Individuals at financial institutions can be fined thousands for failing to comply with requirements in the Proceeds of Crime (Anti Money Laundering and Terrorism Financing guidelines) according to the regulations which were gazetted as Statutory Rules and Orders number 24 or 2013.
Fees for failing to comply with the Proceeds of Crime Act as well as other administrative forms associated with the effective implementation of the Act were approved by the House of Representatives when the members meet last Friday.
Ranging from EC$7,000 to EC$40,000 the fees for the 24 offences under the Act will include a number of offences covering both individual and corporate penalties. According to the legislation which was approved in 2012 failure to comply with the requirement to conduct due diligence and record keeping measures or accepting donations linked to money laundering or terrorist financing will cost a corporate body EC$40,000 while the penalty for an individual will be EC$25,000.
Failure to maintain appropriate policies, procedures, and other measures to prevent misuse of technological development will cost a corporate body EC$25,000 while for an individual it will be EC$18,000.
Failure to carry out money laundering and terrorist risk assessment will be EC$40,000 for corporate bodies and EC$20,000 for an individual while failure for by an employee to report a suspicious activity or transaction will be EC$15,000.
Corporate bodies can also be face a fine of EC$25,000 if they fail to adopt relevant measures or additional measures or checks in non face to face relationships while individuals working at financial institutions can face a fine of EC$15,000.
The lowest fine of EC$7,000 will be for an individual who fails to ensure required contents of records, or to ensure that the manner of keeping records does not hinder monitoring business relationships and transactions.
The law also makes it an offence for outsourcing arrangement that fail to comply with the requirements of the legislation. EC$20,000 for corporate bodies or EC$15,000 will be penalty if a company enters into outsourcing arrangement for the retention of records whereby access to such records is impeded by confidentiality or data protection restriction, or the outsourcing prevents or impedes the implementation of the Anti Money Laundering and Terrorist Financing regulations.
Among the mandatory requirements in the law are: ensuring transfer of funds are accompanied by full originator information and keeping records of all originator information.
The proceeds in crime legislation will not only affect financial institutions such as banks, credit union, money transfer services but also nongovernmental organizations who receive charitable financial donations.