Lesotho
Money Laundering and Proceeds of Crime Act, 2008
Money Laundering and Proceeds of Crime Regulations, 2019
Legal Notice 29 of 2019
- Published in Government Gazette 21 on 29 March 2019
- Commenced on 29 March 2019
- [This is the version of this document from 29 March 2019.]
Part I – Preliminary
1. Citation and commencement
These regulations may be cited as the Money Laundering and Proceeds of Crime Regulations, 2019 and shall come into operation on the date of publication in the Government Gazette.2. Interpretation
In these regulations, unless the context indicates otherwise —"Act" means the Money Laundering and Proceeds of Crime Act, 2008;"attempted transaction" means a transaction that a client or customer intended to conduct and took some form of action to do so, and includes entering into negotiations or discussions to conduct the transaction and also includes concrete measures to be taken by an accountable institution or the client or customer;"batch transfer" means a transfer comprised of a number of individual wire transfers that are being sent to the same financial institution or financial service-provider, but may or may not be ultimately intended for different persons;"beneficial owner" means a natural person who ultimately owns or controls a client or customer and the natural person on whose behalf a transaction is being conducted, and includes those persons who exercise ultimate effective control over a legal person or arrangement;"beneficiaries" refer to natural persons, or group of natural persons who receive charitable, humanitarian or other types of assistance through the services of a non-profit organisation;"beneficiary" means a natural or legal person or legal arrangement who —(1)is identified by the originator as the receiver of the requested wire transfer;(2)in the case of a trust, is entitled to the benefit of a trust arrangement; or(3)in the case of a life cover insurance, will be paid the proceeds covered by the policy or contract;"beneficiary financial institution or financial service-provider" means a financial institution or financial service-provider which receives the wire transfer from the ordering financial institution or financial service-provider directly or through an intermediary financial institution or financial service-provider and makes funds available to the beneficiary;"cross-border wire transfer" means any wire transfer where the ordering financial institution and beneficial institution are located in different countries, and includes any chain of wire transfers in which at least one of the financial institutions involved is located in a different country;"designated person or entity" means an individual, entity, group or undertakings listed in Schedule 1;"DNFBP" means designated non-financial business and professions including a business and a profession listed in Schedule 2;"domestic wire transfer" means any wire transfer where the ordering financial institution or financial service-provider and beneficiary financial institution or financial service-provider are located in the same country, and include any chain of wire transfer that takes place entirely within the borders of a single country, even though the system used to transfer the payment message may be located in another country;"FATF" means the Financial Action Task Force;"intermediary financial institution" means a financial institution in a serial or cover payment chain that receives and transmits a wire transfer on behalf of the ordering financial institution and the beneficiary financial institution, or another intermediary financial institution;"non-profit organisation" means a legal person or arrangement or organisation that primarily engages in raising or disbursing funds for purposes such a charitable, religious, cultural, educational, social or fraternal purposes, or for carrying out of other types of good works;"ordering financial institution or financial service-provider" means a financial institution or financial service-provider which initiates the wire transfer and transfers the funds upon receiving the request for a wire transfer on behalf of the originator;"originator" means the holder who allows the wire transfer from his or her account, or where there is no account, the natural or legal person that places the order with the ordering financial institution to perform the wire transfer;"payable-through accounts" means correspondent accounts that are used directly by third parties to transact business on their own behalf;"resolution" means United Nations Security Council resolution made under Chapter VII of the United Nations Charter;"risk" means money laundering and terrorist financing risk;"sanction list" means a list of designated persons or entities published in the Gazette;"sector supervisory authority" means an institution established by law including institutions and accreditation institutions or ministries and departments listed in Schedule 3;"serious offences" include offences listed in Schedule 4 which shall also be referred to as "predicate offences to money laundering";"straight-through processing" means payment transactions that are conducted electronically without the need for manual intervention;"third party" means an accountable institution which is supervised or monitored and is subject to the requirements of regulation 9;"trustee" means a person under whose control assets have been placed by another person, the settlor, for the benefit of a beneficiary or for a specified purpose;"unique transaction reference number" means a combination of letters, numbers or symbols, determined by the payment service provider, in accordance with the protocols of the payment and settlement system or messaging system used for the wire transfer;"Unit" means the Financial Intelligence Unit established under the Act; and"wire transfer" means any transaction carried out on behalf of an originator through a financial institution or a person who provides money remittance services by electronic means with a view to making an amount of funds available to a beneficiary person at a beneficiary financial institution, irrespective of whether the originator and the beneficiary are the same person.Part II – Financial institutions and financial service-providers
3. Identification of a client or customer
4. Purpose of the business relationship
A financial institution or financial service-provider shall —5. Applying risk based approach
6. Verification of a client’s or customer’s identification
7. Establishment and termination of a business relationship
8. Dealing with a corresponding business relationship
9. Reliance on an intermediary or third party
10. Higher risk countries
11. Establishing and maintaining client’s or customer’s records
12. Internal controls
13. Recruitment of employees
14. Training of employees
15. Audit and supervision
A financial institution or financial service-provider shall —16. Inspections
17. Sharing of information
18. Compliance
19. Reporting suspicious transactions
20. Wire transfers
21. Registration with the Unit
Part III – Designated non-financial business and profession (DNFBP) and designated business
22. Identification of a client or customer and record keeping
A designated non-financial business and profession or designated business shall undertake and observe the requirements of regulations 3, 4, 5, 6 and 11 subject to the following —23. Measures applicable to DNFBP and designated business
Regulations 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, and 21 shall apply, with necessary modifications, to all designated non-financial businesses and professions and designated businesses subject to the following —Part IV – Non-profit organisation
24. Affairs of a non-profit organisation
Part V – Financial sanctions related to terrorist financing and financing proliferation
25. Financing and supporting terrorist activities
26. Establishment of the Anti Terrorism Committee
27. Designation and identification of persons and entities
28. Freezing order
29. Sanctions against terrorist financing
30. Prohibition of dealing with funds and other assets
31. Freezing of fund and other assets
32. Access to frozen assets and other assets
33. Delisting of persons and entities and unfreezing of funds and other assets
34. Immunity and confidentiality
Part V – Miscellaneous provisions
[Please note: duplicate Part numbering as in original.]35. Demand of communication call data
36. International Cooperation
37. General penalty
History of this document
29 March 2019 this version
Published in Government Gazette 21
Commenced
Cited documents 2
Act 2
1. | Companies Act, 2011 | 18 citations |
2. | Money Laundering and Proceeds of Crime Act, 2008 | 13 citations |