FIU Bill Passed

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Parent Category: Feb 2012

Category: Week end Feb 18th, 2012

Published on Monday, 20 February 2012 20:08

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A bill geared at flushing out persons who engage in illegal activities while hiding behind the ‘corporate veil” of secrecy was passed last week Friday in the House of Representatives in Grenada. Known as the Financial Intelligence Unit Bill, 2012, the legislation which was piloted by Prime Minister and Minister of National Security, Tillman Thomas has changed the status of the Financial Intelligence Unit (FIU) into a department of Government.

In presenting the bill, the Prime Minister told the House that it was a comprehensive piece of legislation that will give the FIU responsibility for the investigation, detection, prevention and control of financial crimes and connected matters.

According to PM Thomas, the change was necessary since the existing Act is inadequate and does not address some of the critical areas that the unit is confronted with such as the responsibility of the Director, staff, freezing orders and restraining orders of the Department.

He said that the inclusion of these areas into the 2012 Bill will enhance and strengthen the investigatory powers and functions of the unit by providing the necessary tools both administratively and legally to effectively carry out its mandate under the Act.

He stressed that one of the areas the Bill addresses is the commission of offences and the relevant penalties under the Bill, including offences and penalties regarding corporate bodies. “There are times people engage in criminal activities and they hide behind what is known as the corporate veil of company, people set up companies and they engage in illegal activities and using the company as a front”, PM Thomas said.

The Bill provides for the continuation of the FIU that was established by the Financial Intelligence Unit Act No. 1 of 2003 and makes provision for among other things the establishment of a database and databank and the obligation of secrecy and confidentiality by persons having an official duty in the administration of this Act.

Under the Act, the Director is appointed by the Governor General acting in accordance with the advice of the Public Service Commission. It also makes provision for a five-year term of office for the Director who will hold the rank and powers of a Government head of department.

The Bill provides protection to officers attached to the Unit including the Director and the Deputy Director against lawsuit or other proceedings in respect of any lawful act done or omission made in good faith, in the course of carrying out the provisions of the Act.

Parliamentary Representative for Carriacou and Petite Martinique, Elvin Nimrod expressed dissatisfaction with the need for a new Bill to govern the FIU. He said that that the existing law governing financial crimes could have been strengthened if necessary and raised concerns about the immunity given to the Director and officers attached to the Unit.

Nimrod argued that the Unit should remain under the Royal Grenada Police Force (RGPF) and questioned the motive of PM Thomas and his governing National Democratic Congress (NDC) administration to enact the changes. Opposition Leader Dr. Keith Mitchell described as “sinister” the move by government to scrap the existing FIU Bill and to introduce its own.

“FIU independent...give me a break”, he said, adding that there must be some kind of ulterior move by the Congress government to pass the Bill through all its stages at the same sitting. Dr. Mitchell questioned the mindset of some of the individuals who are seeking to push through this legislative agenda in Parliament.

He charged that the words preached by Congress about accountability, and transparency mean nothing but empty hallow words. “This is the worst effort of divisiveness politics we’ve seen in this place over the years “, the former Grenadian leader told the House.

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