Money Laundering (Prevention) Act 1996

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No. 9 of 1996. Money Laundering (Prevention) 1 ANTIGUA
Act. 19% AND

[ L.S. ]

BARBUDA

I Assent,

James B. Carlisle,
Goverrwr-General.

20th February, 1997

ANTIGUA AND BARBUDA

No. 9 of 1996

AN ACT to make provisions for the prevention of money
laundering and to provide for matters connected therewith or
incidental thereto.

[ Brh March, 1997, ]

ENACTED, by the Parliament of Antigua and Barbuda as
follows -

PART I
PRELIMINARY

1. This Actmay be cited as the Money Laundering (Prevention) short title
Act. 1996.

2. (1) In this Act - Interpretation

"business transaction" includes any arrangement, opening
an account, between two or more persons where the
purpose of the arrangement is to facilitate a transaction
between the persons concerned and any related transaction
between any of the persons concerned and another person.

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"business transaction record" includes where relevant to
a business transaction -

(a) the identification of all the persons party to that
transaction;

(b) a description of that transaction sufficient to identify
its purpose and method of execution;

(c) the details of any account used for that transaction,
including bank, branch and sort code; and

(d) the total value of that transaction;

"~mpetentauthority"means aperson or persons appointed
by the Minister to cany out the functions of the competent
authority as provided in this Act, and includes any person
exercising such functions on behalf of the competent
authority;

"financial institution" means any person whose reguls
occupation or business is, for the account of that person,
the carrying on of -

First Schedule (a) any activity listed in the First Schedule to this Act;

(b) any other activity defined by the Minister of Finance
by an order published in the Gazette amending the
Fist Schedule;

"freezing" means temporarily prohibiting the transfer,
conversion, disposition or movement of property or
temporarily assuming custody or control of property on
the basis of an order by a court or other competent
authority;

"forfeiture" means the permanent deprivation of property
by order of a court or other competent authority;

"identification record" means -

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(a) where the person is a corporate body, the details -

(i) of the certificate of incorporation, such
certificate to be notarized where the corporate
body is incorporated outside Antigua &
Barbuda,

(ii) of the most recent annual return of thecorporate
body filed at the General Registry, such return
to be notarized where the corporate body is
incorporated outside of Antigua & Barbuda,

(iii) of any officer of the corporation as required in
sub-paragraph (b) of this definition; and

(6 ) in any other case, sufficient documentary evidence
to prove to the satisfaction of a financial institution
that the person is who that person claims to be;

and for these purposes "person7' includes any person who is a
nominee, agent, beneficiary or principal in relation to a business
transaction;

"'a~smentality" means something that is used in or
intended for use in any manner in the commission of a
money laundering offence;

"Minister"means the Minister responsible for bgal affairs,
unless specifically provided otherwise;

"money laundering" means -

(a) engaging, directly or indirectly, in a transaction that
involves property that is the proceeds of crime,
knowing or believing the same to be the proceeds
of crime; or

(b) receiving, possessing, managing, investing,
concealing, disguising, disposing of or bringing into

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Antigua & Barbuda any property that is the proceeds
of crime, knowing or believing the same to be the
proceeds of crime;

"person" includes any entity, natural or juridical, a
corporation, partnership, trust or estate, joint stock
company, association, syndicate, joint venture, or other
unincoiporatedorganisation or group, capable of acquiring
rights or entering into obligations;

"prescribed offence" means an offence for the time being
second Schedule listed in the Second Schedule to this Act;

"proceeds of crime" means any property derived or
obtained, directly or indirectly, through the commission
of aprescribed offence, whether committed in Antigua &
Barbuda or else-where;

"property" includes money, investments, holdings
possessions, assets and all other property real or personal,
heritable or moveable including things in action andother
intangible or incorporeal property wherever situate
(whether in Antigua & Barbuda or elsewhere) and includes
any interest in such property;

"Supervisory Authority" means Supervisory Authority
appointed under section 10.

(2) The Minister may from time to time by order published
second Schedule in the Gazette amend the Second Schedule to this Act

(3) Knowledge, intent, purpose, belief or suspicion required
as an element of any offence under this Act may be inferred from
objective, factual circumstances.

PART II
MONEY LAUNDERING PROHIBITED

affencesofmoney 3. A person who, after the mnrnencement of this Act,
laundering engages in money laundering is guilty of an offence.

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4. Where an offence under the provisions of section 3 is offencecommitted
committed by a body of persons, whether corporate or byabodyOf

persous.
unincorporated, every person who, at the time of the commission
af the offence, acted in an official capacity for or on behalf of
such body of persons, whether as director, manager, secretary
or other similar officer, or was purporting to act in such capacity,
is guilty of that offence, unless he adduces evidence to show that
the offence was committed without his knowledge, consent or
connivance.

5. Any person who attempts or aids, abets, counsels or Attemp;aiding
procures the commission of, or conspires to commit, the offence and abetting;
of money laundering is guilty of an offence. conspiracy.

6. A person guilty of an offence under section 3 or 4 or 5 of Penalty for money
this Act is liable on conviction to a fine of two hundred thousand Laundering.
dollars but which may extend to one million dollars, and to
imprisonment a term of seven years.

7. (1) It is an offence for aperson who knows or suspects ahat Tipping off.
an investigation into money laundering has been, is being or is
about to be, made to divulge that fact or other information to
another whereby the investigation is likely to be prejudiced.

(2, Aperson guilty of an offence under subsection (1) is liable
on conviction to a fine of one hundred thousand dollars, and to
imprisonment for three years.

8. (1) It is an offence for a person VJ falsify conseal, destroy ~ ~ d ~ ~ f ~ a ~ ~ ~
or otherwise dispose of or cause or permit the fdsificat~srn conwdrn-ntdc.,
concealment, destruction or disposal of any document orma~end of % x ~ ~ " ~

which is or likely to be relevant to an investigation into money
laundering or to any order made in accordance with the
provisions of this Act.

(2) Aperson guilty of an offence under subsection (1) is liable
on conviction to a fine of two hundred and fifty thousand dollars
and to imprisonment for five years.

9. Notwithstanding anything to the contrary contained in any Jurisdiction.
other law, the offences created by this Act shall be investigated,

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tried, judged and sentenced by a court in Antigua and Barbuda
regardless of whether or not the preskribed offence occurred in
Antigua & Barbuda or in another territorial jurisdiction, but
without prejudice to extradition when applicable in accordance
with the law.

PART rn
ANTI-MONEY LAUNDERING SUPERVISION

Appointment of 10. The Minister of finance shall appoint a person or persons
s u p e W to be known as the Supervisory Authority to supervise financial
authority institutions in accordance with this Act.

powers of the 11. The Supervisory Authority -
S ~ ~ s o r y
Authority

(i) shall receive the reports issued by the financial insti-
tutions pursuant to the provisions of section 13 (2);

(ii) shall send any such report to the law enforcement
authority if, having considered the report, the
Supervisory authority also has reasonable grounds
to believe that a money laundering offence is being,
has been or is about to be committed;

(iii) or aperson authorised by the Supervisory Authority
for such a purpose, may enter into the premises of
any financial institution during normal working
hours to inspect any business transaction record
kept by that financial institution pursuant to section
12(i) and ask any questions relevant to such record
and to make any notes or take any copies of the
whole or any part of any such record;

(iv) shall send to the law enforcement authorities any
information derived from an inspection carried out
pursuant to paragraph (iii) of this section if it gives
the supervisory Authority reasonable grounds to
believe that a money laundering offence is being,
has been, or is about to be committed;

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(v) shall destroy any note or copy thereof made or taken
pursuant to paragraph (iii) of this section within
three years of the inspection save where any such
note or copy has been sent to a law enforcement
authority;

(vi) may instruct any financial institution to take such
steps as may be appropriate to facilitate any
investigation anticipated by the Supervisory
Authority following areport or investigation made
under this section;

(vii) may compile statistics and records, disseminate
information within or without Antigua & Barbuda,
make recommendation arising out of any information
received, issue guide-lines to financial institutions
and advise the Minister of Finance and the Attorney
General with regard to any matter relating to money
laundering;

(viii) shall create training requirements and provide such
training for any financial institution in respect of the
business transaction record-keeping and reporting
obligations as provided under sections 12(i), and
13(ii), respectively.

12. A financial institution shall - obligations of
financial
institutions.

(i) keep a business transaction record of any business
trans action for a period of six years after the
termination of the business transaction so recorded;

(ii) comply with any instruction issued to it by the
Supemi- sory Authority pursuant to section 1 l(vi);

(iii) permit any member of the Supervisory Authority
upon request to enter into any premises of the
financial institution during normal working hours
and inspect the records kept pursuant to paragraph
(i) of this section and to make any notes or take any
copies of the whole or any part of any such record

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and shall answer any questions of the Supervisory
Authority in relation to such records;

(iv) comply with the guidelines and training requirements
issued by the Supervisory Authority respectively in
accordance with paragraph (vii) or (viii) of section
11.

Reposing of 13. (1) Financial institutions shall pay special attention to all
suspicious complex, unusual or large business transactions, whether
Business
~ 0 1 1 s by

completed or not, and to all unusual patterns of transactions and

financial to insignificant but periodic transactions, which have no apparent
institutions economic or lawful purpose.

(2) Upon reasonable suspicion that the transactions described
in subsection (1) could constitute or be related to money
laundering, a financial institution shall promptly report the
suspicious transactions to the Supervisory Authority.

(3) Financial institutions shall not notify any person, other
than a court, competent authority or other person authorized by
law, that information has been requested by or furnished to a
court or the Supervisory Authority.

(4) When the report referred to in subsection (2) is made in
good faith, the financial institutions and their employees, staffe
directors, owners or other representatives as authorised by law
shall be exempted from criminal, civil or administrative liability,
as the case may be, for complying with this section or for breach
of any restriction on disclosure of information imposed by
contract or by any legislative, regulatory or administrative
provision, regardless of the result of the communication

(5) Criminal offence is committed by a financial institution
or its employees, staff, directors, owners or other authorised
representatives who, acting as such, wilfully fail to comply with
the obligations in this section, or who wilfully make a false or
falsified report referred to above.

(6) Without prejudice to criminal or civil liabilities COP
offences connected to money laundering, a financial institution
and its employees that fail to comply with the requirement of this

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section shall be liable on conviction to a fine of fifty thousand
dollars and in addition the licence of such financial institution
to operate as such may be suspended or revoked by the competent
authority.

(7) The question whether a reasonable suspicion for the
purpose of subsection (2) has been formed shall be determined
objectively having regard to all the facts and surrounding
circumstances.

14. The Supervisory Authority or a law enforcement agency Supervisory
may, apply to a Judge of the High Court and upon satisfying him power

that there are reasonable grounds for believing that - to obtain search warrant.

(i) a financial institution has failed to keep a business
transaction record as provided by the provisions of
section 12 (1); or

(ii) a financial institution has faded to report any business
transaction as provided by the provisions of section
13 (2); or

(iii) an officer or employee of a financial institution is
committing, has committed or is about to commit a
money laundering offence;

he may make an order authorising the Supervisory Authority
to enter any premises belonging to, or in the possession or
under the control of the financial institution or any officer or
employee of such institution and to search the premises and
remove any document. material or other thing therein for the
purposes of the Supervisory Authority or law enforcement
agency as ordered by the Judge and specified in the warrant.

15. The Supervisory ~ u t h o r i t ~ or law enforcement agency Propefiy tacking
may upon application to a Judge of the High Court and upon

2:eFumng
satisfying him that there are reasonable grounds for believing
that aperson is committing, has committedor is about to commit
a money laundering offence or for the purpose of determining
whether any property belongs to, is in the possession or under the
control of any person, he may make an order -

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(i) that any document relevant to -

(a) identifying, locating or quantifying any
property; or

(b) idenming or locating any document necessary
for the transfer of any property;

belonging to, or in the possession or under the control of that
person be delivered forthwith to the Supervisory Authority or
law enforcement agency;

(ii) that a financial institution forthwith produce to the
Supervisory Authority or law enforcement agency
all information obtainedby the institution about any
business transaction conducted by or for that person
with the institution during such period before or
after the date of the Order as the Judge directs.

Mandatory 16. (1) The Supervisory Authority may upon application to
injunction to
enforce mnpliice

a Judge of the High Court and upon satisfying him that a
financial institution has failed without reasonable excuse to
comply in whole or in part with any obligation as providedunder
paragraphs (i), (ii), (iii) and (iv) of section 12, section 13(2) he
may grant a mandatory injunction against any or all of the
officers or employees of that financial institution in such terms
as the Court deems necessary to enforce compliance with such
obligation.

(2) In granting an injunction pursuant to subsection (1) the
Court may order that should the financial institution or any
officer or employee of that institution fail without reasonable
excuse to comply with all or any of the provisions of that
injunction such financial institution, officer or employee shall
pay a financial penalty in the sum and in such manner directed
by the Court.

mer meawes to 17. A person who has ken convicted of a prescribed offence
avoid money
laundering

whether in Antigua & Barbuda or elsewhere or of an offence
under this Act may not be eligible or licensed to carry on the
business of a financial institution.

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18. A person who leaves Antigua & Barbuda with more than Currency reporting
fifty thousand dollars in cash or negotiable bearer instruments when leaving

Antigua &
(in Eastern Caribbean Currency or equivalent foreign currency) Barbuda
without fist having reported the fact to the Supervisory Authority
commits an offence under this Act and is liable on conviction
to a fine of ten thousand dollars.

PART IV

FREEZING AND FORFElTURE OF ASSETS IN
RELATION TO MONEY LAUNDERING

19. (1) A judge of the High Court may, upon application by Freezing of
the competent authority, by order, freeze the property of, or in Rw
possession or under the control of that person wherever it may
be, if the judge is satisfied that a person has been charged or
about to be changed with money laundering offence.

(2) The Court in making any order freezing the property of
that person may give directions to h e disposal of that property
for the purpose of -

(i) determining aqy dispute as to the ownership
of the property or any part thereof;

(ii) its proper ad~inistration during the period of
freezing;

(iii) the payment of debts due to creditors prior to
the order; and

(iv) the payment of moneys to that person for the
reasonable subsistence of that person and his
family.

(3) An order made under this section shall cease to have effect
at the end of the period of forty-eight hours following the hour
the order was made if the person against whom such order was
made has not been charged with a money laundering offence
within that time.

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Forfeiture of 20. (1) When a person is convicted of a money laundering
property proceeds offence, the court shall order that the property, proceeds or
or Instrument-
alities

instrumentalities derived from or connected or related to such an
offence be forfeited and disposed of in such manner as the
Minister may direct.

(2) When, as a result of any act or omission of the person
convicted, any of the property, proceeds or instrumentalities
described in subsection (1) above cannot be forfeited, the court
shall order the forfeiture of any other property of the person
convicted, for an equivalent value, or shall order the person
convicted to pay a fine of such value.

(3) In determining whether or not any property is derived
from or connected or related to a money laundering offence the
court shall apply the standard of proof required in civil
proceedings.

(4) In m&ng aforfeiture order the Court may give directions
for the purpose of determining any dispute as to the ownership
of the property or any part thereof.

21. (1) The measures and sanctions referred to in sections 19

Rights of bona fide and 20 shall apply without prejudice to the rights of bonafide
third parties third parties.

(2) Proper nolifications shall be made so that all those
claiming legitimate legal interest in property proceeds or
instrumentalities may appear in support of their claims.

(3) A third party's lack of good faith may be inferred, at the
discretion of the court or the competent authority, from the
objective circumstances of the case.

(4) The court or ?he competent authority shall return the
property, proceeds or instrumentalities to the claimant, when it
has been demcsms&ated to its satisfaction that -

(a) the claimant has a legitimate legal interest in the
property, proceeds or instrnmentalities;

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(b) no participation, collusion or involvement with
respect to money laundering offence which is the
subject of the proceedings can be imputed to the
claimant;

(c) the claimant lacked knowledge and was not
intentionally ignorant of the illegal use of the
property, proceeds or intrumentalities;

(d) the claimant did not acquire any right in the
property, proceeds or instrumentalities from a
person proceeded against under circumstances that
give rise to areasonable inference that any right was
transferred for the purpose of avoiding the eventual
subsequent forfeiture of the property, proceeds or
instrumentalities, and;

(e) the claimant didall that could reasonably be expected
to prevent the illegal use of the property, proceeds
or instrumentalities.

22. The provisions of sections 19 and 20 shall only apply to Limitations on
property coming into the possession or under the control of a freezing or
person after the coming, into force of this Act. forfeiture of

property

PART V
INTERNATIONAL COOPERATION

23. (1)The court or the competent au~loriey shdnll rctlvrate .h:.tance ul
with the court or other competent ~=i\rQority of mo[her Pate, Fn~etg? s~7:atna
taking the appropriate measures to provide assistance in marers
concerning money laundering offences, in accordance wiwi
Act, and within the limits of their respective legal systems.

(2) The court or the competent authority may receive a
request from the court or other competent authority of another
State to identify, trace, freeze, seize or forfeit the property pro-
ceeds, or instrumentalities connected to money laundering
offences, and may take appropriate actions, including those
contained in sections 19 and 20 of this Act.

(3) A final judicial order of judgment that provides for the
forfeiture of property, proceeds or instrumentalities connected

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to money laundering offences, issued by a court or other
competent authority of another State, may be recognised as
evidence that the property, proceeds or instrumentalities referred
to by such order or judgment may be subject to forfeiture in
accordance with the law.

(4) The court or the competent authority may receive and take
appropriate measures with respect to a request from a court or
other competent authority from another State, for assistance
related to a civil, criminal, or administrative investigalion
prosecution or proceedings, as the case may be, involving
money laundering offences, or violations of any provision of this
Act.

(5) Assistance referred to in this section may include providing
original or certified copies of relevant documents and records,
including those of financial institutions and government agencies,
obtaining testimony in the requested States, facilitaling the
voluntary presence or availability in the requesting state of
persons, including those in custody, to give testimony locating
or identifying persons, service sf documents, examining objects
and places, executing searches and seizures, providing
information and evidentiary items, and provisional measures.

(6) Any provisions referring to secrecy or confidentiality
shall not be an impedient to compliance with this section, when
the information is requested by or shared with the court or othzr
competent authority.

(7) Assistance referred to in this section shall be provided
only to those countries with whom Antigua and Barbuda has
enteredinto mutual assistance treaties or abilateral or multilateral
basis, andall such assistance shall be subject to the terms of such
treaties.

PART VI

MISCELLANEOUS

Money laundering 24. Money laundering is an offence for the purpose of any law
an offence for ex-

tradition purposes relating to extradition or the rendition of fugitive offenders.

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25. Subjecttothe provisions of the Constitution, the provisions secrecy obligations
of this Act shall have effect notwithstanding any obligation as overridden
to secrecy or other restriction upon the disclosure of information
imposed by any law or otherwise.

26. It shall not be unlawful for any person to make any Disclosure
disclosure in compliance with this Act. protected

27. (1) No prosecution in respect of any offence committed Prosecution of
under this Act or the regulations made thereunder shall be offences
instituted except by, or with the consent in writing of the
competent authority or the Director of Public Prosecutions.

(2) All offences under this Act shall be tried summarily
without the consent of the accused unless otherwise directed by
the Director of Public Prosecutions.

28. All prosecutions, actions, suits or other proceedings Limitationsof
brought for any offence, or for the recovery of any fines,penalties pdings
or forfeitures, under this Act or the regulations made thereunder,
shallbe brought within six years next after the date of the offence
committed or the cause of action accrued.

29. (1) The Minister may make regulations for the better Regulations
carrying out d the provisions of this Act and for prescribing
ail ytbilag that needs to be prescribed.

(2) All regulations made under subsection (I) shall be subj?ct
to negative resolution.

30. This Act shall come into force on a day to be appoisitrd ti~mrnmm!~w~.ilt
by the Minister by order published in the Gazette.

FIRST SCXEDULE (section 2)

ACTMTIES OF FINANCIAL INSTITUTIONS

4. "Banking business" and "financial business" as defined in
the Banking Act and the Financial Imstitudons (Non-Banking)
Act;

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2. "International offshore banking business" as defined in the
International Business Corporation Act;

3. Venture risk capital;

4. Money transmission services;

5. Issuing and administering means of payments (e.g. credit
cards, travelers' cheques and bankers' drafts);

6. Guarantees and commitments;

7. Trading for own account or for account of customers in:-

(a) money market instruments (e.g., cheques, bills,
certificates of deposits, commercial paper, etc.);

1 b) foreign exchange;

(c) financial and commodity-based derivative
instruments (e,g., futures, options, interest rate and
foreign exchange instruments etc.);

(d) transferable or negotiable instruments;

8. Money broking;

9. Money lending and pawning;

10. Money exchange (e.g., casa de cambio);

12. Real'property business;

13. Credit unions;
14. Building societies;

15. Trust business.

SECOND SCHEDULE Section 2
PRESCRIBED OFFENCES

Blackmail

Counterfeiting

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Drug Trafficking and related offences

Extortion

False accounting

Forgery

Fraud

Illegal deposit-taking

Robbery involving more than $20,000

Terrorism

Thefts involving more than $20,000
Insider Trading

Passed the House of Representatives
this 5th day of December, 19%.

B. Harris,
Speaker.

S. Walker,
Clerk to the House of Representatives.

Passed the Senate this 19th
day of December, 1996.

M Percival,
President.

S. Walker,
Clerk to the Senate.

Printed at the Government Printing Office, Antigua and Barbuda,
by Rupert Charity, Government Printer

-By Authority, 1997.
1000--3.97 [ Price $7.15 ]