Section 136Part 2 — The Financial Reporting Authority
Failure to disclose
←→ Navigate · Click subsection badges to collapse · Press ? for help
A person commits an offence if —
that person knows or suspects or has reasonable grounds for knowing or suspecting that another person is engaged in criminal conduct;
the information or other matter on which that person’s knowledge or suspicion is based, or which gives reasonable grounds for suc h knowledge or suspicion, came to that person in the course of a business in the regulated sector or other trade, pro fession, business or employment ;
that person does not make the required disclosure to a nominated officer, or the Financial Reporting Authority, as soon as is practicable after the information or other matter mentioned in paragraph (b) comes to that person ; and
the required disclosure is a discl osure of —
the identity of the person who may be involved in money laundering, if that person knows it;
information or other matter in the form and manner prescribed by regulations to this Act or the prior Law;
the whereabouts of the propert y with respect to which the criminal conduct is committed, so far as that person knows it; and
the information or other matter mentioned in paragraph (b), or prescribed under section 201 for purposes of this section.
But that person does not commit an offence under this section if —
that person has a reasonable excuse for not making the required disclosure;
that person is a professional legal adviser or other relevant professional adviser and the information or other matter came to that person in privileged circumstances; or
that person does not know or suspect that another person is engaged in money laundering and that person has not been provided by that person’s employer with such training as is specified in guidelines issued by the Monetary Authority and published in the Gazette for the purposes of this section.
Nor does a person commit an offence under this section if —
that person knows, or believes on reasonable grounds, that the criminal conduct is occurring in a particular country or territory outside the Islands; and
the criminal conduct —
is not unlawful under the criminal law applying in th at country or territory; and
is not of a description prescribed in an order made by the Attorney General.
Subsection (2) applies to a person if —
that person is a trainee, paralegal, legal secretary or any other person who is employed by, or i s in partnership with, a professional legal adviser or a relevant professional adviser to provide the adviser with assistance or support;
the information or other matter mentioned in subsection (1) (a) and (b) comes to the person in connection with the provision of such assistance or support; and
the information or other matter came to the adviser in privileged circumstances.
In deciding whether a person committed an offence under this section the court shall consider whether the person followed any relevant guidance which was at the time concerned —
issued by the Monetary Authority or by any other public body or self - regulatory body to wh ich the Cabinet has assigned the responsibility of monitoring compliance with money laundering regulations under section 4(9); and
published in a manner approved by the Cabinet as appropriate in its opinion to bring the guidance to the attention of persons likely to be affected by it.
A disclosure to a nominated officer is a disclosure which —
is made to a person nominated by the alleged offender ’ s employer to receive disclosures under this section; and
is made in the course of the alleged offender ’ s employment.
But a disclosure which satisfies paragraphs
and
of subsection (6) is not to be taken as a disclosure to a nominated officer if the person making the disclosure — ( a ) is a professional legal adviser or other relevant profe ssional adviser; ( b ) makes it for the purpose of obtaining advice about making a disclosure under this section; and
does not intend it to be a disclosure under this section.
Information or other matter comes to a professional legal adviser or other relevant professional adviser in privileged circumstances if it is communicated or given to that person —
by (or by a representative of) a client of that person in connection with the giving by the adviser of legal advice to the client;
by (or by a representative of) a person seeking legal advice from the adviser; or
by a person in connection with legal proceedings or contemplated legal proceedings.
But subsection (8) does not apply to information or other matter which is communicated or gi ven with the intention of furthering a criminal purpose.