Palau Sessional Legislation
SEVENTH OLBIIL ERA KELULAU
RPPL No. 7-39
First Regular Session, January 2005
(Re: as Senate Bill No. 7-4, SD2, HD2, CD1)
To amend RPPL 6-4, the Money Laundering and Proceeds of Crime Act of 2001, and for other related purposes.
THE PEOPLE OF PALAU REPRESENTED IN THE OLBIIL ERA KELULAU DO ENACT AS FOLLOWS:
Section 1. Amendment of RPPL 6-4, the Money Laundering and Proceeds of Crime Act of 2001. RPPL 6-4 is hereby amended to read as follows:
"MONEY LAUNDERING AND PROCEEDS OF CRIME ACT
SUBCHAPTER 1. GENERAL PROVISIONS
Section 1. . . . .
Section 2. . . . .
Section 3. Definition of money laundering.
(a) For the purposes of this Act, the following acts either singly or collectively shall constitute the offense of money laundering:
(1) the conversion or transfer of property for the purpose of concealing or disguising the illegal origin of such property or assisting any person who is involved in the commission of a predicate offense to evade the legal consequences of his or her actions; or
(2) the concealment or disguise of the illegal nature, source, location, disposition, movement, or ownership of property by any person who knows that the property constitutes the proceeds of crime as defined herein; or
(3) the acquisition, possession, or control of property by any person who knows that the property constitutes the proceeds of crime as defined herein.
(b) . . . .
(c) A person need not be convicted of a predicate offense to establish that property was the proceeds of a predicate offense or to be convicted of laundering such proceeds.
(d) The offense of money laundering is not a lesser included offense of any crime.
Section 4. Definitions. In this Act, unless the context otherwise requires:
(a) . . . .
(b) . . . .
(c) . . . .
(d) "authorized officer" means a person or class of persons designated by the Minister of Justice or the Attorney General as an authorized officer;
(e) "cash dealer" or "over the counter exchange dealer" means:
. . . .
(f) . . . .
(g) "crime" or "predicate offense" shall be any act committed in the Republic of Palau that is a felony, or any act committed abroad, which constitutes an offense in that country, and that would have constituted a felony had it occurred in the Republic of Palau;
(h) "criminal organization" means any structured association having the aim of committing crimes;
(I) "currency" means any coin or paper that is designated as legal tender and which is customarily used and accepted as a medium of exchange in the country of issue;
(j) "document" means any material on which data is recorded or marked and which is capable of being read or understood by a person, computer system, or other device, and any record of information, and includes:
. . . .
(k) "financial institution" or "credit institution" means any bank, savings and loan institution, credit union, securities broker or dealer, or an entity or person whose primary business activity includes:
(1) . . . .
. . . .
(13) safe custody services; or
(14) any other entity licensed by the Financial Institutions Commission as a financial institution;
(l) "Financial Intelligence Unit" ("FIU") means the governmental agency created pursuant to section 16;
(m) "FIC" means the "Financial Institutions Commission";
(n) "instrumentality" means any property used or intended to be used in any manner to commit one or more criminal offenses;
(o) "interest," in relation to property, means:
. . . .
(p) "money laundering offense" has the meaning provided in section 3 of this Act;
(q) "offender" means any person legally culpable for a criminal offense under the laws of the Republic of Palau as the a principal, accessory, conspirator, or co-conspirator, or a person aiding and abetting the principal as such terms are defined pursuant to 17 PNC;
(r) "person" means any natural or legal person;
(s) "proceeding or proceedings" means any procedure conducted by or under the supervision of a judge or judicial officer however described in relation to any alleged or proven offense, or property derived from such offense, and includes an inquiry, investigation, or preliminary or final determination of facts;
(t) "proceeds of crime" means any property or economic advantage derived directly or indirectly from a crime;
(u) "property" means assets, real property, or personal property of every kind, whether movable or immovable, tangible or intangible, and legal documents or instruments evidencing an interest in such assets;
(v) "Supreme Court" means the Supreme Court of the Republic of Palau, and all its divisions;
(w) "unit trust" means any arrangement made for the purpose or having the effect of providing, for a person having funds available for investment, facilities for the participation by the person as a beneficiary under a trust, in any profits or income arising from the acquisition, holding, management, or disposal of any property pursuant to the trust.
SUBCHAPTER II. PREVENTION OF MONEY LAUNDERING
Section 5. Report on the use of cash and bearer securities.
(a) Credit or financial institutions shall keep regular reports of all transactions made in cash or bearer securities of at least US $10,000.00, or its equivalent in foreign cash or bearer securities. Such reports are required to have accurate and meaningful originator and recipient information including, but not limited to, name, address and account number. Such information must remain with the transfer or related message through the payment chain.
(b) The US $10,000.00 threshold in subsection (a) may be met either through a single transaction or a series of contemporaneous transactions that in the aggregate are at least US $10,000.
(c) Within 15 days from the date of the transaction, or as otherwise provided by regulation by the FIC, all such reports shall be provided to the FIU and FIC offices in the form and manner as set forth by the FIU or the FIC.
Section 6. Requirement to effect domestic or international transfers of funds via credit or financial institutions.
(a) Any transfer to or from a foreign country of moneys or securities involving a sum of at least US $5,000.00 or its equivalent shall be made by or through a credit or financial institution licensed under the laws of the Republic of Palau.
(b) All transfers are required to have and maintain through the payment chain, accurate and meaningful originator and recipient information, including but not limited to, name, address, and account number.
Section 7. Financial institutions and cash dealers to verify customers' identity.
(a) Credit and financial institutions and cash dealers shall be required to verify their customers' identity and address before opening ordinary accounts or passbooks; establishing business relations; taking stocks, bonds, or other securities into safekeeping; granting safe-deposit facilities; managing assets; or effecting or receiving payments on behalf of either natural or legal persons.
(b) A natural person's identity and address shall be evidenced by the presentation of either an original official identification document that is unexpired and bears a photograph or a reasonable alternative. A copy thereof shall be taken or other adequate record shall be retained or the verification shall be retained as established by regulation by the FIC.
(c) A legal person shall be identified by the production of its articles of incorporation or charter or its equivalent or any other document establishing that it has been lawfully registered and that it is actually in existence at the time of the identification, a document establishing its address and a notarized document setting forth its directors and, wherever necessary to know the true identity of the customer, its principal owners and beneficiaries. A copy of such documents shall be taken by the credit or financial institution or the cash dealer.
(d) . . . .
(e) If the transaction is not face-to-face, the credit or financial institution or cash dealer shall require a notarized identification from the customer's local bank. If, however, the local bank is located in, or a branch office of the bank is located in a Non- Cooperative Countries and Territories jurisdiction as that term is defined by the Financial Action Task Force on Money Laundering, the non-face-to-face transaction shall not be completed.
(f) Credit and financial institutions and cash dealers shall, to the extent not already done, verify their existing customer's identity and address.
(g) Credit and financial institutions and cash dealers shall identify and verify their customers where the institution has doubts about the veracity or adequacy of previously obtained customer identification.
(h) Credit and financial institutions and cash dealers shall not establish any business relationship with or complete any financial transaction for any anonymous person or entity or for any person or entity using a false or fictitious name.
(i) If a prospective or existing customer is either unwilling to provide the documentation required in this section or the credit or financial institution or cash dealer is unable to resolve doubts about the prospective or existing customer's identity, the credit or financial institution or cash dealer shall not open the account and shall file a suspicious transaction report as specified in section 20 and its accompanying regulations.
Section 8. Licensing and regulations concerning alternative remittance systems.
(a) All persons, and their agents, that provide a service for the transmission of money or value, including transmission through an alternative remittance system or informal money or value transfer system or network (hereinafter referred to as "Alternative Remittance Systems"), shall be required to be licensed by the Financial Institutions Commission of Palau. The FIC shall promulgate such regulations as may be necessary for the proper licensing and regulation of such Alternative Remittance Systems, and such regulations shall become effective in accordance with 6 PNC § 127. Persons licensed under other provisions of this Act need not be licensed pursuant to this section.
(b) Alternative Remittance Systems shall keep regular reports of all transactions made in cash or bearer securities in excess of US $1,000.00, or its equivalent in foreign cash or bearer securities. Such reports are required to have accurate and meaningful originator and recipient information including, but not limited to, name, address and account number. Such information must remain with the transfer or related message through the payment chain. Alternative Remittance Systems are required to pay special attention to all complex, unusually large transactions, or unusual patterns of transactions, that have no apparent economic or lawful purpose, to examine as far as possible the background and purpose of such transactions, to set forth their findings in writing, and provide such findings to the FIU upon completion. Alternative Remittance Systems are required to follow the requirements of Section 12 of this Act as if they were a financial institution.
(c) Within 15 days from the date of the transaction, or as otherwise provided by regulation by the FIC, all reports required by section 8(b) shall be provided to the FIU and FIC offices in the form and manner as set forth by the FIU or FIC.
SUBCHAPTER III. TRANSPARENCY IN FINANCIAL TRANSACTIONS
Section 9. Identification of casual customers of financial institutions.
(a) Casual customers of financial institutions shall be identified in the manner specified in section 7 in the case of any transaction involving a sum of at least the equivalent of US $10,000.00. If the amount of the transaction is unknown at the time of the operation, the customer shall be identified as soon as the threshold amount becomes known or is reached by the transaction.
(b) . . . .
Section 10. . . . .
Section 11. Special monitoring of certain transactions.
(a) Where a credit or financial institution, cash dealer, or alternative remittance system has reasonable grounds to suspect that a transaction involves funds that are derived from, related to, or are the proceeds of a crime, the credit or financial institution, cash dealer, or alternative remittance system shall immediately provide information as to the origin and destination of the money, the purpose of the transaction, and the identity of the transacting parties to the FIU as required in section 20. The report shall be maintained by the credit or financial institution, cash dealer, or alternative remittance system as specified in Section 12.
(b) Transactions that involve business relations or transactions with persons in jurisdictions that do not have adequate systems in place to prevent or deter money laundering or the financing of terrorism should be given special attention by all credit and financial institutions, cash dealers, and alternative remittance systems. Credit and financial institutions, cash dealers, and alternative remittance systems are required to pay special attention to all complex, unusually large transactions, or unusual patterns of transactions, that have no apparent economic or lawful purpose, to examine as far as possible the background and purpose of such transactions, the origin and destination of the money, and the identity of the transacting parties. All credit and financial institutions, cash dealers, and alternative remittance systems are required to set forth their findings in writing, and retain such record pursuant to section 12.
Section 12. Record-keeping by credit and financial institutions. Credit and financial institutions shall maintain and hold at the disposal of the authorities:
(a) . . . .
(b) records of transactions conducted by customers that fall under section 5 and the reports provided for in section 11 for five years following execution of the transaction.
Section 13. Communication of information.
(a) The confidential information and records referred to in sections 7, 9, and 10 shall be delivered to the FIU and the Office of the Attorney General upon the application of the Office of the Attorney General or the FIU to the Supreme Court, Trial Division, for an order allowing the FIU or the Office of the Attorney General or both to examine the contents of confidential reports and records of a credit or financial institution based upon a finding of probable cause; provided, however, that the FIU or FIC may review such records as part of the compliance audit. The Court's order shall further specify with particularity the documents to be produced or delivered by the reporting party. Such application shall be made pursuant to an investigation by the FIU or the Office of the Attorney General for the detection and suppression of money laundering or predicate offenses.
(b) Upon an ex parte showing of probable cause, the Supreme Court shall order the credit or financial institution, cash dealer, or alternative remittance system to produce and deliver the above-described confidential reports and records. When exigent circumstances exist, the Office of the Attorney General or the FIU may make the aforesaid application for an order via telephonic exchange with any sitting Justice of the Supreme Court at any time. The Office of the Attorney General's or FIU's written affirmation of the Court's oral order for production shall be transmitted to the reporting party immediately, either by facsimile or by any other written means.
(c) Notwithstanding the foregoing, the Office of the Attorney General or the FIU shall follow up the aforesaid request with a sworn written application to the Court for the order by the close of business on the next business day following receipt by the reporting party of the Court's oral order directing the production and delivery of reports and records. Should the Office of the Attorney General or the FIU fail to submit the written application by the close of business on the business day following the issuance of the Order, all the confidential reports and records shall be returned to the credit or financial institution, cash dealer, or alternative remittance system and any copies shall be destroyed immediately by the FIU and the Office of the Attorney General.
(d) Upon receipt of confidential information by the Office of the Attorney General or the FIU pursuant to this section, the Ministry of Justice, FIU, the office of the Attorney General, and all related employees and agencies shall be prohibited from disclosing or making known the existence and content of the information received, except as provided in sections 17 and 19. Under no circumstances shall persons be required to transmit the above information and reports, nor shall any other individual having knowledge thereof be required to communicate such information or reports to any natural or legal person other than those specified in subsection (a).
Section 14. Internal anti-money-laundering programs at credit and financial institutions and compliance requirements.
(a) Credit and financial institutions shall develop written policies and procedures, to the extent such programs and procedures do not currently exist, for the prevention of money laundering. Such programs shall include the following:
(1) . . . .
(2) . . . .
(3) . . . .
(4) Internal audit arrangements to check compliance with and effectiveness of the measures taken to implement this Act;
(b) The FIC shall conduct random compliance audits to assess compliance with this Act. Any credit or financial institution that fails to comply with the requirements of sections 5, 7, 8, 9, 10, 11, 12, 13, 14, or 20 are subject to remedial provisions, including fines, as provided for in regulations promulgated pursuant to this Act. Any credit or financial institution that repeatedly fails to comply with the requirements of sections 5, 7, 8, 9, 10, 11, 12, 13, 14, or 20 may have a fine imposed, or their license suspended or revoked, by the FIC after a hearing by the FIC Board.
Section 15. Over-the-counter exchange dealings. Natural or legal persons whose occupation is that of an over-the-counter exchange dealer and who are not otherwise licensed by the FIC as a financial institution shall be required to do the following:
(a) . . . .
(b) . . . .
(c) . . . .
SUBCHAPTER IV. DETECTION OF MONEY LAUNDERING
Section 16. Cooperation with anti-money-laundering authorities.
(a) A Financial Intelligence Unit ("FIU") shall be created within the Office of the Attorney General or the Financial Institutions Commission by Executive Order of the President. Other agencies of the government may be assigned to assist the FIU by the President at the request of the FIU. The FIU, in consultation with the President of the Republic of Palau, may promulgate regulations pertaining to the duties and functions of the FIU pursuant to the Administrative Procedure Act, 6 PNC Chapter 1.
(b) . . . .
(c) The FIU members may not concurrently hold or pursue any elective office in the Palau National Government or any State Government and may not hold any other private employment.
(d) The FIU shall receive the reports transmitted by the persons referred to in sections 11 and 20. The FIU shall analyze the reports on the basis of the information at its disposal and shall gather, in particular from organizations and government ministries and agencies involved in combating organized crime, any additional information that may help to establish the origin of the funds or the nature of the suspect transactions forming the subject of the reports.
(e) The reports required of the persons referred to in section 20 shall be sent to the FIU by any rapid means of confidential communication. The FIU shall confirm in writing receipt of any reports received and of money laundering trends.
(f) Upon the effective date of this Act, an annual report shall be submitted by the FIU to the President and the Olbiil Era Kelulau. The report shall provide an overall analysis and evaluation of the reports received and of money laundering trends.
Section 17. General provisions.
(a) The FIU shall be responsible for receiving, analyzing, and processing reports required pursuant to this Act. All officials, employees, and agents of the national government or any other government shall keep confidential the information thus obtained, which may not be used for any purposes other than those provided for in this Act.
(b) The FIU may, upon suspicion of money laundering, terrorist financing, or a predicate offense, disseminate such information to domestic authorities as it deems necessary.
Section 18. Access to information. The FIU may also obtain from any public authority or from any natural or legal person information and record within the scope of investigations conducted following the report of a suspicion of illegal activities as set forth in section 24. The FIU shall, upon request, be granted reasonable access to databases of all public authorities. In all cases, the use of information thus obtained shall be limited to the purposes of this Act.
Section 19. Relationships with foreign financial intelligence units.
(a) The FIU may enter into reciprocal arrangements with foreign financial intelligence units, or other law enforcement agencies, for the formal exchange of financial intelligence information, provided that such arrangements are governed by confidentiality requirements substantially similar to those set forth in this Act.
(b) The FIU, subject to a reciprocal arrangement with foreign financial intelligence units, shall exchange information on a peer to peer basis with financial intelligence units of foreign countries responsible for receiving and processing reports of money laundering, provided that such exchanges are governed by confidentiality requirements substantially similar to those set forth in this Act.
(c) Upon receipt of a request for information or transmission from a counterpart foreign financial intelligence unit, the FIU may comply with that request within the scope of the powers set forth in the reciprocal agreement, so long as such compliance is not in conflict with Palau law.
Section 20. Requirement to report suspicious transactions.
(a) Any credit and financial institutions, financial intermediaries, over-the- counter exchange dealer as defined in section 15, cash dealer, alternative remittance system, or other natural or legal person subject to sections 5-11, shall be required to report to the FIU transactions referred to in section 11. The persons referred to in this section shall be required to report the transactions carried out even if it was not feasible to defer their execution or if it became clear only after completion of a transaction that it involved a money laundering offense or terrorist financing. Any natural or legal person referred to in this subsection shall also be required to report without delay any information that might confirm or invalidate the suspicion of a violation of section 3.
(b) . . . .
Section 21. Stop notice on incomplete transactions.
(a) If the FIU or the Office of the Attorney General considers it necessary, the FIU or the Office of the Attorney General shall petition the Supreme Court for an order to stop the execution of a transaction. Upon an ex parte showing of probable cause, the Supreme Court shall order stoppage of the transaction. When exigent circumstances exist, the FIU or the Office of the Attorney General may make the petition for an order via telephonic communication with any sitting Justice of the Supreme Court at any time.
(b) Following a telephonic request pursuant to subsection (a), the Office of the Attorney General or the FIU shall submit a sworn written application to the Court on the next business day after issuance of the Court's oral order directing the stoppage. The Court's order stopping the transaction shall be transmitted to the reporting party immediately, either by facsimile or by any other written means. The stop notice order shall defer the execution of the transaction for a period not to exceed 72 hours. Should the Office of the Attorney General or the FIU fail to submit the written application as required herein, after issuance of the Court's stop notice order, the transaction may be completed.
(c) To extend the stoppage of the transaction, the Office of the Attorney General or the FIU must immediately notify all parties to the transaction, either by facsimile or by any other written means, and simultaneously move the Court for an order allowing an extension of the stoppage for an additional period not to exceed eight (8) days. Upon receipt of the motion, the Court shall order an expedited hearing to be held within the shortest possible time after actual notice of the motion to all parties.
Section 22. . . . .
Section 23. Exemption from liability arising out of the execution of transactions.
(a) . . . .
(b) The foregoing exemption of liability shall only apply if a person subject to this Act carries out any transaction at the request of the FIU or the Office of the Attorney General acting pursuant this Act.
Section 24. . . . .
Section 25. Undercover operations and controlled delivery. No punishment may be imposed on officials competent to investigate the money laundering offenses who, for the sole purpose of obtaining evidence relating to offenses referred to in this Act, perform, in the manner specified herein, acts which might be construed as elements constituting any of the offenses referred to in this Act. The authorization of the Supreme Court shall be obtained prior to any operation as described in sections 13 and 24. A detailed report in the form of a sworn affidavit by the officer supervising the investigation shall be transmitted to the Supreme Court upon application for any further order to the Court which may include allowing the officials charged with investigating the money laundering offenses to carry out such operations, including the delay of, freezing, or seizure of money or any other property, until the investigation has been completed and, if necessary, order specific measures for the safekeeping of such property. However, money, assets, and property shall not be frozen for any period in excess of three (3) months absent a conviction for the crimes under investigation, without a further application being made to the Supreme Court. The Supreme Court may extend the seizure or freezing of such assets for one or more additional three- month periods upon a showing of good cause by the Office of the Attorney General or the FIU.
Section26. Disallowance of bank secrecy. Banking or professional secrecy may not be invoked as grounds for refusal to provide information referred to in section 12 or required in connection with an investigation which relates to money laundering and is ordered by or carried out pursuant to an order of the Supreme Court.
Section 27. . . . .
Section 28. Provisional measures. The Supreme Court may upon motion of the Office of the Attorney General or the FIU issue a temporary order, at the expense of the national government, freezing capital and financial transactions relating to property of whatsoever nature that is liable to seizure or confiscation under this Act. The lifting of those measures may be ordered at any time at the request of the Office of the Attorney General or the FIU or upon motion of the beneficial owner to the Supreme Court. However, any capital, property, transactions, money, or other assets seized or confiscated and not adjudicated by the Court to be the fruit of the crime of money laundering may not be seized or confiscated for any period in excess of three (3) months, after a seizure or confiscation, absent a conviction for the crimes under investigation, without a further application being made to the Supreme Court. The Supreme Court may extend the seizure or confiscation of such assets for one or more additional three-month periods upon a showing of good cause by the Office of the Attorney General or the FIU.
Section 29. Money laundering penalties. Any natural person convicted of violating section 3 as a principal, involving proceeds of crime having a total value of less than $2,500.00, shall be fined not more than double the amount laundered or attempted to be laundered or imprisoned for not more than one year and one day, or both. Any natural person convicted of violating section 3 as a principal, involving proceeds of crime having a total value of $2,500.00 or more, shall be fined not less than $5,000.00, nor more than double the amount laundered or attempted to be laundered, whichever is greater, or imprisoned for not more than ten years, or both. Any natural person convicted for being an accessory to a violation of section 3 shall be punished pursuant to 17 PNC 103. Any natural person convicted of attempting to violate section 3 shall be punished pursuant to 17 PNC 104. Any natural person found guilty of aiding and abetting a violation of section 3 shall be punished pursuant to 17 PNC 102. Any natural person found guilty of conspiracy to violate section 3 shall be punished pursuant to 17 PNC 901.
Section 30. Penalties applicable to corporate entities. Corporate entities, other than the National Government of the Republic of Palau, on whose behalf or for whose benefit a money laundering offense has been committed by one of their agents or representatives shall be fined in an amount equal to two times the fines specified for natural persons, without prejudice to the conviction of those individuals as perpetrators of the offense or accessories to it. In the case where a corporate entity's agents or representatives, on the entity's behalf or benefit, are convicted of three or more offenses under section 3 within a five-year period, such entity may be:
(a) permanently or for a minimum of five years banned from directly or indirectly carrying on the business activities in the Republic of Palau for which they are licensed or conducted at the time of the offense;
(b) ordered to close permanently or for a minimum of five years their premises which were used for the commission of the offense; and/or
(c) required to publicize the judgment in the press or by radio or television.
Section 31. Civil penalties. Any person who fails to comply with sections 5, 6, 7, 8, 9,10, 12, 14, 15, or 20, shall, upon conviction therefor on the basis of clear and convincing evidence, be subject to a civil penalty not to exceed US $50,000.00 upon application by the Office of the Attorney General or the FIU. The rules governing adjudicative proceedings under the Administrative Procedure Act, 6 PNC Chapter 1, shall not apply to this section.
Section 32. Penalties for other offenses.
(a) A penalty of not more than two years' imprisonment or a fine not to exceed US $10,000.00 shall be imposed on:
(1) persons and directors or employees of organizations that carry out or advise on operations involving deposits, exchange operations, investments, conversions, or any other movements of capital, and in particular to credit and financial institutions and financial intermediaries, who knowingly disclose, to the owner of the sums or to the principal of the transactions specified in that section, a report which they are required to make or the action taken on it as specified in sections 11, 13, 20, and 25;
(2) anyone who knowingly destroys or removes registers or records which are maintained pursuant to sections 11, 12 or 15;
(3) anyone who under a false identity performs or attempts to perform any of the operations specified in sections 5, 6, 7, 8, 9, 10, 11 or 15;
(4) . . . .
(5) anyone who knowingly communicates deeds or records specified in section 24(e) to the FIU or Office of the Attorney General or to the officials competent to investigate the offenses, knowing such deeds or records to contain material errors or omissions, without informing them of that fact; and
(6) anyone who upon a reasonable suspicion fails to report, pursuant to section 20, in cases where the circumstances of the transaction admit the conclusion that the money was derived from one of the offenses referred to in section 20.
(b) Persons found guilty of any offense or offenses set forth in subsection (a) may also be banned permanently or for a minimum of five years from pursuing the trade or occupation which provided the opportunity for the offense to be committed.
Section 33. Confiscation.
(a) In the event of a conviction for actual or attempted money laundering, an order shall be issued by the Supreme Court for the confiscation of the property forming the subject of the offense, including income and other benefits obtained therefrom, against any person to whom they may belong, unless the owner can (1) establish the absence of any connection between such property, income, and other benefits and the predicate or money laundering offense and (2) establish that the owner was a bona fide purchaser for value acquired the property in return for the provision of services corresponding to its value or acquired the property on any other legitimate grounds. The confiscation order shall specify the property with particularity and contain the necessary details to identify and locate it.
(b) In the event of a conviction for actual or attempted money laundering, an order may additionally be issued for the confiscation of the property of the convicted offender in an amount equal to the enrichment obtained by the convicted offender during a period of three years preceding the conviction unless the convicted offender can establish the absence of any connection between such enrichment and the predicate or money laundering offense. The confiscation order shall specify the property with particularity and contain the necessary details to identify and locate it.
Section 34. Confiscation of property of criminal organizations. In the event the Supreme Court has determined beyond a reasonable doubt that an individual convicted of an offense under this Act is a member of a criminal organization, the property over which a criminal organization has power of disposal shall be confiscated unless the lawful origin of the property is established by the organization.
Section 35. . . . .
Section 36. Disposal of confiscated property.
(a) . . . .
(b) In cases where confiscation is ordered under a judgment by default, the confiscated property shall accrue to the Republic of Palau and be liquidated in accordance with law. However, if the Supreme Court, ruling on an application to set aside such judgment, acquits the person prosecuted, it shall order that the Republic of Palau pay full and fair restitution for the value of the confiscated property, unless it is established beyond a reasonable doubt that such property is the proceeds of crime committed in Palau. The Republic of Palau shall not be liable for any exemplary or consequential damages as a result of the sale of confiscated property.
Section 37. Applicable law for rulemaking and regulations. The Administrative Procedure Act, 6 PNC Chapter 1, shall apply for all rules and regulations promulgated under this Act, unless otherwise specified.
Section 38. . . . ."
Section 2. Amendment. The Content Section of RPPL 6-4 so hereby amended so that the Section numbers, titles, and page numbers coincide with the changes made in Section 1 of this Act.
Section 3. Effective date. This Act shall take effect upon its approval by the President of the Republic, or upon becoming law without such approval.
PASSED: December 01, 2007
Approved this 19th day of Dec. , 2007.
Tommy E. Remengesau, Jr.
Republic of Palau