In an attempt to bring improvements in existing laws and fix loopholes in the Anti-Money Laundering Act 2010, the government yesterday moved a bill in the Senate which seeks to make it mandatory for financial institutions to report any suspicious transaction that could be used to finance a terrorist activity.
In the Anti-Money Laundering (Amendment) Bill 2014, the scope of suspected transactions has been enhanced. It will include fund “derived from any illegal activities or intended or conducted in order to hide or disguise proceeds of a crime”. The funds having no apparent lawful purpose could also come under anti-money laundering regulations once the authorities examine background and possible purpose of the transactions.
It will also include transactions involving “financing of terrorism, including funds collected, provided, used or meant for, or otherwise linked or related to, terrorism, terrorist acts or organisations and individuals concerned with terrorism”.
