CB reminds of obligation to report suspicious transactions


June 29, 2017 (LBO) – Financial Intelligence Unit of the Central Bank requests Designated Non-finance Businesses (DNFBs) to report about suspicious transactions which is an obligatory requirement under the law.

Financial Transactions Reporting Act, No. 6 of 2006 requires DNFBs among others to report any transaction where there is reasonable ground to suspect that a transaction may be related to commission of any unlawful activity or criminal offence.

Former Finance Minister issued Gazette No. 2015/56 prescribing ‘suspicious transactions (format)’ to be followed by institutions.

Banks and finance companies, stock brokers, insurers, authorized money changing companies and others should use respective formats when reporting such transactions.

Accordingly, following DNFBs should use Schedule V of the said Gazette (reproduced below) to report any suspicious transaction to the Financial Intelligence Unit.

(a) Individual and collective portfolio management;
(b) Investing, administering or managing funds or money on behalf of other persons;
(c) Safekeeping and administration of cash or liquid securities on behalf of other persons;
(d) Safe custody services;
(f) Trustee administration or investment management or a superannuation scheme;
(g) Casinos, gambling houses or conducting of a lottery, including a person who carries on such a business through the internet when their customers engage in fi¬nancial transactions;
(h) Real estate agents, when they are involved in transactions for their clients in relation to the buying and selling of real estate;
(i) Dealers in precious metals and dealers in precious and semi-precious stones, including but not limited to, metals and stones covered by the Gem and Jewellery Act, No. 50 of 1993 when they engage in cash transactions with a customer;
(j) Lawyers, notaries, other independent legal professionals and accountants as de¬fined in the Section 33 of the FTRA;
(k) Trust or company service providers as defi¬ned in the Section 33 of the FTRA;
(l) O shore units in accordance with the defi¬nitions provided for the same in other written laws.