AI Summary of 39. Enhanced due diligence in cases of heightened risk.
The designated person must implement enhanced measures to manage and mitigate the risks of money laundering or terrorist financing for any business relationship or transaction deemed to present a higher risk. This determination should be guided by specific criteria outlined in legislation.
Furthermore, the Minister holds the authority to identify additional risk factors that may indicate a higher likelihood of such illegal activities. Non-compliance with these provisions constitutes an offence, attracting penalties that may include fines or imprisonment, depending on the severity of the offence.
39. Enhanced due diligence in cases of heightened risk.
(1) Without prejudice to sections 37, 38 and 59, a designated person shall apply measures to manage and mitigate the risk of money laundering or terrorist financing, additional to those specified in this Chapter, to a business relationship or transaction that presents a higher degree of risk.
(2) For the purposes of subsection (1) a business relationship or transaction shall be considered to present a higher degree of risk if a reasonable person having regard to the matters specified in paragraphs (a) to (f) of section 30B(1) would determine that the business relationship or transaction presents a higher risk of money laundering or terrorist financing.
(3) The Minister may prescribe other factors, additional to those specified in Schedule 4, suggesting potentially higher risk only if he or she is satisfied that the presence of those factors suggests a potentially higher risk of money laundering or terrorist financing.
(4) A designated person who fails to comply with this section commits an offence and is liable -
(a) on summary conviction, to a class A fine or imprisonment for a term not exceeding 12 months (or both), or