CHAPTER
367
FINANCIAL INTELLIGENCE UNIT |
ARRANGEMENT OF
SECTIONS |
SECTION |
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Establishment of Financial Intelligence Unit. |
Functions of the Financial Intelligence Unit. |
Directions of the Minister. |
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No criminal or civil liability for information. |
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Financial Intelligence Unit to issue guidelines. |
Consultation on proposed guidelines. |
Financial Intelligence Unit to make guidelines
available. |
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FIRST SCHEDULE - The Director of the Financial Intelligence
Unit. |
SECOND SCHEDULE - Offences |
CHAPTER 367 |
FINANCIAL
INTELLIGENCE UNIT |
An Act to
provide for the establishment of a body to be known as the Financial
Intelligence Unit; the functions and powers of that body; and for connected
purposes. | 39 of 2000
20 of 2001
S.I. 128/2001 |
[Commencement 29th
December, 2000] |
1. This Act may be cited as the Financial Intelligence
Unit Act, 2000. | Short title. |
2. In this Act- | Interpretation. |
"Director"
means the Director of the Financial Intelligence Unit, appointed pursuant to
section 3; |
"Financial
Intelligence Unit" means the Financial Intelligence Unit established
pursuant to section 3; |
"Foreign
Financial Intelligence Unit" means such body or bodies in another
jurisdiction which performs functions similar to those of the Financial
Intelligence Unit; |
"Minister"
means the Minister responsible for the administration of this Act. |
3. (1) There is hereby established a body to be known
as the Financial Intelligence Unit having perpetual succession and a common
seal with power to enter into contracts and to do all such things necessary for
the purpose of its functions. | Establishment of Financial Intelligence Unit. |
(2) The Financial
Intelligence Unit shall consist of- |
(a) a Director
appointed in writing by the Minister who shall be the chief executive officer
of the Financial Intelligence Unit; |
(b) a counsel
and attorney appointed in writing by the Minister; |
(c) a public
accountant appointed in writing by the Minister; |
(d) such number
of consultants, having suitable qualifications and experience to provide
services to the Financial Intelligence Unit, appointed in writing by the
Minister; |
(e) such number
of police officers appointed by the Commissioner of Police on the
recommendation of the Director; |
(f) such other
personnel as the Director considers necessary. |
(3) The
First Schedule shall have effect with respect to the Director and otherwise in
relation to the Financial Intelligence Unit. |
4. (1) In the exercise of its functions under
subsection (2), the Financial Intelligence Unit shall act as the agency
responsible for receiving, analysing, obtaining and disseminating information
which relates to or may relate to the proceeds of the offences specified in the
Second Schedule. | Functions of the Financial Intelligence Unit. |
(2) Without
limiting the foregoing and not withstanding any other law to the contrary the
Financial Intelligence unit- |
(a) shall
receive all disclosures of information such as are required to be made
pursuant to the Proceeds of
Crime Act, 2000 which are relevant to its functions, including information from
any Foreign Financial Intelligence Unit; |
(b) may upon
receipt of such disclosures as are referred to in paragraph (a), order in
writing any person to refrain from completing any transaction for a period not
exceeding seventy-two hours; |
(c) may upon
receipt of a request from a Foreign Financial Intelligence Unit or law
enforcement authority including the Commissioner of Police of The Bahamas order
any person to freeze a person's bank account for a period not exceeding five
days if satisfied that the request relates to the proceeds of any of the
offences specified in the Second Schedule: |
Provided
that an aggrieved person may apply to a judge in chambers to discharge the
order of the Financial Intelligence Unit and shall servenotice on the
Financial Intelligence Unit to join in the proceedings but such order shall
remain in full force and effect until the judge determines otherwise; |
(d) may require
the production of such information excluding information subject to legal
professional privilege that the Financial Intelligence Unit considers relevant
to fulfil its functions; |
(e) shall
retain a record of all information that it receives for a minimum of five years
after the information is received; |
(f) shall
provide information, subject to such conditions as may be determined by the Director,
to the Commissioner of Police where the information may relate to the
commission of an offence specified in the Second Schedule; |
(g) may provide
information relating to the commission of an offence specified in the Second
Schedule to any Foreign Financial Intelligence Unit, subject to any conditions
as may be considered appropriate by the Director; |
(h) may enter
into any agreement or arrangement, in writing, with a Foreign Financial
Intelligence Unit which the Director considers necessary or desirable for the
discharge or performance of the functions of the Financial Intelligence Unit; |
(i) shall
inform the public and financial and business entities of their obligations
under measures that have been or might be taken to detect, prevent and deter the
commission of the offences specified in the Second Schedule. |
(3) Any person
failing or refusing to provide such information as is required by paragraph (d)
of subsection (2) is guilty of an offence and shall be liable on summary
conviction to a fine not exceeding fifty thousand dollars or to imprisonment
for a term not exceeding two years or to both such fine and
imprisonment. |
5. The Minister may give to the Financial Intelligence
Unit directions in writing of a general nature as to the policy to be followed
by the Financial Intelligence Unit in the performance of its functions as
appear to the Minister to be requisite in the public interest and the Financial
Intelligence Unit shall give effect to those directions. | Directions of the Minister. |
6. Notwithstanding the provisions of any other Act, no
order for the provision of information, documents or evidence may be issued in
respect of the Financial Intelligence Unit or against the Minister, Director,
officers or personnel of the Financial Intelligence Unit or any person engaged
pursuant to this Act. | No order. |
7. No action shall lie against the Minister, Director,
officers or personnel of the Financial Intelligence Unit or any person acting
under the direction of the Director for anything done or omitted to be done in
good faith and in the administration or discharge of any functions, duties or
powers under this Act. | No liability. |
8. (1) No proceedings for breach of banking or
professional confidentiality may be instituted against any person or against
directors or employees of a financial or business entity who in good faith
transmit information or submit reports in accordance with the
Proceeds of Crime Act, 2000 or under this Act. | No criminal or civil liability for information. |
(2) No civil or
criminal liability action may be brought nor any professional sanction may be
taken against any person or against directors or employees of a financial or
business entity who in good faith transmit information or submit reports to the
Financial Intelligence Unit. |
9. (1) Any person who obtains information in any form
as a result of his connection with the Financial Intelligence Unit shall not
disclose that information to any person except so far as it is required or
permitted under this Act or any written law. | Confidentiality. |
(2) Any person who
communicates any information in breach of subsection (1) commits an offence
and shall be liable on summary conviction to a fine not exceeding ten thousand
dollars or to a term of imprisonment not exceeding one year or to both such
fine and imprisonment. |
10. (1) The Director shall- | Annual Report. |
(a) from time to
time advise the Minister on the work of the Financial Intelligence Unit and in
particular on matters that could affect public policy or the priorities to be
set by the Financial Intelligence Unit; |
(b) prepare and
submit to the Minister on or before June 30 in each year an annual report
reviewing the work of the Financial Intelligence Unit. |
(2) The Minister
shall lay or cause to be laid a copy of every annual report on the table of
both Houses of Parliament. |
11. The funds and resources of the Financial
Intelligence Unit shall consist of any moneys as may from time to time be
provided by Parliament. | Funds and Resources. |
12. The Financial Intelligence Unit shall prepare for
each new financial year an annual budget of revenue and expenditure which shall
be submitted to the Minister at least two months prior to the commencement of
the financial year. | Annual budget. |
13. (1) The Financial Intelligence Unit shall keep
proper accounts and other recordsin relation thereto, and shall prepare
in respect of each financial year a statement of accounts. | Accounts and audit. |
(2) The accounts
of the Financial Intelligence Unit for each financial year shall be audited by
an auditor to be appointed by the Director with the approval of the Minister. |
(3) As soon as the
accounts have been audited the Financial Intelligence Unit shall submit a copy
thereof to the Minister together with a copy of any report made by the auditor. |
(4) The Minister
shall lay a copy of every such audited accounts before each House of
Parliament, together with a copy of any report made by the auditor on the
accounts. |
14. (1) The Minister, after consultation with the
Financial Intelligence Unit, may make such regulations as he thinks necessary
or convenient for carrying out or giving effect to this Act. | Regulations. |
(2) Without
prejudice to the generality of subsection (1), such regulations may in
particular- |
(a) require
financial and other institutions as may be prescribed to establish and maintain
procedures relating to the identification of clients, the keeping of records,
the making of reports and training; |
(b) create
criminal offences and penalties triable summarily for failing to comply with
the regulations; |
(c) provide
that in determining whether a person has complied with the regulations the
trial court shall take account of any relevant guidelines issued by the
Financial Intelligence Unit; |
(d) prescribe
all matters required or permitted by this Act to be prescribed. |
15. (1) Subject to section 16, the Financial
Intelligence Unit shall from time to time issue, in respect of each kind of
financial institution to which the Financial Transactions
Reporting Act, 2000 applies, guidelines- | Financial Intelligence Unit to issue guidelines. |
(a) setting out
any features of a transaction that may give rise to a suspicion that the transaction
is or may be relevant to the enforcement of the Proceeds of Crime Act, 2000; |
(b) setting out
any circumstances in which a suspicious transaction report relating to such a
transaction may be made orally in accordance with section 14(3) of the Financial Transactions Reporting Act,
2000 and the procedures for making such an oral report. |
(2) Suspicious
transaction guidelines shall be issued in such manner as the Financial
Intelligence Unit shall from time to time determine. |
(3) The Financial
Intelligence Unit may from time to time issue an amendment or revocation of any
suspicious transaction guidelines. |
(4) Without
limiting subsection (1), suspicious transaction guidelines issued under this
section may relate to one or more kinds of financial institution; and such
guidelines may make different provisions for different kinds of financial
institutions and different kinds of transactions. |
16. (1) The Financial Intelligence Unit shall, before
issuing any suspicious transaction guidelines- | Consultation on proposed guidelines. |
(a) consult
with, and invite representations from the Central Bank of The Bahamas, the
Securities Commission, the Compliance Commission, the Registrar of Insurance,
the Gaming Board and such other agencies and/or entities as the Minister may by
order designate and shall have regard to any such representations; |
(b) give public
notice of the Financial Intelligence Unit's intention to issue the guidelines,
which notice shall contain a statement- |
(i) indicating
the Financial Intelligence Unit's intention to issue the guidelines; and |
(ii) inviting
financial institutions that are likely to be affected by the proposed
guidelines, and industry organisations that are representative of those financial
institutions, to express to the Financial Intelligence Unit, within such
reasonable period as is specified in the notice, their interest in being
consulted in the course of the development of the guidelines; and |
(c) consult
with, and invite representations from, those financial institutions and
industry organisations which express such an interest, and shall have regard to
any such representations. |
(2) Nothing in
subsection (1) prevents the Financial Intelligence Unit from adopting any
additional means of publicising the proposal to issue any suspicious
transaction guidelines or of consulting with interested parties in relation to
such a proposal. |
(3) This section
shall apply in respect of any amendment or revocation of any suspicious
transaction guidelines. |
17. On request by any financial institution in respect
of which any suspicious transaction guidelines are for the time being in force,
or by any industry organisation that represents any such financial institution,
the Financial Intelligence Unit shall, without charge- | Financial Intelligence Unit to make guidelines
available. |
(a) make those
guidelines, and all amendments to those guidelines, available for inspection,
by that financial institution or, as the case requires, that industry
organisation, at its offices; and |
(b) provide
copies of those guidelines, and all amendments to those guidelines, to that
financial institution, or, as the case requires, that industry organisation. |
18. (1) The Financial Intelligence Unit shall from
time to time review any suspicious transaction guidelines for the time being in
force. | Review of guidelines. |
(2)
Section 16 shall apply, with all necessary modifications, in relation to
any such review as if the review were a proposal to issue suspicious
transaction guidelines. |
FIRST SCHEDULE (Section 3(3)) |
THE DIRECTOR OF
THE FINANCIAL INTELLIGENCE UNIT |
1. (1) The
Director shall, subject to the provisions of this paragraph, hold and vacate
his office in accordance with the terms of his appointment and shall, on
ceasing to hold office, be eligible for re-appointment. |
(2) The Director
shall not be appointed or re-appointed for a period exceeding five years. |
2. (1) The
Director shall not while holding office as such hold any other office or
employment, whether remunerated or not, without the prior approval of the
Minister. |
(2) Subject to
subparagraph (1) of this paragraph, a person may not be appointed or remain
Director who- |
(a) is a member
of either House of Parliament; |
(b) is a public
officer; or |
(c) is a
director, officer or servant of, or has a controlling interest in, any
financial institution. |
3. The Minister
may appoint any person eligible to be appointed to act temporarily in the place
of the Director who is absent or unable to act. |
4. The Director
may at any time by notice in writing to the Minister resign his office. |
5. If the Minister
is satisfied that the Director- |
(a) has become
bankrupt or made arrangements with his creditors; or |
(b) is
incapacitated by physical or mental illness; or |
(c) is
otherwise unable or unfit to discharge the functions of a director, |
the Minister
may declare the office of Director vacant and shall notify the fact in such manner
as the Minister thinks fit, and thereupon that office shall become vacant. |
6. The Director
shall receive such remuneration whether by way of salary, honoraria or fees, as
the Minister may determine and, if a person ceases to be the Director and it
appears to the Minister that there are special circumstances which make it
right that the person should receive compensation, the Minister may direct to
pay to that person a sum of such amount as the Minister may determine. |
7. The Director
shall have charge of the day-to-day management and operation of the Financial
Intelligence Unit. |
SECOND SCHEDULE (Section 4(1)) |
OFFENCES |
Offences
under the
Proceeds of Crime Act, 2000. |