Section 24: Insertion of new regulation 37A The

principal regulations are amended by inserting immediately after regulation 37, the following "37A. Penalty for breach of regulations 33, 34, 35, 36 and 37 (1) The Authority shall issue a directive to an accountable person that contravenes regulation 33, 34, 35, 36 or 37 requiring the accountable person to comply with the law. (2) An accountable person that does not comply with a directive issued under subregulation (1) is liable- (a) in the case of an accountable person that is a corporate person, to a fine not exceeding twelve thousand five hundred currency points; (b) in the case of an accountable person that is a natural person, to a fine not exceeding two hundred and fifty currency points." Regulation 38 of the principal regulations is amended by inserting immediately after subregulation (2) the following- "(3) The Authority shall issue a directive to an accountable person that contravenes this regulation requiring the accountable person to comply with the law. (4) An accountable person that does not comply with a directive issued under subregulation (3) is liable- (a) in the case of an accountable person that is a corporate person, to a fine not exceeding six thousand two hundred and fifty currency points; (b) in the case of an accountable person that is a natural person, to a fine not exceeding two hundred and fifty currency points." Regulation 39 of the principal regulations is amended by inserting immediately after subregulation (3) the following- "(4) The Authority shall issue a directive to an accountable person that contravenes this regulation requiring the accountable person to comply with the law. (5) An accountable person that does not comply with a directive issued under subregulation (4) is liable- (a) in the case of an accountable person that is a corporate person, to a fine not exceeding thirty- seven thousand five hundred currency points; (b) in the case of an accountable person that is a natural person, to a fine not exceeding twelve thousand five hundred currency points." Regulation 40 of the principal regulations is amended- (a) renaming it subsection (1); (b) by inserting immediately after subsection (1), the following- "(2) The Authority shall issue a directive to a supervisory authority that contravenes subregulation (1) requiring the supervisory authority to comply with the law. (3) Where a supervisory authority does not comply with a directive issued under subregulation (2), the Authority is liable to a fine not exceeding twenty-five thousand currency points." Regulation 42 of the principal regulations is amended- (a) in subregulation (1) by substituting for "five" the word "ten". (b) by inserting immediately after subregulation (7) the following- "(8) The Authority shall issue a directive to an accountable person requiring the accountable person to comply with this subregulation. (9) An accountable person that does not comply with a directive issued under subregulation (8) is liable- (a) in the case of an accountable person that is a corporate person, to a fine not exceeding two thousand five hundred currency points; (b) in the case of an accountable person that is a natural person, to a fine not exceeding five thousand currency points. Regulation 43 of the principal Regulations is amended by inserting immediately after subregulation (2) the following- "(2) The Authority shall issue a directive to an accountable person requiring the accountable person to comply with this regulation. (3) An accountable person that does not comply with a directive issued under subregulation (2) is liable- (a) in the case of an accountable person that is a corporate person, to a fine not exceeding six thousand two hundred and fifty currency points; (b) in the case of an accountable person that is a natural person, to a fine not exceeding one thousand two hundred and fifty currency points. Regulation 44 of the principal regulations is amended- (a) by substituting for subregulation (1) the following- "(1) The Authority shall identify high-risk countries in respect of money laundering and terrorism financing and shall prescribe, by guidelines hosted on the official website of the Authority, measures to be applied by accountable persons in respect of a person or customer from, or transactions involving, those countries.; (b) by inserting immediately after subregulation (2) the following- "(3) The Authority shall issue a directive to an accountable person requiring the accountable person to comply with this regulation. (4) An accountable person that does not comply with a directive issued under subregulation (3) is liable- (a) in the case of an accountable person that is a corporate person, to a fine not exceeding five thousand currency points; (b) in the case of an accountable person that is a natural person, to a fine not exceeding five hundred currency points. (5) The Authority may, acting on its own initiative or on the advice of the Financial Action Task Force or such similar body, require an accountable person to apply countermeasures proportionate to any identified risks in any country. (6) The counter measures referred to in subregulation (4) include- (a) requiring financial institutions to apply specific elements of enhanced due diligence; (b) introducing enhanced relevant reporting mechanisms or systematic reporting of financial transactions; (c) refusing the establishment of subsidiaries or branches or representative offices of financial institutions from the country concerned, or otherwise taking into account the fact that the relevant financial institution is from a country that does not have adequate anti-money laundering and countering the financing of terrorism systems; (d) prohibiting financial institutions from establishing branches or representative offices in the country concerned, or otherwise taking into account the fact that the relevant branch or representative office would be in a country that does not have adequate anti-money laundering and countering the financing of terrorism systems; (e) limiting business relationships or financial transactions with the identified country or persons in that country; (f) prohibiting financial institutions from relying on third parties located in the country concerned to conduct elements of the customer due diligence process; (g) requiring financial institutions to review and amend, or if necessary, terminate, correspondent relationships with financial institutions in the country concerned; (h) requiring increased supervisory examination or external audit requirements for branches and subsidiaries of financial institutions based in the country concerned; (i) requiring increased external audit requirements for financial groups with respect to any of their branches and subsidiaries located in the country concerned. Regulation 45 of the principal regulations is amended in subregulation (1) by substituting for paragraph (a) the following- (a) prepare an annual compliance report setting out the level of compliance with the Act and these Regulations; and"