What Bill seeks to change in money laundering law

By Louis Kalumbia

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Dar es Salaam. The proposed amendment of the Anti-Money Laundering Act, which, among other changes, seeks to allow people charged with money laundering to

be granted bail, has drawn positive reaction.

Parliament’s Budget Committee last Friday invited views from stakeholders to after the Minister for Finance and Planning, Dr Mwigulu Nchemba, submitted the proposed amendments to the National Assembly for debate.

At 9pm yesterday, the Parliamentary Budget Committee was expected to conclude the exercise to collect opinion from different stakeholders.

Speaking to The Citizen on the matter yesterday, the Legal and Human Rights Centre (LHRC) executive director, Ms Anna Henga, said granting bail to persons charged in court with money laundering is of great interest all roound.

“This is among the good things included in the amendment proposals. During our submission in Dodoma most Members of Parliament (MPs) supported us,” she said over the phone.

She also said that, basically, the proposal is to amend the Anti-Money Laundering (Amendment) Act to improve the efficacy of the Financial Intelligence Unit (FIU), as well as increase the number of members of the National Anti-Money Laundering Multi-Disciplinary Committee to bolster its efficiency.

She said more members were expected to come from Zanzibar, representing the office of the Zanzibar Director of Public Prosecution (DPP), the Zanzibar Anti-corruption and Economic Crimes Authority (Zaeca).

Others are the Zanzibar’s Drugs and Prevention of Illicit Traffic Drugs Authority, and the Office of the Director of Public Prosecution for the both the Mainland and Zanzibar.

“LHRC has, however, recommended inclusion of a member from the Anti-Human Trafficking Committee because monies from the vice can easily be laundered,” she said.

She said the absence of sections preventing a reporting person from providing information to people other than competent authorities has to be seriously considered.

Likewise, the absence of the definition of “competent authority” could lead to contradictions in future as some individuals may refer to themselves as ‘competent authorities,’ according to her.

“The law also considers individuals to be guilty for failing to provide information on signs of money laundering. Our proposal is that the presumption should be amended - and the court should be left to give its judgement,” she said.

Furthermore, she said, LHRC has proposed amendment of the Prevention of Terrorism Act that could have anybody as the suspect.

“For instance, anybody accused of environmental pollution that adversely affects public will be regarded as a terrorist. However, their penalties are set at Sh100 million for an individual and Sh500 million for an institution,” she said.

Ms Henga’s views were seconded by an independent advocate, Mr Dominick Nduguru, who said that, without introducing sections that allow the granting of bail to suspects of money laundering, then the amendments would be useless to citizens.

“That is what complaints from most citizens are about. Someone could stay behind bars for four or five years over money laundering charges, adversely impacting his/her dependents” he said.

“The amendment should also differentiate between theft and money laundering because some citizens have adversely suffered due failure to differentiate the two.”

However, tabling the Bill in Parliament, Finance and Planning minister, Mwigulu Nchemba said Sections 4 and 5 were proposed to be amended to enable the FIU to collect and update statistics.

Also, the FIU should cooperate with law enforcement agencies and exchange information with them and other stakeholders.

“Amendment of Section 8 is proposed by adding representatives from the National Prosecution Office, the Office of the Director of Public Prosecutions in Zanzibar, Zaeca, the Drugs Control and Enforcement Authority (DCEA), the Commission for National Coordination and Drugs Control Zanzibar to the membership of the National Anti-Money Laundering Multi-Disciplinary Committee,” said Dr Nchemba.

Also, amendment is proposed to Section 9 conferring upon the National Committee the responsibility of coordinating the national risk assessment, ensuring that it is updated regularly, and ensuring that its functions include advising the Governments on matters related to proliferation financing.

Furthermore, he said, Section 12 is proposed to be amended to distinguish between offences of money laundering from the underlying predicate offence aimed at removing the possibility of a person being convicted of the predicate offence - and later for money laundering.

“It is proposed to add a new section 15A that would set the conditions for reporting persons to conduct customer due diligence measures,” said Dr Nchemba.

Reporting persons are given the duty to identify politically exposed persons and beneficial owners of companies and other legal arrangements when conducting customer due diligence, according to him.

He said sections 16, 18 and 19 are proposed to be repealed and replaced in order to impose a mandatory requirement for every reporting person to establish and maintain relevant records for countering money laundering, financing terrorism and proliferation financing.

The provisions also impose a condition for reporting persons to establish and maintain internal policies, controls and procedures for combating money laundering and countering financing of terrorism and proliferation financing.