Prevention of Money Laundering and Funding of Terrorism

L.N. 77 of 2019

PREVENTION OF MONEY LAUNDERING ACT

(CAP. 373)

Prevention of Money Laundering and Funding of Terrorism

(Amendment) Regulations, 2019

IN EXERCISE of the powers conferred by article 12 of the

Prevention of Money Laundering Act, the Minister for Finance, acting

on the advice of the Financial Intelligence Analysis Unit, has made the

following regulations:-

The title of these regulations is the Prevention of Money

Laundering and Funding of Terrorism (Amendment) Regulations, 2019

and these regulations shall be read and construed as one with the

Prevention of Money Laundering and Funding of Terrorism

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

In sub-regulation (1) of regulation 6 of the principal

regulations the words "and third countries." shall be substituted by the

words "and third countries:" and immediately thereafter there shall be

added the following new proviso

"Provided that, unless otherwise instructed by the

Financial Intelligence Analysis Unit and subject to the

provisions of regulation 16, a subject person that is part of a

group and discloses information in accordance with regulation

15(3) to the Financial Intelligence Analysis Unit, shall share that

disclosed information within the group for the purposes of

preventing and detecting money laundering and the funding of

terrorism.".

Regulation 15 of the principal regulations shall be amended

as follows

(a)

sub-regulation (11) thereof, shall be deleted; and

(b) sub-regulation (12) thereof, shall be renumbered as

sub-regulation (11).

Immediately after regulation 15 of the principal regulations

there shall be added the following new regulation 15A

(1)

The Financial Intelligence Analysis

when reporting

Unit, any investigating, prosecuting, judicial or

administrative authority and subject persons shall protect

and keep confidential the identity of any individual who

reports, either internally within the subject person or to

the Financial Intelligence Analysis Unit, knowledge or

suspicions of money laundering or funding of terrorism,

or who reports knowledge or suspicions that funds are

the proceeds of criminal activity.

(2) No detrimental action shall be taken against

any individual, including employees or officials of

subject persons, who reports, either internally within the

subject person or to the Financial Intelligence Analysis

Unit, knowledge or suspicions of money laundering or

funding of terrorism, or knowledge or suspicions that

funds are the proceeds of criminal activity.

(3) Any individual, including an employee or

official of a subject person, who believes that detrimental

action has been taken or is to be taken against him in

reprisal for making a report as envisaged under sub-

regulation (2), may file an application to the First Hall,

Civil Court for

(a) an order requiring the person who has

taken the detrimental action to remedy that action;

or

(b) an injunction.

(4) The court, pending the final determination of

an application under sub-regulation (3) may

(a) make an interim order; or

(b) grant an interim injunction.

(5) If, in determining an application under sub-

regulation (3) the court is satisfied that a person has taken

or intends to take detrimental action against an individual

in reprisal for making a report, as referred to in sub-

regulation (2), the court may

(a) order the person who has taken

detrimental action to remedy that action and

determine the amount of damages, including, but

not limited to, moral damages as the court may

determine, due to the individual who suffered the

detrimental action; or

(b) grant an injunction in any terms it

considers appropriate.

(6) Notwithstanding the provisions of the Code of

Organisation and Civil Procedure, an injunction granted

in terms of sub-regulation (5)(b) shall be for an indefinite

period until an application for its revocation is made and

need not be followed by an action on the merits. The

provisions of articles 873 and 875 of the Code of

Organisation and Civil Procedure shall apply to warrants

issued under sub-regulation (5)(b).

(7) The provisions of articles 829 to 838B of the

Code of Organisation and Civil Procedure shall not apply

to injunctions granted in terms of sub-regulation (5)(b).

(8) Notwithstanding the provisions of Schedule A

of the Code of Organisation and Civil Procedure, no

registry fees shall be charged on an application filed in

the First Hall of the Civil Court by any individual referred

to in sub-regulation (3) but, if granted, an award on costs

shall be made against the respondent.

(9) Any individual, including employees or

officials of a subject person, who may have suffered

detrimental action as a result of making a report as

referred to in sub-regulation (2) shall, without prejudice

to any other right under any other law, have a right to

compensation for any damages sustained.

(10) Notwithstanding the provisions of any other

law, the First Hall, Civil Court shall have exclusive

jurisdiction to hear and determine an application under

sub-regulation (3).

(11) All proceedings instituted under this

regulation shall be held in camera and only the parties to

the proceedings and their respective advocates shall be

allowed in court during the hearings. All the judicial acts,

documents and evidence shall be kept by the Registrar of

the Court in a confidential manner and no access shall be

given thereto except to the parties and their respective

advocates.

(12) Any decree or judgement of the First Hall,

Civil Court issued pursuant to this regulation shall

preserve the confidentiality of the proceedings and shall

only reveal such facts as may be necessary to make the

same intelligible and enforceable by the parties.

(13) For the purpose of this regulation,

"detrimental action" means threats, retaliatory or hostile

action, including adverse or discriminatory employment

actions, and without prejudice to the generality of the

foregoing shall include

(a) any action causing injury, loss, or

damage; and, or

(b) victimisation,

intimidation

or

harassment; and, or

(c) dismissal, suspension or demotion

except where administratively or commercially

justifiable for organisational reasons; and, or

(d) being adversely affected in respect of

one’s employment, profession or office, including

employment opportunities and work security; and,

or

(e) prosecution under article 101 of the

Criminal Code relating to calumnious accusations;

and, or

(f) civil or criminal proceedings or

disciplinary proceedings.".

5. Regulation 16 of the principal regulations shall be amended Amends

regulation 16 of

as follows

the principal

regulations.

(a) in the proviso of paragraph (f) of sub-regulation (2)

thereof, the words "the Financial Intelligence Analysis Unit in

terms of article 28 of the Act." shall be substituted by the words

"the Financial Intelligence Analysis Unit in terms of article 28 of

the Act;" and immediately thereafter there shall be added the

following new paragraph

"(g) any disclosures by an individual in the course of

proceedings instituted under regulation 15A, including any

disclosures made in any written pleadings or submissions.";

and

(b) immediately after sub-regulation (3) thereof, there

shall be added the following new sub-regulation

"(4) The rights of the data subject referred to in

regulation 4 of the Restriction of the Data Protection

(Obligations and Rights) Regulations, in particular the

right of access, shall be restricted, partially or

completely, where such a restriction is necessary and

proportionate for a subject person to adhere to his

obligations under sub-regulation (1).".

6. Regulation 21 of the principal regulations shall be amended Amends

regulation 21 of

as follows

the principal

regulations.

(a)

in paragraph (a) of sub-regulation (4) thereof, the

words "an administrative penalty; and" shall be substituted by

the words "an administrative penalty;"; and

(b) in the proviso to sub-paragraph (ii) of paragraph (b)

of sub-regulation (4) thereof, the words "ultimate parent

undertaking." shall be substituted by the words "ultimate parent

undertaking; and" and immediately thereafter there shall be

added the following new paragraph and proviso

"(c) when it identifies any contravention or

compliance failure as referred to in sub-regulations (1) and

(2), instead of or in conjunction with the imposition of any

administrative penalty as envisaged under this regulation,

require a subject person to take any action or measure to

remedy such contravention or ensure compliance with the

provisions of the Act, these regulations or any procedures

or guidance issued by the Financial Intelligence Analysis

Unit in terms of regulation 17

Provided that the provisions of this paragraph

shall be without prejudice to the power of the Financial

Intelligence Anlaysis Unit, conferred to it under article 30C

of the Act, to issue directives in writing with the aim of

ensuring compliance by subject persons with their

obligations under the Act and regulations made thereunder,

even where no contraventions or compliance failures are

identified.".

€0.45