Model Provisions on Money Laundering, Terrorist Financing, Preventive Measures and Proceeds of Crime (for common law legal systems).

 

The model provisions are intended to be a resource in drafting legislation to address money laundering and the financing of terrorism. Taken together, the provisions incorporate a legislative base for many of the requirements of the relevant international instruments and the FATF 40+9 Recommendations. The provisions also strengthen or supplement these standards in some respects. They suggest an approach both to criminally confiscate and civilly forfeit proceeds, instrumentalities and terrorist property. State authorities considering the provisions should take care to adapt the underlying concepts and specific language to accord with constitutional and fundamental legal principles in their systems. As well, the provisions may be supplemented with additional measures a State considers suited to effectively combat money laundering and the financing of terrorism in the national context. The eight Parts of these model provisions are set forth as separate units. Taken together they present a unified whole. Relevant definitions appear at the beginning of each Part. If all or selected Parts are used, adjustments to definitions will be necessary.

 The document also includes several features to assist drafting authorities to understand the various provisions and to facilitate their consideration of choices relating to provisions:
• “Notes for Drafting Authorities” provide explanations of selected provisions and suggest various considerations for drafting authorities as they decide how best to proceed.
• Some provisions present “variants” and “optional language.” A “variant” provides two approaches for authorities to consider. Authorities should adopt one or the other, or their own separate approach. “Optional language” is italicized and sets forth an addition that may be included or not.
• Time periods for orders and other matters, whether days, months or years, appear in brackets. The bracketed number is a suggestion.

The eight Parts are as follows:

Part I: Preliminary

Part II: Money Laundering and Terrorist Financing Offences

Part III: Cross Border Transportation of Currency and Bearer Negotiable Instruments

Part IV: Preventive Measures

Part V: Financial Intelligence Unit

Part VI: Conviction-Based Confiscation, Benefit Recovery and Extended Benefit

Recovery Orders

Part VII Civil Forfeiture

Part VIII Recovered Assets Fund

Annex I Model Decree on the Financial Intelligence Unit

The provisions were drafted by a group of experts, including participants from the Commonwealth

Secretariat, the International Monetary Fund and the United Nations Office on Drugs and Crime,

that met in London in March 2008, and in Washington D.C. in October 2008, and that finalised the

provisions in April, 2009.

The document as a whole is a complex instrument with provisions that interconnect in various ways.

The model provisions also cover a wide range of subject matter areas. While there was considerable

effort to avoid inconsistencies and drafting errors, a review of model provisions by drafting

authorities, the comparisons that are likely to take place with existing legislation, and experience

that is gained through actual use of these or similar provisions are all likely lead to suggestions for

adjustments and change.

The organisations hope to revisit the document within a reasonable period to incorporate new

developments and standards, to alter the text to improve the provisions and to address any issues of

inconsistency. We invite your comments and suggestions and your active participation in this

endeavour.

Comments should be directed to:

Commonwealth Secretariat 

O.Iguyovwe@commonwealth.int

S.Defontgalland@commonwealth.int

International Monetary Fund 

amlcft@imf.org

United Nations Office on Drugs and Crime

gpml@unodc.org