(1) On being served with a freezing order in respect of a specified entity, a financial institution and a person engaged in other business activity, where appropriate, shall, without delay, freeze all funds in an account that is—
(a) owned or controlled, wholly or jointly by the specified entity; or
(b) derived or generated from economic resources, owned or controlled, by the specified entity.
(2) A financial institution or a person engaged in other business activity that contravenes subsection (1) commits an offence and is liable, on conviction on indictment, to a fine not exceeding one million dollars.
(3) A director, manager or an employee of a financial institution or a person engaged in other business activity that contravenes subsection (1) commits an offence and is liable on conviction on indictment to imprisonment for a term not exceeding twenty-five years.
(4) Nothing in this section prohibits the addition of interest or earnings due on an account frozen under this section or payments under contracts, agreements or obligations that arose prior to the making of a freezing order.
(5) Where a financial institution or a person engaged in other business activity credits a frozen account as a result of—
(a) interest or other earnings due on the account;
(b) payments due under contracts, agreements or obligations that were concluded or arose before the account became a frozen account;
(c) receiving funds transferred to the account,
that financial institution or person engaged in other business activity shall immediately notify the Financial Intelligence Authority.
(6) A financial institution or a person engaged in other business activity that contravenes subsection (5) commits an offence and is liable, on conviction on indictment, to a fine not exceeding one million dollars.
(Inserted by Act 28 of 2019)