§ 28G — Threshold criteria and high-risk indicators

28G.—(1) The Authority must issue to each prescribed financial institution (A) —(a)

the criteria applicable to A for determining whether —(i)

risk information relating to a relevant party may be requested by A under section 28D; and

(ii)

risk information relating to a relevant party may be disclosed by A under section 28E, or published by A under section 28F; and

(b)

the high-risk indicators of relevant parties of A that must be considered in determining whether the threshold criteria applicable to A are satisfied.

(2) Subject to subsection (3) —(a)

the criteria mentioned in subsection (1)(a) must not be divulged by A or any officer of A except —(i)

as permitted by section 28D, 28E or 28F;

(ii)

as required by a written notice issued under section 28H to correct an error or omission in risk information disclosed under section 28D or 28E, or published under section 28F; or

(iii)

as expressly permitted by the Authority; and

(b)

the high-risk indicators mentioned in subsection (1)(b) must not be divulged by A or any officer of A except —(i)

as permitted by section 28D, 28E or 28F;

(ii)

as required by a written notice issued under section 28H to correct an error or omission in risk information disclosed under section 28D or 28E, or published under section 28F; or

(iii)

as expressly permitted by the Authority.

(3) The criteria and high-risk indicators mentioned in subsection (1) may be divulged —(a)

by A to any officer of A solely in connection with the performance of the duties of the officer in A; and

(b)

by any officer of A to any other officer of A, solely in connection with the performance of their duties in A.

(4) The Authority may issue the criteria under subsection (1)(a) or the high-risk indicators under subsection (1)(b) (or both) to a class of prescribed financial institutions and if so, the Authority is to inform each prescribed financial institution of that class of that fact and the identity of the members of that class.

(5) The obligation under subsection (2) applies to any officer of the prescribed financial institution despite the officer’s subsequent cessation of appointment or employment as an officer of the prescribed financial institution.

(6) A person that contravenes subsection (2) shall be guilty of an offence and shall be liable on conviction —(a)

in the case of an individual, to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both; or

(b)

in any other case, to a fine not exceeding $1 million.

(7) In this section, “high-risk indicators”, in relation to a relevant party of a prescribed financial institution, means —(a)

any behaviour of the relevant party of the prescribed financial institution; or

(b)

any circumstance,

that indicates a high risk that the relevant party of the prescribed financial institution may have been or may be concerned in money laundering, terrorism financing, or the financing of proliferation of weapons of mass destruction.

[Act 19 of 2023 wef 01/04/2024]

—(1) The Authority must issue to each prescribed financial institution (A) —(a)

the criteria applicable to A for determining whether —(i)

risk information relating to a relevant party may be requested by A under section 28D; and

(ii)

risk information relating to a relevant party may be disclosed by A under section 28E, or published by A under section 28F; and

(b)

the high-risk indicators of relevant parties of A that must be considered in determining whether the threshold criteria applicable to A are satisfied.

(2) Subject to subsection (3) —(a)

the criteria mentioned in subsection (1)(a) must not be divulged by A or any officer of A except —(i)

as permitted by section 28D, 28E or 28F;

(ii)

as required by a written notice issued under section 28H to correct an error or omission in risk information disclosed under section 28D or 28E, or published under section 28F; or

(iii)

as expressly permitted by the Authority; and

(b)

the high-risk indicators mentioned in subsection (1)(b) must not be divulged by A or any officer of A except —(i)

as permitted by section 28D, 28E or 28F;

(ii)

as required by a written notice issued under section 28H to correct an error or omission in risk information disclosed under section 28D or 28E, or published under section 28F; or

(iii)

as expressly permitted by the Authority.

(3) The criteria and high-risk indicators mentioned in subsection (1) may be divulged —(a)

by A to any officer of A solely in connection with the performance of the duties of the officer in A; and

(b)

by any officer of A to any other officer of A, solely in connection with the performance of their duties in A.

(4) The Authority may issue the criteria under subsection (1)(a) or the high-risk indicators under subsection (1)(b) (or both) to a class of prescribed financial institutions and if so, the Authority is to inform each prescribed financial institution of that class of that fact and the identity of the members of that class.

(5) The obligation under subsection (2) applies to any officer of the prescribed financial institution despite the officer’s subsequent cessation of appointment or employment as an officer of the prescribed financial institution.

(6) A person that contravenes subsection (2) shall be guilty of an offence and shall be liable on conviction —(a)

in the case of an individual, to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both; or

(b)

in any other case, to a fine not exceeding $1 million.

(7) In this section, “high-risk indicators”, in relation to a relevant party of a prescribed financial institution, means —(a)

any behaviour of the relevant party of the prescribed financial institution; or

(b)

any circumstance,

that indicates a high risk that the relevant party of the prescribed financial institution may have been or may be concerned in money laundering, terrorism financing, or the financing of proliferation of weapons of mass destruction.

[Act 19 of 2023 wef 01/04/2024]