Published on

Published in: Economy & Finance, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide


  1. 1. MONEY LAUNDERING and the ITC – Paper by Optimalegal to CSZ ACRONYMS AND TERMS USED POCA Money Laundering and Proceeds of Crime Act “ the Act “ [Chapter 9:24],No. 4 of 2013 enacted Zimbabwe 21st June,2013 w/o a Bill being gazetted or debated in Parliament AML / CFT Anti Money Laundering and Combating Financing of Terrorism:measures or programs for combating ML + FT CSO DNFBPs “competent supervisory authority” = any statutory body or authority responsible for the licensing, registration, regulation or discipline of “dodgies” [ including the CSO’s listed in Part II of the First Schedule of the Act] required to co-operate with the FIU to ensure compliance by their respective constituencies, Designated Non Financial Businesses and Professions “dodgies” = FI’s + DNFBP’s “dpoppae” director, principal, officer, partner, professional, agent or employee=persons madepersonally liable for breaching POCA – incurring both criminal + civil penalties ESAAMLG FATF FATF “Grey list” Eastern and Southern Africa Anti-Money Laundering Group, founded in 1999 in Arusha with 16 member countries including Zimbabwebeingthe first ESAAMLG country to be evaluated in 2006 after RBZ published its Guidelines FINANCIAL ACTIONTASK FORCE:An inter-governmental body established in 1989 with the mandate to set AML/CFT standards and to monitor their implementation by all countries.The work of the FATF is also endorsed and complemented by world bodies such as the UN, IMF and the World Bank.July 2013,VladimirNechaev of the Russian Federation became President . countries with significant AML/CFT deficiencies but have given the IMF high level political commitment to address them and are working with the FATF to rectify their deficiencies. FATF calls on all financial institutions, from member and non-member countries using “ peer review”, to carry out enhanced due diligence when
  2. 2. conducting business with FI’s from the listed country. Refers to the Forty Recommendations on AML/CFT, formulated by FATF Recommendat the FATF and which all countries are expected to implement ions FATF Standards Articulates the FATF 49 Recommendations, the Interpretive Notes accompanying the Recommendations and the Assessment Criteria used by the FATF and FSRB assessors to measure a country’s compliance with the Recommendations “40+9” Recommend -ations FI F.I.I.E UNIT The 40 FATF Recommendations came to be referred to as the “40+9” Recommendations after they were revised after the ‘9/11’ terrorist attack, the 9 Special Recommendations on TF were integrated into the 40 Recommendations FinancialInstitutions, Financial Intelligence Inspectorateand Evaluation Unit . FATF Standardsrequire every country to have this in place to receive, analyze and disseminate (to law enforcement agencies)financial intelligence. Zimbabwe’s FIU headed by Director FSRB was established in 2004 as a department within RBZ but with a statutory mandate separate from and independent of its host: sect 3 of the Bank Use Promotion Act [Chapter 24:24]. FATF Style Regional Bodies: regional bodies such as ESAAMLGaffiliated to and working with the FATF in implementing “40+9” inFSRBs’ member jurisdictions KYC Know Your Customer
  3. 3. Money Laundering: process by which criminals + associates ML “clean up” funds earned from criminal activities in order to disguise the illicit origin of the funds, by channeling them into /through formal financial systems into “legitimate”business . MLRO NPA PG PEPs Money Laundering Reporting Officer National Prosecuting Authorityheaded by Prosecutor General Politically Exposed Persons: who hold high public office – whereforregardedas representing a higher risk of corruption. Regulated entities are therefore required to carry out enhanced due diligence when transacting with a PEP+ their close relatives or associatesto verify source of funds Proliferation Proliferation of Weapons of Mass Destruction:In 2008 FATF mandate was expanded beyond combating ML and TF to combat financing of proliferation of weapons of mass destruction - now reflected in the revised Recommendations. STR SUSPICIOUS TRANSACTION REPORT: I.t.o. section 30 of the Act, all“dodgies”are required to submit an STR to the FIU, whenever they handle a transaction where there is suspicion of ML or TF or any other offence. MINIMUM CONTENTS OF STR will be supplied to CSZ, Members can download off Pages 59- 60 of the RBZ WWW