Section 145Part 2 — The Financial Reporting AuthorityAmendedNot Yet In Force
Regulations
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This section has not been brought into force.
It was enacted by Parliament but awaits a commencement order before it becomes operative law.
Amendment: LG32/S3
Pending changes
Inserted paragraph (1)(fa) regarding a framework for reporters of suspicion of criminal conduct.
The Cabinet may, upon the recommendation of the Anti - Money Laundering Steering Group, the Monetary Authority and the Financial Reporting Authority, make regulations prescribing measures to be taken to prevent the use of the financial system and any other facilities provided in or from within the Islands for the purposes of criminal conduct including measures —
to utilise systems and train employees to prevent money laundering;
to manage and mitigate any ri sks that may be involved in the course of business;
to conduct the appropriate and adequate due diligence of a customer or a person with whom business is conducted;
to ensure that proper and adequate records are kept;
that may be required to be utilised in matters involving specific types of customers or activities which may include a politically exposed person or the transfer of currency;
to maintain the prescribed obligations of a financial institution or a designat ed non - financial busines s or profession in the prevention of money laundering; (fa) to establish a framework under which reporters of suspicion of criminal conduct may seek and obtain a defence to specified money laundering or terrorist financing offences in relation to those r eported offences; and
to ensure that proper and adequate reports are made to the relevant Authority in the Islands regarding any suspicious activity related to money laundering.
Regulations made under subsection (1) may —
make different provisi ons for different circumstances or cases and may contain incidental, supplementary and transitional provisions;
provide that the contravention of any provision of those regulations constitutes an offence and may prescribe penalties for any such offence —
on conviction on indictment, consisting of a fine and imprisonment for two years; or
on summary conviction, consisting of a fine of five hundred thousand dollars;
prescribe the manner in which an administrative penalty system with a maximum penalty of two hundred and fifty thou sand dollars may be implemented; and
prescribe fees, subscriptions or other monies which may be payable by any person who is supervised in accordance with this Act and the regulations . Part 6 - Investigations - Introduction