Proceeds of Crime (Money Laundering Prevention) Regulations 2007

PROCEEDS OF CRIME
THE PROCEEDS OF CRIME ACT
REGULATIONS
(under sections 102 and 138)
THE PROCEEDS OF CRIME (MONEY LAUNDERING PREVENTION) REGULATIONS, 2007 (Made by the Minister on the 29th day of March, 2007) L.N. 44E/2007 26/2013

1. These Regulations may be cited as the Proceeds of Crime (Money Citation.
   Laundering Prevention) Regulations, 2007.
   2.-(1) In these Regulations-
   "applicant for business" means a person seeking to form a business relationship, or carry out a one-off transaction, with a regulated business; "business relationship" means any arrangement between two or more persons where the purpose of the arrangement is to facilitate the carrying out of- (a) two or more transactions between the persons concerned; or (b) transactions between the persons concerned on a frequent, habitual or regular basis; "competent authority" has the meaning specified in Part V of the Act; "designated authority" has the meaning specified in Part V of the Act; "employee" means a person (including a person in a senior management position) who has entered into or works under a contract of services, or a contract for services, with a regulated business, whether such contract is express or implied, oral or in writing; "money transfer and remittance agent or agency" means an approved money transfer and remittance agent or agency as defined by
   section 2 of the Bank of Jamaica Act;
   "one-off transaction" means any transaction other than a transaction carried out in the course of a business relationship formed with a regulated business; (The inclusion of this page is authorized by L.N. 5'Al2017] Interpretation.

Duly of financial i$1!tution to report cenain transactions. THE PROCEEDS OF CRIME (MONEY LAUNDERING PREVENTION) REGULATIONS, 2007 "regulated business" means a business falling within the regulated sector as defined in the Fourth Schedule to the Act; "relevant financial business" means any financial business carried on by a regulated business. (2) Any reference in paragraph (1) to an arrangement between two or more persons is a reference to an arrangement in which at least one person is acting in the course of a regulated business. (3) In determining whether a person has complied with any of the requirements of these Regulations, a court shall take account of any relevant guidance that was at the time concerned- ( a) issued by the designated authority or a body that regulates, or is representative of, any trade profession, business or employment concerned; . ( b) approved by the Minister; and (c) published in the Gazette. (4) In proceedings against any person for an offence under this regulation, it shall be a defence for that person to show that he took all reasonable steps and exercised due diligence to avoid committing the offence. (5) In this regulation, "supervisory or regulatory guidance" means guidance issued, adopted or approved by the relevant competent authority. 3.-(1) Subject to the prov1s10ns of these Regulations, it shall be the duty of a financial institution to make a report to the designated authority, either on its own initiative or in response to a request made to it by the designated authority, in relation to any cash transaction involving the prescribed amount being carried out by any person with that institution. · (2) Subject to paragraph (3), paragraph (1) shall not apply to trans￾actions carried out by- ( a) a ministry, department or agency of government; (b) a statutory body or authority; (c) a company registered under the Companies Act, in which the Government or an agency of the Government, whether by the holding of shares or by other financial input, is in a position to influence the policy of the company; ("fl/e inclusion of this page is authorized by L.N. 51 A/2017]

THEPROCEEDSOFCRIME (MONEY LAUNDERING PREVENTION) REGULATIONS. 2007 (d) any Embassy, High Commission, consular office or organization to which the Diplomatic Immunities and Privileges Act applies; or (e) any organization in relation to which an order is made under section 3(2) of the T~chnical Assistance (Immunities and Privileges) Act. (3) An authorized officer of the designated authority may, without prejudice to its rights to utilize disclosure orders or other remedies against any public body, request in writing information from a body specified in paragraph (2) (a), (b) or (c). (4) A financial institution that makes a report under paragraph (1) to the designated authority shall not disclose the existence of that report to any other person except the competent authority. (5) Where a financial institution makes a report in accordance with paragraph (I), that institution, its directors and employees shall, regardless of the outcome of the report, be exempt from- (a) any liability to prosecution for an offence under section 92 or 93 of the Act (money laundering), in relation to any conduct disclosed in the report; and (b) an.y criminal, civil or administrative liability, as the case may be, for breach of any restriction on disclosure of information imposed· by contract or by any legislative, regulatory or administrative provision. (6) In making a report under paragraph (1) or a susp1c1ous transactions report under section 94 or 95 of the Act, a regulated business shall comply with such directions as may be given by the designated authority in relation to-- ( a) previous or current reports; (b) the provision of information required in such reports; and (c) the provision of additional information in relation to queries concerning specific matters arising from the reports, _including- (i) due diligence procedures followed in relation to a specific · transaction; (ii) persons authorized to sign on the account in question; (iii) errors identified in the reports; and (iv) such other matters as may be specified in the directions. (7) A financial i9stitution that fails to comply with paragraph (I) or (4), or a regulated business that fails to comply with paragraph (6), commits [Tho inclusion of this page is authorized by L.N. 141FnOIO J

Exemption from duty to repon under regulation 3.
THE PROCEEDS OF CRIME (MONEY LAUNDERING PREVENTION) REGULATIONS, 2007 an offence and is liable. upon conviction before a Resident Magistrate's Court to a fine not excee~ing four hundred thousand dollars. (8) In paragraph (I)- "cash transaction" means a transaction involving the physical transfer of currency from one person to another; "prescribed amount" means in relation to--- (a) a money transfer and remittance agent or agency, five thousand dollars or more; (b) cambios and bureaux de change, eight thousand dollars or more; (c) any other financial institution, fifteen thousand dollars or more, in the currency of the United States of America or an equivalent amount in Jamaican currency or any other currency. (9) For the purposes of the definition of "cash transaction" and "prescribed amount" in paragraph (8), "currency" refers to the coin and paper money designated as the legal tender of any country and which circulates and is customarily used and accepted as a medium of exchange in the country of issue. 4.-(l) A financial institution may apply in writing to the Minister responsible for finance or a person designated in writing by that Minister for exemption from the requirements of regulation 3 in relation to a transaction or series of transactions carried out or to be carried out by a person who is an established customer of that institution. (2) The Minister responsible for finance may grant an exemption in relation to a transaction or series of transactions specified in an application under paragraph (I) if the Minister is satisfied that the exemption should be granted, having regard to the matters specified in para￾graph (3). (3) The matters referred to in paragraph (2) are as follows- (a) the transaction or series of transactions consists of a deposit into or a withdrawal from an account maintained by that' customer with the financial institution; (b) the customer carries on- (i) a retail business {other than a business that includes the selling of vehicles, vessels, farm machinery or aircraft); [The inclusion of lhis page is authorized by L.N. 141F/2010)

THE PROCEEDS OF CRIME (MONEY LAUNDERING PREVENTION) REGULATIONS, 2007 (ii) a business declared by the Minister by order to be an entertainment business or a hospitality business for the purposes of these Regulations; (c) the account through which the transaction or series of transactions is conducted is maintained for the purposes of any such business; and (d) the amount of cash involved in the transaction or series of trans￾actions does not exceed an amount that is reasonably commensurate with the lawful business activities of the customer. (4) In paragraph (1) "established customer", in relation to an applica￾tion for exemption, means a person who has been a customer of the financial institution for not less than a period of twelve months immediately preceding the date of the application. 5.-(1) A regulated business shall establish and implement such pro￾grammes, policies, procedures, and controls as may be necessary for the purpose of preventing or detecting money laundering. (2) Without prejudice to the generality of paragraph (]), the programmes referred to in that paragraph shall include- ( a) the establishment of procedures to ensure high staridards of integrity of employees; (b) the development of a system to evaluate the personal employment and financial history of those employees; (c) the establishment of programmes for training of employees on a continuing basis and for instructing employees as to their responsibilities in respect of the provisions of the Act and these Regulations; (d) arrangements for an independent audit in order to ensure that the programmes as aforesaid are being implemented; and (e) in the case gf a regulated business that is a member company of a group of companies, the establishment and implementation by that company and the responsible entity for the group of such programmes, policies and procedures and controls that facilitate the prevention or detection of money laundering within that group of companies, including such as permit the disclosure of information by each member company to other companies '}'ithin the group other than information which is protected from disclosure under this Act or any other law. [The inclusion of this page is authorized by L.N. SI A/2017) Regulatory controls by regulated businesses.

Systems and training to prevent money laundering.
THE PROCEEDS OF CRIME (MONEY LAUNDERING PREVENTION) REGU'LATIONS, 2007 (3) For the purposes of this regulation, a regulated business shall nominate an officer of the business who performs management functions to be responsible for ensuring the implementation of the programmes, policies, procedures and controls referred to in paragraph(!), including the reporting of transactions referred to in regulation 3 or section 94 or 95 of the Act. · (4) A regulated business shall consult with the competent authority for the purpose of carrying out its obligations under this regulation. (5) A regulated business that fails to comply with paragraph (1) or (3) commits an offence and is liable upon conviction, before a Resident Magistrate's Court to a fine not exceeding four hundred thousand dollars. (6) In this regulation, "responsible entity", in relation to a member company of a group of companies, is the entity that has responsibility for the development and implementation of anti-money laundering, or terrorism financing prevention, policies and procedures for the group of companies of which the member company forms a part. 6.~I) No regulated business shall form a business relationship, or carry out a one-off transaction, with o~ for another person unless the regulated business- ( a) maintains the following procedures in relation to that business relationship or oire-offtransaction- (i) identification procedures and transaction verification procedures in accordance with regulations 7 and 11; (ii) record-keeping procedures in accordance with regulation 14; (iii) procedures of internal control and cqmmunication in accordance with regulation 15; (iv) procedures to assess the risk of money laundering arising from- (A) its products and business practices (whether new or existing); and (B) developing technologies applied or used in such products or practices, and shall not commence or continue any such product or practice without implementing measures to identify, _manage or mitigate those risks; (b) takes appropriate mrasures from time to time for the purpose of making employees whose duties include the handling of relevant financial business aware of- · [The inclusion of this page is authorized by L.N. 51 A/2017)

THE PROCEEDS OF CRIME (MONEY LAUNDERING PREVENTION) REGULATIONS, 2007 (i) the procedures under sub-paragraph (a) which relate to the relevant financial business in question; and (ii) the provisions of the Act and any regulations made thereunder; and (c) provides such employees from time to time with training in the recognition and handling of transactions carried out by, or on behalf of, any person who is, or appears to be, engaged in money laundering. (2) Subject to paragraph (3), a person who fails to comply with paragraph (1) commits an offence and is liable upon conviction- (a) before a Resident Magistrate- (i) in the case of an individual, to a fine not exceeditlg one million dollars or to imprisonment for a term not exceeding twelve months, or to both such fine and imprisonment; (ii) in the case of a body corporate, to a fine not exceeding three￾million dollars; (b) in a Circuit Court- (i) in the case of an individual, to a fine or to imprisonment for a term not exceeding twenty years, or to both such fine and imprisonment; (ii) in the case of a body corporate, to a fine . . (3) Proceedings for an offence under paragraph (2) shall not be taken against a person for failure to comply with paragraph (l)(c) where another enactment provides for disciplinary or regulatory action that may be taken by the competent authority concerned in respect of the failure and the competent authority opts to take such action in the particular case. 7.-{l) Subject to regulation 8, identification procedures maintained by a regulated business are in accordance with this regulation if such procedures require that- ( a) as soon as is practicable after contact is first made between the regulated business and an applicant for business concerning any particular business relationship or one-off transaction- (i) the applicant for business produces satisfactory evidence of his identity to the regulated business; and (ii) the regulated business takes such measures as lj.re specified

• in its identification procedures as will verify the applicant's
  identity; and
  [The inclusion of this page is authorized by L.N. 51 Al2017] Identification procedures, buslness relationships and transactions.

IO THE PROCEEDS OF CRIME (MONEY LAUNDERING PREVENTION) REGULATIONS, 2007 (b) where the regulated business is unable to verify the applicant's identity, the business relationship or one-off transaction in question shall not proceed any further, and the regulated business shall make an assessment as to whether any disclosure is required under section 94 of the Act ( disclosure as to transactions which constitute or are related to money laundering); (c) as concerns any business relationship, customer information is kept under review with a view to ensuring its accuracy and is updated- (i) at least once in every seven years during the course of the business relationship or at more frequent intervals as warranted by the risk profile of the business relationship as determined by the regulated business in accordance with

• · regulation 7 A; and
  (ii) whenever there is any doubt about the veracity or adequacy ofpreviously~obtained customer information; and (d) where customer information is not updated as required under sub￾paragraph (c), the business relationship in question shall not proceed any further, and the regulated business shall make an assessment as to whether any disclosure is required under section 94 of the Act ( disclosure as to transactions which could constitute or be related to money laundering). (2) Transaction verification procedures maintained by a regulated business are in accordance with the /egulation if such procedures require that- (a) as concerns any business relationship or one-off transaction, the regulated business takes such measures as are specified in its transaction verification procedures as will produce satisfactory evidence as to the purpose and intended nature of the business relationship or one-off transaction in any of the circumstances specified in paragraph (3); and (b) where such evidence is not obtained, the business relationship or one-off transaction in question shall not proceed any further. (3) The circumstances referred to in paragraph (2) are as follows- (a) where any transaction involves the prescribed amount; (b) where transactions carried out in a single operation or m several operations appear to be linked; [The inclusion of this page is authorized by L.N.5'Al2017)

THE PROCEEDS OF CRIME (MONEY LA UNDER/NG PREVENTION) REGULATIONS. 2007 (c) where a transaction is carried out by means of wire transfers; (cl) where there is any doubt about the veracity or adequacy of previously obtained evidence of identity; (e) where the reporting entity is required to make a report under
section 94 or 95 of the Act.
(4) For the purposes of paragraphs (1) and (2), where the applicant for business is a body corporate- (a) the reporting entity shall carry out reasonable due diligence procedures concerning the identification of the body corporate and transaction verification; and (b) evidence that such procedures have been carried out shall be sufficient. (5) In this regulation- "customer information" includes the applicant for business's full name, current address, taxpayer registration number or other reference number, date and place of birth (in the case of a natural person) and, where applicable, the information referred to in regulation 13(1) (c); "prescribed amount" has the meaning assigned to it in regulation 3(8); "risk profile " means the formal assessment made by the regulated business concerned as to the level of risk of money laundering posed to the regulated business by the business relationship or transaction concerned; "satisfactory evidence " for the purposes of paragraph (1) (a), shall include evidence as to identity from a source independent of the regulated business concerned (for example, a recent bill from a utility provider such as a telephone, internet, cable, water or electricity service provider). 7A.--(l) A business in the regulated sector shall establish a risk profile regarding all its business relationships and one-off transactions, with a view to determining the business relationships or one-off transactions which are high-risk. (2) For the purposes of paragraph (1), relationships or transactions which are high-risk include any case where the applicant for business concerned is- (a) a person specified in paragraph (6); [The inclusion of this page is authorized by L.N. 51 "'2017] Risk profile and ongoing due diligence in verification procedures.

12 THE PROCEEDS OF CRIME (MONEY LAUNDERING PREVENTION) REGULATIONS. 2007 (b) a person who is not ordinarily resident in Jamaica; (c) a person acting as a trustee for another in relation to the business relationship or one-off transaction concerned; (d) a company having nominee shareholders, or shares held in bearer form; or (e) a member of such other class or category of persons as the supervisory authority may specify by notice published m the Gazette. (3) Subject to paragraph ( 4), a business ir: the regulated sector shall carry out reasonable due diligence in the conduct of every transaction (whether done in the course of a business relationship or as a one-off transaction) to ensure that the transaction is- (a) consistent with its knowledge of the applicant for business, the applicant's trade or profession, the applicant's risk profile and the stated source of the funds involved; and (b) verified as to the identity of the applicant for business and the source of the funds involved. (4) Where a business relationship or one-off transaction is determined to be high-risk, a business in the regulated sector shall carry out enhanced due diligence procedures with respect thereto. (5) For the purposes of paragraph (4), enhanced due diligence procedures shall require- ( a) obtaining senior management approval to commence or continue the business relationship or one-off transaction; (b) verification of the source of funds or wealth held by the applicant for business and all other persons concerned in the business relationship or one-off transactions; (c) enhanced monitoring throughout the course of the business relationship or one-off transaction, which shall include- (i) a requirement for more frequent updating of customer information; (ii) a requirement for more detailed information as to the nature of the business relationship or one-off transaction; (iii) a requirement for more detailed information about the applicant for business and other parties concerned in the transaction; (iv) an increase in the number and timing of controls applied to the transaction; [The inclusion of this page is authorized by L.N. 51Al2017)

THE PROCEEDS OF CRIME (MONEY LA UN DERING PREVENT/Of,) REGULATIONS. 2007 (v) the selection of patterns of actions that require more detailed examination; and (vi) a requirement that the first payment in the transaction be carried through an account, in the name of the applicant for business, with a financial institution; and (d) identification and verification standards equivalent to those required by the Act and any regulations made under the Act. (6) The persons specified for the purposes of paragraph (2)(a) are- (a) any individual who, in relation to any State, carries out functions analogous to the functions of any of the following persons- (i) a head of State; (ii) a head of Government; (iii) a member of any House of Parliament; (iv)· a Minister of Government; (v) a member of the judiciary; (vi) a military official above the rank of Captain; (vii) a member of the police of or above the rank of Assista.nt Commissioner; (viii) a Pennanent Secretary, Chief Technical Director or chief officer in the charge of the operations of a Ministry, department of Government, executive agency or statutory body, as the case may be; (xi) a director or chief executive of any company in which the Government owns a controlling interest; (x) an official of any political party; and (b) an individual who holds or has held a senior management position in an international organization; and (c) an individual who is a relative or is known to be a close associate of a person described in sub-paragraph (a) or (b). [The inclusion of this page is authorized by L.N. 51 Al2017]

J)<.'miuim1s amounts not requiring idcn1ifica￾tion.
Electronic funds transfers.
THE PROCEEDS OFCRJME (MONEY LAUNDERJNG PREVENTION) REGULATIONS. 2007 (7) In this regulation-

• 'close associate'· means an individual who is a business partner, or
  associated in any other form, in a common commercial enterprise with the person concerned;
• 'relative ", in relation to the person concerned, means his spouse,
  his child (including his step child or adopted child), the spouse of his child, his parents, his brother or his sister; "spouse" includes- ( a) a single woman who has lived and cohabited with a single man, as if she were, in law, his wife for a period of not less than five years immediately preceding the date of application; and (b) a single man who has lived and cohabited with a single woman, as if he were, in law, her husband for a period of not less than five years immediately preceding the date-of application; "single woman" and "single man" used with reference to the definition of "spouse" include a widow or a widower, as the case may be, or a divorcee. 8.--( 1) Unless the nature of the transaction is such as to give rise to the knowledge or belief, or reasonable grounds for the knowledge or belief, that the transaction constitutes or is relate4 to money laundering, the identification procedures set out in regualtion7 shall not be required in the case of customer transactions of a value of- ( a) two hundred and fifty dollars in the currency of the United States of America or its equivalent in any other currency or less; or (b) such other amounts as the Minister may by order published in the Gazette prescribe, in relation to any category of regulated business specified in the order (and different amounts may be prescribed in respect of different categories of regulated business). (2) The provisions of paragraph ( l) do not apply to a money transfer and remittance agent or agency. 9.--( l) Every regulated business conducting wire transfers or any other electronic funds transfer shall ensure that it receives and includes in its records accurate and relevant information on funds transfers throughout the [The inclusion of this page is authorized by L.N. 5' A/2017]

THE PROCEEDS OF CRIME (MONEY LAU.'DERIXG PRDEVT/01\ ) REGULATIONS. 2007 payment process and chain, including the correct name, address and account number (if any), of the persons involved, the reference number assigned to the transaction, any other relevant reference numbers and the instructions given in relation to the transfer. (2) For the purposes of paragraph {I), "persons involved" means- (a) the holder of the account that is the source from which the funds are transferred; (b) the person that places the order for the transfer of the funds; and (c) every recipient of the funds transferred. (2A) In the case of a transfer involving an amount exceeding one thousand dollars in the currency of the United States of America or its equivalent in any other currency the relevant information for the purposes of paragraph (1) shall include- (a) a national identification number; (b) the customer identification number; or (c) the date and place of birth, of the person who places the order for the transfer and the holder of the account that is the source from which the funds are transferred. (2B) The business from which the transfer originates shall give to the business to which the funds are transferred the information mentioned in paragraphs (I) and (2A) as relates to the persons mentioned in paragraph (2A), within three days (excluding Saturdays, Sundays and public general holidays) of being requested to do so by the business to which the funds are transferred. (3) A person who breaches this regulation commits an offence and is liable on conviction before a Resident Magistrate to- (a) in the case of an individual, a fine not exceeding one million dollars or to imprisonment for a term not exceeding twelve months, or to both such fine and imprisonment; (b) in the case of a body corporate, a fine not exceeding three million dollars. 10.-{I) Paragraph (2) shall apply in any case where- (a) a payment is to be made by an applicant for business; (b) it is reasonable in all the circumstances for the payment to be made, or the details thereof to be sent, by post or by telephone or any other electronic means; and [The inclusion of this page is authorized by L.N. 5'Al2017) 14.01 Paymem by pos1, ClC

14.02 ldemifica1ion
procedures r ( transactions on behalf of another.
THE PROCEEDS OF CRIME (MONEY LAW .:DERIXG PREl'E.','T!Ol'v) REGULATIONS. 2007 (c) satisfactory evidence of the identity of the applicant for business would, but for this regulation, be required under identification procedures adopted in accordance with regulation 7. (2) The fact that the paymem is debited from an account held in the applicant's name at any of the financial institutions specified in paragraph (4) (whether the account is held by the applicant alone or jointly with one or more other persons) shall constitute the required evidence of identity for the purpose of regulation 7. (3) For the purposes of paragraph (I), it shall be immaterial whether the payment or its details are sent or given to a regulated business or to some other person acting on its behalf. (4) The financial institutions referred to in paragraph (1) are- (a) a bank licensed under the Banking Act; (b) a financial institution licensed under the Financial Institutions Act; (c) a building society registered under the Building Societies Act; (cl) a society registered under the Co-operative Societies Act. 11.--{l) This regulation applies Where, in relation to any relevant financial business, a person is, or appears to be an agent, whether acting on behalf of another person or on behalf of a body corporate or other legal arrangement (such as a trust or settlement). (2) For the purposes of this regulation, "agent" means an applicant for business who acts otherwise than as principal. (3) Identification procedures maintained by a regulated business are in accordance with this regulation if, in a case to which this regulation applies, the regulated business requires reasonable measures to be taken for the purpose of- ( a) establishing the identity of the principal, the agent, each beneficiary and the ultimate beneficial owner of the property or funds the

• subject of the relevant financial business concerned;
  (b) verifying that the agent is authorized to act on behalf of the principal. (4) In determining for the purposes of paragraph (3), what constitutes reasonable measures in any particular case, regard shall be had to all the circumstances of the case and, in particular, to the best practice which, for the time being, is followed in the relevant field of business and is applicable to those circumstances. (5) Without prejudice to the generality of paragraph (4), if the conditions mentioned in paragraph (6) are fulfilled in relation to an agent (whether the principal is undisclosed or disclosed for reference purposes [The inclusion of this page is authorized by L.N. 51 Al2017]

THE PROCEEDS OF CRIME (MONEY LA U.11,'0ERING PREl'El'T/0 ,11,) REGULATIONS. 2007 only) it shall be reasonable for a regulated business to accept a written assurance from the agent to the effect that evidence of the identity of any principal on whose behalf the agent may act in relation to the regulated business has been obtained and recorded under procedures maintained by the agent. (6) The conditions referred to in paragraph (5) are that, in relation to the business relationship or transaction inl question, there are reasonable grounds for believing that- (a) the agent is based or incorporated in, or fonned under the law of, a country in which there are in force provisions at least equivalent to those mentioned in Part V of the Act; and (b) the agent- (i) would be a regulated business if the agent were situated in Jamaica; and (ii) acts in the course of a business in relation to which a foreign regulatory authority exercises regulatory functions and cqi;itrol. 12.-(J) Subject to paragraph (2), where- (a) there are reasonable grounds for believing that the applicant for business is a regulated business; or (b) any one-off transaction is carried out with or for a third party pursuant to an introduction effected by a person who identifies the third party and has provided an assurance in accordance with paragraph (2), paragraph (IA) shall apply. (IA) Where this paragraph applies, regulations 7 and I I shall be construed as entitling the regulated business to rely on the steps taken by the person giving the assurance in accordance with paragraph (2), as to the carrying out the identification procedures required under those regulations, if- (a) the information required to be obtained pursuant to the procedures is transmitted by that person to the regulated business as soon as is reasonably practicable after the introduction or without delay upon request by the regulated business; and (b) the regulated business is satisfied, based on a risk profile determined in accordance with regulation 7 A, that the business relationship or one-off transaction is not high-risk. [TI1e inclusion of this page is authorized by L.N. 51;.12017) 14.03 lden1ificarion procedures. exemption

14.04
Identification procedures, supplemen• tary provisions.
THE PROCEEDS OF CRIME (MONEY LAUNDERING PREVENTION) REGULATIONS. 2007 (2) The assurance referred to. in paragraph (1) is that evidence of the identity of all third parties introduced by that person will have been obtained and recorded under procedures maintained by him and- (a) that person falls within sub-paragraph (1) (a); or (b) there are reasonable grounds for believing that the conditions mentioned in regulation 11 (6)(a) and (b) are fulfilled in relation to that person. (3) Nothing in this regulation shall apply in any circumstances where any person handling the transaction knows or suspects that the applicant for business is engaged in money laundering or that the trans￾action is carried out on behalf of another person engaged in money laundering. ,/' 13.--(1) For the purposes of these Regulations, evidence of identity is satisfactory if- (a) it is reasonably capable of establishing I that the applicant for business is the person he claims to be; (b) the person who obtains the evidence is reasonably satisfied, in accordance with the procedures maintained under these Regulations in relation to the regulated business concerned, that such evidence establishes the fact that the applicant for business is the person he claims to be; (c) in the case of any transaction involving- (i) a settlement, trust or other type oflegal arrangement, it- (A) establishes the identity of (as the case may require) the settlor, legal owner or other person who exercises effective control of the legal arrangement, and each beneficiary under the legal arrangement (including the ultimate beneficial owners of the property concerned in the arrangement); and [The inclusion of this page is authorized by L.N. 51Al2017]

THE PROCEEDSOFCRIME (MONEY LAUNDERING PREVENTION) REGULATIONS. 2007 (B) discloses the legal status of the arrangement and the provisions regulating the power to bind the parties involved; (ii) a person other than an individual- (A) it establishes the identity of the individuals who exercise ultimate effective control over that person; or (B) in any case where an individual who exercises ultimate effective control over that person cannot be identified, it establishes the identity of the senior manager who makes or implements decisions with respect to the activities of that person; (iii) a body corporate (other than a body corporate listed on a stock exchange) which is licensed or otherwise authorized under the laws of the jurisdiction in which the body corporate is registered, it- (A) establishes the identity of each director and shareholder (if any) holding ten per cent or more of the voting rights in the body corporate; (B) discloses the address of the body corporate and the provisions regulating the power to bind the body corporate; and (C) provides evidence of incorporation. [The inclusion of this page is authorized by L.N. S'A/2017) 14.05

14.06
Record￾keeping procedures.
THE PROCEEDS OF CRIME (MONEY LAUNDERING PREVENTION) REGULATIONS. 2007 (2) In detennining for the purposes of regulation 7 the period within which satisfactory evidence of the identity of the applicant for business has to be obtained in relation to any particular business relationship or one-off transaction, all the circumstances shall be taken into account, including, in particular- (a) the nature of the business relationship or the one-off transaction concerned; (b) the geographical locations of the parties; and (c) whether it is practical to obtain the evidence before commitments are entered into between the parties or before any money is transferred. (3) Nothing in paragraph (l)(c)(iii) shall be construed as exempting a body corporate, or a director or shareholder of a body corporate, from the identification procedures required by these Regulations in any case where any person handling a transaction involving any of those entities suspects that the transaction amounts to money laundering. 14.--{l) Record-keeping procedures maintained by a person under regulation 6(l)(a) are in accordance with this regulation if they require the keeping of a record for the prescribed period in accordance with paragraphs (2), (3) and (4). (2) A record shall be kept in any case where evidence of the identity of an applicant for business is obtained under procedures maintained in accordance with regulation 7 or 11. (3) The record referred to in paragraph (2) shall indicate the nature of the evidence and shall- (a) comprise a copy of the evidence; [The inclusion of this page is authorized by L.N. S1A/2017)

THE PROCEEDS OF CRIME (lv!ONEY LAUNDERING PREVENTION) REGULATIONS. 2007 (b) provide such infonnation as would enable a copy of it to be obtained; or (c) in a case where it is not reasonably practicable to comply with sub-paragraph (a) or (b), pr:>vide sufficient information to enable the details as to a person's identity contained in the relevant evidence to be re-obtained. ( 4) In relation to all relevant financial business a record shall be kept of each transaction, in such manner and form as shall facilitate the reconstruction of transactions and the provision of information to the designated authority or competent authority as may be required under any provision of the Act, these Regulations, or any other enactment. (5) For the purposes of this regulation, the prescribed period is- (a) a period of seven years commencing on the date on which the relevant financial business was completed or the business relationship was terminated, whichever occurs later; or (b) such other period as may be specified by the designated authority, by notice in writing given to the business concerned, before the expiration of the period referred to in sub-paragraph (a).
15. Internal reporting procedures maintained by a regulated business shall
include provisions-
( a) for identifying a person in accordance with regulation 5 (3) (in this regulation referred to as "the nominated officer") to whom a report is to be made of any information or other matter which- (i) comes to the attention of a person handling relevant financial business; and (ii) in the opinion of the person handling that business, gives rise to some knowledge or suspicion that another person is engaged in money laundering; (b) for requiring that any such report be considered in the light of all other relevant information by the nominated officer, or by another person, acting on behalf of the nominated officer, for the purpose of determining whether or not the information or other matter contained in the report gives rise to such knowledge or suspicion; (c) for any person charged with considering a report in accordance with paragraph (b) to have reasonable access to other information that may be of assistance to him and is available to the regulated business; and [The inclusion of this page is authorized by L.N. 5'Al2017] Internal reporting procedures.

16 THE PROCEEDSOFCRIME (MONEY LAUNDERING PREVENTION) Regulated businesses not to operate anonymous accounts, etc Form in which repons shall be made.
Schedule
form I.
REGULATIONS. 2007
(d) for any person charged with considering a report in accordance with sub-paragraph (b) to make such reports to the designated authority as may be required under section 95 of the Act. 16.-( 1) A regulated business shall not, in the course of its relevant financial business, permit any person to conduct any transaction with the regulated business by means of a numbered account, an anonymous account or any account in a fictitious name. (2) In this regulation- "anonymous account" means any account for which the regulated business does not have such information as would, when subjected to the identification and transaction verification procedures required by these Regulations, constitute evidence of identity which meets the requirements of regulations I I and 13; "fictitious name" means any name which when subjected to the identification procedures required by these Regulations does not constitute, in relation to the person conducting the transaction, such evidence of identity as meets the requirements of regulations I I and 13; "numbered account" means an account that is identifiable solely by reference to the number or numbers assigned to that account. 17.-(1) Subject to paragraph (4), every disclosure to the designated authority made pursuant to section 94 or 95 of the Act (suspicious transactions reporting) shall be contained in a report in accordance with Form 1 of the Schedule. (2) Subject to paragraph (4), every report made pursuant to regulation 3 (threshold transactions reporting) shall be in accordance with Form 2. Form 2 of the Schedule. (3) A report made under paragraph (1) or (2) may- (a) contain such adjustments to the applicable form set out in the
Schedule as may be approved by the designated authority; and
(b) be submitted in electronic form.
(4) A report from a regulated business in respect of relevant financial business conducted outside of Jamaica, submitted pursuant to paragraph (I) or (2), may be in such form as may be approved by the designated authority. (5) Upon receiving a report submitted pursuant to paragraph (1) or (2), the designated authority shall issue to the regulated business a receipt therefor:
[The inclusion of this page is authorized by L.N. 51A/2017]

THE PROCEEDSOFCRIME (MONEY LAUNDERING PREVENTION) REGULATIONS, 2007 Provided that no such receipt shall be construed as signifying compliance with these Regulations as regards the contents of the report. 18.---{1) Every regulated business ·shall ensure that its branches and subsidiaries situated outside of Jamaica implement, where necessary, and conform with, the standards and conduct set out in the Part V of the Act and in these Regulations:
Provided that wherever there is a difference in applicable standards between the jurisdiction where the regulated business is located and the jurisdiction where any of its branches or subsidiaries is located there shall be compliance with the higher required standard. (2) Where any regulated business becomes aware of any instance in which any of its overseas branches or subsidiaries is unable to conform to the stan_dard and conduct referred to in paragraph (] ), the regulated business shall ensure that in each such instance- (a) the branch or subsidiary advises it of such inability; and (b) the regulated business advises the competent authority of the inability and the reason therefor. (3) A person who contravenes this regulation commits an offence and is liable on conviction before a Resident Magistrate- (a) in the case of an individual, to a fine not exceedrng one million dollars or to imprisonment for a term not exceeding twelve months, or to both such fine and imprisonment; (b) in the case of a body corporate, to a fine not exceeding three million dollars. 19.---{l) Except as otherwise provided in this regulation, the obligations of a regulated business under these Regulations shall apply, in respect of any business relationship formed by the regulated business prior to the relevant date, as it applies in respect-Of an applicant for business. I (2) Nothing in these Regulations shall require a regulated business to obtain information or evidence in respect of any transaction conducted prior to the relevant date. (3) For the purposes.of this regulation, the "relevant date" is the 29•h day of March, 2007. [The inclusion of this page is authorized byL.N. 51 Al2017] Application of standards to overseas branches and subsidiaries Requirements re existing customers.

18 THE PROCEEDS OF CRIME (MONEY LAUNDERING PREVENTION) REGULATIONS, 2007
SCHEDULE
FORM I
(Regulation 17)
PROCEEDS OF CRJME (MONEY LAUNDERING
PREVENTION) REGULATIONS
Suspicious Transactions Report
PART 1 Reporting Financial Institution Information
I. Name of Financial Institution
2. Address of Financial Institution 3. TRN.
4. Branch Address
5. Type of Financial Institution
PART2 Person(s) involved in Transaction(s) 'iection A Persons on whose behalf Transaction is conducted (Customer) I 6. Multiple persons [ ]
7. Individual's last name or organization's name 8. ·First name I 9.M.I.
10. Pennanent Address 11. Date ofBirth (DD/MM/YYYY)
12. TRN. ,
13. Method used to verify identity: a. [] Examined identification credential/document
b. [] Known Customer - Information on file
14. Describe identification credential: a. [ ] Driver's licence
d. [ ] Other, specify b. [ ] Passport C. [ ] National I.D. e. issued by: f. Number:
15. Customer's Account No. and Type
16. Occupation/Business/Principal Activity:
Section B Person(s) conducting transaction (Agent) 17. Multiple persons [ J See Part 6
18. Individual's last name orrganization's name
I
19. First Name 120. M.I.
21 . Pennanent Address 22. Date ofBirth (DD/MM/YYYY)
23. TRN. I
24. Method used to verify identity: a. [ ] Examined identification credential/document
b. [ J Known Customer- Infonnation on file
25. Describe identification credential: a. [ ] Driver's licence b. Passport [ ] c. [ ] National I.D.
d. [ ] Other, specify e. issued by: f. Number:
Section C Person(s) benefitting from transaction 26. Multiple persons [ J See Part 6
27. Individual's last name or organization's name 128. First Name 129.M.I.
[111e inclusion of this page is authorized by L.N. S'A/2017]

30. Pem1anenc Address
    PART3 I PreJJQr~r l,rformatio11
    3 I. Las1 Name
31. Title
32. Sig11;"1rurc
    THE PROCEEDS OF CRIME (MONEY LAUNDERING PREVENTION) REGULATIONS. 2007
33. First Name
34. Phone No.
35. Date of Sigrnuure (00/MM/YYYY)
    PART ~ I Contact for Assistance (If ditfer<nt than preparer info. in Part 3)
36. Last Name 39. First Name
    41 . Title 42. Phone No.
    JJ. M.I.
37. M.1.
    PARTS I Transaction Details 11. Multiple Transaction ( s)
38. Transac1ioll Type 3. Date JDOIMM/YYYYI 4. Title
39. Tr:rns.:iction Currency I 6. Transaction Account
40. Accounts AflCctc:d lifa11_1·) 8. JA$ Equivalent 9. JAS Exchange Rate
    Type Number
    I 0. USS Equivalent II. USS Exchange
    Rare

• 12. Source of funds

13. Trm1s.actio11 Type 14. Date (DDIMM/YYYY) 15. Time

14. Transaction Currency 117. Transoction Amount
    I 18. Accounts Affected (if m1_,·) 19. JAS Equivalent 10. JAS Exchrg• Rate Type Number :21. USS Equivalent 21. USS Exchange Rate :!3. Source of funds

15. Transaction Type 25. Date IDD/MM/YYYY) ~6. Time

16. Transaction Currency 2 S. Transaction Account
    [The inclusion of this page is authorized by L.N. 14lf/2010 J

17. Accolint Affected
    Type Number

18. Tromsaction Typ,:

19. Trnnsacrion Curr~ncr
    -10. Account Affected
    Type Number
    PART6
    ~
    THE PROCEEDS OF CRIME (MONEY LAUNDERING PREVENTION) REGULATIONS. 2007

20. JAS Equivalent

21. USS Equivalent

22. Source of funds

23. Date CDD/MM/YYYYl I 39. Transaction Account I 41. JAS Equivalent

24. USS Equivalen1

25. Source or funds
    J Reason for Suspicion
    .
    [The inclusion of this page is authorized by L.N. 141F/2010 J 3 1. JAS Exchange Rate

26. USS Exchange Rate
    j 37. Time

27. JAS E.:changc Rate

28. US5 Exchange R tit:

'
THE PROCEEDS OF CRIME (MONE'r LAUNDERING PREVENTION) REGULATIONS. 2007 Forni II ProceeLls of Crime (Money Laundering Pre'ention) Regulations Threshold Transftctions Rennrt
PART! Reporting Financial lnstirution Information
I. Name of Financial Institution
2. Address of Financinl lnc;titution 3. TRN.
4. Branch address
5. Type of Financial Institution
PART2 l Person(s) involved in Transaction(s)
Section A I Persons on whose behalf Transaction is conducted (Customer) l 6. Multiple persons [ J
7. lndiv·iduars last name or organiz.ation1
s name 8. First name
See Part 6
I 0. Permanent Address 11. Date of Birth (DD/MMIYYYY)
112. TRN.
<Regulntio11 17}
, 9. M.L
13. Method used to verify identity: a. [ 1 Examined identification credential/document b. [ J Known Customer- Information on file
14. Describe idenlificalion credential: a. [ J Driver's I ice nee b. [ J Passport C. [ ] National I.D. d. (] Other, specity
C issued bv: 1: Number:
15. Customer's Account No. and Type
16. Occupation/Business/Principal Activity:
Section B 1 Pcrson(s) conducting transaction (Agent) 111. Multiple persons [ J See Part 6
18. Individual's last name or organization's name 119. First Name 120. M.I.
21. P~m,anent Address I 22. Date ofBirth (DD/MM/YYYY)
f 23. TRN.
24. Method used to verify identity a ( ] Examined ldenlification credential/document b ( ] Known Customer-Information on tile
25. Describe identification credential: a. [ ] Driver's licence b. [ J Passport c. [ J National 1. D. d. [ J Other specify
e. Issued bv: f Number
[The inclusion of this page is authorized by L.N. !41F/2010 J

n THE PROCEEDS OF CRIME {MONEY LAUNDERING PREVENTION) REGULATIONS. 2007
Section C J Person(s) benefiting from transaction (Agent) J 26. Multiple persons [ J See Pan6
27. Jndividuars last name or organization's name 28. First Name 29. M.!.
30. Address
PART 3 J Preparer lnformntion
31. Last Name 32. First Name 33. M.I.
34. Titk 35. Phone No.
36. Signature 37. Dato of Signature (DD/MMNYYY)
PART4 1 Contact for Assistance (If different than preparer info. in Part 3) 3 8. La.st Name 39. First Name 140. M.I. .
41. Title 42. Phone No.
I
PARTS I Transaction Details . 11. Multiple Transaction [ I
2. Tronsaction Type 3. Date (DDIMM/YYYY) , 4. Title
5. Transnction Currency 16. Transaction Account
7. Accounts Affected ((f a11y) 8. JA$ Equivalent 9. JAS Exchange Rate
Type Number 10. US$ Equivalent 11. US$ Exchange Rate
12. Source of funds
13. Transaction Type 14. Date (DD/MM/YYYY) 11.:5. Time
[The inclusion of this page is authorized by L.N. l 4 lf/20 IO J

16. Transaction Currency
    I 8. Accounts Affected {i/ any}
    THE PROCEEDS OF CRIME (MONEY LAUNDERING PREVENTION) REGULATIONS. 2007
17. Transaction Amount 1
18. JA$ Equivalent
    Type Numb.er
19. US$ Equivalent
20. Source of funds
21. Transaction Type. 25. Date (DD/MM/YYYY)
22. Transaction Currency J 28. Transaction Account 1
23. Account Affected {i/ any) 30. JAS Equivalent
    Type Number
24. USS Equivalent
25. Soui:ce of funds
26. TJ"ansaction Type 36. Date (DD/MM/YYYY)
27. Transaction-Cun·ency 139. Transaction Account I
28. Account Affected {i/ any) 41. JA$ Equivalenl
    Type Number 43. USS Equivalent
29. Source of funds
    PART6 I Multiple Persons
    I. Person Involvement
    a. I 1 On behalfof(c11st<>merl b. r 1 Conductin2 (a•entl c. f l Beneficiarv
30. Individual's last name or organization·s name 3. First name
    [The inclusion of this page is authorized by L.N. 141F/2010 J
31. JA$ Exchange Rate
32. US$ Exchange Rate
33. Time
    3 I. )A$ Exchange Rate
34. USS Exchange Rate
35. Time
36. JA$ Exchange Rate
37. USS Exchange Rate
    4M.I.

24 THE PROCEEDS OF CRIME (MONEY LAUNDERING PREVENTION) REGULATIONS. 2007
5. Peunanent address 6. Date of Birth (DD/MM/YYYY)
7. TRNNo.
8. Melhod used to vel'ify identity: a. [ ] Examined identification credential/ document b. [ ] Known Customer-Information on file
9. D~scribe identification credential: a. [ ] Driver's licence b. [ ] Passport c. [ ] National I.D. d. [ ] Other. specify:
e. Issued by: f. Number:
10. Account No. and Type (if customer);
II. Occuoation/Business/Princioal Activitv:
12. Person Involvement
a. [ ] On behalfof(c11s/0111er) b. [ ] Conducting (agent) c. [ ] Beneficiai,• J3. lndividual"s Jase name or organization·s name 114. First name 115. M. I.
16. Permanent address 117. Date ofBirth (DD/MM/YYYYl
118. TRN.
19. Method used to verify identity: a. [ ] Examined identification credential/document b. [ J Known Customer - lnfonnation on file
20. Describe identification credential: a. [] Drivcr"s licence b. [ ] Passpo11 c. [ ] National I.D. d. [ J Other. specify
e. Issued bv: f. Number:
21. Account No. _and Type fi/ c11S1omer)
22. Occupation/ Business/ Principal Activity:
23. Permanent lnvolvement
a. [ J On behalf of (customer) b. Conducting (agent) c. [ ] Beneficiary
24. Individual's last name or organization·s name 25. First name \ 26. M.l.
27. Pennanent address 28. Date of Binh (DD/MM/YYYY)
29. TRN.
30. Method used to verify identity: a. [ ] E,amined identification credential/document b. [ ] Known Customer-lnfonnation on fi le:
31. Describe identification credential: a. [ ] Driver·s licence b. [ J Passport c. [ J National I.D. d. [ ] Other. specify:
e. Issued by: t: Number:
32. Account No. and Type (i/ customer):
33. Occupation/Business/Principal Activity:
[The inclusion of this page is authorized by L.N. l41F/201 0 J

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