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18/05/2009 – Cape Verde’s AML Legislation Expected to Come into Force
A new Cape Verdean Anti-Money Laundering Law is expected to come into force on 27th May 2009, according to MacauHub.
The law was unanimously approved by the Parliament of Cape Verde in March 2009. Due to the level of illegal financial activity, which has been highlighted by the recent Portuguese Bank of Business scandal, all three political parties were in agreement and fully in support for the enactment of the legislation.
The law will aim to prevent any attempt to launder money in the country, with greater focus on off-shore banks and their effective regulation. According to Júlio Martins, Cape Verde’s Attorney General, the Anti-Money Laundering legislation will overcome obstacles which are currently faced by the authorities when combating money laundering.
Banking confidentiality is to be curtailed through new anti-money procedures including the obligation of financial institutions to identify and verify clients under the supervision of the Central Bank. Additionally, there is to be a widening in scope to the prevention of crime related to money laundering.
It is yet to be determined whether the legal profession will also be obligated in undertaking anti money laundering obligations. The law is, however, fairly novel and it is predicted that the focus will be mainly on the regulation of financial institutions before the expansion to other sectors takes place. Lawyers, however, are advised to check the legislation when it becomes enacted.
We will continue to keep you updated on Cape Verde. Please visit us or subscribe to our RSS system on the homepage to learn more about this and other news and updates.
Sources:
MacauHub: 13 May 2009
Sambala Developments Ltd: 05 March 2009
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06/05/2009- Indonesia One Step Closer to Approving Draft Bill
Indonesia’s draft Anti-money Laundering (AML) Bill is one step closer to being approved after the House of Representatives’ Commission III agreed to push deliberation forward. Faced with mounting international pressure, the House, which deals with legal and human rights matters, decided that more may need to be undertaken to bring AML in line with international recommendations.
A working party will be set up to discuss the Bill, which was submitted to the House three years ago, according to the JakartaGlobe. The Bill is to extend the authority of the Financial Transaction and Report Analysis Center (PPATK) and provide more severe sanctions for those who violate the Act.
Lawyers and other legal professionals are to be mandated with AML obligations, as the list of entities defined as ‘reporting institutions’ is to be increased. As such, lawyers will need to submit reports on suspicious financial transactions, undertake further client due diligence measures and keep records of clients and transactions.
These new measures will be particularly welcomed, as the current law against money laundering does not meet international standards, according to PPATK’s head, Yunus Husein. Although different political parties have suggested amendments to the Bill, it is still early days in deciding if any provisions are to be altered.
In any event, the Bill will nonetheless be considered as one step closer to international cooperation.
Sources:
Jakarta Globe: 4 May 2009.
Financial Transaction and Report Analysis Center (PPATK): 4 May 2009
A copy of the draft Bill can be found here.
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