Lesotho

Reg. 13(2) of the Money Laundering and Proceeds of Crime Regulations, 2019 requires accountable institutions to designate an officer at senior management level, who must know the institution's AML/CFT controls (reg. 13(3)). For banks, reg. 14(1)(a) of the CBL's 2015 Regulations requires policies for designating compliance or money laundering officers and reg. 15 an ongoing staff training programme. The Act (ss. 19-20 in the 2008 text, replaced by ss. 19-21A in 2016) adds internal reporting procedures, training and an audit function.

Section 17(4) of the Act requires records to be kept for at least 5 years from the date the business or transaction was completed. Reg. 11(4) of the 2019 Regulations repeats at least 5 years from the end of the business relationship or the occasional transaction, and reg. 11(5) lets a competent authority, supervisor or the FIU direct a longer period. The CBL's bank regulations set 10 years (see the row above).

Section 16 requires accountable institutions to establish the purpose and nature of the relationship and verify identity of natural persons and the legal existence and structure of entities. The 2016 Amendment Act extends s. 16 to beneficial owners, ongoing due diligence and politically exposed persons. Reg. 11(4) of the 2015 Regulations requires a customer acceptance policy and an ongoing identification and verification programme for banks.

Section 18(1) of the Act requires a report after forming suspicion and wherever possible before the transaction is carried out; the 2016 amendment extends it to attempted transactions. Reg. 19(2) of the Money Laundering and Proceeds of Crime Regulations, 2019 requires the report to the FIU 'immediately upon forming the suspicion' and 'not later than 7 days', with a written explanation if late (reg. 19(3)). Reg. 10 of the CBL's 2015 Regulations requires banks to report to the FIU and, for material activity, to the Commissioner.