Proceeds of crime (amedment) bill[1]

Attorney General’s Chambers

9th May, 2014

TURKS AND CAICOS ISLANDS PROCEEDS OF CRIME (AMENDMENT) BILL 2014 ARRANGEMENT OF CLAUSES CLAUSE

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Short title and commencement Interpretation General amendment Section 2 amended Section 6 amended Section 108 amended Section 109 substituted Section 110 amended Section 112 and 113 (1) amended Sections 116, 120, 121, 123, 124, 125 amended Section 145 amended Schedule 1 amended

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Attorney General’s Chambers

9th May, 2014

TURKS AND CAICOS ISLANDS A PROPOSAL FOR A

BILL FOR AN ORDINANCE TO AMEND THE PROCEEDS OF CRIME ORDINANCE.

ENACTED by the Legislature of the Turks and Caicos Islands.

Short title and commencement 1. This Ordinance may be cited as the Proceeds of Crime (Amendment) Ordinance shall come into operation on the same day as the Prevention of Terrorism Ordinance 2014 and the Financial Intelligence Agency Ordinance 2014.

Interpretation 2. In this Ordinance “principal Ordinance” means the Proceeds of Crime Ordinance.

General amendment 3. The principal Ordinance is amended by substituting for “Reporting Authority” wherever it appears, unless otherwise specified, the words “Anti-Money Laundering Committee”.

Section 2 amended 4. Section 2 (1) of the principal Ordinance is amended— (a) by repealing the definition of Authority” and substituting it with—

“Reporting

““Anti-Money Laundering Committee” means the Committee established under section 108;”;

(b) by repealing the definition of “financial intelligence unit” and substituting it with—

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Attorney General’s Chambers

9th May, 2014

““Financial Intelligence Agency” means the Agency established under the Financial Intelligence Agency Ordinance;”; (c) by inserting in the appropriate alphabetical position the following definitions— ““financing of proliferation” means the act of providing funds or financial services which are used, in whole or in part, for the manufacture, acquisition, possession, development, export, trans-shipment, brokering, transport, transfer, stockpiling or use of nuclear, chemical or biological weapons and their means of delivery and related materials (including both technologies and dual use goods used for non-legitimate purposes), in contravention of any enactment, or where applicable, international obligations; “terrorist finance offence” has the meaning given to that expression under section 2 of the Prevention of Terrorism Ordinance;”; (d) in paragraph (a) of the definition of “terrorist financing”, by inserting after subparagraph (iii) the following— “(iv) sections 9 to 12 of the Prevention of Terrorism Ordinance; or”; and (e) in the definition of “terrorist financing legislation”, by inserting after paragraph (c) the following paragraph— “(ca) the Prevention of Terrorism Ordinance;”.

Section 6 amended 5. Section 6(2) of the principal Ordinance is amended by inserting after paragraph (c) the following paragraph— “(d) section 21 of the Prevention of Terrorism Ordinance.”;

Section 108 amended 6. Section 108 (2) of the principal Ordinance is amended by— (a) substituting for paragraph (e) the following— “(e) Director of the Financial Intelligence Agency; and”; (b) inserting a new paragraph immediately after paragraph (e)— “(f) the Director of Public Prosecutions.”; and

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Attorney General’s Chambers

9th May, 2014

(c) repealing subsection (5).

Section 109 substituted 7. The principal Ordinance is amended by repealing section 109 and substituting it with—

“Functions of the Anti-Money Laundering Committee 109. The functions of the Anti-Money Laundering Committee shall be— (a) to advise the Governor in relation to the detection and prevention of money laundering, terrorist financing and the financing of proliferation, and on the development of a national plan of action to include recommendations on effective mechanisms to enable the competent authorities in the Islands to coordinate with each other concerning the development and implementation of policies and activities to combat money laundering, terrorist financing and the financing of proliferation; (b) to advise the Governor as to the participation of the Islands in the international effort against money laundering, terrorist financing and the financing of proliferation; (c) to advise the Governor in the development of policies to combat money laundering, terrorist financing and the financing of proliferation; (d) to issue a code and guidance in terms of this Ordinance; (e) to advise for the authorisation of payment of funds to be made out of the Fund; and (f) such other functions as are necessary for purposes of this Ordinance.”.

Section 110 amended 8. Section 110 of the principal Ordinance is amended by substituting for “Reporting Authority” wherever it appears, the words “Financial Intelligence Agency”.

Sections 112 and 113 (1) amended 9. Sections 112 and 113 (1) of the principal Ordinance is amended by repealing the words “,employee”.

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Attorney General’s Chambers

9th May, 2014

Sections 116, 120, 121, 123, 124, 125 amended 10. Sections 116, 120, 121, 123, 124, 125 of the principal Ordinance is amended by substituting for “Reporting Authority” wherever it appears, the words “Financial Intelligence Agency”.

Section 145 amended 11. Section 145 of the principal Ordinance is amended— (a) in subsection (2) (a) and (b) by inserting after the words “Anti-terrorist Financing Order” the words “or the Prevention of Terrorism Ordinance”; (b) in subsection (3)— (i)

under paragraph (b), by inserting after “Reporting Authority”, the words “and the Financial Intelligence Agency”; and

(ii) under by paragraphs (e) and (f), by inserting after the word “Ordinance” the words “or the Prevention of Terrorism Ordinance”; and (c) by inserting a proviso in subsection (4)— “Provided that monies paid into the Fund by virtue of a court order, and are held in trust or are subject of an appeal shall not be computed into the $2 million dollars or the excess to be paid into the Consolidated Fund.”.

Schedule 1 amended 12.

Schedule 1 of the principal Ordinance is amended by repealing paragraph 3 and substituting it with— “3. A terrorist finance offence.”. _________________________ PASSED by the House of Assembly this

Tracey Parker Clerk to the House of Assembly

day of

Robert Hall Speaker

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Attorney General’s Chambers

9th May, 2014

EXPLANATORY MEMORANDUM The Proceeds of Crime (Amendment) Bill seeks to amend the principal Ordinance by making the necessary consequential amendments required for purposes of the Prevention of Terrorism (POT) Bill and the Financial Intelligence Agency (FIA) Bill.

The principal Ordinance is further amended to make provision that funds paid into the National Forfeiture Fund, which are held subject to a final order to be made, should not fall part of the $2 million limit required to be held in the Fund, or form part of those excess funds to be paid to the Consolidated funds. Those funds will remain in the Fund until a decision is made on how they are to be processed.

THE BILL Clauses 1 and 2 provide for the short title, commencement and Interpretation provision of the Bill.

Clause 3 is a consequential amendment made for purposes of the FIA Bill, and makes a general amendment to the Ordinance, except as specified in Clause 10, by substituting reference to the Reporting Authority by “Anti-Money Laundering Committee”.

The Authority currently known as the Reporting Authority will now be referred to as the Anti-Money Laundering Committee with its new functions, as those currently held by it are in majority transferred to the proposed Financial Intelligence Agency.

Clause 4 makes the necessary changes to section 2 of the principal Ordinance, as is required by both the POT Bill and the FIA Bill to the Interpretation section, and amongst others includes the definition of terrorist finance offence.

Clause 5 amends section 6 (2) of the principal Ordinance to insert, under realisable property, a forfeiture order made under the POT Bill.

Clause 6 amends section 108 of the principal Ordinance to substitute the Head of the FIU Unit for the Director or the FIA; and to add the DPP to the membership of the Committee.

Clause 7 amends the principal Ordinance by repealing and substituting section 108 but setting out the new functions of the Anti-Money Laundering Committee.

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Attorney General’s Chambers

9th May, 2014

Clause 8 amends section 110 of the principal Ordinance by substituting all references to the Reporting Authority with the FIA. Clause 9 amends sections 112 and 113 (1) of the principal Ordinance to remove employees of the Reporting Authority.

Clause 10 amends sections 116, 117. 120, 121, 123, 124, 125 by substituting all references to the Reporting Authority with the FIA. Clause 11 amends section 145 to include that moneys paid out of the Fund will meet the costs and expenditure of the FIA; and to meet the costs and expenses of the receiver and that of special investigations under the POT Bill. This section is also amended to exclude funds held in ESCROW from the $2 million threshold required to be kept under the Fund.

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