Prevention of Money Laundering and Funding of Terrorism

L.N. 214 of 2020

PREVENTION OF MONEY LAUNDERING ACT

(CAP. 373)

Prevention of Money Laundering and Funding of Terrorism

(Amendment No. 2) Regulations, 2020

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 Citation.

Laundering and Funding of Terrorism (Amendment No. 2)

Regulations, 2020, and these regulations shall be read and construed

as one with the Prevention of Money Laundering and Funding of S.L. 373.01

Terrorism Regulations, hereinafter referred to as "the principal

regulations".

The first proviso to sub-regulation (5) of regulation 8 of Amends

regulation 8 of

the principal regulations shall be substituted by the following

the principal

regulations.

"Provided that, where to refrain in such manner would

likely tip-off the customer about the submission of a disclosure

in terms of regulation 15(3) or a potential money laundering or

funding of terrorism analysis or investigation, that business

shall proceed on condition that a disclosure is immediately

lodged with the Financial Intelligence Analysis Unit in

accordance with regulation 15(3):".

Regulation 11 of the principal regulations shall be Amends

regulation 11 of

amended as follows

the principal

regulations.

(a)

sub-regulation (3) thereof shall be amended as

follows

(i) in paragraph (a) thereof, immediately after

the words "the quality of supervision on that institution"

there shall be added the words ", including whether the

respondent institution has been subject to any money

laundering or funding of terrorism investigation, or

regulatory action"; and

(ii) in paragraph (d) thereof, for the words "they

document" there shall be substituted the words "they

clearly understand and document"; and

(b) in the proviso to sub-regulation (6) thereof, for the

words "with the policy holder." there shall be substituted the

words "with the policy holder:", and immediately thereafter

there shall be added the following new proviso

"Provided further that, where the beneficiaries of a

policy or, where applicable, the beneficial owner of the

beneficiary are politically exposed persons and the subject

person has additional indications of a higher risk of money

laundering or funding of terrorism, the subject person shall

consider whether it is to submit a disclosure to the

Financial Intelligence Analysis Unit in accordance with

regulation 15(3).".

In the proviso to paragraph (b) of sub-regulation (2) of

regulation 12 of the principal regulations, immediately after the

words "third parties from a non-reputable jurisdiction", there shall be

added the words "or any other jurisdiction which is considered by the

subject person to present a high risk of money laundering or funding

of terrorism".

Regulation 15 of the principal regulations shall be

amended as follows

(a)

in sub-regulation (3) thereof, immediately after the

words "is or may be connected with money laundering or the

funding of terrorism" there shall be added the words ", or that an

attempt has been made to carry out a transaction or activity

related to such proceeds or funding of terrorism"; and for the

words ", as soon as is reasonably practicable, but not later than

five working days from when the knowledge or suspicion first

arose," there shall be substituted the word "promptly"; and

(b) in sub-regulation (7) thereof, immediately after the

words "is or may be connected with money laundering or the

funding of terrorism," there shall be added the words "or to an

attempt to carry out a transaction or activity related to proceeds

of criminal activity or funding of terrorism,"; and for the words

", as soon as is reasonably practicable, but not later than five

working days from when facts are discovered or information

obtained," there shall be substituted the word "promptly".

Regulation 21 of the principal regulations shall be

amended as follows

(a)

sub-regulation (3) thereof shall be substituted by the

following

"(3) Administrative

penalties

under

these

regulations shall be imposed by the Financial Intelligence

Analysis Unit without recourse to a court hearing, either as

a one-time fixed penalty or as a daily cumulative penalty,

or both, and shall be imposed in accordance with policies

and procedures established by the Board of Governors

referred to in the Act which shall ensure the imposition of

administrative penalties that are effective, proportionate

and dissuasive."; and

(b) sub-regulation (7) thereof shall be substituted by the

following

"(7) Where a contravention in terms of sub-

regulations (1), (2) and (4) is committed by a subject

person who is a body or other association of persons, be it

corporate or unincorporate, the Financial Intelligence

Analysis Unit may, in addition to any administrative

penalty imposed on the subject person, impose an

administrative penalty of not less than one thousand euro

(€1,000) and not more than two hundred and fifty thousand

euro (€250,000) on any individual who at the time of the

contravention was

(i)

holding the position of a director or

holding similar functions and responsibilities

within such body or association of persons or

purporting to act in any such capacity;

(ii)

an officer of such body or association

of persons holding a senior executive management

function;

(iii) appointed as a reporting officer in

terms of regulation 15(1)(a); or

(iv) appointed to carry out the duties set

out under regulation 5(5)(c),

and who through an act or omission, whether intentional or

due to gross negligence, including through the lack of

proper oversight of subordinates, caused or contributed to

the commission of any such contravention

Provided that the Financial Intelligence Analysis

Unit may, instead of or in conjunction with the imposition

of the said administrative penalty, recommend to any

relevant supervisory authority or any other authority or

body responsible for the authorisation, licensing,

registration or regulation of the subject person concerned,

that the individual aforesaid be suspended or precluded

from exercising the functions referred to above within that

or any other subject person, as may be deemed

appropriate.".

€0.36