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SUMMARY OF RECOMMENDATIONS FOR REFORM

The recommendations in this report are contained in chapter 4 and in the Proposed Bill (Annexure A).

(a) The Commission recommends the implementation of an administrative framework to facilitate the prevention, detection, investigation and prosecution of money laundering.

(b) The administrative framework should have a wide scope of application going beyond the banking sector and including among others attorneys, accountants, insurers, investment intermediaries, gambling institutions and totalisator betting services.

(c) Institutions must be required to identify their clients when business relationships are established or single transactions concluded with those clients. Institutions should also ascertain the identity of persons with whom transactions are concluded in the course of a business relationship.

(d) Institutions must keep records of the information obtained in respect of the identity of their clients and of information relating to transactions performed by their clients.

(e) The Commission recommends that information on transactions exceeding a prescribed threshold must be reported. The amount of the threshold must be determined by the Minister responsible for the administration of the administrative framework in consultation with all interested parties. Institutions must also report information in respect of suspicious transactions.

(f) The Commission recommends that adequate protection should be afforded to persons making reports in terms of the reporting structure. This includes protection against liability for breach of confidential relationships and protection of their identity.

(g) A statutory body called the Financial Intelligence Centre must be instituted to receive all reports made in terms of the reporting structure. It will be the function of the Centre to analyse, investigate and disseminate the reported information. The Centre must also supervise the enforcement of the administrative scheme by means of appropriate administrative sanctions.

(h) The administrative scheme must be administered by the appropriate Ministry in consultation with the affected institutions. For this purpose the Commission recommends the institution of a statutory body called the Money Laundering Policy Board to represent all the relevant institutions and bodies. The main function of the Board should be to assist the Minister in developing and implementing an anti money-laundering policy.

(i) Finally the Commission recommends the creation of a range of offences, in addition to the above-mentioned administrative sanctions, to enable the administrative scheme to be enforced.