In a bid to crack down on currency smuggling and promote financial transparency, the parliamentary portfolio committee on the economic and development cluster has urged the government to introduce currency scanners at ports of entry countrywide.
The committee says if implemented, this could have far-reaching implications on the country’s economy and the fight against illicit financial flow.
Presenting its report on Money Laundering (Currency Bearer Negotiable Instruments Declaration) (Amendment) Regulations, 2024, before the parliament yesterday, the chairperson of the committee, Sello Hakane also recommended that authorised officers at the ports of entry should be capacitated to enable them to fully execute their duties.
The committee recommended that the principal Act should be amended to increase penalties for offenders who fail to declare their currency and bearer negotiable instruments at the ports of entry.
The committee is also of the view that in addition to the regulations addressing the recommendation made by the Financial Action Task Force (FATF), government should improve its measures in combatting money laundering and proceeds of crime as well as terrorist financing.
The committee’s report follows the tabling of the regulations by the minister of finance and development planning, Retšelisitsoe Matlanyane, on August, 7.
The regulations were later referred to the committee for consideration in terms of Standing Order No. 100 (3).
The committee then invited Dr Matlanyane to a briefing session in accordance with Standing Order No. 101 (2).
According to Matlanyane, the Money Laundering (Currency and Bearer Negotiable Instruments) (Amendment) Regulations, 2024 were made pursuant to Section 111 of the Money Laundering and Proceeds of Crime Act, 2008. They intend to amend the Money Laundering (Currency Bearer Negotiable Instruments Declaration) Regulations, 2015.
She indicated that the said regulations were made to address the gaps identified by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLAG) and Recommendation 32 on Cash Couriers by Financial Action Task Force (FATF).
Matlanyane noted that it was recommended that countries must put in place measures to detect physical cross-border transportation of currency or bearer negotiable instruments through declaration in order to combat money laundering and terrorist financing.
The regulations provide for every person entering or leaving Lesotho to declare currency and bearer negotiable instruments in their possession if these exceed the amount prescribed by the Commissioner of Banks.
The regulations also provide for an authorised officer to count the currency and inspect the bearer negotiable instruments declared by the person entering or leaving the borders of Lesotho to verify the correctness of the declaration made.
They further provide for the authorised officer to request information validating the origin and destination of currency or bearer negotiable instruments where false declaration or disclosure has been made, or failure to make a declaration.
“The authorised officer shall further detain the currency or bearer negotiable instruments if there is suspicion that such currency or instruments are associated with a predicate offence or money laundering. Such currency or instruments shall be detained pursuant to Section 28 of the Principal Law and a person who makes false declaration of currency or bearer negotiable instruments, shall be liable to a fine provided under section 113 of the Principal Law.”
Lastly, the Regulations provide for an authorised officer to cooperate with all border authorities through exchange of information and intelligence in implementing declaration of currency and bearer negotiable instruments.
