(1) Subject to sections 22B and 22C, on being served with a freezing order in respect of a specified entity, a person shall, without delay—
(a) freeze all funds—
(i) wholly or jointly owned or controlled, directly or indirectly, by a specified entity or a person acting on behalf of a specified entity,
(ii) derived or generated from funds or other assets owned or controlled, directly or indirectly, by a specified entity;
(b) give written notice to inform the Financial Intelligence Authority that all funds, under paragraph (a), are frozen.
(Substituted by Act 8 of 2023)
(2) A financial institution or a person that contravenes subsection (1) commits an offence and is liable, on conviction on indictment, to a fine not exceeding $1,000,000. (Amended by Act 8 of 2023)
(3) A director, manager or an employee of a financial institution or a person that contravenes subsection (1) commits an offence and is liable on conviction on indictment to a fine not exceeding $2,000,000 or to imprisonment for a term which may extend to life. (Substituted by Act 8 of 2023)
(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)