(1) In the case of an inspection of a licensed financial institution under section 6(1)(h), the Authority must have reasonable grounds to believe that —
(a) an offence under this Act has been, is being or is about to be committed;
(b) the inspection is necessary —
(i) in the interest of national security, or
(ii) for conducting an investigation;
(c) the licensed financial institution, a director, a manager, a senior officer or an individual who manages or controls the licensed financial institution is engaged in or facilitates money laundering or other criminal conduct;
(d) a transaction relating to money laundering or other criminal conduct has been, is being or is about to be conducted through the licensed financial institution;
(e) it is necessary for the Authority to conduct the inspection in order to avoid disclosure to a person who is referred to under paragraph (c) or who is involved in a transaction under paragraph (d).
(2) In conducting an inspection under subsection (1)(a) or (b), the Authority shall consult with the Central Bank.
(3) The Authority may submit to the Central Bank, a report derived from an inspection under subsection (1)(a) or (b), if the report derived from the inspection does not disclose sensitive information which can —
(a) cause unauthorized disclosure or tipping off;
(b) prejudice an investigation or prosecution of an offence under this Act.
(Inserted by Act 16 of 2021)