SENATE ENDORSES MONEY LAUNDERING AMENDMENT BILL
Senate has endorsed Money Laundering and Proceeds of Crime (Amendment) Bill, 2016 without amendments.
This is after the Leader of the House and Minister of Finance, Dr 'Mamphono Khaketla piloted the aforementioned Bill for the House to endorse after it had resolved itself into Committee.
She asserted that the object of the Bill is to effect amendments to the Money Laundering and Proceeds of Crime Act No.4 of 2008 known as the Parent Act in order to address deficiencies established by the Eastern and Southern Africa Anti-Money Laundering Group Mutual Evaluation report of Lesotho of September, 2011 so that the Legal and Institutional Framework to implement measures to fight money laundering and terrorist financing can to a large extent comply with mandatory international standards.
Dr Khaketla further divulged that the Bill thus seeks to provide Lesotho Revenue Authority (LRA), Directorate on Corruption and Economic Offences (DCEO), and Lesotho Mounted Police Services (LMPS) powers to investigate money laundering and terrorist financing offences, saying such powers were initially confined to the DCEO under the Parent Act. She submitted that the three entities are collectively referred to as competent authorities under the Bill.
The Bill further seeks on the other hand to designate such institutions as the Financial Intelligence Unit (FIU), Central Bank of Lesotho (CBL), Law Society of Lesotho, Lesotho Institute of Accountants (LIA) and other relevant institutions to supervise and monitor compliance of institutions under obligations arising out of the Money Laundering and Proceeds of Crime Act, its regulations and guidelines and directive made pursuant to it.
The Finance Minister hence said the Bill seeks to address section 14 of the Parent Act which establishes the FIU by incorporating enabling provisions that are requirements for an independent and operational FIU per Financial Action Task Force Recommendation 29, also stating that the Bill enhances criminalisation of money laundering and terrorist financing offences by making it possible for the intent and knowledge as prerequisite of such crimes to be inferred from objective factual circumstances.
“The Bill also makes it possible to charge a person of the money laundering offence or terrorist financing offence irrespective of whether he or she was in Lesotho or elsewhere at the time of the commission of the crime,” said Minister Khaketla.
She added that the Bill has further enhanced criminal sanctions so that they can be applied proportionately as it introduces civil and administrative sanctions which can be imposed on a person irrespective of whether criminal charges or criminal sanctions have been imposed upon such a person.
Meanwhile, she commended the House for the efforts it made towards improving the bill, saying this is not an easy amendment hence acknowledging the efforts made by the House of going though and scrutinizing the bill so to make inputs where necessary.
It was to this effect that Members of the College of Chiefs took turns to support the Amendment and the Likhoele Principal Chief Lerotholi Seeiso noted that they have learned from past mistakes and stated his belief that it is only befitting that several stakeholders be brought together to enable thorough and transparent investigation of individuals' bank accounts; a factor which he said should not be a problem to anyone who is not guilty.
Principal Chief Nthati Bereng of Phamong on the other hand said the Bill would help curb money laundering practices if put into operation.
More Bills are due for piloting this week.
Source: LENA 20/10/2016