Anti Money Laundering regulations in Kenya and how they impact businesses especially in light of the introduction of new currency notes, especially the Kshs 1,000 note, and the CBK's Governors statement on the Launch of the new currency notes.
The prevention of money laundering act, 2002 (2)Himanshu Goyal
The document summarizes key aspects of India's Prevention of Money Laundering Act of 2002. It defines money laundering and outlines the three main stages: placement, layering, and integration. It describes various criminal activities that can generate illicit funds and popular methods used to launder money. The summary also discusses important sections of the act related to definitions, objectives to prevent money laundering, punishment for offenses, attachment and confiscation of property, and search and seizure powers of authorities. The overall purpose of the act is to combat money laundering in India.
The document summarizes key aspects of the Prevention of Money Laundering Act, 2002 in India. It covers:
1) Key definitions like proceeds of crime, property, reporting entity. It defines money laundering and its punishment.
2) Provisions for attachment of property involved in money laundering, its adjudication and confiscation by the authorities.
3) Obligations of reporting entities like banks to verify identities, maintain records and furnish information to authorities.
4) Powers of authorities to summon entities, access information and impose fines. It aims to prevent money laundering and confiscate illegally obtained property.
Prevention of Money Laundering Act 2002ramandeepjrf
The document summarizes key aspects of the Prevention of Money Laundering Act (PMLA) 2002 in India. It defines key terms like money laundering, proceeds of crime, and scheduled offences. It outlines the 3 stages of money laundering: placement, layering, and integration. It describes the obligations of banking companies, financial institutions, and intermediaries to report transactions and verify identities. It discusses the attachments, adjudications, and confiscation process as well as the roles of the Adjudicating Authority, Appellate Tribunal, and Special Courts in enforcing the law. Punishments are outlined for money laundering and for providing false information.
The document discusses money laundering and the Prevention of Money Laundering Act of 2002 in India. It defines money laundering as making illegally obtained money appear to come from legitimate sources. The Act aims to stop this process by applying to the financial, banking, and insurance sectors in India. It requires reporting entities to follow know-your-customer due diligence and maintain records to prevent money laundering activities. Violators can be found guilty of money laundering for attempting to or assisting with concealing the proceeds of criminal acts.
The document discusses money laundering and proceeds of crime regulations in Zimbabwe, focusing on the duties and penalties for financial institutions and designated non-financial businesses under the Proceeds of Crime Act ("POCA"). It provides an overview of prohibited money laundering activities, the roles of relevant organizations like the Financial Intelligence Unit, and recommends actions for the Chartered Secretaries Zimbabwe to educate members and regulate the industry.
Prevention of money laundering act, 2002 by Hetal Bhadra Hetal Bhadra
The document summarizes the Prevention of Money Laundering Act of 2002 in India. It defines money laundering as disguising illegally obtained money to make it appear legitimate. The act aims to prevent money laundering and confiscate illegally obtained assets. Money laundering generally involves three stages - placement of illegally gotten money into the financial system, layering by moving funds between accounts to obscure the trail, and integration by using the funds for legitimate purposes like real estate. The Enforcement Directorate has powers to investigate money laundering cases and attach properties. Penalties include 3-7 years imprisonment and fines.
The document is a presentation on anti-money laundering act, issues, and challenges focusing on Dhaka Bank Limited. It defines money laundering and outlines the stages and techniques. It discusses Bangladesh's money laundering problem and initiatives taken by Dhaka Bank and nationally. Challenges include politically exposed persons, lack of awareness, and advanced technology. Recommendations are to strengthen management, implement laws properly, and focus on ethical profit making rather than just profit.
Prevention of money laundering class room notes for ca icma pavan kumar
This document discusses money laundering techniques and the Prevention of Money Laundering Act (PMLA) of 2002 in India. It defines money laundering and outlines the key stages in the money laundering process: placement, layering, and integration. It describes common placement methods like structuring deposits and using shell companies. It also discusses the obligations of banks and financial institutions under the PMLA to identify and report suspicious transactions and maintain records. Overall, the document provides an overview of how illegally obtained money is laundered and cleaned to appear legitimate, as well as India's laws aimed at preventing money laundering.
The prevention of money laundering act, 2002 (2)Himanshu Goyal
The document summarizes key aspects of India's Prevention of Money Laundering Act of 2002. It defines money laundering and outlines the three main stages: placement, layering, and integration. It describes various criminal activities that can generate illicit funds and popular methods used to launder money. The summary also discusses important sections of the act related to definitions, objectives to prevent money laundering, punishment for offenses, attachment and confiscation of property, and search and seizure powers of authorities. The overall purpose of the act is to combat money laundering in India.
The document summarizes key aspects of the Prevention of Money Laundering Act, 2002 in India. It covers:
1) Key definitions like proceeds of crime, property, reporting entity. It defines money laundering and its punishment.
2) Provisions for attachment of property involved in money laundering, its adjudication and confiscation by the authorities.
3) Obligations of reporting entities like banks to verify identities, maintain records and furnish information to authorities.
4) Powers of authorities to summon entities, access information and impose fines. It aims to prevent money laundering and confiscate illegally obtained property.
Prevention of Money Laundering Act 2002ramandeepjrf
The document summarizes key aspects of the Prevention of Money Laundering Act (PMLA) 2002 in India. It defines key terms like money laundering, proceeds of crime, and scheduled offences. It outlines the 3 stages of money laundering: placement, layering, and integration. It describes the obligations of banking companies, financial institutions, and intermediaries to report transactions and verify identities. It discusses the attachments, adjudications, and confiscation process as well as the roles of the Adjudicating Authority, Appellate Tribunal, and Special Courts in enforcing the law. Punishments are outlined for money laundering and for providing false information.
The document discusses money laundering and the Prevention of Money Laundering Act of 2002 in India. It defines money laundering as making illegally obtained money appear to come from legitimate sources. The Act aims to stop this process by applying to the financial, banking, and insurance sectors in India. It requires reporting entities to follow know-your-customer due diligence and maintain records to prevent money laundering activities. Violators can be found guilty of money laundering for attempting to or assisting with concealing the proceeds of criminal acts.
The document discusses money laundering and proceeds of crime regulations in Zimbabwe, focusing on the duties and penalties for financial institutions and designated non-financial businesses under the Proceeds of Crime Act ("POCA"). It provides an overview of prohibited money laundering activities, the roles of relevant organizations like the Financial Intelligence Unit, and recommends actions for the Chartered Secretaries Zimbabwe to educate members and regulate the industry.
Prevention of money laundering act, 2002 by Hetal Bhadra Hetal Bhadra
The document summarizes the Prevention of Money Laundering Act of 2002 in India. It defines money laundering as disguising illegally obtained money to make it appear legitimate. The act aims to prevent money laundering and confiscate illegally obtained assets. Money laundering generally involves three stages - placement of illegally gotten money into the financial system, layering by moving funds between accounts to obscure the trail, and integration by using the funds for legitimate purposes like real estate. The Enforcement Directorate has powers to investigate money laundering cases and attach properties. Penalties include 3-7 years imprisonment and fines.
The document is a presentation on anti-money laundering act, issues, and challenges focusing on Dhaka Bank Limited. It defines money laundering and outlines the stages and techniques. It discusses Bangladesh's money laundering problem and initiatives taken by Dhaka Bank and nationally. Challenges include politically exposed persons, lack of awareness, and advanced technology. Recommendations are to strengthen management, implement laws properly, and focus on ethical profit making rather than just profit.
Prevention of money laundering class room notes for ca icma pavan kumar
This document discusses money laundering techniques and the Prevention of Money Laundering Act (PMLA) of 2002 in India. It defines money laundering and outlines the key stages in the money laundering process: placement, layering, and integration. It describes common placement methods like structuring deposits and using shell companies. It also discusses the obligations of banks and financial institutions under the PMLA to identify and report suspicious transactions and maintain records. Overall, the document provides an overview of how illegally obtained money is laundered and cleaned to appear legitimate, as well as India's laws aimed at preventing money laundering.
The document provides an overview of the Prevention of Money Laundering Act (PMLA) 2002 in India. It discusses the objectives of PMLA, which are to prevent and control money laundering, confiscate illegally obtained property, and deal with money laundering related issues. It also defines key terms like money laundering and proceeds of crime. The document outlines the process of money laundering and various methods used for it like smurfing. It discusses penalties under FEMA and search/seizure powers under PMLA.
The document discusses AML/CFT compliance services in the UAE. It notes that governments are increasing scrutiny of AML/CFT processes to fight financial crimes. Firms must comply with minimum standards or face penalties. In 2020, the UAE formed an Executive Office of Anti-Money Laundering to follow international requirements. HLB HAMT provides AML/CFT compliance assessments and advisory services to help organizations develop, implement, and enhance their compliance regimes across multiple sectors. Key services include AML compliance advisory to help financial institutions and designated non-financial businesses comply with changing regulations.
Anti money laundering and combating the financing of terrorism (AML/CFT) REGU...Bilal khan
UPTO DATE AND ACCORDING TO PAKISTAN'S STATE BANK REGULATIONS AND REQUIREMENTS FOR ANTI MONEY LAUNDERING AND COMBATING THE FINANCING OF TERRORISM WITH INTERNATIONAL STANDARDS
Presentation given for Crowe Horwath Auditor's training session on 26/03/2016.
AML regulations are applicable to professional service providers also. See the presentation for more information
The amendments of Benami Transactions (Prohibition) Act should further enhance India’s attractiveness as an investment destination by encouraging greater transparency in ownership of property. Along with other regulatory changes such as implementation of Goods and Services Act (GST), Real Estate (Regulation & Development) Act (RERA) and Land Digitization, this amendment is a step in the right direction. In the short term, it will lead to a reduction in transaction volumes. However, in the long term, it will help aligning transactions with ethical standards and will increase international institutional investors and financial insitutions participation in this sector.
The document summarizes key aspects of the Benami Transactions (Prohibition) Amendment Act, 2016 in India. It defines key terms like "benami property" and "benami transaction". It establishes authorities like the Initiating Officer, Approving Authority, Adjudicating Authority, and Appellate Tribunal to investigate and rule on benami transactions. The authorities have powers to provisionally attach properties, issue notices, conduct inquiries, and pass confiscation or other orders. Their orders can be appealed to the Appellate Tribunal. The Act aims to curb illegal benami transactions in India.
The document compares amendments proposed by the Indian government to the Benami Transactions (Prohibition) Amendment Bill of 2015. Key proposed amendments include narrowing the definition of benami transactions, exempting certain property transfers where stamp duty was paid, and allowing authorized representatives during adjudication proceedings. The Standing Committee on Finance had recommended some of these amendments, including qualifications for the Appellate Tribunal Chairperson. The Committee also suggested addressing unaccounted wealth through income tax laws and digitizing land records instead of a separate benami law.
Money laundering is the process of making illegally obtained funds appear legitimate. It involves three stages - placement, layering, and integration. Placement introduces illegal funds into the financial system. Layering then conceals the source through complex transactions. Finally, integration makes the funds appear legitimate. Money laundering has negative economic, social, and business impacts such as distorting markets, increasing crime, undermining democracy, and damaging business integrity.
The document summarizes key aspects of the Benami Transactions (Prohibition) Act in India. It was passed in 2016 to curb black money. Key points:
1) The Act came into force on November 1, 2016. It replaced the previous Benami Transactions (Prohibition) Act of 1988 and renamed it the Prohibition of Benami Property Transactions Act.
2) A benami transaction is one where the actual owner of the property is different than the named owner. It aims to identify transactions done in bogus names or where the real beneficiary is not traceable.
3) Failure to provide PAN details for property transactions over 10 lakh rupees or non-deduction of TDS
Anti-Money Laundering and Counter Financing of TerrorismPuni Hariaratnam
Money laundering involves disguising illegally obtained money to make it appear legitimate. It became a major issue in the 1920s and laws were passed in the 1980s to address it. Malaysia passed its Anti-Money Laundering and Anti-Terrorism Financing Act in 2001, placing reporting obligations on banks and requiring customer due diligence, record keeping, and compliance programs. Failure to comply can result in significant penalties from regulators and damage to a bank's reputation. However, many banks still fail to provide adequate anti-money laundering training to their staff.
This document provides an overview of money laundering and combating the financing of terrorism. It discusses what money laundering is, the stages of money laundering (placement, layering, integration), and how it works. It also discusses terrorist financing. International efforts to combat money laundering and terrorist financing through organizations like the UN, FATF, and Egmont Group are overviewed. The roles and functions of India's Financial Intelligence Unit (FIU-IND) are described. The document also outlines India's Prevention of Money Laundering Act (PMLA) and its provisions, including scheduled offenses, punishments, and authorities for enforcement. Obligations of banks and financial institutions under PMLA around client identification,
Money laundering is the process of concealing the origin of money obtained from illegitimate sources by passing it through complex sequence of financial transactions and making it appear to be originated from legal activity.
Illegal arm sales, terrorism funding, smuggling, drug trafficking, insider trading, fraud schemes, bribery etc. are some examples of illegal activities prohibited by law.
In simpler terms, money laundering means cleaning of dirty money.
Process of Money Laundering
Placement – Placing illegal cash proceeds with banks and other financial institutions onshore and offshore in smaller denominations.
Layering – Creating complex layers of financial transactions to make it difficult to trace the origin of money. The transactions might be channelled through purchase & sales of financial securities.
Integration – Integrating the money into legal system by investing into business, real estates and luxury assets.
Methods of Money Laundering
Structuring / Smurfing – It is a method of placement where the illegal money collected is broken into smaller deposits to place at different banks. This is done to avoid any suspicion of origin of money.
Shell Companies – This involves creation of fake companies that are registered and exist in papers but hold neither physical location nor operational activities are done.
Bulk Cash Smuggling – This involves smuggling cash to foreign countries to deposit illegal money in offshore bank which hold greater secrecy; generally countries considered as tax haven.
Round Tripping – Shipping back the money deposited in offshore financial institutions as foreign direct investment.
Act -
Financial Action Task Force – Formed in 1989 by G7 countries to develop and ensure an international response to combat money laundering. The objectives of the FATF were to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
PMLA (Prevention of Money Laundering Act) 2002 – The act passed to stop money laundering and punish those involved directly or indirectly in illegal activity. As per this act whoever commits money laundering shall be punishable with imprisonment of about 3 to 10 years and shall also be liable to pay fine.
Thank you for watching
Subscribe to DevTech Finance
The benami transactions (prohibitions) amendment act (1)Himanshu Goyal
The document summarizes the Prohibition of Benami Property Transactions Act of 1988 as amended in 2016 in India. Some key points:
- The act prohibits benami transactions where one person provides consideration for a property but it is held in another person's name. Such properties are liable to be confiscated.
- The 2016 amendment strengthened penalties, setting up adjudicating authorities and an appellate tribunal to deal with benami cases.
- Transactions done for illegitimate purposes like concealing black money or evading taxes come under the purview of benami transactions according to the act.
- Properties involved in benami transactions are liable to face attachment or confiscation and individuals can be fined or imprisoned for
The document discusses the Benami Transactions (Prohibition) Amendment Bill, 2015, which seeks to amend the Benami Transactions Act of 1988. The key points are:
1) The Bill aims to amend the definition of benami transactions, establish authorities to deal with such cases, and specify penalties.
2) A benami transaction is one where a property is held under a false name, with the real owner denying knowledge or being untraceable.
3) Certain exemptions like HUF properties are specified. Penalties for benami transactions and false information are increased.
4) Adjudicating authorities and an Appellate Tribunal will be set up to examine cases and hear appeals against confiscating
This presentation discusses benami transactions in light of demonetization. It begins by highlighting key points of demonetization and the Prohibition of Benami Property Transactions Act of 1988. It defines what constitutes a benami property and transaction, providing examples of cash and stock being considered benami property. Exceptions to benami transactions are outlined, along with impacts such as 100% confiscation of benami property and imprisonment. The presentation explains how benamidars (property holders) and beneficial owners (intended beneficiaries) are impacted under the new Act.
Money laundering involves disguising illegally obtained money to make it appear legitimate. It typically involves three steps: placement, layering, and integration. Money laundering can undermine the legitimacy and integrity of financial markets and lead to economic instability. Governments and international organizations have established laws and recommendations to prevent money laundering, including know-your-customer compliance, cash transaction reporting, and monitoring by groups like the Financial Action Task Force. New technologies also pose evolving threats, requiring advanced anti-money laundering mechanisms.
This document discusses money laundering in Malaysia. It begins by listing some student names and defining money laundering as disguising illegally obtained money to make it appear legitimate. It then provides details on Malaysia's anti-money laundering laws, noting that money laundering is punishable by up to 15 years in prison and fines of at least 5 times the value of the unlawful funds. The document also states that Malaysia was at medium risk for money laundering from 2013 to 2017 according to statistics and identifies weaknesses in financial procedures and controls as contributing factors.
The document discusses benami transactions under Indian law. It defines key terms like benamidar and beneficial owner. It summarizes the Benami Transactions (Prohibition) Act of 1988 and the 2011 bill that replaced it. The bill prohibits benami transactions and makes property involved liable for confiscation. It imposes penalties for engaging in benami transactions or providing false information regarding such transactions.
The document discusses money laundering and the obligations of reporting institutions under Malaysia's Anti-Money Laundering and Anti-Terrorism Financing Act 2001 (AMLATFA). It defines money laundering as disguising illegally obtained cash or property to make it appear legitimate. It outlines risks like reputational damage for institutions that don't comply with AMLATFA. Key obligations include conducting customer due diligence, identifying suspicious transactions, and reporting them to the authorities. Failure to comply can result in fines or imprisonment.
Money laundering is the process of making illegally obtained money appear legal. This document discusses how criminals first place illegal funds into the financial system through various techniques like structuring deposits to avoid reporting requirements, using alternative remittance systems, or purchasing assets or insurance policies. It then explains how launderers further layer the funds by moving them through many transactions to obscure their source and make the money harder to trace back to criminal activity. Kenya's new anti-money laundering law aims to regulate these processes but questions remain over successful implementation.
The document is the full text of Republic Act No. 9160, also known as the Anti-Money Laundering Act of 2001. It defines money laundering and related terms, establishes the Anti-Money Laundering Council to implement anti-money laundering measures, and gives the Council authority to require transaction reports, freeze accounts, and initiate forfeiture proceedings against property involved in money laundering. Covered institutions like banks must comply with customer due diligence and record keeping rules to prevent money laundering.
The document provides an overview of the Prevention of Money Laundering Act (PMLA) 2002 in India. It discusses the objectives of PMLA, which are to prevent and control money laundering, confiscate illegally obtained property, and deal with money laundering related issues. It also defines key terms like money laundering and proceeds of crime. The document outlines the process of money laundering and various methods used for it like smurfing. It discusses penalties under FEMA and search/seizure powers under PMLA.
The document discusses AML/CFT compliance services in the UAE. It notes that governments are increasing scrutiny of AML/CFT processes to fight financial crimes. Firms must comply with minimum standards or face penalties. In 2020, the UAE formed an Executive Office of Anti-Money Laundering to follow international requirements. HLB HAMT provides AML/CFT compliance assessments and advisory services to help organizations develop, implement, and enhance their compliance regimes across multiple sectors. Key services include AML compliance advisory to help financial institutions and designated non-financial businesses comply with changing regulations.
Anti money laundering and combating the financing of terrorism (AML/CFT) REGU...Bilal khan
UPTO DATE AND ACCORDING TO PAKISTAN'S STATE BANK REGULATIONS AND REQUIREMENTS FOR ANTI MONEY LAUNDERING AND COMBATING THE FINANCING OF TERRORISM WITH INTERNATIONAL STANDARDS
Presentation given for Crowe Horwath Auditor's training session on 26/03/2016.
AML regulations are applicable to professional service providers also. See the presentation for more information
The amendments of Benami Transactions (Prohibition) Act should further enhance India’s attractiveness as an investment destination by encouraging greater transparency in ownership of property. Along with other regulatory changes such as implementation of Goods and Services Act (GST), Real Estate (Regulation & Development) Act (RERA) and Land Digitization, this amendment is a step in the right direction. In the short term, it will lead to a reduction in transaction volumes. However, in the long term, it will help aligning transactions with ethical standards and will increase international institutional investors and financial insitutions participation in this sector.
The document summarizes key aspects of the Benami Transactions (Prohibition) Amendment Act, 2016 in India. It defines key terms like "benami property" and "benami transaction". It establishes authorities like the Initiating Officer, Approving Authority, Adjudicating Authority, and Appellate Tribunal to investigate and rule on benami transactions. The authorities have powers to provisionally attach properties, issue notices, conduct inquiries, and pass confiscation or other orders. Their orders can be appealed to the Appellate Tribunal. The Act aims to curb illegal benami transactions in India.
The document compares amendments proposed by the Indian government to the Benami Transactions (Prohibition) Amendment Bill of 2015. Key proposed amendments include narrowing the definition of benami transactions, exempting certain property transfers where stamp duty was paid, and allowing authorized representatives during adjudication proceedings. The Standing Committee on Finance had recommended some of these amendments, including qualifications for the Appellate Tribunal Chairperson. The Committee also suggested addressing unaccounted wealth through income tax laws and digitizing land records instead of a separate benami law.
Money laundering is the process of making illegally obtained funds appear legitimate. It involves three stages - placement, layering, and integration. Placement introduces illegal funds into the financial system. Layering then conceals the source through complex transactions. Finally, integration makes the funds appear legitimate. Money laundering has negative economic, social, and business impacts such as distorting markets, increasing crime, undermining democracy, and damaging business integrity.
The document summarizes key aspects of the Benami Transactions (Prohibition) Act in India. It was passed in 2016 to curb black money. Key points:
1) The Act came into force on November 1, 2016. It replaced the previous Benami Transactions (Prohibition) Act of 1988 and renamed it the Prohibition of Benami Property Transactions Act.
2) A benami transaction is one where the actual owner of the property is different than the named owner. It aims to identify transactions done in bogus names or where the real beneficiary is not traceable.
3) Failure to provide PAN details for property transactions over 10 lakh rupees or non-deduction of TDS
Anti-Money Laundering and Counter Financing of TerrorismPuni Hariaratnam
Money laundering involves disguising illegally obtained money to make it appear legitimate. It became a major issue in the 1920s and laws were passed in the 1980s to address it. Malaysia passed its Anti-Money Laundering and Anti-Terrorism Financing Act in 2001, placing reporting obligations on banks and requiring customer due diligence, record keeping, and compliance programs. Failure to comply can result in significant penalties from regulators and damage to a bank's reputation. However, many banks still fail to provide adequate anti-money laundering training to their staff.
This document provides an overview of money laundering and combating the financing of terrorism. It discusses what money laundering is, the stages of money laundering (placement, layering, integration), and how it works. It also discusses terrorist financing. International efforts to combat money laundering and terrorist financing through organizations like the UN, FATF, and Egmont Group are overviewed. The roles and functions of India's Financial Intelligence Unit (FIU-IND) are described. The document also outlines India's Prevention of Money Laundering Act (PMLA) and its provisions, including scheduled offenses, punishments, and authorities for enforcement. Obligations of banks and financial institutions under PMLA around client identification,
Money laundering is the process of concealing the origin of money obtained from illegitimate sources by passing it through complex sequence of financial transactions and making it appear to be originated from legal activity.
Illegal arm sales, terrorism funding, smuggling, drug trafficking, insider trading, fraud schemes, bribery etc. are some examples of illegal activities prohibited by law.
In simpler terms, money laundering means cleaning of dirty money.
Process of Money Laundering
Placement – Placing illegal cash proceeds with banks and other financial institutions onshore and offshore in smaller denominations.
Layering – Creating complex layers of financial transactions to make it difficult to trace the origin of money. The transactions might be channelled through purchase & sales of financial securities.
Integration – Integrating the money into legal system by investing into business, real estates and luxury assets.
Methods of Money Laundering
Structuring / Smurfing – It is a method of placement where the illegal money collected is broken into smaller deposits to place at different banks. This is done to avoid any suspicion of origin of money.
Shell Companies – This involves creation of fake companies that are registered and exist in papers but hold neither physical location nor operational activities are done.
Bulk Cash Smuggling – This involves smuggling cash to foreign countries to deposit illegal money in offshore bank which hold greater secrecy; generally countries considered as tax haven.
Round Tripping – Shipping back the money deposited in offshore financial institutions as foreign direct investment.
Act -
Financial Action Task Force – Formed in 1989 by G7 countries to develop and ensure an international response to combat money laundering. The objectives of the FATF were to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
PMLA (Prevention of Money Laundering Act) 2002 – The act passed to stop money laundering and punish those involved directly or indirectly in illegal activity. As per this act whoever commits money laundering shall be punishable with imprisonment of about 3 to 10 years and shall also be liable to pay fine.
Thank you for watching
Subscribe to DevTech Finance
The benami transactions (prohibitions) amendment act (1)Himanshu Goyal
The document summarizes the Prohibition of Benami Property Transactions Act of 1988 as amended in 2016 in India. Some key points:
- The act prohibits benami transactions where one person provides consideration for a property but it is held in another person's name. Such properties are liable to be confiscated.
- The 2016 amendment strengthened penalties, setting up adjudicating authorities and an appellate tribunal to deal with benami cases.
- Transactions done for illegitimate purposes like concealing black money or evading taxes come under the purview of benami transactions according to the act.
- Properties involved in benami transactions are liable to face attachment or confiscation and individuals can be fined or imprisoned for
The document discusses the Benami Transactions (Prohibition) Amendment Bill, 2015, which seeks to amend the Benami Transactions Act of 1988. The key points are:
1) The Bill aims to amend the definition of benami transactions, establish authorities to deal with such cases, and specify penalties.
2) A benami transaction is one where a property is held under a false name, with the real owner denying knowledge or being untraceable.
3) Certain exemptions like HUF properties are specified. Penalties for benami transactions and false information are increased.
4) Adjudicating authorities and an Appellate Tribunal will be set up to examine cases and hear appeals against confiscating
This presentation discusses benami transactions in light of demonetization. It begins by highlighting key points of demonetization and the Prohibition of Benami Property Transactions Act of 1988. It defines what constitutes a benami property and transaction, providing examples of cash and stock being considered benami property. Exceptions to benami transactions are outlined, along with impacts such as 100% confiscation of benami property and imprisonment. The presentation explains how benamidars (property holders) and beneficial owners (intended beneficiaries) are impacted under the new Act.
Money laundering involves disguising illegally obtained money to make it appear legitimate. It typically involves three steps: placement, layering, and integration. Money laundering can undermine the legitimacy and integrity of financial markets and lead to economic instability. Governments and international organizations have established laws and recommendations to prevent money laundering, including know-your-customer compliance, cash transaction reporting, and monitoring by groups like the Financial Action Task Force. New technologies also pose evolving threats, requiring advanced anti-money laundering mechanisms.
This document discusses money laundering in Malaysia. It begins by listing some student names and defining money laundering as disguising illegally obtained money to make it appear legitimate. It then provides details on Malaysia's anti-money laundering laws, noting that money laundering is punishable by up to 15 years in prison and fines of at least 5 times the value of the unlawful funds. The document also states that Malaysia was at medium risk for money laundering from 2013 to 2017 according to statistics and identifies weaknesses in financial procedures and controls as contributing factors.
The document discusses benami transactions under Indian law. It defines key terms like benamidar and beneficial owner. It summarizes the Benami Transactions (Prohibition) Act of 1988 and the 2011 bill that replaced it. The bill prohibits benami transactions and makes property involved liable for confiscation. It imposes penalties for engaging in benami transactions or providing false information regarding such transactions.
The document discusses money laundering and the obligations of reporting institutions under Malaysia's Anti-Money Laundering and Anti-Terrorism Financing Act 2001 (AMLATFA). It defines money laundering as disguising illegally obtained cash or property to make it appear legitimate. It outlines risks like reputational damage for institutions that don't comply with AMLATFA. Key obligations include conducting customer due diligence, identifying suspicious transactions, and reporting them to the authorities. Failure to comply can result in fines or imprisonment.
Money laundering is the process of making illegally obtained money appear legal. This document discusses how criminals first place illegal funds into the financial system through various techniques like structuring deposits to avoid reporting requirements, using alternative remittance systems, or purchasing assets or insurance policies. It then explains how launderers further layer the funds by moving them through many transactions to obscure their source and make the money harder to trace back to criminal activity. Kenya's new anti-money laundering law aims to regulate these processes but questions remain over successful implementation.
The document is the full text of Republic Act No. 9160, also known as the Anti-Money Laundering Act of 2001. It defines money laundering and related terms, establishes the Anti-Money Laundering Council to implement anti-money laundering measures, and gives the Council authority to require transaction reports, freeze accounts, and initiate forfeiture proceedings against property involved in money laundering. Covered institutions like banks must comply with customer due diligence and record keeping rules to prevent money laundering.
The document discusses key aspects of know your customer (KYC) policies and procedures according to the Prevention of Money Laundering Act, 2002 in India. It outlines that the Financial Action Task Force sets international standards for combating money laundering and terrorist financing. The Prevention of Money Laundering Act requires reporting entities to verify customer identity, monitor transactions, and maintain records. Reporting entities must implement risk-based KYC programs and conduct ongoing customer due diligence to comply with KYC regulations.
Money laundering involves disguising illegally obtained money to make it appear legitimate. It typically involves three stages: placement, layering, and integration. Placement involves injecting dirty money into the financial system. Layering involves moving funds through transactions to obscure the audit trail. Integration makes the money appear legitimate through reentry into the economy. Money laundering undermines legitimate businesses, increases organized crime and corruption, and threatens the stability of financial institutions. It can also dampen foreign investment.
This document provides an overview of various legal topics related to banking and the legal environment in Bangladesh, including:
1. It discusses several laws governing financial instruments, such as the Negotiable Instruments Act 1881, which defines promissory notes, bills of exchange, cheques, and demand drafts. It also covers the Money Laundering Prevention Act and Anti-Terrorism Act.
2. It then covers various business related laws in Bangladesh, including the Contract Act 1872, Companies Act 1994, Transfer of Property Act 1882, and others.
3. It also provides details on key concepts around cheques, negotiable instruments, and money laundering prevention in the banking sector in Bangladesh according to local
The document defines money laundering and describes the process. It involves disguising illegally obtained money to make it appear legitimate. There are three stages: placement, layering, and integration. Money laundering has significant negative effects, including increased organized crime, corruption, and economic distortions. It undermines legitimate businesses and financial stability. The document then outlines the various financial institutions and businesses that may be involved in money laundering, such as banks, money services businesses, casinos, and professional gatekeepers like lawyers and accountants.
This document provides an overview of Muslim Commercial Bank (MCB) in Pakistan. It discusses MCB's history, vision, mission, and core values. It also outlines MCB's compliance with anti-money laundering regulations in Pakistan, including establishing a compliance group and using transaction monitoring systems. Key stages of money laundering are defined. MCB implements know-your-customer procedures to comply with regulations. Risk management practices are also discussed.
The document discusses money laundering, which it defines as making illegally obtained money appear to come from legal sources. It describes the three main steps of money laundering as placement, layering, and integration. It then outlines various common methods used to launder money, such as smurfing, cash smuggling, using cash businesses, and real estate. The document also discusses anti-money laundering regulations and India's Prevention of Money Laundering Act of 2002. It provides statistics on the estimated amounts of black money in and flowing out of India.
Taxation of Islamic Financial Instruments in KenyaLyla Latif
A discussion on the use and taxation of Islamic financial instruments in Kenya to enable the Nairobi International Financial Centre Authority understand the principles that define the nature of Islamic financial transactions.
The document defines and provides details on banking and other financial services that are subject to service tax in India. Key services include financial leasing, credit cards, merchant banking, asset management, custodial and depository services, and advisory services. The value of taxable services includes fees, interest charges, and commissions. Certain exemptions apply for agreements signed prior to the July 2001 introduction of the service tax on banking and financial services.
The document discusses anti-money laundering regulations and compliance obligations for financial institutions in India. It covers key topics like the legal framework for AML consisting of the Prevention of Money Laundering Act 2002 and various rules. It describes money laundering processes and the obligations of reporting entities under the act including customer due diligence, record keeping, reporting cash and suspicious transactions to regulators. Global penalties for AML violations in 2021 include a $700 million fine for AmBank in Malaysia and $390 million for Capital One in the US. In India, the number of financial institutions penalized for AML/KYC violations nearly doubled in 2021-22 compared to the previous year.
Development and finance go hand in hand. It is difficult for a country to develop without finance. However, what is the new perception of development? Clearly it seems to encompass more than just economic figures. And what is the role of the Law and institutions such as the Central Bank in attaining development. With this presentation, I expound on this questions.
The document is a directive from the National Bank of Ethiopia regarding the oversight of payment systems and the licensing and authorization of payment instrument issuers. It establishes clear regulatory requirements for payment instrument issuers to promote safety and efficiency, support innovation, and protect users. Applicants must submit documentation including business plans, financial forecasts, and operational policies to receive authorization from the National Bank to issue payment instruments. Licensed financial institutions need authorization while other entities require a license.
This document discusses the various legal relationships that can exist between a banker and a customer. It defines key terms like banker, banking, customer and explores different types of relationships such as:
1. Debtor-creditor relationship - when a customer deposits money, the bank is the debtor and customer is the creditor. When a bank grants a loan, the roles reverse.
2. Principal-agent relationship - when a bank acts on behalf of a customer, such as by collecting checks or buying/selling securities, it takes on the role of the customer's agent.
3. Bailor-bailee relationship - this can arise when a customer avails safe deposit services or pledges stocks/
The document outlines guidelines for anti-money laundering programs for insurers in India. It defines money laundering and its three stages: placement, layering, and integration. It discusses Know Your Customer (KYC) policies, including documentation requirements. It also covers risk profiling customers, suspicious transactions, reporting requirements, and penalties for money laundering. The overall summary is that the document provides an overview of India's regulations for insurers to establish anti-money laundering programs and procedures to combat financial crimes.
The document discusses anti-money laundering laws and regulations in the Philippines. It begins with a definition of money laundering and an overview of the history and origins of anti-money laundering efforts. It then outlines key entities like the Financial Action Task Force (FATF) and their recommendations. The document explains the three stages of money laundering and how it relates to other crimes. It also defines key terms like suspicious transactions, covered institutions, and the roles and functions of the Anti-Money Laundering Council (AMLC) established under the Anti-Money Laundering Act of 2001.
Anti money laundering (aml) and financial crimeRaviPrashant5
This document provides an introduction to anti-money laundering regulations. It discusses how money laundering works, including the key stages of placement, layering and integration. The document outlines the UK Money Laundering Regulations 2017, which require certain businesses to register, implement customer due diligence processes and monitor transactions to prevent money laundering. It defines money laundering and financial crime and the offenses covered by relevant legislation. The goal of the course is to help professionals understand their responsibilities and comply with anti-money laundering laws.
Money laundering is the process of making illegally obtained money appear legal. It occurs in three steps: placement, layering, and integration. The Prevention of Money Laundering Act (PMLA) was implemented in India to prevent money laundering and confiscate illegally obtained funds. Under PMLA, banks and financial institutions must maintain records of all transactions and report any suspicious activity. Common red flags include false identification documents, inconsistent transaction history or amounts, and links to known criminals.
Similar to Anti money laundring ace june 2019 bulletin (20)
Mohamed Ebrahim is running for Coast Branch Chairman of the Institute of Certified Public Accountants of Kenya (ICPAK) for the term 2020-2022. He has over 20 years of experience working in accounting firms in Kenya, UAE, and Canada. If elected, his focus as Chairman will be on member services, like protecting members' interests, and public services, such as constructive contributions to county government budgeting processes. He aims to serve all Coast Branch members openly, transparently and inclusively.
Mohamed Ebrahim is running for Chairman of the ICPAK Coast Branch for the 2020-2022 term. He currently serves as the Vice Chair of the Coast Branch and on the ICPAK National Public, Policy and Research committee. If elected, he aims to serve members in an open and inclusive manner, focusing on member services like supporting practitioners and promoting employability, as well as public services like contributing to county government budgets and promoting the accounting profession. He has over 20 years of experience in accounting and is seeking the position to utilize his expertise.
The document provides an overview of Kenya's macroeconomic environment and fiscal budget for 2020/21, which has been significantly impacted by the COVID-19 pandemic. It summarizes that the global economy is projected to contract sharply in 2020 due to the pandemic. Kenya's GDP growth is also expected to decline sharply to about 2.3% from 5.4% in 2019. The pandemic has adversely affected key sectors in Kenya like tourism, trade, manufacturing, and agriculture. The fiscal budget for 2020/21 has been adjusted downwards to KSHS 2.7 trillion to create fiscal space in light of lower revenue projections and the President's KSHS 53.7 billion stimulus package focuses on boosting key sectors to mitigate the
Crowd Funding Unit Share Investment investment in a proposed Project of a Cement Plant in Iraq, to assist in its rebuilding and with social twist, to provide a legacy for orphan children under the "seeds of hope" initative.
The document provides an overview of Kenya's 2017/2018 budget speech and key proposals. It discusses economic growth projections, reducing fiscal deficit, interest rates, improving business environment, special economic zones, agriculture, automotive industry, tourism, oil and gas, fishing industry, housing, financial services, taxation measures, and personal income tax changes. The overall aim is to create jobs and improve livelihoods through various economic initiatives and reforms.
Mr. Mohamed Ebrahim has been granted transfer credits and exemptions for various accounting and business courses based on his prior transcript. He has received transfer credits for 16 courses across 4 levels of an accounting program. Some courses require additional requirements to be met for exemptions. To enroll, he can submit an online application for admission under his CGA profile. He is provided with a status legend and comments legend to understand the evaluation results.
Capital gains tax was introduced in Kenya effective January 2015. The rate is 5% which is lower than neighboring countries. Services for goods in transit are now VAT exempt. Meal benefits for employees are expanded to be non-taxable up to 48,000 KSH per year. A new excise act separates excise from customs and is effective in 2015. Real estate investment trusts (REITs) are proposed to be exempt from corporate and income tax with the exception of withholding tax on interest.
More from CPA Mohamed Ebrahim MBA (Manchester) MCSI, CGMA, ACIFE (9)
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
1. 6 th June 2019| Ace Group | : Withdrawal of Kshs 1,000 notes
Our Professional Services Entities:
Ace Associates- Certified Public Accountants - A member firm of McMillan Woods
Ace Consultants Limited—Accountancy , Internal Audit, Strategy and Risk Consulting
Ace Taxation Services Limited—Tax Compliance, Planning and Advisory Services
Ace Financial Advisory Limited—Corporate Finance and Personal Financial Planning
ACE Secretaries and Registrars - Company Secretarial Services
Ace Nominees Limited (Confidential nominee services to hold shares and other assets)
ACE House, Narok Road TRV Centre, 7th
Floor, Office No. 7F
P.O. Box 16916 – 80100 3rd
Parklands Avenue
+254 727399199 or 041 2491515 Tel: +254 721524680 or +254 707688699
Mombasa Nairobi
Websites: www.acegroup.co.ke : www.acefinancialadvisory.com :
Caveat
The content of this bulletin is for informational purposes only. The content is not intended in any
way to be a substitute for legal advice, in making decisions, and the authors and the entities affili-
ated with them are not responsible for any loss, resulting from acting on this information. This in-
formation is driven by announcement by the Central Bank of Kenya on the new currency notes and
the ceasing of the current Kshs 1,000 note as legal tender by 1st October 2019 and the PRO-
CEEDS OF CRIME AND ANTI-MONEYLAUNDERING ACT (CHAPTER 59B)
PROCEEDS OF CRIME AND ANTI-MONEYLAUNDERING ACT (CHAPTER 59B)
Potential pitfalls which could impact business
2. 6 th June 2019| Ace Group | : Withdrawal of Kshs 1,000 notes
PROCEEDS OF CRIME AND ANTI-MONEYLAUNDERING ACT (CHAPTER 59B)
Potential pitfalls which could impact business
On Saturday 1st June 2019, the Central Bank of Kenya announced that it shall be issuing new generation
notes, and specifically for the Kshs 1,000 note currently in circulation would cease to be legal tender from
1st October 2019. See links below
https://www.centralbank.go.ke/2019/06/03/launch-of-new-generation-banknotes/
https://www.centralbank.go.ke/wp-content/uploads/2019/06/New-Generation-Banknotes-Pamphlet.pdf
https://www.centralbank.go.ke/uploads/speeches/1727542341_Governor's%20Remarks%20-%
20Launch%20of%20the%20New%20Generation%20Banknotes.pdf (Governors full speech)
The Governor of the Central Bank of Kenya in this remarks on the launch said “ Your Excellency, the new
banknotes will circulate alongside those previously issued but not withdrawn. However, we have as-
sessed the grave concern that our large banknotes—particularly the older one thousand shillings series—
are being used for illicit financial flows in Kenya and also other countries in the region. More recently we
have seen the emergence of some counterfeits. These are grave concerns that would jeopardize proper
transactions and the conduct of commerce in our currency. To deal conclusively with these concerns, all
the older one thousand shillings series shall be withdrawn. By a Gazette Notice dated May 31, 2019, all
persons have until October 1, 2019, to exchange those notes, after which the older one thousand shil-
lings banknotes will cease to be legal tender. “
This has created a panic situation as Kshs 1,000/= notes held by individuals and organized crime syndi-
cates are likely to offload these in the economy either by banking into bank accounts, purchasing high
value vehicles from motor dealers, purchasing gold, other precious metals and gemstones from jeweler’s
and gemstone traders, purchasing property from property developers and estate agents or even general
goods paying in cash which has been hoarded and may be proceeds of physical crime, proceeds of eco-
nomic crime and corruption, money accumulated but not declared for tax purposes (tax evasion), all this
would be covered under the term “money laundering”. Thus businesses should be vigilant to not becom-
ing unknowingly conduits for and accessories to money laundering. Kenya has a PROCEEDS OF CRIME
AND ANTI-MONEYLAUNDERING ACT (CHAPTER 59B), which covers these offenses.
Money laundering is defined as: ‘The funnelling of cash or other funds generated from illegal activities through
legitimate financial institutions and businesses to conceal the source of the funds.’ Anti-Money Laundering, 2nd
ed., IFAC, 2004
3. Key Definition's 1/2
“Agency Director” means the Director of the Agency appointed under section 53(2);
“authorised officer” means—
(a) a police officer;
(b) an officer of the department of the Kenya Revenue Authority;
(c) Agency Director; or
(d) any person or class of persons designated by the Minister as an
authorised officer to perform any function under this Act;
“Board” means the Anti-Money Laundering Advisory Board established under section 49;
“Centre” means the Financial Reporting Centre established under section 21;
“confiscation order” means an order referred to in section 61
“designated non-financial businesses or professions” means—
(a) casinos (including internet casinos);
(b) real estate agencies;
(c) dealing in precious metals;
(d) dealing in precious stones;
(e) accountants, who are sole practitioners or are partners in their professional firms;
(f) non-governmental organisations;
(g) such other business or profession in which the risk of money laundering exists as the Minister may, on the advice of the Cen-
tre Director,
“estate agency” in connection with the selling, mortgaging, charging, letting or management of immovable property or of any
house, shop or other building forming part thereof, means doing any of the following acts—
(a) bringing together, or taking steps to bring together, a prospective vendor, lessor or lender and a prospective purchaser, lessee
or borrower; or
(b) negotiating the terms of sale, mortgage, charge or letting as an intermediary between or on behalf of either of the principals;
PROCEEDS OF CRIME AND ANTI-MONEYLAUNDERING ACT (CHAPTER 59B)
Potential pitfalls which could impact business
6 th June 2019| Ace Group | : Withdrawal of Kshs 1,000 notes
4. Key Definition's 2/2
“financial institution” means any person or entity, which conducts as a
business, one or more of the following activities or operations—
(a) accepting deposits and other repayable funds from the public;
(b) lending, including consumer credit, mortgage credit, factoring, with or without recourse, and financing of commercial transac-
tions;
(c) financial leasing;
(d) transferring of funds or value, by any means, including both formal and informal channels;
(e) issuing and managing means of payment (such as credit and debit cards, cheques, travellers’ cheques, money orders and bank-
ers’drafts, and electronic money);
(f) financial guarantees and commitments;
(g) trading in - (i) money market instruments, including cheques, bills, certificates of deposit and derivatives; (ii) foreign exchange;
(iii) exchange, interest rate and index funds; (iv) transferable securities; and (v) commodity futures trading;
(h) participation in securities issues and the provision of financial services related to such issues;
(i) individual and collective portfolio management;
(j) safekeeping and administration of cash or liquid securities on behalf of other persons;
(k) otherwise investing, administering or managing funds or money on behalf of other persons;
(l) underwriting and placement of life insurance and other investment related insurance; and
(m) money and currency changing;
“money laundering” means an offence under any of the provisions of sections 3, 4 and 7;
“offence” in this Act, means an offence against a provision of any law in Kenya, or an offence against a provision of any law in a
foreign state for conduct which, if it occurred in Kenya, would constitute an offence against a provision of any law in Kenya;
“person” means any natural or legal person;
“proceeds of crime” means any property or economic advantage derived or realized, directly or indirectly, as a result of or in con-
nection with an offence irrespective of the identity of the offender and includes, on a proportional basis, property into which any
property derived or realized directly from the offence was later successively converted, transformed or intermingled, as well as
income, capital or other economic gains or benefits derived or realized from such property from the time the offence was com-
mitted;
“property” means all monetary instruments and all other real or personal property of every description, including things in action
or other incorporeal or heritable property, whether situated in Kenya or elsewhere, whether tangible or intangible, and includes
an interest in any such property and any such legal documents or instruments evidencing title to or interest in such property;
property of every description, including things in action or other incorporeal or heritable property, whether situated in Kenya or
elsewhere, whether tangible or intangible, and includes an interest in any such property and any such legal documents or instru-
6 th June 2019| Ace Group | : Withdrawal of Kshs 1,000 notes
PROCEEDS OF CRIME AND ANTI-MONEYLAUNDERING ACT (CHAPTER 59B)
Potential pitfalls which could impact business
5. Relevant Sections of the Act
Offenses penalized under Section 16 (1)
3. Money laundering
A person who knows or who ought reasonably to have known that property is or forms part of the proceeds of crime and—
(a) enters into any agreement or engages in any arrangement or transaction with anyone in connection with that proper-
ty, whether that agreement, arrangement or transaction is legally enforceable or not; or
(b) performs any other act in connection with such property, whether it is performed independently or with any other per-
son, whose effect is to—
(i) conceal or disguise the nature, source, location, disposition or movement of the said property or the ownership thereof or any
interest which anyone may have in respect thereof; or
(ii) enable or assist any person who has committed or commits an offence, whether in Kenya or elsewhere to avoid prosecution; or
(iii) remove or diminish any property acquired directly, or indirectly, as a result of the commission of an offence, commits an
offence.
4. Acquisition, possession or use of proceeds of crime
A person who—
(a) acquires; (b) uses; or (c) has possession of, property and who, at the time of acquisition, use or possession of such proper-
ty, knows or ought reasonably to have known that it is or forms part of the proceeds of a crime committed by him or by another
person, commits an offence.
7. Financial promotion of an offence
A person who, knowingly transports, transmits, transfers or receives or attempts to transport, transmit, transfer or receive a mon-
etary instrument or anything of value to another person, with intent to commit an offence, that person commits an offence.
Offenses penalized under Section 16 (2)
5. Failure to report suspicion regarding proceeds of crime
A person who wilfully fails to comply with an obligation contemplated in section 44(2) commits an offence.
8. Tipping off
(1) A person who—
(i) knows or ought reasonably to have known that a report under section 44 is being prepared or has been or is about to be sent to
the Centre; and (ii) discloses to another person information or other matters relating to a report made under paragraph (i).
(2) In proceedings for an offence under this section, it is a defence to prove that the person did not know or have reasonable
grounds to suspect that the disclosure was likely to prejudice a report made under subsection (1).
6 th June 2019| Ace Group | : Withdrawal of Kshs 1,000 notes
PROCEEDS OF CRIME AND ANTI-MONEYLAUNDERING ACT (CHAPTER 59B)
Potential pitfalls which could impact business
6. 11. Failure to comply with the provisions of this Act
(1) A reporting institution that fails to comply with any of the requirements of sections 44, 45 and 46, or of any regulations, com-
mits an offence.
13. Misuse of information
(1) A person who knows or ought reasonably to have known—
(a) that information has been disclosed under the provisions of Part II; or
(b) that an investigation is being, or may be, conducted as a result of such a disclosure, and directly or indirectly alerts, or
brings information to the attention of another person who will or is likely to prejudice such an investigation, commits an offence.
Offenses penalized under Section 16 (3)
12. Conveyance of monetary instruments to or from Kenya
(3) A person who wilfully fails to report the conveyance of monetary instruments into or out of Kenya, or materially misrepre-
sents the amount of monetary instruments reported in accordance with the requirements of subsection (1) commits an
offence.
Offenses penalized under Section 16 (4)
9. Misrepresentation
A person who knowingly makes a false, fictitious or fraudulent statement or representation, or makes, or provides, any false docu-
ment, knowing the same to contain any false, fictitious or fraudulent statement or entry, to a reporting institution, or to a supervi-
sory body or to the Centre, commits an offence.
10. Malicious reporting
Any person who wilfully gives any information to the Centre or an authorized officer knowing such information to be false commits
an offence.
14. Failure to comply with order of court
A person who intentionally refuses or fails to comply with an order of a court made under this Act, commits an offence.
6 th June 2019| Ace Group | : Withdrawal of Kshs 1,000 notes
PROCEEDS OF CRIME AND ANTI-MONEYLAUNDERING ACT (CHAPTER 59B)
Potential pitfalls which could impact business
7. 16. Penalties
(1) A person who contravenes any of the provisions of sections 3, 4 or 7 is on
conviction liable—
(a) in the case of a natural person, to imprisonment for a term not exceeding fourteen years, or a fine not exceeding five
million shillings or the amount of the value of the property involved in the offence, whichever is the higher, or to both the
fine and imprisonment; and
(b) in the case of a body corporate, to a fine not exceeding twenty-five million shillings, or the amount of the value of the
property involved in the offence, whichever is the higher.
(2) A person who contravenes any of the provisions of sections 5, 8, 11(1) or 13 is on conviction liable—
(a) in the case of a natural person, to imprisonment for a term not exceeding seven years, or a fine not exceeding two
million, five hundred thousand shillings, or to both and
(b) in the case of a body corporate, to a fine not exceeding ten million shillings or the amount of the value of the property
involved in the offence, whichever is the higher.
(3) A person who contravenes any of the provisions of section 12(3) is on conviction, liable to a fine not exceeding ten per cent of
the amount of the monetary instruments involved in the offence.
(4) A person who contravenes the provisions of section 9, 10 or 14 is on conviction liable—
(a) in the case of a natural person, to imprisonment for a term not exceeding two years, or a fine not exceeding one mil-
lion shillings, or to both and
(b) in the case of a body corporate, to a fine not exceeding five million shillings or the amount of the value of the proper-
ty involved in the offence, whichever is the higher.
(5) Deleted by Act No. 51 of 2012, s. 6.
(6) Where any offence under this Part is committed by a body corporate with the consent or connivance of any director, manager,
secretary or any other officer of the body corporate, or any person purporting to act in such capacity, that person, as wellas
the body corporate, shall be prosecuted in accordance with the provisions of this Act.
17. Secrecy obligations overridden
(1) The provisions of this Act shall override any obligation as to secrecy or other restriction on disclosure of information imposed
by any other law or otherwise.
(2) No liability based on a breach of an obligation as to secrecy or any restriction on the disclosure of information, whether im-
posed by any law, the common law or any agreement, shall arise from a disclosure of any information in compliance with any obli-
gation imposed by this Act.
6 th June 2019| Ace Group | : Withdrawal of Kshs 1,000 notes
PROCEEDS OF CRIME AND ANTI-MONEYLAUNDERING ACT (CHAPTER 59B)
Potential pitfalls which could impact business
8. Why tax evasion is also considered part of money laundering?
Businesses cannot hide under the pretext I know the person, he is a business person and
not a criminal, by accepting payments in Kshs 1,000 notes for major capital assets purchas-
es like vehicles, real estate properties, jewellery and gemstones, because the person may
be a genuine business person but has evaded tax.
Tax evasion
Tax evasion must be addressed effectively for a number of reasons. At first it deprives states from raising
sufficient revenues therefore preventing them from implementing social, economic, environmental, cultural
and other policies. Tax evasion undermines the efforts of the government to promote welfare and social co-
hesion; it prevents it from performing its social function. Moreover, it erodes the credibility of democratic
institutions, while injuring the trust of citizens in the means and ends of a legitimate, democratic govern-
ment. In a nutshell it can brew feelings that might evolve into anti-social, anti-democratic mentalities.
Secondly, those who are in a better position to avoid taxation are the people who can siphon their income
into foreign banks or jurisdictions, which usually means that they are better-off. In avoiding their duties and
responsibility vis-á-vis society and the state, the tax evaders are in effect placing a greater burden on those
who eventually pay off the effective costs of taxation, who are in their majority, members of the lower and
middle parts of the income distribution. As such tax evasion fosters or widens social inequality while it pro-
duces a de facto division of citizens between privileged and non-privileged.
Thirdly, tax evasion provides incentives to established financial institutions as well as authorities or politi-
cians to engage in corrupt activities, in quest of their own enrichment or other benefit. Financial institutions/
banks are interested in increasing their profits by making use of this stream of funds, even if that implies cir-
cumventing the existing rules5. Authorities may be enticed to turn a blind eye in this process, so that their
own position in power may be consolidated.
6 th June 2019| Ace Group | : Withdrawal of Kshs 1,000 notes
PROCEEDS OF CRIME AND ANTI-MONEYLAUNDERING ACT (CHAPTER 59B)
Potential pitfalls which could impact business
9. What Processes should you have to
Customer due diligence
Suitable customer due diligence measures are the bedrock of anti-money laundering requirements and the first line of
defence for any business. This means :-
1) identifying and verifying the customer’s identity using documents, data or information obtained from a reliable and
independent source where applicable, identifying the beneficial owner and taking risk based and adequate measures
to verify their identity using government issued identity document and tax record (PIN)
2) obtaining information on the purpose and intended nature of the business relationship conducting ongoing moni-
toring of the business relationship.
This ongoing monitoring should include:
Scrutiny of transactions undertaken throughout the business relationship. This is to ensure that transactions are con-
sistent with the accountant’s knowledge of the client, the business and risk profile.
Ensuring that documentation, data or information held is kept up to date, and carefully filed in hard copy.
Stages of CDD
Information gathering -Verification, Risk assessment and Identification
Verification
• Who is the client? • Who owns them? • What do they do? • What is their source of funds?
Can you describe their activities? • What will you be doing for them? • What is its legal structure?
Risk Assesment
Client risk
Service risk
Geographic risk
Sector risk
Delivery channel risk
Identification
What documents or other information do you need to demonstrate what you have been told is true?
What steps do you need to take or what information do you need to obtain to mitigate any specific risks that you
have identified?
Conclusion : Money laundering is a serious offence, hence vigilance is important, however the current phasing
out of the Old Kshs 1,000 note, increase the risk of unknowingly committing an offense. NB: All real estate property
transactions and motor vehicle logbook transfer require KRA PIN’s, and you will have to bank the cash you received,
6 th June 2019| Ace Group | : Withdrawal of Kshs 1,000 notes
PROCEEDS OF CRIME AND ANTI-MONEYLAUNDERING ACT (CHAPTER 59B)
Potential pitfalls which could impact business
10. Our Locations
ACE House, Narok Road TRV Centre, 7th Floor, Office No. 7F
P.O. Box 16916 – 80100 3rd Parklands Avenue
+254 727399199, 041 2491515 Tel: +254 721 524680, 707 688699
Mombasa Nairobi
Contacts
CPA Ahmed Salyani –Managing Partner asalyani@acegroup.co.ke
CPA Mohamed Ebrahim—Partner mebrahim@acegroup.co.ke
Muhamed Salyani (ACCA) —Consulting director, msalyani@acegroup.co.ke
Bilal Musani, (ACCA) - Tax Director bmusani@acegroup.co.ke
CPA Mohamed Afzal Mamdani—Nairobi Office mamamdani@acegroup.co.ke
Find us on the Web:
https://acefinancialadvisory.com/
http://acegroup.co.ke/
Beyond Excellence
6 th June 2019| Ace Group | : Withdrawal of Kshs 1,000 notes
PROCEEDS OF CRIME AND ANTI-MONEYLAUNDERING ACT (CHAPTER 59B)
Potential pitfalls which could impact business