Section 14C: Registration by reporting person

14C. Registration by reporting person Every reporting person shall, within such time and in such form and manner as may be prescribed, register with FIU. (g) in section 16 – (i) by repealing subsection (1) and replacing it by the following subsection – (1) Any reporting person and its officers shall not disclose to any person that a suspicious transaction report is being or has been filed, or that related information is being or has been requested by, furnished or submitted to FIU. (ii) by repealing subsection (3) and replacing it by the following subsection – (3) No reporting person and its officers who receives or shares a report made under this Part shall incur liability for – (a) any breach of confidentiality for any disclosure made in compliance with this Act, or to assist its supervisory authority in the discharge of its functions under this Act; Acts 2019 163 (b) any disclosure made for compliance, audit or AML/CFT functions within the reporting person or at group level, provided that adequate safeguards on the confidentiality and use of information exchanged, including safeguards to prevent tipping-off, are in place within the group. (iii) by inserting, after subsection (3), the following new subsection – (3A) Any person who fails to comply with subsection (1) shall commit an offence and shall, on conviction, be liable to a fine not exceeding 5 million rupees and to imprisonment for a term not exceeding 10 years. (iv) in subsection (4), by deleting the definition of “unauthorised third party” and the semicolon at the end of the definition of “officer” being deleted and replaced by a full stop; (h) in section 17 – (i) by repealing subsection (1) and replacing it by the following subsection – (1) Every reporting person shall – (a) take appropriate steps to identify, assess and understand the money laundering and terrorism financing risks for customers, countries or geographic areas and products, services, transactions or delivery channels; and (b) consider all relevant risk factors before determining what is the level of overall risk and the appropriate level and type of mitigation to be applied. 164 Acts 2019 (ii) in subsection (2), by deleting the words “The risk assessment” and replacing them by the words “The nature and extent of any assessment of money laundering and terrorism financing risks under subsection (1) shall be appropriate having regard to the nature and size of the business of the reporting person and”; (iii) in subsection (3), by inserting, after the words “a reporting person”, the words “or a supervisory authority”; (i) in section 17A (1), by repealing paragraph (b) and replacing it by the following paragraph – (b) monitor the implementation of, regularly review, update and, where necessary, enhance the, policies, controls and procedures established under paragraph (a); (j) in section 17C – (i) in subsection (1) – (A) by deleting the words “by means of such reliable and independent source documents or information”; (B) in paragraph (b), by repealing subparagraph (ii) and replacing it by the following subparagraph – (ii) a domestic or cross-border wire transfer; (ii) by inserting, after subsection (5), the following new subsection – (5A) The trustee of an express trust shall disclose his status as a trustee to a reporting person when forming a business relationship or carrying out an occasional transaction in an amount equal to or above 500,000 rupees or an equivalent amount in foreign currency. Acts 2019 165 (k) paragraph (b), by repealing subparagraph (ii) and replacing it by the following subparagraph – (ii) a domestic or cross-border wire transfer; (ii) by inserting, after subsection (5), the following new subsection – (5A) The trustee of an express trust shall disclose his status as a trustee to a reporting person when forming a business relationship or carrying out an occasional transaction in an amount equal to or above 500,000 rupees or an equivalent amount in foreign currency. Acts 2019 165 (k) by inserting, after section 17G, the following new section –