Regulations, 2000

L.N. 156 of 2000

PREVENTION OF MONEY LAUNDERING ACT

(CAP. 373)

Prevention of Money Laundering (Amendment)

Regulations, 2000

IN exercise of the powers conferred by article 9 of the Prevention

of Money Laundering Act, the Minister of Finance has made the

following regulations:-

The title of these regulations is the Prevention of Money

Laundering (Amendment) Regulations, 2000, and shall be read and

construed as one with the Prevention of Money Laundering Regulations,

1994. 1994, hereinafter referred to as "the principal regulations".

Paragraph ( 1) of regulation 2 of the principal regulations shall

be amended as follows

(a) in the definitions of "Case 2" and "Case 3" for the words

"in respect of any transaction" there shall be substituted the words

"in respect of anyone-off transaction";

(b) in the definition of "Case 4" for the words "(large series

of transactions)" there shall be substituted the words "(series of

transactions)";

(c) in the definition of "Case 4" for the words "in respect of

two or more transactions" there shall be substituted the words "in

respect of two or more one-off transactions";

(d) immediately after the definition of "established business

relationship" there shall be added the following new definition

" "group of companies" has the same meaning as is

assigned to the term "group company" by the Companies Act

sohowever that, for the purposes of these Regulations, it shall

include also any other body corporate registered or operating

in a reputable jurisdiction and forming part of the group of

companies and which is further licensed or otherwise

authorised under the laws of that jurisdiction to carry out any

activity equivalent to relevant financial business;";

(e) in the definition of "money laundering" for the words

"Money Laundering Act, 1994", there shall be substituted the words

"Prevention of Money Laundering Act,";

for paragraph (c) of the definition of "relevant financial

(f)

business" there should be substituted the following

"(c) life assurance business carried on by a person or

institution who is for the time being authorised, or required

to be authorised, under the provisions of the Insurance

Business Act or the Insurance Brokers and Other

Intermediaries Act;";

(g) immediately after the definition of "relevant financial

business" there shall be added the following new definition

" "reputable jurisdiction" means any country having

appropriate legislative measures for the prevention of money

laundering, taking into account that country's membership

of, or any declaration or accreditation by, any international

organisation recognised as laying down internationally

accepted standards for the prevention of money laundering;";

(h) the definition of "supervisory authority" shall be

amended as follows

for paragraph (c) thereof there shall be substituted

(i)

the following

"(c) the Competent Authority nominated under

the Banking Act, the Financial Institutions Act, the

Investment Services Act, the Insurance Business Act, or

the Insurance Brokers and Other Intermediaries Act;";

(ii) for paragraph (d) thereof there shall be substituted

the following

"(d) the Registrar of Companies acting under

article 193 of the Commercial Partnerships Ordinance

and under articles 403 to 423 of the Companies Act;";

for paragraph (e) thereof there shall be substituted

(iii)

the following

"(e) an inspector appointed under article 30 of the

Insurance Business Act;";

for paragraph (j) thereof there shall be substituted

(iv)

the following

"(j) an auditor, within the meaning of section 141

of the Commercial Partnerships Ordinance and of article

151 of the Companies Act, appointed by a company

carrying on relevant financial business;";

(v) immediately after paragraph (k) there shall be added

the following new paragraphs

"(l) the Gaming Board acting under the Gaming

Act and the Gaming Act Regulations; and

L.N. 193 of 1998.

(m) an inspector appointed under section 8 of the

Gaming Act."; and

(i) in the definition of "transaction" for the word

" "transaction" " there shall be substituted the words" "one-off

transaction" ".

In paragraph (1) of regulation 3 of the principal regulations,

for the words "carry out any transaction" there shall be substituted the

words "carry out anyone-off transaction".

Regulation 5 of the principal regulations shall be amended as

follows

(a) in paragraph (1) thereof, for the words "any particular

business relationship or transaction - " there shall be substituted

the words "any particular business relationship or one-off

transaction - ";

(b) in paragraph (3) thereof, for the words "any particular

business relationship or transaction," there shall be substituted the

words "any particular business relationship or one-off transaction,";

(c) in sub-paragraph (c) of paragraph (3) thereof, for the

words "(large series of transactions)," there shall be substituted

the words "(series of transactions),".

In sub-paragraph (b) of paragraph (2) of regulation 7 of the

principal regulations, for the words "the business relationship or

transaction" there shall be substituted the words "the business

relationship or one-off transaction".

Paragraph (1) of regulation 8 of the principal regulations shall regu

Amelnl!;s 8

be amended as follows

the principal

regulations.

(a) in sub-paragraph (a) thereof immediately after the words

"by the provisions of paragraph (1) of regulation 3 of these

regulations" there shall be added the words "or is a person who is

licensed or otherwise authorised under the laws of a reputable

jurisdiction to carry out any activity which is equivalent to relevant

financial business"; and

in sub-paragraph (b) thereof immediately after the words

(b)

"by the provisions of paragraph (1) of regulation 3 of these

regulations" there shall be added the words "or is a person who is

licensed or otherwise authorised under the laws of a reputable

jurisdiction to carry out any activity which is equivalent to relevant

financial business";

(c) in sub-paragraph (c) thereof for the words "a periodic

premium" there shall be substituted the words "a premium".

Regulation 9 of the principal regulations shall be amended as Amenl!;s

fiollows'.

regulation 9 of

the principal

regulations.

(a) in sub-paragraph (a) of paragraph (1) thereof for the

words "in any case where" there shall be substituted the words "in

any case where in relation to any business relationship that is

formed or one-off transaction that is carried out,";

(b) in item (iii) of sub-paragraph (a) of paragraph (1) thereof

for the words "in a case" there shall be substituted the words "in

any case";

(c) for sub-paragraph (b) of paragraph (1) thereof there shall

be substituted the following

"(b) a record containing details relating to all

transactions carried out by that person in the course of an

established business relationship.";

(d) in sub-paragraph (b) of paragraph (2) thereof for the

word "business" there shall be substituted the word "transaction";

(e) immediately after sub-paragraph (b) of paragraph (2)

thereof there shall be added the following new proviso

"Provided that in relation to records relating to a one-off

transaction or a series of one-off transactions, the aforesaid

period of at least five years shall commence with the date on

which the one-off transaction or the last of a series of one-off

transactions took place.";

(0 in sub-paragraph (b) of paragraph (3) thereof for the

words "the carrying out of the transaction" there shall be substituted

the words "the carrying out of the one-offtransaction or the last of

a series of one-off transactions"; and

(g) in sub-paragraph (c) of paragraph (3) thereof for the

words "(large series of transactions)" there shall be substituted the

words "(series of transactions)" and for the words "the carrying

out of the last transaction" there shall be substituted the words

"the carrying out of the last one-off transaction in a series of one-

off transactions".

Regulation lO of the principal regulations shall be amended

as follows

(a) paragraphs (2) and (3) thereof shall be renumbered (3)

and (4) respectively;

(b) immediately after paragraph (1) thereof there shall be

added the following new paragraph

"(2) It shall be lawful for the reporting officer or other

designated employee of the Subject Person to disclose

information obtained in the course of internal reporting

procedures under these regulations to the reporting officer or

other designated employee of another Subject Person or

Persons forming part of the same group of companies of the

former Subject Person."; and

(c) in paragraph (4) thereof as renumbered for the words

"or to a third party" there shall be substituted the words "or to a

third party not being the reporting officer or other designated

employee as referred to in paragraph (2) of this regulation,".