MONEY LAUNDERING (PREVENTION) ACT 1996

Transcription

1 LAWS OF No. 9 of 1996 as amended by No. 18 of 1998 [Repealed] S.I. No. 49 of 1998 No. 9 of 1999 No. 20 of 2000 No. 6 of 2001 No. 17 of 2002 and Nos. 11 and 26 of 2003 No. 15 of 2008 MONEY LAUNDERING (PREVENTION) ACT 1996 A consolidated (non-authoritative) version of the Act and its amendments prepared by the ONDCP Edited: June 2009

2 The Text contained in this document consists of a consolidation of: The (No. 9 of 1996) (In force: 28 May 1998 by S.I. No. 10 of 1998) as amended by: The Money Laundering (Prevention) (Amendment) Act 1998 (No 18 of 1998) (In force: 12 November 1998) [Repealed by Act No. 9 of 1999, section 17] The Money Laundering (Amendment of First Schedule) Order (S.I. No. 49 of 1998) (In force: 30 November 1998) The Money Laundering (Prevention) (Amendment) Act 1999 (No. 9 of 1999) (In force: 9 September 1999) The Law Revision (Miscellaneous) (Amendments) (No.3) Act 2000 (No. 20 of 2000) (In force: 28 December 2000) The Money Laundering (Prevention) (Amendment) Act 2001 (No. 6 of 2001) (In force: 27 April 2001) The Money Laundering (Prevention) (Amendment) Act 2002 (No. 17 of 2002) (In force: 27 December 2002) The Office of National Drug and Money Laundering Control Policy Act 2003 (No. 11 of 2003) (In force: 18 December 2003) The Money Laundering (Prevention) (Amendment) Act 2003 (No. 26 of 2003) (In force: 5 February 2004) The Money Laundering (Prevention) (Amendment) Act 2008 (No. 15 of 2008) (In force: 8 January 2009) Disclaimer: This document is not an official consolidation passed by Parliament. This legislative material has been prepared for convenience of reference only. It is not an official government publication. For all purposes of interpreting and applying the law, users should consult the principal Act and its amendments as passed by Parliament and published in the Government Gazette. Facsimiles of the statutes appear at the end of this consolidation starting at page 66. Care has been taken in the preparation of this text. However, the ONDCP assumes no responsibility for the accuracy or reliability of the text or any reproduction of any part of this material. Certain typographical errors and numbering inconsistencies will be encountered in the consolidation and may reflect the official published text.

3 Arrangement of Sections Arrangement of Sections PART I PRELIMINARY 1. Short Title 2. Interpretation 2A. 2B. 2C. 2D. 2E. 2F. 2G. 2H. Money laundering activity explained PART II MONEY LAUNDERING PROHIBITED 3. Offence of money laundering 4. Offence committed by a body of persons 5. Attempts, aiding and abetting, conspiracy 6. Penalty for money laundering 7. Tipping-off 8. Falsification, concealment etc., of documents 9. Jurisdiction PART III ANTI-MONEY LAUNDERING SUPERVISION 10. Appointment of Supervisory Authority page 3

4 Arrangement of Sections 11. Powers of Supervisory Authority 11A. Opening or operating an account in a false name 12. Retention of financial records 12A. Minimum retention period of a document 12B. Definition of terms used in sections 12 and 12A 13. Reporting of suspicious business transactions by financial institutions 14. Supervisory Authority s powers to obtain search warrant 15. Property tracking and monitoring orders 16. Mandatory injunction to enforce compliance 17. Other measures to avoid money laundering 18. Currency reporting when leaving Antigua and Barbuda 18A. Seizure and detention of suspected currency 18B. Application to Magistrate to forfeit seized currency 18C. Reportable details and currency PART IV FREEZING FORFEITURE OF ASSETS IN RELATION TO MONEY LAUNDERING 19. Freezing of Property 19A. Conditions for making freezing order 19B. High Court to make ancillary orders PART IVA AUTOMATIC FORFEITURE UPON CONVICTION OF A MONEY LAUNDERING OFFENCE 20. Forfeiture of property, proceeds or instrumentalities page 4

5 Arrangement of Sections PART IVB CIVIL FORFEITURE 20A. Civil forfeiture orders 20B. Application for civil proceeds assessment order 20C. Matters to be considered in making an order under section 20B PART IVC EFFECT ENFORCEMENT OF CONFISCATION 20D. Effect and enforcement of confiscation 20E. Disposition of property subject to forfeiture prohibited 20F. Property in effective control of a person subject to civil proceeds assessment order PART IVD FORFEITURE FUND 20G. Forfeiture fund PART IVE PROTECTION OF THIRD PARTIES 21. Rights of bona-fide third parties 22. Limitations on freezing and forfeiture of property PART V INTERNATIONAL COOPERATION 23. Assistance to foreign countries PART VI MISCELLANEOUS 24. Money laundering an offence for extradition purposes page 5

6 Arrangement of Sections 25. Secrecy obligations overridden 26. Disclosure protected 27. Prosecution of offences 28. Limitation of proceedings 28A. Determination of questions of fact 28B. Proceeding on application to be treated as civil 28C. Award of costs 29. Regulations 30. Commencement FIRST SCHEDULE page 6

7 PART I - PRELIMINARY Short title Interpretation Section 1 AN ACT to make provisions for the prevention of money laundering and to provide for matters connected therewith or incidental thereto. ENACTED, by the Parliament of Antigua and Barbuda as follows: PART I PRELIMINARY 1. (1) This Act may be cited as the Money Laundering (Prevention) Act, (1) In this Act authorised officer means a person authorised by the Supervisory Authority to perform certain acts or functions under this Act. business transaction includes any arrangement, opening an account, between two or more persons where the purpose of the arrangement is to facilitate a transaction between the persons concerned and any related transaction between any of the persons concerned and another person. business transaction record includes where relevant to a business transaction (c) (d) the identification of all the persons party to that transaction; a description of that transaction sufficient to identify its purpose and method of execution; the details of any account used for that transaction including bank, branch and sort code; and the total value of that transaction; civil forfeiture order means an order made pursuant to section 20A. civil proceeds assessment order means an order made pursuant to section 20B. financial institution means any person whose regular authorised officer inserted by s.2 of No. 6 of 2001 Competent Authority, replealed by s.2 of No. 6 of 2001 civil forfeiture order and civil proceeds assessment order inserted - amended by s.2(d) of No. 17 of 2002 page 7

8 PART I - PRELIMINARY Section 2(1) occupation or business is, for the account of that person, the carrying on of: any activity listed in the First Schedule to this Act; any other activity defined by the Minister by an order published in the Gazette amending the First Schedule; freezing means temporarily prohibiting the transfer, conversion, disposition or movement of property or temporarily assuming custody or control of property on the basis of an order by a court or other competent authority; gift in relation to property, includes a transfer for a consideration significantly less than the greater of the prevailing market value of the property; or the consideration paid by the defendant. identification record means where the person is a corporate body, the details forfeiture, replealed by s.2 of No. 6 of 2001 gift inserted by s.2 of No. 6 of 2001 (i) (ii) (iii) of the certificate of incorporation or the incorporation certificate by any other name, such certificate to be notarized where the corporate body is incorporated outside Antigua and Barbuda; of the most recent annual return of the corporate body filed at the General Registry, such return to be notarized where the corporate body is incorporated outside of Antigua and Barbuda; of any officer of the corporation as required in sub-paragraph of this definition; and page 8

9 PART I - PRELIMINARY Section 2(1) in any other case, sufficient documentary evidence to prove to the satisfaction of a financial institution that the person is who that person claims to be; and for these purposes person includes any person who is a nominee, agent, beneficiary or principal in relation to a business transaction; instrumentality means property that is used in connection with or is intended to be used in any manner in or in connection with the commission of instrumentality inserted by s.2 of No. 6 of 2001 (i) (ii) (iii) a money laundering offence; or an offence against subsection 18(1) or subsection 18(4) of this Act. a money laundering activity. Para (iii) inserted by s.2(c) of No. 17 of 2002 Minister means the Minister responsible for national drug control and security unless specifically provided otherwise; money laundering means engaging directly or indirectly, in a transaction that involves money, or other property, or receiving, possessing, managing, investing, concealing, disguising, disposing of or bringing into Antigua and Barbuda any money, or other property, knowing or having reasonable grounds to suspect that the money, or other property, is derived, obtained or realised, directly or indirectly, from some form of unlawful activity or is an instrumentality. money laundering offence means page 9 money laundering inserted by s.2 of No. 6 of 2001 or is an instrumentality inserted at end of the definition of money laundering by s.2 of No. 17 of 2002 money laundering offence inserted by s.2 of No. 6 of 2001

10 PART I - PRELIMINARY Section 2(1) (i) an offence against*: (c) (d) sections 3 and 5 of this Act; sections 11A and 18 of this Act section 61 of the Proceeds of Crime Act, 1993; or sections 4, 5, 6(3), 7 and 8 of the Misuse of Drugs Act, Cap. 283; or (ii) an offence against: any foreign law specified by regulation under this Act; or any foreign law, whether or not it is specified by regulation under this Act which prescribes dealings in property which is the proceeds of crime, which, if it was committed in Antigua and Barbuda, would be an offence against this Act or any other law of Antigua and Barbuda. In deciding whether an offence against any foreign law is a money laundering offence within the meaning of this definition, due regard should be given to differences in the form and usages of foreign laws and the meaning of any language used in such law should be construed broadly and not strictly. person includes any entity, natural or juridical, a corporation, partnership, trust or estate, joint stock company, association, syndicate, joint venture, or other unincorporated organization or group, capable of acquiring rights or entering into obligations; prescribed offence, repealed by s.2 of No. 6 of 2001 page 10 *Note: See also section 9(3) of the Prevention of Terrorism Act 2005

11 PART I - PRELIMINARY Section 2(1) proceeds in relation to an offence, means any property that is derived or realised, directly or indirectly by any person from the commission of the offence. proceeds of crime means: proceeds of a criminal offence against the laws of Antigua and Barbuda; or proceeds inserted by s.2 of No. 6 of 2001 proceeds of crime inserted by s.2 of No. 6 of 2001 any property that is derived or realised, directly or indirectly by any person from acts or omissions that: (i) (ii) occurred outside Antigua and Barbuda; and would, if they had occurred in Antigua and Barbuda, have constituted an offence against the laws of Antigua and Barbuda. property includes money, investments, holdings possessions, assets and all other property real or personal, heritable or moveable including things in action and other intangible or incorporeal property wherever situate (whether in Antigua & Barbuda or elsewhere) and includes any interest in such property; Supervisory Authority means Supervisory Authority appointed under section 10. unlawful activity means an act or omission that constitutes an offence against a law in force in Antigua and Barbuda or against a law in force in a foreign country that would, if it was committed in Antigua and Barbuda, be an offence against a law of Antigua and Barbuda; (2) The Minister may from time to time by order published in the Gazette amend the Second Schedule to this Act. page 11

12 PART I - PRELIMINARY Section 2(3) (3) Knowledge, intent, purpose, belief or suspicion required as an element of any offence under this Act may be inferred from objective, factual circumstances. 2A. (1) For the purposes of Part IVA of this Act a person is convicted of an offence if: (i) (ii) (iii) he is convicted of the offence by a court either in Antigua and Barbuda or elsewhere; a court, with the consent of the person, takes the offence, of which the person has been found guilty, into account in passing sentence on the person for another offence; a declaration is made by the High Court pursuant to section 2B that the person has absconded in relation to the offence. (2) In any proceeding related to the operation of this Act if the conviction of a person of a money laundering offence is an issue a certified copy or copy with an official stamp, of a certificate of conviction or judgment together with any translation of the said documents into English by a person fluent in the language used in the country in which the person was convicted shall be regarded as conclusive proof of the conviction of the person of the money laundering offence concerned and prima facie proof of any facts asserted and relied upon in the document. 2B. (1) For the purposes of Part IVA of this Act a person shall be taken to abscond in connection to a money laundering offence with which he has been charged in Antigua and Barbuda if: s.2a inserted by s.3 of No. 6 of 2001 s.2a amended, substituting Part IVA for Part IV by s.3 of No. 17 of 2002 s.2b inserted by s.3 of No. 6 of 2001 page 12 (c) an information is laid alleging the commission of the offence by the person; and a warrant for the arrest of the person is issued in relation to that information; and one of the following occurs: Part IV deleted from subsections 2B(1), (2), (3) and (4) and Part IVA substituted by s.4 of No. 17 of 2002

13 PART I - PRELIMINARY Section 2B(1)(c)(I) (i) (ii) the person dies without the warrant being executed; at the end of the period of 6 months commencing on the day on which the warrant is issued: the person cannot be found; or the person is, for any other reason, not amenable to justice and, if the person is outside Antigua and Barbuda, extradition proceedings have not commenced; (iii) at the end of the period of 6 months commencing on the day on which the warrant is issued: the person is, by reason of being outside Antigua and Barbuda, not amenable to justice; and extradition proceedings have been commenced; and subsequently those proceedings terminate without an order for the person s extradition being made. (2) Upon application being made by the Supervisory Authority, and upon being satisfied that the provisions of subsection (1) are satisfied in respect of a person the High Court shall declare that the person has absconded and, for the purposes of Part IVA of this Act only, is convicted of any money laundering offence of which the person has been charged in Antigua and Barbuda. page 13

14 PART I - PRELIMINARY Section 2B(3) (3) For the purposes of Part IVA of this Act a person shall be taken to abscond in connection with a money laundering offence with which he has been charged in a country other than Antigua and Barbuda if an affidavit is filed in the High Court that has been sworn by an authorised officer which deposes to the following that: a charge has been laid against the person for a money laundering offence; a warrant for the arrest of the person has been issued in relation to that charge; and either (ii) (iii) (iv) the person has died without the warrant being executed; or at the end of the period of 6 months commencing on the day on which the warrant was issued the person cannot be found or is, for any other reason, not amenable to justice and no extradition proceedings have been commenced; or at the end of the period of 6 months commencing on the day on which the warrant is issued the person is, by reason of being outside the country concerned, not amenable to justice; and that extradition proceedings have taken place which terminated without an order for the person s extradition being made. (4) Upon application being made by the Supervisory Authority, and upon being satisfied that the provisions of subsection (3) are satisfied in respect of a person the High Court shall declare that the person has absconded and, for the purposes of Part IVA of this Act only, is convicted of any money page 14

15 PART I - PRELIMINARY Section 2B(4) laundering offence of which the person has been charged in any foreign country. (5) Any affidavit filed in support of an application made pursuant to subsection (2) or (4) together with any document exhibited to it shall be accepted as proof of the contents thereof unless the court has strong grounds for declining to accept any assertion that is made in the affidavit or any document exhibited to it. (6) A person who is the subject of an application pursuant to subsection (2) shall, in accordance with the manner prescribed in section 28D, be given at least fourteen days notice of the application by the Supervisory Authority. 2C. (1) Property, or an interest in property, may be subject to the effective control of a person within the meaning of this Act whether or not the person has: Subsection (6) inserted by s.4 of No. 17 of 2002 s.2c inserted by s.3 of No. 6 of 2001 a legal or equitable estate or interest in the property; or a right, power or privilege in connection with the property. (2) Without limiting the generality of any other provision in this Act, in determining: whether or not property, or an interest in property, is subject to the effective control of a person; or whether or not there are reasonable grounds to suspect that property, or an interest in property, is subject to the effective control of a person; regard may be had to: page 15

16 PART I - PRELIMINARY Section 2C(2)(c) (c) (d) (e) shareholdings in, debentures over or directorships of a company that has an interest (whether direct of indirect) in the property; a trust that has a relationship to the property; and family, domestic and business relationships between persons having an interest in the property, or in companies of the kind referred to in paragraph (c) or trusts of the kind referred to in paragraph (d), and other persons. (3) In determining whether property, or an interest in property is subject to the effective control of a person the court may lift the corporate veil of any company whether it is registered under the laws of Antigua and Barbuda or elsewhere. 2D. For the purpose of an application under this Act, property in which the defendant has an interest includes (1) any property that is, on the day when the first application is made under this Act in respect of that offence or money laundering activity subject to the effective control of the defendant; and (2) any property that was the subject of a gift from the defendant to another person within the period of 6 years before the first application was made under this Act in respect of that offence or money laundering activity. 2E. For the purpose of this Act, two offences are related to one another if the elements of the two offences are substantially the same acts or omissions. 2F. A person may be appointed as a trustee for the purposes of this Act if they are qualified to be appointed as a receiver/ manager or liquidator of a foreign corporation pursuant to the s.2d inserted by s.3 of No. 6 of 2001 In s.2d comma after offence deleted in subsection (1), and or money laundering activity inserted after offence wherever it occurs - amended by s.5 of No. 17 of 2002 s.2e inserted by s.3 of No. 6 of 2001 s.2f inserted by s.3 of No. 6 of 2001 page 16

17 PART I - PRELIMINARY Section 2G Business Corporation Act, Cap. 222 (as amended). 2G. For the purposes of any application under this Act (c) any affidavit or statement of a relevant foreign authority which is relevant to an application under this Act shall be accepted as proof of the contents thereof; any document which is or purports to be a copy of a business record kept by a person, corporation or other entity in the ordinary course of business shall be accepted as proof of the contents thereof unless the court is satisfied that the contents of the document are false; any affidavit filed in support of an application made pursuant to this together with any document exhibited to it shall not be objected to or ruled inadmissible solely on the ground that it contains hearsay evidence; s.2g inserted by s.3 of No. 6 of 2001 In s.2g para (d), the charging or conviction of deleted; or money laundering activity inserted after offence wherever it occurs - amended by s.6 of No. 17 of 2002 (d) a court may take into account in determining the application any material that it thinks fit, including evidence given in any proceeding relating to the offence or money laundering activity in reliance on which the application is made or any related offence or money laundering activity, or other offence or money laundering activity arising from the same facts, and for this purpose, the whole or any part of the record of evidence of those proceedings is admissible in evidence as if it were a record of evidence given on the hearing of the application; Money laundering activity explained 2H. In this Act a reference to money laundering activity by a person is a reference to anything done by the person that at page 17 s.2h inserted by s.7 of No. 17 of 2002

18 PART II - MONEY LAUNDERING PRO- HIBITED Section 2H the time was a money laundering offence whether or not the person has been charged with the offence and, if charged: (c) has been tried; or has been tried and acquitted; or has been convicted (even if the conviction has been quashed or set aside). PART II Offence of Money Laundering Offences committed by a body corporate Attempts; aiding and abetting; conspiracy Penalty for money laundering MONEY LAUNDERING PROHIBITED 3. A person who, after the commencement of this Act, engages in money laundering is guilty of an offence. 4. Where an offence under the provisions of section 3 is committed by a body of persons, whether corporate or unincorporated, every person who, at the time of the commission of the offence, acted in an official capacity for or on behalf of the body of persons in respect of that offence, whether as director, manager, secretary or other similar officer, or was purporting to act in that capacity, commits that offence and shall be tried under section Any person who attempts or aids, abets, counsels or procures the commission of, or conspires to commit, the offence of money laundering is guilty of an offence. 6. A person who commits an offence under section 3, or 4 or 5 is liable on (i) summary conviction to a fine of two hundred thousand dollars or imprisonment for three years or to both; and (ii) conviction on indictment to a fine of one million dollars or imprisonment for seven years or to both. page 18

19 Tipping off Falsification, concealment etc, of docmetnts PART II - MONEY LAUNDERING PROHIBITED Section 7(1) 7. (1) It is an offence for a person who knows or suspects that an investigation into money laundering has been, is being or is about to be made to divulge that fact or other information to another whereby the investigation is likely to be prejudiced. (2) It is an offence for a person who knows or suspects that a financial institution has submitted or is about to submit a suspicious activity report pursuant to section 13(2), to divulge that fact or other related information to another person. (3) A person who commits an offence under this section is liable on conviction to a fine of one hundred thousand dollars, and to imprisonment for three years. 8. (1) It is an offence for a person to falsify conceal, destroy or otherwise dispose of or cause or permit the falsification concealment, destruction or disposal of any document or material which is or likely to be relevant to an investigation into money laundering or to any order made in accordance with the provisions of this Act. (2) A person guilty of an offence under subsection (1) is liable on conviction to a fine of two hundred and fifty thousand dollars and to imprisonment for five years. 9. An offence under this Act, whether or not it occurred in Antigua and Barbuda or any other territorial jurisdiction shall be investigated by the law enforcement authorities or a person authorized by the Supervisory Authority and tried, judged and sentenced by a court in Antigua and Barbuda without prejudice to extradition when applicable in accordance with the law. ss.7(2) repealed and replaced by s.2 of No. 15 of PART III Appointment of Supervisory Authority ANTI-MONEY LAUNDERING SUPERVISION 10. The person appointed to be Director of the ONDCP pursuant to section 4 of the Office of National Drug and Money Laundering Control Policy Act, 2003 shall be the Supervisory Authority under this Act. s.10 repealed and replaced by s.38 ONDCP Act page 19

20 Powers of the Supervisory Authority PART III - ANTI-MONEY LAUNDERING SUPERVISION Section The Supervisory Authority (i) (ii) (iii) (iv) (v) (vi) shall receive the reports issued by the financial institutions pursuant to the provisions of section 13(2); shall send any report to the law enforcement authority if, having considered the report, the Supervisory authority also has reasonable grounds to believe that a money laundering offence is being, has been or is about to be committed; or a person authorized by the Supervisory Authority, may enter into the premises of any financial institution during normal working hours to inspect any business transaction record kept by that financial institution pursuant to section 12(1) and ask any questions relevant to such record and to make any notes or take any copies of the whole or any part of any such record; shall send to the law enforcement authorities any information derived from an inspection carried out pursuant to paragraph (iii) of this section if it gives the supervisory Authority reasonable grounds to believe that a money laundering offence is being, has been, or is about to be committed; may instruct any financial institution or to seek the assistance of any government department, statutory body, or other public body to take such steps as may be appropriate to facilitate any investigation anticipated by the Supervisory Authority following a report or investigation made under this section; In s.11 para (iii) section 12(i) substitued with section 12(1) - amended by s.8 of No. 17 of 2002 s.11 para (v) repealed by s.8 of No. 17 of 2002 page 20

21 Opening or operating an account in a false name prohibited PART III - ANTI-MONEY LAUNDERING SUPERVISION Section 11(vii) (vii) (viii) (ix) (x) (xi) within or without Antigua and Barbuda, make recommendation arising out of any information received, issue guide-lines to financial institutions and advise the Minister with regard to any matter relating to money laundering; shall create training requirements and provide such training for any financial institution in respect of the business transaction record-keeping and reporting obligations as provided under section 12(i), and 13(ii), respectively.; may consult with any person, institution or organization within or without Antigua and Barbuda for the purposes of the exercise of its powers or duties under the Act; and may send a copy of the report received under paragraph (i) and any other information obtained pursuant to this section to the person, institution or organization it is consulting with under paragraph (ix). shall exercise the powers and functions conferred on the Supervisory Authority by this Act to trace property that is the proceeds of offences against the laws of Antigua and Barbuda and elsewhere and to make application for the freezing and forfeiture of such property in accordance with the provisions of this Act. 11A. (1) A person shall not open an account with a financial institution in a false name. (2) A person shall not operate an account with a financial institution in a false name. (3) A person shall not authorise the operation of an account with a financial institution if the account is in a false name. (4) Where a person is commonly known by two or more different names, the person shall not use one of those s.11(xi) inserted by s.5 of No. 6 of 2001 s.11a inserted by s.9 of No. 17 of 2002 page 21

22 PART III - ANTI-MONEY LAUNDERING SUPERVISION Section 11A(4) names in opening an account with a financial institution unless the person has previously disclosed the other name or names to the financial institution. (5) Where a person is commonly known by two or more different names, the person shall not use one of those names in operating an account with a financial institution unless the person has previously disclosed the other name or names to the financial institution. (6) Where a person using a particular name in dealing with a financial institution discloses to the financial institution a different name or different names by which the person is commonly known, the financial institution shall make a record of the disclosure and shall, upon request in writing from the Supervisory Authority, give the Supervisory Authority a copy of that record. (7) A person who contravenes subsection (1), (2), (3), (4), (5) or (6) commits an offence and is liable on summary conviction to a fine not exceeding twenty thousand dollars ($20,000) or to a term of imprisonment not exceeding two years or to both. (8) For purposes of this section: (c) a person opens an account in a false name if the person, in opening the account, or becoming a signatoy to the account, uses a name other than a name by which the person is commonly known; and a person operates an account in a false name if the person does any act or thing in relation to the account (whether by way of making a deposit or withdrawal or by way of communication with the financial institution concerned or otherwise) and, in doing so, uses a name other than a name by which the person is commonly known; and an account is in a false name if it was opened in a false name, whether before or after the commencement of this paragraph. page 22

23 Retention of financial records Minimum retention period of a document PART III - ANTI-MONEY LAUNDERING SUPERVISION Section 12(1) 12. (1) A financial institution shall, subject to section 12A, retain, or retain a copy of, each customer generated financial transaction document for the minimum retention period applicable to the document. (2) Subject to subsection (3), a financial institution shall retain, or retain a copy of, each financial transaction document that is not a customer generated financial transaction document the retention of which is necessary to preserve a record of the financial transaction concerned for the minimum retention period applicable to the document. (3) (4) A financial institution required to retain documents under this section shall retain and store them in a way that makes retrieval of the documents reasonably practicable. (5) A financial institution shall (i) comply with any instruction given to it by the Supervisory Authority pursuant to section 11(vi); (ii) (iii) permit any person authorised by the Supervisory Authority upon request to enter into any premises of the financial institution during normal working hours and inspect the records kept pursuant to this section and to make any notes or take any copies of the whole or any part of any such record and shall answer any questions of the Supervisory Authority or a person authorised by the Supervisory Authority pursuant to this subsection; comply with the guidelines and training requirements issued by the Supervisory Authority in accordance with paragraph (vii) or (viii) of section 11. (6) A financial institution that contravenes subsections (1), (2), (4) or (5) commits an offence and is liable on summary conviction to a fine not exceeding $20, A. (1) Where a financial institution is required by law to release s.12 repealed and replaced by s.10 of No. 17 of 2002 s.12(1) repealed and replaced by s.2 of No. 26 of 2003 ss.12(3) repealed by s.3 of No. 15 of 2008 ss.12a amd 12B inserted by s.10 of No. 17 of 2002 page 23

24 Definition of terms used in sections 12 and 12A PART III - ANTI-MONEY LAUNDERING SUPERVISION Section 12A(1) an original of a customer generated financial transaction document before the end of the minimum retention period applicable to the document, the financial institution shall retain a complete copy of the document until the end of the period or the return of the document, whichever occurs first. (2) The financial institution shall maintain a register of documents released under subsection (1). (3) A financial institution that contravenes subsection (1) or (2) commits an offence and is liable on summary conviction to a fine not exceeding twenty thousand dollars ($20,000). 12B. (1) For the purposes of sections 12 and 12A customer generated financial transaction document means a document of a financial institution that relates to: (i) the opening or closing by a person of an account with the institution; (ii) the operation by a person of an account with the institution; (iii) the opening or use by a person of a deposit box or packet held by the institution. (iv) the telegraphic or electronic transfer of funds by the institution on behalf of the person to another person; (v) the transmission of funds between Antigua and Barbuda and a foreign country or between foreign countries on behalf of a person; (vi) an application by a person for a loan from the institution, that is given to the institution by or on behalf of the person whether or not the document is signed by or on behalf of the person; (vii) the financial activities of the customer and any correspondence that relates to that customer. financial transaction document in relation to a financial institution, means any document that relates to a financial transaction carried out by the institution in its capacity as a financial institution and, without limiting the generality of this, In s.12b or deleted from end of s.12b(v); at the end of 12B(vi) full stop replaced with semicolon; paragraph (vi) inserted after para. (v) - amended by s.4 of No. 15 of 2008 page 24

25 Reporting of suspicious business transactions by financial institutions PART III - ANTI-MONEY LAUNDERING SUPERVISION Section 12B(1) includes a document relating to: the opening, operating or closing of an account held with the institution; and the opening or use of a deposit box held by the institution. minimum retention period in relation to a financial transaction document or a customer generated financial transaction document means: (c) if the document relates to the opening of an account with the institution the period of six years after the day on which the account is closed; if the document relates to the opening by a person of a deposit box held by the institution the period of six years after the day on which the deposit box ceases to be used by the person; or in any other case the period of six (6) years after the day on which the transaction takes place. 13. (1) Financial institutions shall pay special attention to all complex, unusual or large business transactions, whether completed or not, and to all unusual patterns of transactions and to insignificant but periodic transactions, which have no apparent economic or lawful purpose and to relations and transactions with persons, including business and other financial institutions, from countries that have not adopted a comprehensive anti money laundering programme. (1A) Financial institutions in relation to all complex, unusual large transactions, whether completed or not, or unusual patterns of transactions which have no apparent or visible economic or lawful purpose, shall (i) (ii) (iii) examine the background and purpose of the transactions; put their findings in writing; and treat the findings as part of the transaction ss.13(1a) inserted by s.5 of No. 15 of 2008 page 25

26 Supervisory Authority s power to obtain search warrant PART III - ANTI-MONEY LAUNDERING SUPERVISION Section 13(2) records. (2) Upon reasonable suspicion that a transaction or activity could constitute or be related to money laundering, a financial institution shall promptly report the suspicious transaction or activity to othe Supervisory Authority. (2A) The question whether a reasonable suspicion for the purpose of subsection (2) should have been formed, shall be determined objectively, having regard to all the facts and surrounding circumstances; (3) Financial institutions shall not notify any person, other than a court, or other person authorized by law, that information has been requested by or furnished to a court or the Supervisory Authority. (4) When the report referred to in subsection (2) is made in good faith, the financial institutions and their employees, staff, directors, owners or other representatives as authorized by law shall be exempted from criminal, civil or administrative liability, as the case may be, for complying with this section or for breach of any restriction on disclosure of information imposed by contract or by any legislative, regulatory or administrative provision, regardless of the result of the communication. (5) Criminal offence is committed by a financial institution or its employees staff, directors, owners or other authorized representatives who acting as such, wilfully fail to comply with the obligations in this section, or who wilfully make a false or falsified report referred to above. (6) A financial institution or any director or employee of a financial institution who fails to comply with this section commits an offence and is liable on summary conviction to a fine not exceeding fifty thousand dollars ($50,000) or to a term of imprisonment not exceeding six months or both and in addition the licence may be suspended or revoked by the appropriate Regulatory Authority. 14. The Supervisory Authority or a law enforcement agency may, apply to a Judge of the High Court and upon satisfying him that there are reasonable grounds for believing that ss.13(2) repealed and replaced by s.5 of No. 15 of 2008 s.13(2a) inserted by s.12 of No. 17 of 2002 s.13(3) amended by s.6 of No. 6 of 2001 s.13(6) repealed and replaced - amended by s.12 of No. 17 of 2002 s.13(7) repealed by s.12(c) of No. 17 of 2002 page 26

27 PART III - ANTI-MONEY LAUNDERING SUPERVISION Section 14 (i) a financial institution has failed to keep a business transaction record as provided by the provisions of section 12(1); or (ii) (iii) a financial institution has failed to report any business transaction as provided by the provisions of section 13(2); or an officer or employee of a financial institution is committing, has committed or is about to commit a money laundering offence; Property tracking and monitoring orders he may make an order authorizing the Supervisory Authority to enter any premises belonging to, or in the possession or under the control of the financial institution or any officer or employee of such institution and to search the premises and remove any document, material or other thing therein for the purposes of the Supervisory Authority or law enforcement agency as ordered by the Judge and specified in the warrant. 15. Upon the application by the Supervisory Authority, a Judge of the High Court, upon being satisfied that there are reasonable grounds for believing that a person (referred to in this section as the defendant ) is committing, has committed or is about to commit a money laundering offence or has engaged or is about to engage in money laundering activity, may make an order (i) that any person reasonably believed to be in possession or control of any document relevant to identifying, locating or quantifying any property of the defendant; or identifying or locating any document necessary for the transfer of any property of the defendant, be required to deliver the document forthwith to the Supervisory Authority or other law enforcement agency, page 27 s.15 repealed and replaced by s.13 of No. 17 of 2002

28 PART III - ANTI-MONEY LAUNDERING SUPERVISION Section 15(ii) Mandatory injunction to enforce compliance Other measures to avoid money laundering Currency reporting when entering or leaving Antigua and Barbuda (ii) that a financial institution forthwith produce to the Supervisory Authority or other law enforcement agency all information obtained by the financial institution about any business transaction conducted by or for the defendant with the financial institution during such period before or after the date of the order as the Judge directs. 16. (1) A Judge of the High Court may upon an application made by the Supervisory Authority grant a mandatory injunction against an officer or employee of a financial institution in the terms the court deems necessary to enforce compliance on being satisfied that a financial institution has failed without reasonable excuse to comply in whole or in part with any obligation as provided under section 12(i), (ii), (iii) and (iv) and section 13(2). (2) In granting an injunction pursuant to subsection (1) the Court may order that should the financial institution or any officer or employee of that institution fail without reasonable excuse to comply with all or any of the provisions of that injunction such financial institution, officer or employee shall pay a financial penalty in the sum and in such manner directed by the Court. 17. A person who has been convicted of an offence for which a person may be sentenced to a term of imprisonment for twelve months or more whether in Antigua & Barbuda or elsewhere may not be eligible or licensed to carry on the business of a financial institution. 18. (1) Where: a person: (ii) transfers currency of Antigua and Barbuda or foreign currency out of Antigua and Barbuda; or s.17 amended by s.7 of No. 6 of 2001 s.18 repealed and substituted by s.8 of No. 6 of 2001 (iii) transfers currency of Antigua and Barbuda or foreign currency into Antigua and Barbuda; and page 28

29 PART III - ANTI-MONEY LAUNDERING SUPERVISION Section 18(1) the amount of currency involved in the transfer is not less than US$10,000 in value; the person, subject to subsections (2), (3) and (4), commits an offence against this subsection unless a report in respect of the transfer has been made in accordance with this section. (2) Where: a person receives currency of Antigua and Barbuda or foreign currency transferred to the person from outside Antigua and Barbuda; and the amount of currency is not less than US$10,000 in value; the person commits an offence against this subsection unless: (i) (ii) a report in respect of the transfer of the currency into Antigua and Barbuda has been made in accordance with subsection (1) before the transfer; or a report in respect of the receipt of the currency is given in accordance with this section before the period of 30 days commencing on the day of the receipt of the currency. (3) A person who commits an offence against subsection (1) or (2) is liable, upon conviction, to a fine of fifty thousand dollars ($50,000) or to imprisonment for not more than 2 years or both. (4) A report under this section shall: be on the form approved in the regulations; contain the reportable details in relation to the matter being reported; page 29

30 PART III - ANTI-MONEY LAUNDERING SUPERVISION Section 18(4)(c) (c) (d) be signed by the person making the report; and be given to a customs officer assigned for duty at the point of entry or departure. (5) A report under this section, other than a report mentioned in subsection 2(i) or (ii), must be given: if the transfer is effected by a person taking the currency out of, or bringing it into Antigua and Barbuda with the person at the time the currency concerned is brought into or taken out of, Antigua and Barbuda; and in any other case at any time before the transfer takes place. (6) For the purposes of subsection (5), if currency is taken out of Antigua and Barbuda by a person who sends or consigns the currency: through the post to a place outside Antigua and Barbuda; or to another person for carriage to a place outside Antigua and Barbuda by that other person or by a third person; the time when the currency is taken out of Antigua and Barbuda is the time when it is irrevocably committed by the first mentioned person to the Post Office or to the other person as the case may be. (7) For the purposes of subsection (5), the time at which currency is brought into Antigua and Barbuda by a person is: s.18(4)(d) repealed and replaced by s.14 of No. 17 of 2002 s.18(5) para repealed and replaced - amended by s.14 of No. 17 of 2002 if the person: (i) transfers the currency into Antigua and Barbuda when a passenger on an aircraft, vessel or ship; and page 30

31 PART III - ANTI-MONEY LAUNDERING SUPERVISION Section 18(7)(ii) (ii) after disembarking, goes through an area set apart for customs officers to examine the passports and personal baggage of, and perform other duties in respect of, disembarking passengers and for such passengers to collect personal baggage; as soon as the person reaches the place in that area at which customs officers examine personal baggage or, if the person does not go to that place, when the person leaves that area; or in any other case the first opportunity after arrival in Antigua and Barbuda that the person has to make the report under this section. (8) For the purposes of subsection 5, the time at which currency is taken out of Antigua and Barbuda by a person is: if the person: (i) transfers the currency out of Antigua and Barbuda when a passenger on an aircraft, vessel or ship; and (ii) before embarking, goes through an area set apart for the examination of the passports and baggage of embarking passengers; when the person is at the place in that area in which passports are examined; or in any other case as soon as the person page 31

32 PART III - ANTI-MONEY LAUNDERING SUPERVISION Section 18(8) reaches the person who is to examine the person s passport in relation to the person leaving Antigua and Barbuda or, if there is no such examination, the last opportunity before leaving Antigua and Barbuda that the person has to make the report under this section. (9) When a report under this section is made, the person to whom it is made shall, after receipt of the report, forward the report to the Supervisory Authority within 48 hours. (10) For the purposes of this section, if a person: arranges to leave Antigua and Barbuda on an aircraft, vessel or ship; and for the purposes of leaving Antigua and Barbuda, goes towards an aircraft, vessel or ship through an area described in subsection (8)(ii); and (c) either: (i) takes currency into that area; or (ii) has currency in his or her personal baggage; and (d) does not give a report about the currency when at the place described in that subsection; Seizure and Detention of suspected currency page 32 the person is taken to have transferred the currency out of Antigua and Barbuda. 18A. (1) A Customs Officer, Police Officer or ONDCP Officer on duty anywhere in the jurisdiction or a member of the Antigua and s.18a inserted by s.9 of No. 6 of 2001

33 PART III - ANTI-MONEY LAUNDERING SUPERVISION Section 18A(1) Barbuda Defence Force engaged in maritime duties may seize and detain currency if he or she has reason to suspect that it is an instrumentality of an offence against subsection 18(1) or 18(2) or is the proceeds of crime or is intended by the person for use in unlawful activity. (2) Currency seized by virtue of this section shall not be detained for more than 7 days unless an order is made for its continued detention pursuant to subsection (3). s.18a(1) repealed and substituted by s.6 of No. 6 of 2008 (3) An application may be made to a magistrate for an order authorising the continued detention of the seized currency for additional periods, not exceeding 6 months on each occasion, providing that the magistrate is satisfied that: there are reasonable grounds for the suspicion referred to in subsection (1); and that continued detention of the currency is justified while its origin or derivation is further investigated or consideration is given to the institution, whether in Antigua and Barbuda or elsewhere, of criminal proceedings against any person for an offence with which the currency is connected and provided that, in total, the currency is not detained for a period in excess of two years from the date of seizure, save that where a criminal proceedings against any person for an offence with which the currency is connected has commenced, the continuing detention of the currency may be ordered until the proceeding is completed. S.18A(1) is repre aled and replaced - amended by s.6 of No. 15 of 2008 (4) An application pursuant to subsection (3) may be made to a magistrate by the Supervisory Authority. (5) Any currency subject to continued detention under subsection (3) shall, unless required as evidence of page 33

34 PART III - ANTI-MONEY LAUNDERING SUPERVISION Section 18A(5) an offence, be delivered forthwith into the care of the Supervisory Authority who shall deposit it into a separate interest bearing account. (6) An order under subsection (3) shall remain in force until: the expiration of the order; the order is vacated by order of a court. (7) Currency which is detained pursuant to an order made under subsection (3) may be released in whole or in part upon the order of a magistrate provided that the magistrate is satisfied that: the grounds under which the currency was originally seized or continued to be detained no longer exist; or the continued detention of the currency is no longer justified. (8) An application under subsection (7) may be made by: the person from whom the currency was seized; or a person who, to the satisfaction of the magistrate, has an interest in the currency; or (c) the person, or one of the persons upon whose application the currency was detained; or (d) the Supervisory Authority. page 34