AML/CFT & Financial Crime Prevention Act, 2025

(1) This Act may be cited as the AML/CFT & Financial Crime Prevention Act, 2025.

(2) This Act shall come into operation on such date as may be appointed by Order of the Sovereign Oversight Authority and published in the Official Gazette.

In this Act, unless the context otherwise requires—

1. “Authority” means the Neves Licensing Authority;
2. “competent authority” means the Authority and any other public body designated by law to perform AML/CFT-related functions;
3. “financial institution” includes any person or entity that conducts one or more financial activities as a business, as may be prescribed;
4. “designated non-financial business or profession” means such businesses or professions as may be prescribed, including trust and company service providers, lawyers, accountants and real estate agents;
5. “reporting person” means any financial institution or designated non-financial business or profession subject to this Act;
6. “beneficial owner” has the meaning assigned to it in the relevant regulations, and refers to the natural person(s) who ultimately owns or controls a customer;
7. “suspicious transaction report” or “STR” means any report filed under this Act on the basis of suspicion of ML/TF or other financial crime.

(1) This Act applies to all reporting persons and such other persons as may be designated by regulations made under this Act.

(2) The provisions of this Act shall prevail over any inconsistent obligation of confidentiality, except for legal professional privilege as may be defined in regulations.

(1) Every reporting person shall identify, assess and understand its money-laundering, terrorist financing and proliferation financing risks, and shall take appropriate steps to document, keep up to date and make such risk assessment available to the Authority on request.

(2) The Authority shall issue guidance to assist reporting persons in applying a risk-based approach.

(1) A reporting person shall conduct customer due diligence (CDD) measures—

1. when establishing a business relationship;
2. when carrying out occasional transactions above the prescribed threshold;
3. where there is suspicion of money laundering or terrorist financing; or
4. where it has doubts about the veracity or adequacy of previously obtained customer identification data.

(2) CDD measures shall include identifying the customer, identifying the beneficial owner, understanding the purpose and intended nature of the business relationship, and conducting ongoing monitoring.

(1) Reporting persons shall apply enhanced due diligence in higher-risk situations, including for politically exposed persons and such other categories as may be prescribed.

(2) Simplified measures may be applied in lower-risk situations, subject to conditions set out in regulations and guidance, but shall not apply where there is suspicion of ML/TF.

(1) Reporting persons shall conduct ongoing monitoring of business relationships, including scrutiny of transactions to ensure that they are consistent with the reporting person’s knowledge of the customer and risk profile.

(2) Records of CDD information and transaction data shall be kept for at least the minimum period prescribed by regulations.

(1) Where a reporting person suspects or has reasonable grounds to suspect that funds are the proceeds of crime, or are related to terrorist financing or proliferation financing, it shall promptly file a suspicious transaction report with the designated financial intelligence function within the Authority or such unit as may be specified by regulations.

(2) Reports shall be filed in the form, manner and timeframe prescribed by the Authority.

(1) No person shall disclose to any customer or third party that a suspicious transaction report has been made, or that an investigation is being, or may be, carried out in relation to that customer, except as permitted by law.

(2) A report made in good faith under this Act shall not constitute a breach of any contractual, statutory or other restriction on disclosure of information.

(1) The Authority, or the designated financial intelligence function, may analyse, disseminate and use information received under this Act for the purpose of combating money laundering, terrorist financing, proliferation financing and related offences.

(2) The Authority may share financial intelligence, subject to safeguards, with domestic and foreign authorities for lawful purposes.

(1) The Authority shall supervise reporting persons for compliance with this Act and any regulations or rules made under it, on a risk-sensitive basis.

(2) For that purpose, the Authority may—

1. conduct on-site and off-site inspections;
2. require information, documents and explanations;
3. test the adequacy of internal controls, policies and procedures;
4. make recommendations and issue directions to address deficiencies.

(1) Where the Authority is satisfied that a reporting person has contravened or failed to comply with this Act, it may impose such administrative sanctions as may be prescribed, including—

1. written warnings or public statements;
2. administrative penalties;
3. conditions, restrictions or limitations on a license or registration; or
4. suspension or revocation of a license or registration in serious cases.

(2) The Authority shall ensure that sanctions are effective, proportionate and dissuasive.

(1) The Authority shall cooperate with law enforcement authorities by providing information, assistance and expert support for investigations and prosecutions relating to offences under this Act or related legislation.

(2) The Authority may refer matters to law enforcement where it has reasonable grounds to suspect that a criminal offence has been committed.

(1) Subject to applicable safeguards and any limitations prescribed by law, the Authority may cooperate with foreign supervisory, financial intelligence and law enforcement authorities, including by exchanging information and providing assistance in line with international standards.

(2) The Authority may enter into memoranda of understanding or other arrangements to facilitate such cooperation.

(1) Information exchanged under this Part shall be used only for the purposes for which it is requested or provided, and shall be subject to confidentiality safeguards.

(2) The Authority shall take reasonable steps to ensure that information shared with foreign authorities is appropriately protected.

The Authority may, with the approval of the Sovereign Oversight Authority where required, issue rules, guidance and directives for the better implementation of this Act, including sector-specific guidance.

(1) Any person who, without reasonable excuse, wilfully obstructs the Authority, fails to comply with a requirement lawfully made under this Act, or contravenes the tipping-off prohibition, commits an offence.

(2) An offence under this section shall be punishable, on conviction, by such fine or term of imprisonment as may be prescribed by regulations or other applicable criminal law.

The Sovereign Oversight Authority may, on the recommendation of the Authority, make regulations for carrying the purposes of this Act into effect, including sectoral obligations, thresholds and technical definitions.