§ 16 — Requirements for prevention of money laundering and terrorism financing

16.—(1) The Authority may, from time to time, issue such directions, or make such regulations under section 192, concerning any financial institution or class of financial institutions as the Authority considers necessary for the prevention of money laundering or the financing of terrorism.(2) In particular, the directions and regulations mentioned in subsection (1) may provide for —(a)

customer due diligence measures to be conducted by financial institutions to prevent money laundering and the financing of terrorism; and

(b)

the records to be kept for that purpose.

(3) A financial institution must —(a)

conduct such customer due diligence measures as may be specified by the directions referred to in subsection (2) that are issued to the financial institution, or as may be prescribed by the regulations mentioned in that subsection that are applicable to the financial institution; and

(b)

maintain records on transactions and information obtained through the conduct of those measures for such period and in such manner as may be specified by the directions referred to in subsection (2) that are issued to the financial institution, or as may be prescribed by the regulations mentioned in that subsection that are applicable to the financial institution.

(4) A financial institution that —(a)

fails to comply with a direction issued to the financial institution under subsection (1);

(b)

contravenes any regulations mentioned in subsection (1); or

(c)

contravenes subsection (3),

shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1 million and, in the case of a continuing offence, to a further fine of $100,000 for every day or part of a day during which the offence continues after conviction.

(5) It is not necessary to publish any direction issued under this section in the Gazette.

—(1) The Authority may, from time to time, issue such directions, or make such regulations under section 192, concerning any financial institution or class of financial institutions as the Authority considers necessary for the prevention of money laundering or the financing of terrorism.

(2) In particular, the directions and regulations mentioned in subsection (1) may provide for —(a)

customer due diligence measures to be conducted by financial institutions to prevent money laundering and the financing of terrorism; and

(b)

the records to be kept for that purpose.

(3) A financial institution must —(a)

conduct such customer due diligence measures as may be specified by the directions referred to in subsection (2) that are issued to the financial institution, or as may be prescribed by the regulations mentioned in that subsection that are applicable to the financial institution; and

(b)

maintain records on transactions and information obtained through the conduct of those measures for such period and in such manner as may be specified by the directions referred to in subsection (2) that are issued to the financial institution, or as may be prescribed by the regulations mentioned in that subsection that are applicable to the financial institution.

(4) A financial institution that —(a)

fails to comply with a direction issued to the financial institution under subsection (1);

(b)

contravenes any regulations mentioned in subsection (1); or

(c)

contravenes subsection (3),

shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1 million and, in the case of a continuing offence, to a further fine of $100,000 for every day or part of a day during which the offence continues after conviction.

(5) It is not necessary to publish any direction issued under this section in the Gazette.