ENFORCEMENT & SANCTIONS
Supervision and enforcement of compliance with the AML/CFT Act obligations is done by the different supervisory authorities. One common way to monitor compliance is through onsite inspections to test the levels of compliance, which may be carried out by a supervisory authority, or jointly.
If a supervisory authority finds that a reporting entity has not complied with the AML/CFT Act or with a directive issued in terms of the Act, an administrative sanction may be imposed. The sanction will generally be imposed by the supervisory body who has conducted the inspection. The administrative sanction may take a variety of forms – including, amongst others;
- a caution not to repeat the conduct which led to the non-compliance;
- a directive to take remedial action or to make specific arrangements;
- a restriction or suspension of certain identified business activities;
- a recommendation to relevant licensing authority to withdraw, restrict or suspend licence; and/or
- a financial penalty not exceeding SCR 1, 000, 000.
Before imposing an administrative sanction, the supervisory authority must give the reporting entity an opportunity to make representations. Once the administrative sanction has been imposed, the supervisory authority must notify the institution or person of the administrative sanction in writing. This notification should explain the nature of the sanction, why the sanction has been imposed and it should advise the recipient of the right to appeal against the decision. Appeals are decided on by an independent Appeal Board.