to, or above, a prescribed amount whether conducted as a single transaction or several transactions that appear to be linked, except 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) despite 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;
(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 proliferation or any other serious offence relating to money laundering, financing of terrorism or proliferation involving the customer or that customer’s account.
(2) 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 proliferation or any other serious offence relating to money laundering, financing of terrorism or proliferation or doubts the veracity or adequacy of previously obtained customer identification information.
(3) 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, financing of terrorism or proliferation or any other serious offence relating to money laundering, financing of terrorism or proliferation is effectively managed; and
(b) a delay in verification is essential not to interrupt the normal conduct of business.
(4) A reporting entity shall, with respect to each customer, obtain and verify, as part of its obligation under sub-section (1)—
(a) for a natural person, the full name and physical address, and date and place of birth or a mobile number linked to a registered international mobile equipment identity number or sim card in place of a physical address;
(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 information that is necessary to understand the ownership and control of the legal person;
(c) for legal arrangements, the name, legal form and proof of existence, the address of the registered office or the principal place of business, the powers that regulate and bind the arrangement, the identity of the settlor, the trustee, the protector, where applicable, the beneficiaries or class of beneficiaries, and any other natural person exercising ultimate effective control over the trust, including through a chain of control or ownership, 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 the person is properly authorised to act in that capacity;
(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 fulfil its obligations under this Act.
(5) A governing body of a trust shall, with respect to each trust—
(a) obtain and hold adequate, accurate, and current information on the identity of the settlor, the trustee, the protector, if any, the beneficiaries or class of beneficiaries, and any other natural person exercising ultimate effective control over the trust; and
(b) obtain and hold basic adequate, accurate, and current information on other regulated agents of, and service providers to, the trust, including investment advisors or managers, accountants, and tax advisors.
(6) A reporting entity shall, as part of its obligations under sub-sections (1) and (4)—
(a) understand the purpose and intended nature of the business relationship; and
(b) identify the beneficial owner and take reasonable measures that are necessary to verify the identity of the beneficial owner, except that the Minister may prescribe the circumstances, such as the ownership of publicly held corporations, in which that identification and verification is not necessary.
(7) In addition to sub-sections (1) and (4), an insurance company shall take the following measures on the beneficiary of life insurance and other investment related insurance policies, as soon as the beneficiary is identified or designated—
(a) for a beneficiary that is identified as specifically named natural or legal persons or legal arrangements, by taking the name of the person; or
(b) for a beneficiary that is designated by characteristics or by class or by other means, obtaining sufficient information concerning the beneficiary to satisfy the reporting entity that it will be able to establish the identity of the beneficiary at the time of the payout except that—
(i) the verification of the identity of the beneficiary shall occur at the time of the payout;
(ii) the insurance company shall include the beneficiary of a life insurance policy as a relevant risk factor in determining whether ongoing due diligence is applicable; and
(iii) if the insurance company determines that a beneficiary who is a legal person or a legal arrangement presents a higher risk, it shall take enhanced measures which should include reasonable measures to identify and verify the identity of the beneficial owner of the beneficiary, at the time of payout.
(8) A reporting entity shall apply the identification and verification requirements stipulated under sub-sections (1) and (4) to customers and beneficial owners with which it has a business relationship on the basis of materiality and risk, at appropriate times, depending on the type and nature of the customer, business relationship, product or transactions, or as may otherwise be prescribed.
(9) Where a reporting entity is unable to comply with the customer due diligence requirements under this section, it shall not open the account, commence business relations or perform the transaction, and where appropriate, it shall terminate the business relationship, and shall make a suspicious transactions report in relation to the customer.
(10) Where a reporting entity forms a suspicion of money laundering or financing of terrorism or proliferation or any other serious offence and it reasonably believes that conducting customer identification and verification requirements shall tip off the customer, it shall not conduct customer identification and verification, and instead shall file a suspicious transaction report under this Act.
(11) 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 other information that the Minister may prescribe.
[S 16 subs by s 5 of Act 16 of 2020.]
17. Reliance on identification by third party
(1) A reporting entity may rely on an intermediary or other third party to perform the customer identification required under sub-section (1) of section 16, where—
(a) there is no suspicion of money laundering, the financing of terrorism or proliferation or any other serious offence;
[S 17(1)(a) am by s 11 of Act 4 of 2016.]
(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—
(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.
(2) The third party referred to in paragraph (c) of sub-section (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 fulfil the terms of sub-paragraph (ii) of paragraph (c) of sub-section (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.
(5) Where the third party is part of the same financial group, the home and host competent authorities shall satisfy themselves that the requirements in sub-section (1) are met in the following circumstances—
(a) the group applies same or stricter customer due diligence and record keeping, and internal control requirements against money laundering and financing of terrorism or proliferation or any other serious offence relating to money laundering, financing of terrorism or proliferation;
(b) the implementation of those customer due diligence, record keeping requirements and programmes to counter money laundering and financing of terrorism or proliferation or any other serious offence relating to money laundering, financing of terrorism or proliferation is supervised at a group level by a competent authority; and
(c) any higher national risk is adequately mitigated by the group’s anti-money laundering or combating financing of terrorism or proliferation or any other serious offence relating to money laundering, financing of terrorism or proliferation.
[S 17(5) ins by s 6 of Act 16 of 2020.]
18. Customers not physically present
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 or proliferation and any other serious offence;
[S 18(a) am by s 12 of Act 4 of 2016.]
(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 service providers or other documentary evidence or measures as may be prescribed.
(1) A reporting entity shall identify, assess, and understand the money laundering and financing of terrorism or proliferation or any other serious offence relating to money laundering, financing of terrorism or proliferation risks with regard to its products, services, delivery channels and its customers, geographical locations and country risk.
(2) A reporting entity shall, based on the assessment in sub-section (1), apply a risk based approach to ensure that measures to prevent or mitigate money laundering and financing of terrorism or proliferation or any other serious offence relating to money laundering, financing of terrorism or proliferation are commensurate with the risks identified.
(3) A reporting entity shall, in relation to sub-section (1)—
(a) prior to the launch or use of a new product and new business practices, including a new delivery mechanism, and the use of a new or developing technology for both new and pre-existing products, identify, assess, manage and mitigate the risks that may arise in relation to the development and use thereof;
(b) document its risk assessments;
(c) consider all the relevant risk factors before determining the level of overall risk and the appropriate level and type of mitigation to be applied; and
(d) keep the assessments up to date.
(4) Where a reporting entity identifies customers whose activities may pose a high risk of money laundering and financing of terrorism or proliferation or any other serious offence relating to money laundering, financing of terrorism or proliferation, the reporting entity shall exercise enhanced identification, verification and ongoing due diligence procedures with respect to those customers and shall—
(a) 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;
(b) take all reasonable measures to verify the source of wealth and funds and other assets of the customer;
(c) provide increased and ongoing monitoring of the customer and the business relationship to prevent money laundering, financing of terrorism or proliferation or the commission of any other serious offence related to money laundering, financing of terrorism or proliferation and to permit the reporting entity to fulfil its obligations under this Act, including all of its due diligence and reporting requirements;
(d) take reasonable measures to determine whether the beneficiary of a life insurance policy or, where the beneficiary is not a natural person, the beneficial owner of the beneficiary is a prominent influential person before a payout is made; and
(e) where higher risks are determined, inform senior management before the payout of the policy proceeds is made, conduct enhanced scrutiny of the entire business relationship and consider submitting a suspicious transaction report.
(5) Where the reporting entity identifies lower risks in relation to its products, services, delivery channels and its customers or geographical locations, the reporting entity may allow simplified measures for customer due diligence.
(6) Where the reporting entity identifies higher risks in relation to its products, services, delivery channels and its customers or geographical locations, the reporting entity shall undertake enhanced customer due diligence measures.
(7) A reporting entity shall—
(a) apply risk based counter-measures against any country when called on to do so by the Centre or any duly delegated competent authority, as communicated from time to time; and
(b) apply enhanced due diligence, proportionate to the risks, to business relationships and customer transactions with natural or legal persons, including financial service providers, from countries which have been designated as high risk by the Centre or any competent authority, as communicated from time to time.
[S 19 subs by s 7 of Act 16 of 2020.]
20. Identification and account opening for cross border correspondent banking relationship
A financial service provider shall, where it enters into any cross border correspondent banking relationship—
(a) identify and verify the identification of respondent institutions with which it conducts correspondent banking relationships;
(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 or proliferation;
[S 20(e) am by s 14 of Act 4 of 2016.]
(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 service provider in a foreign country if the respondent institution permits its accounts to be used by a shell bank.
21. Inability to fulfil customer identification obligations
A reporting entity that fails or is likely to fail to fulfil the requirements of sections 16 to 20 with respect to any customer shall not establish an account for, or maintain the business relationship with, that customer, and shall make a report to the Centre in accordance with this Act.
(1) A reporting entity shall maintain all the books and records with respect to its customers and transactions set out in sub-section (2), and shall ensure that those records and underlying information are available on a timely basis to the Centre, supervising authority, law enforcement agency or other competent authority.
[S 22(1) subs by s 8 of Act 16 of 2020.]
(2) The books and records referred to in sub-section (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 10 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 10 years from the date of the transaction;
(c) the findings set in writing pursuant to paragraph (c) of sub-section (1) of section 25 and related transaction information, which shall be maintained for at least 10 years from the date of the transaction; and
(d) copies of all suspicious transaction reports made pursuant to section 29, including any accompanying documentation, which shall be maintained for at least 10 years from the date the report was made.
(3) A reporting entity shall keep the records referred to in sub-section (1) by way of original documents in the form of hard copies or in an electronic form in an electronic storage device.
[S 22(3) ins by s 15(b) of Act 4 of 2016.]
23. Internal programmes to combat money laundering, financing of terrorism or proliferation and other serious offence
(1) A reporting entity shall develop and implement programmes for the prevention of money laundering, financing of terrorism or proliferation or any other serious offence relating to money laundering, financing of terrorism or proliferation.
(2) A programme under sub-section (1) shall include—
(a) internal policies, procedures and controls to fulfil obligations under 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 or proliferation or any other serious offence relating to money laundering, financing of terrorism or proliferation, to assist them in recognising transactions and actions that may be linked to money laundering, financing of terrorism or proliferation or any other serious offence relating to money laundering, financing of terrorism or proliferation and instruct them in the procedures to be followed in those 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;
(e) mechanisms for preventing money laundering, financing of terrorism or proliferation, or any other serious offence;
(f) independent audit arrangements to review and verify compliance with and effectiveness of the measures taken in accordance with this Act;
(g) risk based approach in implementing the requirements under this Act;
(h) customer identification procedures;
(i) record keeping and retention;
(j) reporting procedures;
(k) confidentiality requirements and procedures;
(l) transaction monitoring systems; and
(m) adequate screening procedures for customers against relevant sanctions lists.
(3) A reporting entity shall designate a compliance officer at senior management level to be responsible for the implementation of, and ongoing compliance with this Act by that reporting entity.
(4) A person shall not be designated as a compliance officer unless that person—
(a) has two years’ experience in the field of regulatory compliance;
(b) is not convicted of an offence under this Act or any other written law and sentenced to a term of imprisonment of not less than six months without the option of a fine; and
(c) is certified and approved by the Centre.
(5) A compliance officer designated under sub-section (3) shall access all the books, records and employees of the reporting entity necessary to fulfil the responsibilities specified under this Act.
(6) The Centre may disapprove the designation of a compliance officer on grounds relating to—
(a) misconduct in relation to the responsibility of the compliance officer under this Act;
(b) the conviction of a person for an offence under this Act or any other relevant written law for which that person is sentenced to a term of imprisonment of not less than six months without the option of a fine; and
(c) inability or unfitness to perform the functions of a compliance officer under this Act.
(7) The Minister may prescribe the type and extent of measures that reporting entities shall undertake with respect to each of the requirements under this section having regard to the risk of money laundering, financing of terrorism or proliferation or any other serious offence relating to money laundering, financing of terrorism or proliferation and the size of the business or profession.
(8) A reporting entity that uses an agent to provide its services shall include the agent in the programme under sub-section (2) and shall monitor the agent for compliance with that programme.
[S 23 subs by s 9 of Act 16 of 2020.]
A reporting entity shall exercise ongoing due diligence using a risk based approach with respect to a business relationship with a customer which includes—
(a) scrutinising transactions undertaken throughout the course of that relationship to ensure that the transactions being conducted are consistent with the financial service provider’s knowledge of the customer, their business and risk profile, including where necessary, the source of funds;
(b) maintaining current and accurate information and records relating to the customer or beneficial owner; and
(c) ensuring the obligations under sections 19 and 20 relating to risk management and correspondent banking relationship are fulfilled.
[S 24 subs by s 10 of Act 16 of 2020.]
25. Special monitoring of certain transactions
(1) A reporting entity shall—
(a) pay special attention to business relations and 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;
[S 25(1)(a) am by s 17(a) of Act 4 of 2016.]
(b) take such specific measures as may be prescribed to counter the risks with respect to business relations;
(c) examine all complex, unusual and large transactions and patterns of transactions that have no apparent economic or lawful purpose; and
[S 25(1)(c) ins by s 17(b) of Act 4 of 2016.]
(d) examine the background and purpose of transactions under paragraphs (a) and (b) and make its findings in writing.
[S 25(1)(d) ins by s 17(b) of Act 4 of 2016.]
(2) The findings referred to in sub-section (1), shall be maintained as specified in section 22 and shall be made available promptly if requested by the Centre, a supervisory authority or law enforcement agency.
26. Obligations regarding wire transfers
(1) A financial service provider undertaking a wire transfer equal to, or above, a prescribed threshold shall—
(a) identify and verify the identity of the originator;
(b) obtain and maintain information on the identity of the beneficiary;
(c) obtain and maintain the account number of the originator and beneficiary, or in the absence of an account number, a unique reference number;
(d) obtain and maintain the originator’s address or, in the absence of address, the national identity number, or date and place of birth; and
(e) include information from paragraphs (a) to (c) in the message or payment form accompanying the transfer.
(2) Despite the requirements of sub-section (1), a financial service provider is not required to verify the identity of a customer with which that financial service provider has an existing business relationship and where the financial service provider is satisfied that it already knows and has verified the true identity of the customer.
(3) Where a financial service provider acts as an intermediary in a chain of payments, it shall retransmit all of the information it received with the wire transfer and any other information that may be necessary to identify the originator and beneficiary.
(4) Where several individual cross border wire transfers from a single originator are bundled in a batch file for transmission to beneficiaries, the batch file should contain required and accurate originator information, and full beneficiary information, that is fully traceable within the beneficiary country, and the financial service provider shall include the originator’s account number or unique transaction reference number.
(5) Where the information accompanying the domestic wire transfer can be made available to the beneficiary financial service provider and appropriate authorities by other means the—
(a) ordering financial service provider shall include the account number or a unique transaction reference number, except that this number or unique transaction reference number will permit the transaction to be traced back to the originator or the beneficiary;
(b) ordering financial service provider shall make the information available within three business days of receiving the request either from the beneficiary financial service provider or from the Centre or supervisory authority; and
(c) law enforcement agencies shall compel immediate production of that information where required.
(6) Where the required originator or beneficiary information accompanying a cross border wire transfer does not remain with a related domestic wire transfer, the intermediary financial service provider shall keep a record, for at least 10 years, of all the information received from the ordering financial service provider or another intermediary financial service provider.
(7) An intermediary financial service provider shall develop and implement risk based policies and procedures for determining—
(a) when to execute, reject, or suspend a wire transfer lacking required originator or required beneficiary information; and
(b) the appropriate follow up action.
(8) A beneficiary financial service provider shall take reasonable measures, including, where feasible, post event monitoring or real time monitoring to identify cross border wire transfers that lack required originator information or required beneficiary information.
(9) A beneficiary financial service provider shall develop and implement risk based policies and procedures for determining—
(a) when to execute, reject, or suspend a wire transfer lacking required originator or required beneficiary information; and
(b) the appropriate follow up action.
(10) A money or value transfer service provider shall, in the case of a money or value transfer service provider that controls both the ordering and the beneficiary side of a wire transfer—
(a) take into account all the information from both the ordering and beneficiary sides in order to determine whether the wire transfer has to be reported; and
(b) submit a suspicious transaction report in any country affected by the suspicious wire transfer, and make relevant transaction information available to the Centre.
(11) The Minister may, on the recommendation of the Centre, by statutory instrument, modify the requirements set out in sub-section (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 service provider 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.
(12) Sub-sections (1) and (2) do not apply to transfers executed as a result of credit card or debit card transactions or to transfers between financial service providers acting for their own account, except that the credit card or debit card number accompanies the transfer resulting from the transaction.
(13) Where a financial service provider under sub-section (1) receives wire transfers that do not contain the complete originator information required under that sub-section, that financial service provider shall take measures to obtain and verify the missing information from the ordering institution or the beneficiary.
(14) A financial service provider shall, where it fails to obtain any missing information, refuse acceptance of the transfer and report the transfer to the Centre.
(15) The Bank of Zambia shall provide wire transfer records to the Centre.
[S 26 subs by s 11 of Act 16 of 2020.]
27. Compliance with obligations by foreign subsidiaries and branches
(1) A reporting entity 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.
(2) A reporting entity 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 steps that it believes to be appropriate to accomplish the purposes of this Act.
(3) The obligations set out in section 23 apply to all foreign branches and majority owned subsidiaries of a reporting entity and shall include—
(a) policies and procedures for sharing information within the group for money laundering, financing of terrorism or proliferation or any other serious offence relating to money laundering, financing of terrorism or proliferation purposes;
(b) the provision, at group level compliance, audit, or money laundering, financing of terrorism or proliferation or any other serious offence relating to money laundering, financing of terrorism or proliferation, functions, of customer, account, and transaction information from branches and subsidiaries when necessary for money laundering, financing of terrorism and proliferation or any other serious offence relating to money laundering, financing of terrorism or proliferation; and
(c) adequate safeguards on the confidentiality and use of information exchanged.
[S 27 subs by s 12 of Act 16 of 2020.]
28. Prohibition against shell banks
A shell bank shall not be established or permitted to operate in or through the territory of Zambia.
29. Obligation to report suspicious transactions
(1) Subject to the provisions of sub-sections (2) and (3), a reporting entity or a director, principal officer, partner, professional or employee of a reporting entity, that suspects or has reasonable grounds to suspect that any property—
[S 29(1) am by s 18 of Act 4 of 2016.]
(a) is the proceeds of crime; or
(b) is related or linked to, or is to be used for, terrorism and proliferation or any other serious offence, relating to money laundering, financing of terrorism or proliferation terrorist acts or by terrorist organisations or persons who finance terrorism or proliferation or any other serious offence relating to money laundering, financing of terrorism or proliferation;
[S 29(1)(b) subs by s 13(a) of Act 16 of 2020.]
shall, not later than three working days after forming the suspicion, submit a report setting out the suspicions to the Centre.
(2) Sub-section (1) shall apply to attempted transactions.
(3) Notwithstanding sub-section (1), a legal practitioner, a notary public or an accountant shall submit a report under sub-section (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.
(4) A reporting entity shall refrain from carrying out a transaction which it suspects to be related to money laundering, financing of terrorism or proliferation or any other serious offence relating to money laundering, financing of terrorism or proliferation.
[S 29(4) subs by s 13(b) of Act 16 of 2020.]
(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. Obligation to report currency transactions
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. Disclosing information regarding compliance
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. Inapplicability of confidentiality provisions
No secrecy or confidentiality provision in any other law shall prevent a reporting entity from fulfiling its obligations under this Act.
33. Prohibition against tipping off
(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 sub-section (2) or where otherwise required by law to do so.
(2) Sub-section (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.
(3) A person who contravenes sub-section (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.
34. Protection of identity of persons and information relating to suspicious transaction reports
(1) Except for the purposes of the administration of this Act, a person shall not disclose any information to identify or that is likely to identify the person who prepared or made a suspicious transaction report, or handled the underlying transaction.
(2) A person shall not be required to disclose a suspicious transaction report or any information contained in the report or 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.
35. Exemption from liability for good faith reporting of suspicious transactions
(1) Criminal, civil, disciplinary or administrative proceedings for breach of banking or professional secrecy or contract shall not lie against a reporting entity, its directors, principals, officers, partners, professionals or employees who, in good faith, submit reports or provide information in accordance with the provisions of this Act.
(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—
(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.
36. Duties of supervisory authorities
(1) Where a supervisory authority has reasonable grounds to believe that a business transaction indicates that a person has or may have been engaged in money laundering, the financing of terrorism or proliferation or any other serious offence, it shall disclose, or cause to be disclosed, that information to the Centre.
[S 36(1) am by s 14(a) of Act 16 of 2020.]
(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.
(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.
(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.
[S 36(5) ins by s 19 of Act 4 of 2016.]
(6) An inspector appointed pursuant to sub-section (5) shall have the same powers as an inspector appointed under section 11A.
[S 36(6) ins by s 19 of Act 4 of 2016.]
(7) A supervisory authority shall make available a report of its findings and recommendations to the Centre following an inspection conducted under this Act.
[S 36(7) ins by s 14(b) of Act 16 of 2020.]
36A. Register of reporting entities
The Centre shall maintain a register of all reporting entities, which shall contain such particulars as are prescribed.
[S 36A ins by s 20 of Act 4 of 2016.]
37. Powers to enforce compliance
(1) An officer of a reporting entity shall take all reasonable steps to ensure the reporting entity’s compliance with its obligations under this Act.
(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.
[S 37(2) subs by s 21 of Act 4 of 2016.]
(3) Notwithstanding sub-section (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.
(4) A person who contravenes the provisions of sub-section (1) or sub-section (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 sub-section (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.
(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.
(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 90 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 90 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 sub-section (1) and in the manner provided for in this section.
[S 37A ins by s 22 of Act 4 of 2016.]
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.
[S 37B ins by s 22 of Act 4 of 2016.]
(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 sub-section (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.
(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 sub-section (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.
[S 37C ins by s 22 of Act 4 of 2016.]
38. Financial instrument reporting at borders
(1) Notwithstanding any other written law, a person leaving or entering Zambia with an amount in cash, negotiable bearer instruments or both, exceeding such value as the Minister may prescribe by statutory instrument, shall declare to a customs officer such amount in such form as may be prescribed.
(2) A person who contravenes sub-section (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 sub-section (1) shall, for the purposes of the Customs and Excise Act be deemed to be a declaration in a matter relating to customs.
(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.
39. Prohibition of publication of, or disclosure of, information to unauthorised persons
(1) A person shall not, without the consent in writing given by, or on behalf of, the Board, publish or disclose to any unauthorised person, otherwise than in the course of duties of that person, the contents of any document, communication or information whatsoever, which relates to or which has come to the knowledge of that person in the course of that person’s duties under this Act.
(2) A person who contravenes sub-section (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.
(3) A person who, having any information which to the knowledge of that person, has been published or disclosed in contravention of sub-section (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.
40. Communication with foreign competent authorities
Notwithstanding any other written law, the Centre may communicate anything disclosed to it under this Act to a foreign designated authority if—
(a) the Director-General 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.
41. No order for production of information
Notwithstanding the provisions of any other written law, no order for the production of information, document or evidence shall be issued in respect of the Centre or against the Minister, Director-General, officers or other staff of the Centre or any person engaged pursuant to this Act.
PART IV
OFFENCES AND PENALTIES
42. Failure to comply with identification requirements
A person who intentionally or negligently—
(a) fails to undertake the identification of customers or otherwise to fulfil the customer identification and risk management requirements in accordance with section 16;
(b) opens an anonymous account or an account in a fictitious name for a customer in violation of section 15; or
(c) fails to fulfil the obligations relating to the obtaining of information for and processing of a wire transfer as required under section 26;
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 10 years, or to both.
43. Failure to maintain or provide access to records
A person who intentionally or negligently—
(a) fails to maintain books and records as required by section 22;
(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.
44. Failure to fulfil due diligence obligations or maintain internal controls
A person who intentionally or negligently—
(a) fails to conduct due diligence with respect to customers, accounts and transactions in compliance with section 24;
(b) fails to comply with the obligations for special monitoring set out in section 25; or
(c) fails to maintain internal control programmes in compliance with section 23;
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.
45. Failure with regard to suspicious transaction or other reporting
A person who intentionally or negligently fails to submit a report to the Centre as required by 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.
[S 45 am by s 23 of Act 4 of 2016, s 15 of Act 16 of 2020.]
45A. Conducting transaction to avoid reporting duty
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.
[S 45A ins by s 24 of Act 4 of 2016.]
46. False or misleading statement
A person who intentionally makes a false or misleading statement, provides false or misleading information, or otherwise fails to state a material fact in connection with such person’s obligations under this Part, including the obligation to make a suspicious transaction report, 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.
A person who intentionally or negligently discloses to a customer or a third party information contrary to this Act, 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.
A person who intentionally or negligently—
(a) sets up a shell bank in the Republic; or
(b) enters into or continues business relations with a shell bank or a respondent financial service provider in a foreign country that permits its accounts to be used by a shell bank;
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 10 years, or to both.
A person convicted of an offence under this Act—
(a) is subject, in addition, to the sanctions and measures available to the supervisory authority for administrative violations; and
(b) may be banned permanently, or for such period as the Minister may prescribe, from pursuing the business or profession which provided the opportunity for the offence to be committed.
49A. Undue influence, obstruction, hindrance, interference of officers and other staff
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.
[S 49A ins by s 25 of Act 4 of 2016.]
Subject to the written consent of the Director of Public Prosecutions and where a reporting entity or a person admits that the person has committed an offence under this Act, the Director-General may compound the offence by collection from that person a sum of money that the Director-General considers appropriate, but not exceeding 50 per cent of the maximum amount of the fine to which that person would have been liable on conviction, and a person having made that payment shall not thereafter be prosecuted in relation to the offence so compounded.
[S 49B subs by s 16 of Act 16 of 2020.]
(1) Without prejudice to section 49B, the Centre or a supervisory authority may impose one or more of the following administrative sanctions in addition to an offence under this Act or where a person or reporting entity is in breach of a provision of this Act which is not a criminal offence—
(a) a caution not to repeat the conduct which led to the non-compliance of any of the provisions of this Act;
(b) a reprimand;
(c) a directive to take remedial action or to make specific arrangements;
(d) the restriction or suspension of certain specified business activities;
(e) publication of a public notice of any prohibition or requirement imposed by it under this Part and of any rescission or variation thereof, and any such notice may, if the Centre considers necessary, include a statement of the reasons for the prohibition, requirement, variation or rescission; and
(f) a financial penalty not exceeding one million penalty units.
(2) A reporting entity or person may, within 30 days of receipt of an administrative sanction, appeal to the High Court against an administrative sanction imposed by the Centre or a supervisory authority.
(3) The Centre or a supervisory authority shall consider the following factors when determining an appropriate administrative sanction—
(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 written law;
(c) any remedial steps taken by the reporting entity or person to prevent a recurrence of the non-compliance; and
(d) any steps taken or to be taken against the reporting entity or person by—
(i) another supervisory authority;
(ii) a professional association which the reporting entity or person is a member; and
(iii) any other relevant factors, including mitigating factors.
(4) The Centre or supervisory authority shall, before imposing an administrative sanction, give the reporting entity or person 14 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.
[S 49C ins by s 17 of Act 16 of 2020.]
PART V
GENERAL PROVISIONS
The Mutual Legal Assistance in Criminal Matters Act applies to offences under this Act, except where the provisions of that Act are inconsistent with this Act.
An offence under this Act shall be deemed to be an extraditable offence under the provisions of the Extradition Act.
52. Offences by body corporate or unincorporate body
Where an offence under this Act is committed by a body corporate or unincorporate body, every director or manager of the body corporate or unincorporate body shall be liable, upon conviction, as if the director or manager had personally committed the offence, unless the director or manager proves to the satisfaction of the court that the act constituting the offence was done without the knowledge, consent or connivance of the director or manager or that the director or manager took reasonable steps to prevent the commission of the offence.
53. Offences committed outside jurisdiction
(1) This Act shall have effect within as well as outside Zambia and notwithstanding where the offence is committed by any person, that person may be dealt with in respect of such offence as if it has been committed within Zambia.
(2) Any proceedings against any person under this section which would be a bar to subsequent proceedings against such person for the same offence, if such offence had been committed in Zambia, shall be a bar to further proceedings against that person under any written law for the time being in force relating to the extradition of persons, in respect of the same offence outside Zambia.
54. Monitoring effectiveness of system
(1) The Centre shall implement a system for monitoring the effectiveness of anti-money laundering and counter financing of terrorism and proliferation or any other serious offence related to money laundering, financing of terrorism or proliferation by maintaining comprehensive statistics on—
(a) suspicious transaction or suspicious activity reports received and disseminated to law enforcement agencies;
(b) money laundering, financing of terrorism or proliferation and any other serious offence related to money laundering, financing of terrorism or proliferation investigations and convictions;
(c) property frozen, seized and confiscated; and
(d) international requests for mutual legal assistance or other co-operation.
[S 54(1) subs by s 18 of Act 16 of 2020.]
(2) The Centre shall, as far as is practicable, provide information to a reporting entity on the action taken by the Centre with regard to a suspicious transaction report.
(1) The Centre shall, as soon as practicable, but not later than 90 days after the end of its financial year, submit to the Minister a report concerning its activities during the financial year.
(2) The report referred to in sub-section (1) shall include information on—
(a) the statistics on money laundering, financing of terrorism or proliferation and any other serious offence including typologies, trends and other observable statistical patterns; and
[S 55(2)(a) am by s 19 of Act 16 of 2020.]
(b) such other information as the Minister may require.
(3) The Minister shall, not later than seven days after the first sitting of the National Assembly next after receipt of the report referred to in sub-section (1), lay the report before the National Assembly.
56. Centre to issue directives, guidelines, rules, instructions, etc.
(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.
(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 sub-section (3) shall consult the Centre prior to issuing any instructions, directions, guidelines or rules under this section.
(5) Despite paragraph (e) of sub-section (3) of section 5 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 5 of the Act and may make a copy thereof or of part thereof.
[S 56 subs by s 26 of Act 4 of 2016.]
The Centre shall retain a record of all suspicious transaction reports and related information that it receives, for a minimum of 15 years after the information is received.
(1) The Minister may, by statutory instrument, in consultation with the Centre, make Regulations that are necessary to give effect to the provisions of this Act.
(2) Despite the generality of sub-section (1), the regulations made under that sub-section may—
(a) require reporting entities to establish and maintain procedures relating to the identification of clients, the keeping of records, the making of reports and training;
(b) prescribe offences and penalties for contravention of or failure to comply with the Regulations made under this Act;
(c) provide that contraventions of the Regulations may be determined summarily by a court of competent jurisdiction;
(d) provide that in determining whether a person has complied with the Regulations, the trial court shall take account of any relevant guidelines issued by the Centre;
(e) provide for measures for identifying, preventing and combating financing of terrorism or proliferation or any other serious offence related to money laundering, financing of terrorism or proliferation or using non-governmental organisations in terrorism or proliferation or serious offence, which measures include—
(i) sustained outreach to non-governmental organisations by relevant competent authorities;
(ii) targeted risk based supervision or monitoring of non-governmental organisations by relevant competent authorities;
(iii) effective investigation and information gathering; and
(iv) effective mechanisms for international co-operation;
(f) provide for obligations of accountable institutions;
(g) prescribe for the proportion of fines to be remitted to the Centre by a supervisory authority following a fine being imposed under this Act; and
(h) provide for mechanisms for certification of compliance officers by the Centre.
[S 58 subs by s 20 of Act 16 of 2020.]
[Section 3(3)]
ADMINISTRATION OF CENTRE
PART I
THE BOARD OF THE CENTRE
1. Proceedings of Board
(1) Subject to the other provisions of this Act, the Board may regulate its own procedure.
(2) The Board shall meet for the transaction of business, at least once in every, three months at such places and times as the Board may determine.
(3) Upon giving notice of not less than 14 days, a meeting of the Board may be called by the Chairperson and shall be called by the Chairperson if not less than one-third of the members so request in writing:
Provided that if the urgency of any particular matter does not permit the giving of such notice, a special meeting may be called upon a shorter notice given by three members of the Board.
(4) The quorum at a meeting of the Board shall be three.
(5) There shall preside at any meeting of the Board—
(a) the Chairperson;
(b) in the absence of the Chairperson, the Vice-Chairperson; and
(c) in the absence of both the Chairperson and the Vice-Chairperson, such member as the members present may elect from amongst themselves for the purpose of that meeting.
(6) A decision of the Board on any question shall be by a majority of votes of the members present and voting at the meeting and, in the event of an equality of votes, the person presiding at the meeting shall have, in addition to a deliberative vote, a casting vote.
(7) The Board may invite any person whose presence is in its opinion desirable to attend and to participate in the deliberations of a meeting of the Board but such person shall have no vote.
(8) The validity of any proceedings, act or decision of the Board shall not be affected by any vacancy in the membership of the Board or by any defect in the appointment of any member or by reason that any person not entitled to do so, took part in the proceedings.
(9) The Board shall cause minutes to be kept of the proceedings of every meeting of the Board and every meeting of any committee established by the Board.
2. Committees of Board
(1) The Board may, for the purpose of performing its functions under this Act, constitute any committee and delegate to any such committee such of its functions as it thinks fit.
(2) The Board may appoint as members of a committee constituted under sub paragraph (1), persons who are or are not members of the Board and such persons shall hold office for such period as the Board may determine.
(3) A committee of the Board may regulate its own procedure.
3. Tenure of office and vacancy
(1) Subject to the other provisions of this Act, a member shall hold office for a period of three years from the date of appointment and may be re-appointed for a further period of three years.
(2) A member may resign upon giving one month’s notice in writing to the President.
[Sch Part I para 3(2) am by s 27 of Act 4 of 2016.]
(3) The office of a member shall become vacant—
(a) upon the death of the member;
(b) if the member is absent, without reasonable excuse, from three consecutive meetings of the Board, of which that member has had notice;
(c) if the member is declared bankrupt;
(d) if the member has a mental disability which makes the member unable to exercise the functions as member; or
(e) if the member is removed by the minister.
(4) The Minister shall, where the office of a member becomes vacant before the expiry of the term of office of the member, appoint another member in place of the member who vacates office, and such member shall hold office for the remainder of the term.
(5) Subject to the other provisions of this Act, a member shall, on the expiration of the period for which the member is appointed, continue to hold office until another member is appointed to succeed that member.
4. Allowances of members
There shall be paid to members of the Board or any committee of the Board such allowances as the Board may, with the approval of the Minister, determine.
5. Disclosure of interest
(1) If a member or person is present at a meeting of the Board or a committee of the Board at which any matter, in which that person or that person’s spouse, is directly or indirectly interested in a private capacity, is the subject of consideration, that person or member shall, as soon as is practicable after the commencement of the meeting, disclose that interest and shall not take part in any consideration or discussion of, or vote on, any question relating to, that matter.
(2) A disclosure of interest made under this paragraph shall be recorded in the minutes of the meeting at which it is made.
PART II
FINANCIAL PROVISIONS
6. Funds of Centre
(1) The funds of the Centre consists of moneys that may—
(a) be appropriated to the Centre by Parliament for the purposes of the Centre;
(b) subject to the approval of the Minister, be paid to the Centre by way of grants or donations;
(c) be payable to, or levied by, the Centre under this Act or any other written law; and
(d) accrue to, or vest in, the Centre, in whichever form, whether in the course of the exercise of its functions or otherwise.
[Sch Part II para 6(1) subs by s 21 of Act 16 of 2020.]
(2) The Centre may—
(a) subject to the approval of the Minister, accept moneys by way of grants or donations from any source within or outside Zambia; and
(b) subject to the approval of the Minister, raise such moneys as it may require for the discharge of its functions.
(3) There shall be paid from the funds of the Centre—
(a) the salaries, allowances, loans, gratuities and pensions of the staff of the Centre and other payments for the recruitment and retention of the staff;
(b) such reasonable travelling, subsistence and other allowances for members of the Board or any committee of the Board when engaged in the business of the Centre at such rates as the Board may, with the approval of the Minister, determine; and
(c) any other expenses incurred by the Board in the performance of the Board’s functions under this Act.
(4) The Board may, with the approval of the Minister, invest in such manner as it considers appropriate such funds of the Centre as it does not immediately require for the discharge of its functions.
7. Financial year
The financial year of the Centre shall be the period of 12 months ending on 31st December of each year.
8. Accounts
(1) The Centre shall cause to be kept proper books of account and other records relating to its accounts.
(2) The accounts of the Centre shall be audited annually by the Auditor General or an auditor appointed by the Auditor-General.
(3) The Auditor-General’s fees shall be paid by the Centre.
9. Annual report
(1) As soon as practicable, but not later than 90 days after the end of the financial year, the Centre shall submit to the Minister a report concerning its activities during the financial year.
(2) The report referred to in sub-paragraph (1) shall include information on the financial affairs of the Centre and there shall be appended to the report—
(a) an audited balance sheet;
(b) an audited statement of income and expenditure; and
(c) such other information as the Minister may require.
(3) The Minister shall, not later than seven days after the first sitting of the National Assembly next after receipt of the report referred to in sub-paragraph (1), lay the report before the National Assembly.
INDEX TO SUBSIDIARY LEGISLATION
Financial Intelligence Centre (General) Regulations
Financial Intelligence Centre (Prescribed Thresholds) Regulations
FINANCIAL INTELLIGENCE CENTRE (GENERAL) REGULATIONS
[Section 58]
Arrangement of Regulations
Regulation
PART I
PRELIMINARY PROVISIONS
1. Title
2. Interpretation
PART II
COLLECTION AND DISSEMINATION OF INFORMATION
3. Dissemination and disclosure of suspicious transactions
4. Access to information
5. Request for Information
6. Freezing account and suspending transaction
PART III
CUSTOMER DUE DILIGENCE
7. Identification and verification of customer identity
8. Risk-sensitive application of customer due diligence and other measures
9. Low risk of money laundering or terrorist financing
10. High risk of money laundering or terrorist financing
11. Reliance on identification by third party
PART IV
RISK MANAGEMENT
12. Risk management systems
13. Internal programmes to combat money laundering, financing of terrorism and other serious crimes
14. Measures for business relations and transactions from countries that do not apply international standards
PART V
GENERAL PROVISIONS
15. Reporting suspicious transactions
16. Oath and affirmation
17. General offence and penalty
SI 9 of 2016.
PART I
PRELIMINARY PROVISIONS
These Regulations may be cited as the Financial Intelligence Centre (General) Regulations.
In these Regulations, unless the context otherwise requires—
"account" has the meaning assigned to it in the Act;
"beneficial owner" has the meaning assigned to it in the Act;
"Centre" means the Financial Intelligence Centre established under section 3 of the Act;
"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
(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;
"control" means a situation where—
(a) one person of two or more persons acting in concert, directly or indirectly owns, controls or has the power to vote 25 per cent or more of any class of voting shares of another person;
(b) one person, or a combination of two or more persons acting in concert, controls in any manner, the election of a majority of the directors, trustees or other persons exercising similar functions of another person; or
(c) circumstances exist that indicate that one person, or a combination of two or more persons acting in concert, directly or indirectly, exercises a controlling influence over the management, policies or affairs of another person;
"Council" means a city, municipal or district council established under the Local Government Act;
"customer" has the meaning assigned to it in the Act;
"Director" means the Director of the Centre appointed under section 9 of the Act;
"Egmont Group" means the international network of financial intelligence units (FIUs) established to promote and enhance international co-operation information sharing among financial intelligence units relating to the fight against money laundering and the financing of terrorism;
"high-risk customer" include—
(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;
(c) a child and where applicable the spouse of a child; and
(d) a parent;
"law enforcement agency" has the meaning assigned to it in the Act;
"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);
"public body" has the meaning assigned to it in the Act;
"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 officer" means a person employed or performing a function in a public body;
"reporting entity" has the meaning assigned to it in the Act;
"statutory corporation" means a body corporate wholly or partly owned by the Government;
"supervisory authority" has the meaning assigned to it in the Act;
"suspicious transaction report" has the meaning assigned to it in the Act; and
"transaction" has the meaning assigned to it in the Act.
PART II
ACCESS AND DISSEMINATION OF INFORMATION
3. Dissemination and disclosure of suspicious transactions
The Centre shall disseminate and provide information relating to suspicious transactions to a law enforcement agency or foreign designated authority for purposes of the Act in Form I set out in the First Schedule.
The Centre may, in exercising its functions under the Act, use electronic communications services to access, directly or indirectly, on a timely basis, financial, administrative and law enforcement information.
The Director shall request a reporting entity to provide financial information, in Form II set out in the First Schedule.
6. Freezing account and suspending transaction
(1) The Director shall order a reporting entity to freeze an account or suspend a transaction in Form III set out in the First Schedule.
(2) The Centre shall serve a signed copy of a freezing or suspension order in Form III on a reporting entity where the account is held or the transaction is processed or intended to be processed.
(3) A reporting entity shall, upon receipt of the freezing or suspension order issued under sub-regulation (1)—
(a) stop all activity on the account concerned; and
(b) suspend the specified transaction for the duration specified in the order.
(4) An order issued under this regulation shall remain in force until—
(a) the expiration of a period of 10 days from the date of its issuance;
(b) the Director issues an order discharging the freezing or suspension order in Form IV set out in the First Schedule; or
(c) a judge issues an order discharging the freezing or suspension order issued by the Director.
(5) The Centre may, for purposes of monitoring compliance, request a reporting entity to submit a statement of an account from the date of issuance of a freezing or suspension order to the date of discharge of the order.
PART III
CUSTOMER DUE DILIGENCE
7. Identification and verification of customer identity
(1) A reporting entity shall verify its customer’s identity as follows—
(a) for an individual, the reporting entity shall verify the full name, date and place of birth, address and other particulars of the individual by comparing the particulars with—
(i) the individual’s driving licence, passport or national identification document bearing the individual’s pictorial image;
(ii) a reference from the individual’s employer or a professional or customary authority that has known that individual for at least a year;
(iii) references obtained from the individual’s foreign bank, where possible, in the case of a non-resident or foreigner;
(iv) information obtained through a credit reference agency search;
(v) an original or certified true copy of the latest Council or applicable rates, or utility bill receipt; and
(vi) information which is obtained from any other independent source, if it is accurate and reasonably necessary taking into account any other law or guidelines concerning the verification of identities;
(b) for a body corporate—
(i) by comparing the submitted details of the body corporate with a certified true copy of its certificate of incorporation issued by the Registrar of Companies or another relevant authority;
(ii) reviewing the tax payer identification number (TPIN) issued by the Zambia Revenue Authority and other information held by the Register of companies or other relevant register; and
(iii) except for statutory bodies, the particulars of every person exercising direct or indirect control, for the purposes of identifying the beneficial owner; and
(c) for a partnership, obtain from an individual acting or purporting to act on its behalf—
(i) the name of the partnership;
(ii) the business address;
(iii) the partnership agreement; and
(iv) the full names, address and date and place of birth of every partner, including the person who exercises direct or indirect control or management of the partnership, for purposes of identifying the beneficial owner.
(2) The requirements prescribed in sub-regulation (1) apply to an individual acting on behalf of the customer in establishing an account or a business relationship with a reporting entity.
(3) Where the legal arrangement is a trust, a reporting entity shall verify the particulars obtained in respect of the trust by comparing the name of the trustees, the settler and beneficiary of express trust with the trust deed or other founding document in terms of which the trust is created.
(4) Where an individual, legal person or legal arrangement is deceased or ceases to exist respectively, a reporting entity shall verify the particulars referred to in this regulation by comparing those particulars with information that can reasonably be utilised to achieve such verification and is obtainable by reasonably practicable means, taking into account any other applicable law or guidelines concerning the verification of identities applicable to the reporting entity.
(5) Where an individual seeks to establish an account or a business relationship with a reporting entity on behalf of an individual, a legal person or legal arrangement, the reporting entity shall, in addition to any other step applicable in terms of sub-regulation (1), obtain from the individual, a power of attorney, service level agreement or other proof of that individual’s authority to act on behalf of the individual, legal person or legal arrangement.
(6) A reporting entity shall update customer bank mandates periodically in order to ensure that the verification process provides accurate information for purposes of the Act.
(7) The updates referred to in sub-regulation (6) shall be occasioned by a change in—
(a) the authorised signatories;
(b) the purpose of the account;
(c) the scope of terms and conditions applicable to account; and
(d) any other material aspect of, or likely to affect, an account.
8. Risk-sensitive application of customer due diligence and other measures
A reporting entity may adapt the nature and extent of application of the customer due diligence measures specified in regulation 7 commensurate with the level of the money laundering and terrorist financing risk associated with the customer, business relationship or transaction.
9. Low risk of money laundering or terrorist financing
(1) A reporting entity may apply the simplified customer due diligence measures specified in the Second Schedule where the reporting entity determines that the risk of money laundering or terrorist financing is low.
(2) Where a reporting entity applies simplified customer due diligence measures, the reporting entity shall prove the low risk to the satisfaction of the Centre or the supervisory authority.
(3) A reporting entity shall, where the risk factors are identified in relation to a customer as set out in the Second Schedule, complete the verification of the customer’s identity as soon as reasonably practicable after the commencement of the business.
10. High risk of money laundering or terrorist financing
A reporting entity shall apply the enhanced identification, verification and ongoing due diligence measures set out in the Second Schedule when dealing with high risk customers or in circumstances where the reporting entity reasonably considers the risk of money laundering or terrorist financing to be high.
11. Reliance on identification by third party
(1) A reporting entity may rely on a third party established in, or subject to the jurisdiction of the following States to perform customer identification—
(a) States that have established financial intelligence units which are members of the Egmont Group;
(b) States that are not subject to monitoring by the Financial Action Task Force’s (FATF’s) International Co-operation Review Group or Regional Review Group; and
(c) States that are not subject to United Nations sanctions.
(2) Where a reporting entity relies on a third party to perform customer identification, the reporting entity shall, immediately provide the Centre with—
(a) the contract or agreement between the reporting entity and third party;
(b) the third party’s—
(i) full name, if the third party is an individual; or
(ii) registered name, if the third party is a body corporate or unincorporated body of persons;
(c) the name under which the third party conducts business;
(d) the full name and contact particulars of the individual who exercises control over access to copies of the customer identification information and other documents relating to the conduct of due diligence;
(e) the address where the information and documents are kept; and
(f) the full name and contact particulars of the individual who liaises with the third party on behalf of the reporting entity concerning the retention of any information and documents.
(3) Where a reporting entity relies on a third party to perform customer identification, the reporting entity shall ensure that the third party maintains copies of customer identification information and other documents relating to the conduct of due diligence for at least 10 years from the end of the business relationship between the reporting entity and its customer.
PART IV
RISK MANAGEMENT
(1) A reporting entity shall implement risk management systems to identify high risk customers whose activities may pose a high risk of money laundering and financing of terrorism including—
(a) enhanced identification of high risk customers or activities engaged in by high risk customers, by taking into account—
(i) the nature and business of the customer;
(ii) customer activities, transaction patterns and operations;
(iii) the geographic location of the customer or transaction;
(iv) the magnitude of customer assets that a reporting entity handles;
(v) third parties that are or may be involved in the customer’s activities;
(vi) the beneficial ownership of an entity and the impact on risk;
(vii) the volume of cash used by a customer in transactions;
(viii) any other indicator that may be relevant; and
(b) enhanced verification and enhanced ongoing due diligence of high risk customers including—
(i) seeking additional information to substantiate the customer’s identity or the beneficial ownership of an entity; and
(ii) obtaining additional information about the intended nature, purpose and value of a given transaction.
13. Internal programmes to combat money laundering, financing of terrorism and other serious crimes
The type and extent of measures that a reporting entity undertakes for the prevention of money laundering, financing of terrorism and any other serious offence is risk-based and includes—
(a) identifying the money laundering and terrorist financing risks that are relevant to the business in which the reporting entity is engaged;
(b) assessing the identified risks;
(c) designing and implementing controls to manage and mitigate the assessed risks;
(d) monitoring and improving the effective operation of the controls;
(e) keeping a record of the process indicated in paragraphs (a) to (d); and
(f) establishment and implementation of a policy based on the assessed risks which sets out procedures that a reporting entity implements for carrying out appropriate identification, verification, customer due diligence and ongoing monitoring.
14. Measures for business relations and transactions from countries that do not apply international standards
(1) A reporting entity shall with regard to business relations and transactions with 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—
(a) take into account risks arising from the deficiencies in the regime for combating money laundering, the financing of terrorism and any other serious offence in any given country;
(b) consider publicly available information for identifying 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
(c) examine the background and purpose of transactions.
(2) A reporting entity shall, if a transaction has no apparent economic or lawful purpose, examine the background and purpose of the transaction, record the findings and retain the record and submit, upon request, to the Centre, a supervisory authority or law enforcement agency.
PART V
GENERAL PROVISIONS
15. Reporting suspicious transactions
(1) A report of a suspicious transaction shall be made in Form V set out in the First Schedule and submitted to the Centre by confidential cover—
(a) through electronic communication systems and services;
(b) through a designated physical, postal or electronic mail address provided by the Centre; or
(c) by courier or in person to the designated officer of Centre.
(2) A report on a suspicious transaction shall be sent to the Centre as soon as possible but not later than three working days after a reporting entity, a director, principal officer, partner, professional or employee of a reporting entity forms a reasonable suspicion on the transaction or property.
(3) A report referred to in sub-regulation (1) shall contain a full description of the suspicious transaction and state the reason why it is considered suspicious.
The Director shall administer oaths or affirmations in Form VI set out in the First Schedule.
17. General offence and penalty
(1) A person who contravenes any provision of these Regulations for which a penalty is not provided commits an offence and is liable, upon conviction, to a fine not exceeding two thousand five hundred penalty units or to imprisonment for a period not exceeding one year, or to both.
(2) Where an offence under these Regulations is committed by a body corporate or an unincorporate body, every director or manager of the corporate or unincorporate body is liable, upon conviction, as if the director or manager had personally committed the offence, unless the director or manager proves to the satisfaction of the court that the act constituting the offence was done without the knowledge, consent or connivance of the director or manager or that the director or manager took reasonable steps to prevent the commission of the offence.
[Regulations 3, 5, 6, 15 and 16]
PRESCRIBED FORMS
Form I
[Regulation 3]
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THE FINANCIAL INTELLIGENCE CENTRE |
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The Financial Intelligence Centre Act, 2010 |
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(Act No. 46 of 2010) |
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The Financial Intelligence Centre (General) Regulations, 2016 |
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DISSEMINATION AND PROVISION OF INFORMATION RELATED TO SUSPICIOUS TRANSACTIONS |
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(Section 5 of the Financial Intelligence Centre Act, 2010) |
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Reference No. |
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Your Reference (1) |
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Name of the law enforcement agency |
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The information provided in this Form is for intelligence purposes only. This information should not be used or disseminated for evidential or judicial purposes and should not be disclosed to an unauthorised person without the prior written consent of the Financial Intelligence Centre. |
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Subject matter being disseminated/disclosed |
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Total number of pages disseminated including this one |
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If you did not receive the number of pages indicated, please contact the undersigned immediately. |
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Signature ................................................. |
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Name ...................................................... |
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Date ................................. |
Form II
[Regulation 5]
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THE FINANCIAL INTELLIGENCE CENTRE |
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The Financial Intelligence Centre Act, 2010 |
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(Act No. 46 of 2010) |
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The Financial Intelligence Centre (General) Regulations, 2016 |
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REQUEST FOR INFORMATION |
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(Section 10 of the Financial Intelligence Centre Act, 2010) |
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Reference No. |
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To (Addressee): |
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Pursuant to section 5 of the Financial Intelligence Centre Act, 2010, you are requested to provide information according to the attached checklist in respect of the following person(s): |
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The information requested should be treated in strict confidentiality and should not be communicated directly or indirectly to any person involved in or assigned with the suspicious transaction or to an unauthorised third party. |
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Information Required: |
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1. ....................................................................................................................................... |
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2. ....................................................................................................................................... |
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Frequency: |
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............................................................................................................................................... |
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...............................................................................................................................................> |
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>Period to be covered by information: |
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............................................................................................................................................... |
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............................................................................................................................................... |
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Signature ................................................. |
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Name ...................................................... |
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Date ............................ |
Form III
[Regulation 6(1)]
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THE FINANCIAL INTELLIGENCE CENTRE |
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The Financial Intelligence Centre Act, 2010 |
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(Act No. 46 of 2010) |
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The Financial Intelligence Centre (General) Regulations, 2016 |
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FREEZING ORDER ( ) SUSPENSION ORDER ( ) |
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(Section 10(2) of the Financial Intelligence Centre Act, 2010) |
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To (Addressee): |
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In accordance with section 10(2) of the Financial Intelligence Centre Act, 2010, you are directed to freeze the account/suspend the transactionDelete whichever is not applicable')">FIND*"> described below with immediate effect: |
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.............................................................................................................................................. |
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.............................................................................................................................................. |
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.............................................................................................................................................. |
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.............................................................................................................................................. |
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.............................................................................................................................................. |
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.............................................................................................................................................. |
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You are advised that failure to comply with this directive constitutes an offence contrary to section 10(3) of the Financial Intelligence Centre Act, 2010. |
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Signature ................................................. |
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Name ...................................................... |
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Date ......................... |
Form IV
[Regulation 6(4)]
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THE FINANCIAL INTELLIGENCE CENTRE |
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The Financial Intelligence Centre Act, 2010 |
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(Act No. 46 of 2010) |
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The Financial Intelligence Centre (General) Regulations, 2016 |
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(Section 10(2) of the Financial Intelligence Centre Act, 2010) |
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To: (1) ...................................................................................................................................... |
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................................................................................................................................................ |
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REF: DISCHARGE OF FREEZING/SUSPENSION ORDER IN RESPECT OF (2) |
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The freezing order number .................................. dated .............................................. that was placed on this account/transaction has been lifted. Kindly allow the account/transaction to operate normally. |
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Dated this .................. day of ......................... 20.... |
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Signature ............................................................ |
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>Name ................................................................. |
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Notes: |
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1. Name of the reporting entity |
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2. Insert details of account/transaction |
Form V
[Regulation 15]
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THE FINANCIAL INTELLIGENCE CENTRE |
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The Financial Intelligence Centre Act, 2010 |
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(Act No. 46 of 2010) |
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The Financial Intelligence Centre (General) Regulations, 2016 |
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SUSPICIOUS TRANSACTION REPORT |
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(Section 29 of the Financial Intelligence Centre Act, No. 46 of 2010) |
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INSTRUCTIONS: |
Send the Completed form to: |
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1. Complete as much of this form as possible. |
The Director |
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2. Fields marked with an asterisk (*) are mandatory, except for attempted transactions. |
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3. Please complete form in INK and CAPITAL LETTERS.> |
>All Suspicious Transaction Reports (STRs) must, when completed, be treated as confidential. |
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4. Mark appropriate boxes with a cross (X). For further information on how to complete this form please refer to the STR Guidelines. |
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5. For electronic submission please log on to our website at www.fic.zm |
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PART A: DETAILS OF THE PERSON/ORGANISATION TO WHICH THE SUSPICIOUS MATTER RELATES |
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I. ACCOUNT OWNER(S)/HOLDER(S) - INDIVIDUAL |
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1. Surname: |
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2. First name: |
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3. Maiden name: |
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4. Other names: |
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5. Marital status: |
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6. Date of birth: (DD/MM/YYYY) / / |
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7. Sex: F M |
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8. Profession: |
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9. Occupation: |
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10. Nationality: |
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11. Identity type: National Registration Card Passport Driver's Licence |
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(a) Identification number: |
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(b) Date of issue: |
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(c) Place of issue: |
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(d) Identification issued by: |
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2. Residential Address* |
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(a) Property number: |
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(b) Street name: |
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(c) Area: |
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(d) Village: |
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(e) Chief: |
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(f) District: |
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(g) Province: |
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(h) Country: |
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3. Postal Address* |
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4. Business Address |
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(a) Property number: |
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(b) Street name: |
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(c) Area: |
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(d) District: |
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(e) Province: |
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5. Contact Details |
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(a) Telephone: |
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(b) Mobile: |
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(c) Fax: |
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If more than one person is involved, please provide the same details in this Part for each person, where appropriate, and attach. |
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II. ACCOUNT OWNER(S)/HOLDER(S) - BUSINESS ENTITY |
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1. Name*: |
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2. Date of registration*: (DD/MM/YYYY) / / |
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3. Registration number*: |
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4. Country of registration*: |
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5. Type of business*: |
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(a) Company |
(e) Sole trader |
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(b) Partnership |
(f) Cooperative |
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(c) Statutory body |
(g) Society |
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(d) Trust |
(h) Other ................................... |
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6. Nature of business*: |
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7. Business address (Head Office): |
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(a) Property number: |
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(b) Street name: |
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(c) Area: |
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(d) Village: |
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(e) Chief: |
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(f) District: |
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(g) Province: |
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(h) Country: |
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8. Postal address*: |
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9. Contact details: |
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(a) Telephone: |
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(b) Mobile: |
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(c) Fax/Landline: |
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(d) E-mail: |
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(e) Website: |
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PARTICULARS OF DIRECTORS/TRUSTEES/SETTLERS/BENEFICIARY |
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(a) Surname: |
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(b) First name: |
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(c) Maiden name: |
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(d) Marital status: |
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(e) Nationality: |
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(f) Occupation: |
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(g) Identity type and number: |
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(h) Date of issue: |
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(i) Place of issue: |
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(j) Residential address: |
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10. Contact details |
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(a) Mobile: |
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(b) Landline: |
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(c) Fax: |
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(d) E-mail: |
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PARTICULARS OF PERSON WITH AUTHORITY TO CONDUCT TRANSACTION ON BEHALF OF BUSINESS ENTITY/TRUST |
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11. Surname: |
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12. First Name: |
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13. Maiden Name: |
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14. Other Names: |
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15. Marital Status: |
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16. Date of Birth: (DD/MM/YYYY) / / |
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17. Sex: F M |
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18. Profession: |
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19. Occupation: |
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20. Nationality: |
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21. Identity Type: National Registration Card Passport Driver's Licence |
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(a) Identification number: |
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(b) Date of issue: |
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(c) Place of issue: |
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(d) Identification issued by: |
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22. Contact details: |
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(a) Mobile: |
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(b) Landline: |
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(c) Fax: |
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(d) E-mail: |
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PARTICULARS OF PERSON WITH AUTHORITY TO MANAGE, VARY OR CONTROL THE MANAGEMENT OF THE ENTITY/TRUST |
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23. Surname: |
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24. First name: |
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25. Maiden name: |
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26. Other names: |
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27. Marital status: |
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28. Date of birth: (DD/MM/YYYY) / / |
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29. Sex: F M |
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30. Profession: |
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31. Occupation: |
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32. Nationality: |
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33. Identity type: National Registration Card Passport Driver's Licence |
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(a) Identification number: |
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(b) Date of issue: |
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(c) Place of issue: |
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(d) Identification issued by: |
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Contact details: |
|
(a) Mobile: |
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(b) Landline: |
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(c) Fax: |
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(d) E-mail: |
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PART B: ACCOUNT DETAILS |
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34. Account number* ........................ |
41. Account/Product type* |
|||||
|
35. Branch/Office ........................ |
Accounting services |
Custodial |
Conveyance of property |
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|
36. Date account opened* |
Advisory services |
Trust |
Remittance |
|||
|
37. Date account closed |
Auditing |
Foreign currency |
Stored value card |
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|
38. Other accounts held by this customer ............. |
Trading |
Insurance |
Superannuation |
|||
|
39. Details of person who closed account |
Betting |
Investment |
Trading |
|||
|
40. Status of account |
Bullion |
Lease |
Other |
|||
|
Demand/Cheque/ |
Hire/purchase |
|||||
|
Credit/Debit card |
Credit facilities |
<td
|
PART C: TRANSACTION DETAILS |
||
|
42. Purpose of transaction |
53. Transaction type* |
54. Purchase of Negotiable Instrument |
|
43. Parties to transaction |
Account opening |
Negotiable instrument |
|
44. Place of transaction*............ |
Account depositing |
Disposal of instruments |
|
45. Date of transaction |
Account withdrawal |
Contribution |
|
46. Time of transaction |
Traveller’s cheques |
Premium |
HH:MM:
<td
Funds Transfer
<td
Bet Placed
47. State period over which transaction conducted
Transfer of property
Remittance
48. Total amount of transaction
(ZMK)*..............................
Other (Specify) ..................................................
49. Assets involved, currency amount, value and type
(Specify) .........................
50. Method of transaction............
51. Method of disposal of funds or property ............................
52. Amount of disposition of funds or assets ...........................
55. Any previous activity in the preceding 180 days which had been considered for reporting in connection with the account, whether the activity was reported or not.
56. The report number of any previous reports made in connection with the account .............................................
PART D: CATEGORY FOR SUSPICION
REASON FOR SUSPICION (Tick at least one)
|
Person - Suspicious behaviour |
Credit/loan facility fraud |
||
|
Irregular or unusual international banking activity |
Currency not declared at border |
||
|
Large or unusual cash deposit |
Immigration related issue |
||
|
Activity inconsistent with customer profile |
Internet fraud |
||
|
Large or unusual inward remittance |
National security concern |
||
|
Unusually large foreign currency transaction |
Unauthorised transaction |
||
|
Country/jurisdiction risk |
Unusual business practices |
||
|
False name/identity |
Many third parties making deposits into the account |
||
|
Counterfeit currency |
Watch listed individual/organisation |
||
|
Fraud |
Phishing (Electronic fraud) |
||
|
Avoiding reporting obligations |
Or inactive account |
||
|
Known/suspected criminal/organisation |
Unusual financial instrument |
||
|
ATM fraud |
Unusual gambling |
||
|
Advance fee scam |
Other (Specify): .............................. |
||
|
Large or unusual cash withdrawals |
(Attach extra leaf if necessary) |
||
|
Credit card fraud |
|
DESCRIPTION OF TRANSACTION |
|
Transaction Narrative* |
|
Please describe clearly and completely the factors or unusual circumstances that led to the suspicion. Further, indicate whether the transaction is an isolated incident or involves other transactions. Provide as much details as possible to explain what was suspicious. Has this matter been reported to any Law Enforcement Agency, if yes, please specify. If there is insufficient space, attach separate sheet. |
|
Indicate what action the natural or legal person making the report, or other entity on whose behalf the report is made, has taken in connection with the transaction concerning which the report is made. |
|
PART E: REPORTING ENTITY DETAILS* |
||||||||
|
NATURE OF BUSINESS |
||||||||
|
Micro finance institution |
Insurance broker |
Lotteries |
Motor vehicle dealer |
Precious metal dealer |
||||
|
Leasing company |
Bureau de change |
Real estate agent |
Legal practitioner |
Insurance |
||||
|
Building society |
Money remitter |
Real estate dev. |
Accountant/Auditor |
Pension |
||||
|
Commercial bank |
Casino |
Stock broker |
Tax consultant |
Development finance |
Other (Specify) ..................................................................................................................................................................
Reporting entity name* ......................................................................................................................................................
Physical address ...............................................................................................................................................................
Compliance/Reporting Officer
Name ................................................................................................................................................................................
Position .............................................................................................................................................................................
Tel No.:
|
Landline: +260 |
Mobile: +260 |
|
Fax: +260 |
E-mail Address: |
If different from Compliance/Reporting Officer
Name ...............................................................................................................................................................................
Position ...........................................................................................................................................................................
Tel No.:
|
Landline: +260 |
Mobile: +260 |
|
Fax: +260 |
E-mail Address: |
Are there any attachments accompanying this form Yes No
(If yes, please specify): ..................................................................................................................................................
Date: DD/MM/YYYY ......../........../..........
...............................
Signature
.....................................................
Reporting Officer Signature*
Please submit completed STR to FIC not later than three working days of forming the suspicion
|
FOR OFFICIAL USE ONLY |
|
STR No.: |
|
Date Received: |
|
Name: |
|
(Signature) .......................................................... |
Form VI
[Regulation 16]
|
THE FINANCIAL INTELLIGENCE CENTRE |
|
The Financial Intelligence Centre Act, 2010 |
|
(Act No. 46 of 2010) |
|
The Financial Intelligence Centre (General) Regulations, 2016 |
|
OATH/AFFIRMATION |
|
I ........................................................................................, do swear/affirm that I will be faithful and bear allegiance to the President of the Republic of Zambia, and that I will preserve, protect and defend the Constitution of Zambia, as by law established. |
|
SO HELP ME GOD. |
|
............................. |
|
Sworn at ...................... this ............. day of ......................., 20...... |
|
Before me, |
|
................................ |
[Regulations 9 and 10]
RISK FACTORS
PART I
A. A reporting entity shall take into account the following risk factors where the reporting entity determines that the risk of money laundering or terrorist financing is low—
1. Customer risk factors
(a) a customer is subject to requirements to combat money laundering and terrorist financing consistent with the provisions of the Act, has effectively implemented those requirements, and is effectively supervised or monitored in accordance with the Act to ensure compliance with those requirements;
(b) a customer is a public company listed on a stock exchange and subject to disclosure requirements through law or other enforceable means, which impose requirements to ensure adequate transparency of beneficial ownership; and
(c) a customer is a State enterprise, local authority or statutory body.
2. Product, service, transaction or delivery channel risk factors
(a) a financial product or service that provides appropriately defined and limited services to certain type of customers so as to increase access for financial inclusion purposes;
(b) a life insurance policy where the annual premium is not more than five thousand Kwacha (ZMW5,000.00) or a single premium of not more than thirteen thousand Kwacha (ZMW13,000.00) or such other higher amount determined by the Centre;
(c) a pension, superannuation or similar scheme providing retirement benefits to employees, where contributions are made by way of deduction from the wages or salaries and where the rules of such scheme do not permit assignment of member's interest under the scheme;
(d) an insurance policy for a pension scheme where there is no surrender clause and the policy cannot be used as collateral;
(e) benefits of a product or related transaction which cannot be realised for the benefit of a third party except in the case of death, disablement, survival to a pre-determined advanced age or other event; and
(f) a product of which during the contractual relationship, no accelerated payments are made, or surrender clauses or early termination takes place.
3. Country risk factors
(a) a country identified by sources such as mutual evaluation or detailed assessment reports, as having effective AML/CFT systems; and
(b) a country identified by credible sources as having a low level of corruption or other criminal activity.
PART II
B. A reporting entity shall take into account the following risk factors where the risk of money laundering or terrorist financing may be high—
1. Customer risk factors
(a) the business relationship is conducted in unusual circumstances such as significant unexplained geographic distance between the financial institution and the customer;
(b) non-resident customers;
(c) legal persons or arrangements that are personal asset-holding vehicles;
(d) companies that have nominee shareholders or shares in bearer form;
(e) business that are cash-intensive; and
(f) the ownership structure of the company appears unusual or excessively complex given the nature of the company's business.
2. Country or geographic risk factors
(a) countries identified by credible sources, such as mutual evaluation or detailed assessment reports or published follow-up reports, as not having adequate systems for combating money laundering or terrorist financing;
(b) countries subject to sanctions, embargos or similar measures issued by the United Nations or similar international organisation;
(c) countries identified by credible sources as having significant levels of corruption or other criminal activity; and
(d) countries or geographic areas identified by credible sources as providing funding or support for terrorist activities, or that have designated terrorist organisations operating within their country.
3. Product, service, transaction or delivery channel risk factors
(a) private banking;
(b) anonymous transactions, which may include cash;
(c) non-face-to-face business relationships or transactions; and
(d) payment received from unknown or unassociated third parties.
FINANCIAL INTELLIGENCE CENTRE (PRESCRIBED THRESHOLDS) REGULATIONS
[Section 58]
Arrangement of Regulations
Regulation
1. Title and commencement
2. Interpretation
3. Monitoring compliance
4. Request information
5. Customer identification requirements
6. Wire transfers
7. Currency transactions
8. Financial instrument reporting at borders
9. General offence and penalty
SI 52 of 2016.
(1) These Regulations may be cited as the Financial Intelligence Centre (Prescribed Thresholds) Regulations.
(2) These Regulations shall come into effect 180 days from the date of publication.
In these Regulations, unless the context otherwise requires, words and expressions have their meanings assigned to them in the Act.
The Centre and supervisory authorities shall monitor and ensure compliance by reporting entities with the reporting entity’s obligations under these Regulations.
The Director-General may request a reporting entity to furnish financial information on a transaction to which these Regulations apply, whether conducted as a single transaction or as several transactions that appear to be linked.
5. Customer identification requirements
A reporting entity shall identify and verify a customer who is neither an account holder nor in an established business relationship with a financial institution, who wishes to carry out a transaction for any amount with the reporting entity.
(1) The threshold of a wire transfer transaction in a financial institution is—
(a) with respect to a legal person or legal arrangement, an amount equal to, or above, the kwacha equivalent of ten thousand United States dollars, whether denominated in Zambian kwacha or a foreign currency; and
(b) with respect to an individual, an amount equal to, or above the kwacha equivalent of five thousand United States dollars, whether denominated in Zambian kwacha or a foreign currency.
(2) A financial institution undertaking wire transfer equal to, or above, the amounts referred to in sub-regulation (1) shall identify and verify the identity of the originator as follows—
(a) for an individual, the full name, date and place of birth, address and other particulars of the individual by comparing the particulars with—
(i) the individual’s driving licence, passport or a national identification document bearing the individual’s pictorial image;
(ii) a reference from the individual’s employer or a professional or traditional authority that has known that individual for at least 12 months;
(iii) a reference obtained from the individual’s foreign bank, where possible, in the case of a non-resident or foreigner;
(iv) an original or certified true copy of the latest council or applicable rates, or utility bill receipt; and
(v) information which is obtained from any other independent source, if it is accurate and reasonably necessary, taking into account any other written law or guidelines concerning the verification of identity;
(b) for a body corporate—
(i) by comparing the submitted details of the body corporate with a certified true copy of its certificate of incorporation issued by the Registrar of Companies or another relevant authority;
(ii) reviewing the tax payer identification number (TPIN) issued by the Zambia Revenue Authority and other information held by the Registrar of companies or other relevant supervisory authority; and
(iii) except for a statutory body, the particulars of every person exercising direct or indirect control, for the purposes of identifying the beneficial owner; and
(c) for a partnership, obtain from an individual acting or purporting to act on its behalf—
(i) the name of the partnership;
(ii) the business address;
(iii) the partnership agreement; and
(iv) the full names, address and date and place of birth of every partner, including the person who exercises direct or indirect control or management of the partnership, for purposes of identifying the beneficial owner.
(3) A financial institution undertaking a wire transfer in accordance with sub-regulation (2) shall—
(a) obtain and maintain the account number of the originator or, in the absence of an account number, a unique reference number;
(b) obtain and maintain the originator’s address or in the absence of the address, the national identity number or date and place of birth; and
(c) include the information from sub-regulations (2)(a), (b) and (c) in the message or payment form accompanying the transfer.
A reporting entity shall not later than three working days after the transaction, report a currency transaction equal to or above the kwacha equivalent of ten thousand United States dollars, whether denominated in Zambian kwacha or a foreign currency in the Form set out in the Schedule.
8. Financial instrument reporting at borders
(1) A person leaving or entering Zambia with an amount in cash, negotiable bearer instruments or both, exceeding the kwacha equivalent of five thousand United States dollars, whether denominated in Zambian kwacha or foreign currency, shall declare to a customs officer such amount in accordance with the Customs and Excise Act.
(2) A customs officer may inquire about the source of funds declared under sub-regulation (1) or any other matter relating to the declaration in accordance with the Customs and Excise Act.
(3) A customs officer shall transmit a declaration made to a customs officer under sub-regulation (1) to the Centre as soon as practicable.
9. General offence and penalty
(1) A person who contravenes a provision of these Regulations commits an offence and is liable, upon conviction, to a fine not exceeding two thousand five hundred penalty units or to imprisonment for a period not exceeding one year, or to both.
(2) Where an offence under these Regulations is committed by a body corporate or an unincorporated body, every director or manager of the corporate or unincorporate body is liable, upon conviction, as if the director or manager had personally committed the offence, unless the director or manager proves to the satisfaction of the court that the act constituting the offence was done without the knowledge, consent or connivance of the director or manager or that the director or manager took reasonable steps to prevent the commission of the offence.
(3) A contravention of these Regulations may be determined summarily by a court of competent jurisdiction which shall take into account any relevant guidelines issued by the Centre.
[Regulation 7]
|
For official use only |
|
|
FIC CTR Form |
CTR No: …………...……… |
|
Date: ………...……………. |
The Financial Intelligence Centre Act
(Act No. 46 of 2010)
The Financial Intelligence Centre (Prescribed Threshold) Regulations, 2016
CURRENCY TRANSACTION REPORT
|
>THE OBLIGATION TO REPORT CURRENCY TRANSACTION ARISES FROM SECTION 30 OF THE FINANCIAL INTELLIGENCE CENTRE ACT, NO. 46 OF 2010. ALL CURRENCY TRANSACTION REPORTS (CTRs) MUST BE TREATED AS CONFIDENTIAL WHEN COMPLETED> |
|||
|
INSTRUCTIONS: |
Send the completed form to: |
||
|
i. |
Complete as much of this form as possible. |
The Director-General |
|
|
ii. |
Fields marked with an asterisk (*) are mandatory, except for attempted transactions. |
||
|
iii. |
Please complete form in INK and CAPITAL LETTERS. |
||
|
iv. |
Mark appropriate boxes with a cross (X). For further information on how to complete this form please refer to the CTR Guidelines. |
||
|
v. |
For electronic submission please log on to our website at www.fic.zm |
||
|
PART A: DETAILS OF THE PERSON/ORGANISATION INVOLVED IN TRANSACTION(S) |
|||
|
I. |
PERSON(S) ON WHOSE BEHALF TRANSACTION(S) IS CONDUCTED |
||
|
1. |
Check all box(es) that apply: |
||
|
a. Amends Prior Report b. Multiple Persons c. Multiple Transactions |
|||
|
2. |
Individual’s last lame or company’s name: ........................................................................ |
||
|
3. |
First name: ....................................................................................................................... |
||
|
4. |
Middle name: .................................................................................................................... |
||
|
5. |
Date of birth: (DD/MM/YYYY) ................./.................../................. |
||
|
6. |
Gender: F M |
||
|
7. |
Doing business as: ........................................................................................................... |
||
|
8. |
Profession/Nature of business: ........................................................................................... |
||
|
9. |
Identify type: NRC Passport Driver’s License TPIN Number |
||
|
a. Identification number: ..................................................................................................... |
|||
|
b. Identification issued by: .................................................................................................. |
|||
|
c. Place of issue: ............................................................................................................... |
|||
|
10. |
Physical address* |
||
|
a. Property number and street name: |
|||
|
b. Residential area: |
|||
|
c. Town: |
|||
|
d. Provincial & Country: |
|||
|
11. |
Postal address: ................................................................................................................ |
||
|
12. |
Telephone: ........................................ Mobile: ....................................... |
||
|
Fax: ................................................... |
|||
|
II. |
INDIVIDUAL(S) CONDUCTING TRANSACTION(S) (IF OTHER THAN ABOVE) |
||
|
If Section II is left blank or incomplete, check the box(es) below to indicate the reason(s) |
|||
|
a. Armored Car Service |
b. Mail Deposit or Transportation |
||
|
c. Night Deposit or ATM |
d. Multiple Transactions |
||
|
e. Conducted on Own Behalf |
|||
|
13. |
Individual's last name or company's name: ....................................................................... |
||
|
14. |
First name: ....................................................................................................................... |
||
|
15. |
Middle name: .................................................................................................................... |
||
|
16. |
Date of birth: (DD/MM/YYYY) ................/.................../................... |
||
|
17. |
Gender: F M |
||
|
18. |
Doing business as: ........................................................................................................... |
||
|
19. |
Profession/Occupation/Nature of business: ......................................................................... |
||
|
20. |
Identify type: NRC Passport Driver’s License TPIN Number |
||
|
a. Identification number: .................................................................................................. |
|||
|
b. Identification issued by: ............................................................................................... |
|||
|
c. Place of issue: ............................................................................................................ |
|||
|
21. |
Physical address* |
||
|
a. Property number and street name: ............................................................................... |
|||
|
b. Residential area: ......................................................................................................... |
|||
|
c. Town: ......................................................................................................................... |
|||
|
d. Provincial & Country: .................................................................................................. |
|||
|
22. |
Postal address: ............................................................................................................... |
||
|
23. |
Telephone: ................................................. Mobile: ........................................................ |
||
|
Fax: .............................................................................................................................. |
|||
|
If box 1a above for amend prior report is checked, please provide the reference number for the CTR to be amended |
|||
|
24. |
CTR Reference Number: ................................................................................................. |
||
|
PART B: TRANSACTION DETAILS |
CHECK ALL BOXES THAT APPLY |
||
|
25. |
Place of transaction*: ........................................................................... |
||
|
26. |
Date of transaction*: DD/MM/YYYY .............../.............../................ |
||
|
27. |
Total cash in (K)*: ................................................................................ |
||
|
28. |
Total cash out (K): ................................................................................ |
||
|
29. |
Foreign currency amount and type (specify): ....................................... |
||
|
30. |
Account number(s) affected*: .............................................................. |
||
|
31. |
Transaction type* |
Negotiable instrument(s) purchased |
|
|
Negotiable instrument(s) cashed |
|||
|
Deposit(s) |
|||
|
Withdraws(s) |
|||
|
Other (specify): ……………………......……… |
|||
|
PART C: REPORTING ENTITY DETAILS* |
|||
|
NATURE OF BUSINESS |
|||
|
Micro Finance Institution Insurance Broker Lotteries Motor Vehicle Dealer Precious Metal Dealer Leasing Company Bureau de Change Real Estate Ag. Legal Practitioner Insurance Building Society Money Remitter Real Estate Dev. Accountant/Auditor Pension Commercial Bank Casino Stock Broker Tax Consultant Development Finance |
|||
|
Other (Specify): ......................................................................................................................... |
|||
|
Reporting entity name*: .............................................................................................................. |
|||
|
Physical address: ...................................................................................................................... |
|||
|
Compliance/Reporting Officer |
|||
|
Name: ....................................................................................................................................... |
|||
|
Position: .................................................................................................................................... |
|||
|
Tel. No.: .................................................................................................................................... |
|||
|
E-mail Address: .......................................................................................................................... |
|||
|
If different from Compliance/Reporting Officer |
|||
|
Name: ....................................................................................................................................... |
|||
|
Address: ................................................................................................................................... |
|||
|
Tel. No.: Landline: +260 |
Mobile: +260 |
||
|
E-mail Address: .......................................................................................................................... |
|||
|
Are there any attachments accompanying this form? Yes No |
|||
|
(If yes, please specify): .............................................................................................................. |
|||
|
....................................... |
DD/MM/YYYY ............../............/......... |
{/mprestriction}