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.
This section of the article is only available for our subscribers. Please click here to subscribe to a subscription plan to view this part of the article.