Financial Transaction Reporting Bill to reduce transaction reporting by financial institutions from $10k to $5k to be debated on Thursday

The Bill to amend the Financial Transaction Reporting Act to reduce the transaction reporting by financial institutions from $10,000 to $5,000 will be debated in parliament on Thursday.

The amendment will require financial institutions such as commercial banks report all transactions of $5,000 and above to the Financial Intelligence Unit and also require other financial institutions such as non-banks to report only cash transactions of $5,000 and above to the FIU.

While speaking on the motion under Parliamentary Standing Order 51 to debate and vote on the bill without delay on Thursday, Minister for Economy, Aiyaz Sayed-Khaiyum says the revision of threshold to report will not affect customers of financial institutions as the reporting is done by the institutions themselves.

He says 75 percent of cash and non-cash transaction undertaken by customers of financial institutions in Fiji are for transactions below $10,000 so they do not report it.

He says if 75 percent is below $10,000 then they are not capturing most of the transactions and intelligence reports show that many people are plugging the figure just below $10,000 so it does not get reported.

He further says the cash transaction reports are a key data resource for the FIU as they provide critical information that is used to form intelligence for possible money laundering, terrorist financing and other serious criminal activities which is then disseminated to law enforcement agencies.

While speaking against the motion, SODELPA MP Viliame Gavoka says this is another obstacle in ease of doing business.

Sayed-Khaiyum says this Bill is about reporting by the banks and does not affect businesses.

He says businesses will carry on their normal transactions and has nothing to do with ease of doing business.

The Minister says if you are a member of the public trying to bypass the system and trying to bring the money illegally the FIU will simply pick it up and say this person is transacting amount of over $5,000 and there is a pattern.

He adds if Fiji wants to maintain a credible financial system recognised by international banking system and not be red flagged, we have to make these amendments.