Parliament has approved a motion to amend Schedule 2 of the Anti-Money Laundering Act, Cap. 118, effectively removing non-governmental organizations (NGOs), churches, and other charitable organizations from the list of accountable persons in the fight against money laundering.
The amendment, which passed after extensive debate, has sparked mixed reactions from various sectors.
Supporters of the motion argue that the decision will alleviate the regulatory burden on charitable entities, allowing them to focus on their core missions without the added compliance requirements typically associated with anti-money laundering laws.
On the other hand, critics have raised concerns about the potential risks of excluding these organizations from the framework, suggesting that it could open the door for illicit activities to go undetected within the charitable sector.
They have called for enhanced oversight mechanisms to ensure that the decision does not inadvertently facilitate money laundering.
The move follows ongoing discussions about balancing effective financial regulation with the operational realities of non-profit and religious organizations, many of which operate with limited resources.
As the law stands, NGOs, churches, and similar entities had been classified as accountable persons, requiring them to adhere to stringent anti-money laundering obligations, including customer due diligence and reporting suspicious transactions.
The government has assured the public that while the amendment will ease the compliance burden, there will still be strong measures in place to combat money laundering across all sectors.
The amendment now awaits final approval by the President before it can take effect.