Unusual financial transactions come under closer scrutiny

June 28, 2017

GREAT BAY – The Financial Intelligence Unit (FIU) and the Public Prosecutor’s Office will be working together in the non-reporting project that aims to provide more, timely and better reports of unusual financial transactions to the FIU.
The FIU is the supervisor carrying out investigations into mandatory institutions and compliance with the national ordinance reporting unusual transactions and the national ordinance identification service.
The designated non-financial businesses and professions on the island include notaries, accountants, jewelers, car dealers, administrative offices and real estate agents. The FIU has been diligently working on the registration and providing of information to these businesses and the financial institutions about reporting unusual transactions and performing client due diligence.
A large majority of these businesses and professions adhere to the registration and information requirements; however, a small group does not or not fully comply.
Information about these non-compliant businesses can be transferred to the prosecutor’s office for criminal investigation, based on an article in the national ordinance unusual financial transactions.
In a later stage of the project the results of the FIU audits will be discussed with the Public Prosecutor’s Office to determine if this should be followed up by criminal investigation in case reports are not submitted, or submitted incomplete, or no client due diligence was conducted. “The approach to money laundering and terrorism financing is a global initiative. It is very important for the effectiveness of combating all forms of serious crime as well as the protection of the integrity of the financial and economic market. Capturing the criminal origin of crime proceeds prevents the perpetrators of these crimes from staying out of the reach of the investigating authorities and enjoy, without any obstacles, their criminal proceeds,” the prosecutor’s office said in a statement.
The non-financial businesses and professions are obliged to report unusual transactions to the FIU. “These so-called ‘gatekeepers’ are indispensable in the fight against money laundering and terrorist financing and it is therefore important that they comply with their obligations under the law,” the prosecutor’s office said.
The FIU assesses whether unusual transactions are suspicious. If the transaction is considered suspicious, it can be investigated. If institutions fail to report unusual transactions or if they intentionally do so late then this will work undermining in relation to national and global financial integrity.
“In addition there it can be considered as unfair competition to parties who comply with all relevant laws in this respect. In case of such failure, the prosecutor’s office has the authority to initiate a criminal investigation.”