Reporting of suspicious transactions by reporting entities

(1) Reporting entities shall pay special attention to– (a) all complex, unusual or large business or unusual patterns of transactions, whether completed or not, and to insignificant but periodic transactions, that have no apparent economic or lawful purpose; (b) business relations and transactions with including legal and arrangements, from or in jurisdictions that do not have adequate systems in place to prevent or deter money laundering or terrorist financing; or (c) electronic funds transfer that do not contain complete originator information and shall adopt effective risk-based procedures to identify and handle any such transfer. (2) In relation to sub-section (1), a reporting entity shall– (a) set forth in writing the specific information regarding the or business relations specified in sub-section (1) (a) to (c), its background and purpose to the extent known, and the identity of the persons involved; and (b) upon request, shall make available such findings to the Financial Intelligence Unit. (2A) The requirements set forth in sub-sections (1) and (2) apply to any casino or licensed gaming premises in relation to any transaction equal to or above the amount of six thousand dollars in Belize currency, or its equivalent in foreign currency, or such other sum as may be prescribed by the Minister by notice published in the Gazette. (3) Repealed. (4) Whenever a reporting entity suspects or has reasonable grounds to suspect that any transaction, proposed transaction or attempted transaction is related to the commission of a money laundering offence or terrorist financing offence or is related or linked to, or is to be used in connection with a terrorist act or for the financing of terrorism, or that the funds or property are the proceeds of crime, it shall as soon as possible but not later than 62[CAP. 104 Money Laundering and Terrorism (Prevention) three days after forming that suspicion and wherever possible before the transaction is carried out– (a) take reasonable measures to ascertain the purpose of the transaction, the origin and ultimate destination of the funds involved and the identity and address, of any ultimate beneficiary; (b) prepare a report of the transaction in accordance with sub-section (5) and send the report to the Financial Intelligence Unit in such form as the Director, may from time to time approve; (c) in case of reporting entities which are dealers in precious metals and dealers in precious stones and other dealers in high value goods, shall report any transactions to the Financial Intelligence Unit in accordance with this sub- section whenever they engage in any cash transaction equal to or above the equivalent of fifteen thousand dollars or such other sum as may from time to time be prescribed by the Minister; and (d) in case of reporting entities which are real estate agents and dealers in vehicles, shall report transactions in accordance with this sub-section to the Financial Intelligence Unit when involved in transactions for their clients concerning the buying or selling of real estate or vehicles of any description. (4A) For the avoidance of doubt, the obligation to report any knowledge, suspicion, or reasonable grounds for knowledge or suspicion of money laundering referred to in sub-section (4), applies even though the offence that results in proceeds of crime may be a tax offence or may involve or relate to tax, and a reporting entity’s procedures relating to reporting should reflect this. (5) A report required under sub-section (4) shall– (a) set forth all particulars known regarding the (b) contain a statement of the grounds on which the reporting entity holds the suspicion; and (c) be signed or otherwise authenticated by the (6) When a report has been made in accordance with this section, the Financial Intelligence Unit may, by written notice, require any person to provide information within a period specified in the notice, for the purpose of clarifying or amplifying information disclosed to the Financial Intelligence Unit. (7) (a) If the Financial Intelligence Unit, after consulting the entity that reported the transaction required to make a report under sub-section (4), suspects or has reasonable grounds to suspect that a transaction or a proposed transaction may involve the proceeds of crime or a money laundering or terrorist financing offence or is related or linked to, or is to be used in connection with a terrorist act or for the financing of terrorism, it may direct the reporting entity in writing, electronically or by telephone to be followed up in writing, not to proceed with the carrying out of that transaction or proposed transaction or any other transaction in respect of the funds affected by that transaction or proposed transaction for a period as may be determined by the Financial Intelligence Unit which may not be more than five days, in order to allow the Financial Intelligence Unit– (i) to make necessary inquiries concerning the transaction; and 64[CAP. 104 Money Laundering and Terrorism (Prevention) (ii) if the Financial Intelligence Unit deems it appropriate, to inform and advise a (b) For the purposes of calculating the period of five days referred to in sub-section (7) (a), Saturdays, Sundays and public and bank holidays shall not be taken into account. (8) The provisions of sub-sections (4), (4A), (5), (6) and (7) are applicable to– (a) lawyers, notaries, other independent legal professionals and accountants when, on behalf of or for a client, they prepare for or engage in or carry out a transaction in relation to the following activities– (i) buying and selling of real estate; (ii) managing of client money, securities or other assets; (iii) management of bank, savings or securities accounts; (iv) organisation of contributions for the creation, operation or management of companies; or (v) creation, operation or management of legal persons or arrangements, and buying and selling of business entities; or (b) trust and company service providers, when they prepare for or engage in or carry out a transaction for or on behalf of a client, in relation to the following activities– (i) acting as a formation agent of legal (ii) acting as, or arranging for another person to act as, a director or secretary of a company, a partner of a partnership, or a similar position in relation to other legal persons; (iii) providing a registered office, business address or accommodation, correspondence or administrative address for a company, a partnership or any other legal person or arrangement; (iv) acting as, or arranging for another person to act as, a trustee of an express trust; or (v) acting as, or arranging for another person to act as, a nominee shareholder for another person. (9) Nothing in this section requires any lawyer to disclose any privileged communication. (10) For the purposes of this section, a communication is a privileged communication only if– (a) it is to a person who is a professional legal adviser and the disclosure falls within sub- section (b); or (b) a disclosure falls within this sub-section if it is a disclosure– (i) by or by a representative of a client of the professional legal adviser in the 66[CAP. 104 Money Laundering and Terrorism (Prevention) course of ascertaining the legal position of the client; or (ii) from or through a client in connection with the performing by the legal adviser of the task of defending or representing that client in, or concerning judicial, administrative, arbitration or mediation Provided that a disclosure does not fall within sub-section (b), if it is made with the intention of furthering a criminal purpose. (11) Any person who knows or suspects that a report under this section is being prepared for or will be or has been sent to the Financial Intelligence Unit or any additional information requested by the Financial Intelligence Unit has been prepared or sent shall not disclose to another person, other than a court, supervisory authority or other person authorized by law, any information or other matter in relation to the report. This shall not preclude disclosures or communications regarding suspicions of money laundering or financing of terrorism between and among directors, partners, officers, principals, and employees of the reporting entity and appropriate competent (12) No criminal, civil, disciplinary or administrative proceedings for breach of banking or professional secrecy or contract may be instituted against the reporting entity, or its directors, principals, officers, partners or employees who in good faith submit reports or provide information in accordance with the provisions of this section. No criminal action for money laundering or financing of terrorism shall be brought against a reporting entity, or its directors, principals, officers, partners or employees in connection with the execution of a suspicious transaction where such entity or person complied with the provisions of this section. (13) Without prejudice to criminal or civil liabilities for offences connected to money laundering or terrorist financing, a reporting entity, and its directors, officers and employees that fail to comply with the requirements of this section or who willfully make a false or untrue report referred to above, shall be liable to a fine not exceeding fifty thousand dollars by the Financial Intelligence Unit and, in addition, the licence of such reporting entity to operate as such may be suspended or revoked by the licensing authority. (14) Repealed. (15) The question whether a suspicion for the purpose of this section has been formed shall be determined objectively having regard to all the facts and surrounding circumstances.