TWENTY-SEVEN freezing orders were last year issued on 27 commercial bank accounts with a cumulative balance of USD 2.8 million and K126.5 million.
According to the Financial Intelligence Centre(FIC), the basis for the freezing orders was suspected money laundering.
Additionally, the FIC issued three freezing orders for three commercial bank accounts with a cumulative balance of K31.1 million in 2022.
In its latest report, the Centre said the freezing orders are issued to facilitate investigations by law enforcement agencies.
“Section 10(3) of the FIC Act grants the Director General the authority to order a reporting entity to freeze an account or suspend a transaction if there is reasonable suspicion of money laundering, financing of terrorism, proliferation, or other serious offenses. The freezing of an account or suspension of a transaction can last for a maximum of 15 days,” the report stated.
The Centre said upon receipt of a freezing or suspension order, a reporting entity must, for the period specified in the order, stop all activities or suspend the specified transaction on the concerned account, with the exception of credits being received into that account.
“However, it must be noted that the minimum requisite conditions for the FIC to exercise this power to either freeze an account or suspend a transaction is that the Director General must reasonably suspect that a transaction relates to money laundering, financing of terrorism, or proliferation. It is noteworthy that the freezing of an account or suspension of a transaction is not absolute. Section 10(4) outlines the process for challenging the Director General’s decision to freeze an account or suspend a transaction.
It allows an aggrieved party, after 72 hours of the Director General placing an order to freeze an account or suspend a transaction, to apply to a Judge in Chambers to have it discharged and at the same time serve a notice on the Director General to join the proceedings. Notwithstanding the legal recourse being sought by an aggrieved party through the already explained application to a Judge in Chambers, the freezing or suspension order remains in effect until the Judge determines otherwise,” the report reads in part.
(Mwebantu, Wednesday, July 10th, 2024)