…National Assembly in unanimous support
The National Assembly was in unanimous support of the Anti-Money Laundering and Countering the Financing of Terrorism (Amendment) Bill 2010 which was passed Monday, after being piloted by Finance Minister Dr. Ashni Singh. Singh said the Amendment is a simple and comprehensive one and had the benefit for special consideration by members of the Special Select Committee.
The Amendment seeks to facilitate an extension to the period in which a reporting entity shall verify the identity of a customer. Banks and other financial reporting institutions, under the Principal Act passed in 2009, had up to yesterday to ensure they were in possession of information on their customers as required by the law.
Under the law, the financial reporting institutions can now access an extension up to 24 months.
According to the Finance Minister the financial institutions approached the government and made an appeal for the consideration of an extension to ensure they can report on both existing and new customers.
He added that notwithstanding their efforts, the institutions were unable to comply.
To this end, Singh said to ensure the Act is “implemented fully” the move was made to bring the Amendment to the National Assembly.
“The merits of the provisions are clear,” he posited.
Shadow Finance Minister Winston Murray, of the Opposition People’s National Congress Reform,  acknowledged this, but as he announced the full support of the Opposition, he said more awareness needs to be done by the institutions to ensure their customers’ support.
He added that a robust education/information campaign will place the institutions in better stead, since, in his view, not enough has been done to encourage customers to provide the requisite information.
Murray called the Bill appropriate and timely, and said the Opposition shares the view that it is necessary to facilitate compliance from all the financial reporting institutions that fall under the Act.
Follow-up
Singh took these recommendations into consideration, and said subsequent to the passage of the Amendment, the institutions will be engaged.
Among the issues to be addressed, he said, will be that of enforcement of penalties for larger account holders who fail to comply.
The Finance Minister pointed out that while it is important for all customers, large and small, to comply, the larger account holders are the ones who will be up for more scrutiny.
He made it clear that customers’ compliance is necessary, since it is in their interest to ensure that the financial reporting institutions have up-to-date records.
“This should not be viewed as a bureaucratic requirement,” Singh stressed.
Minister Singh maintained that the Amendment is a comprehensive one that seeks only to improve a mechanism that will enhance the initial provisions made under the Principal Act.