38. Insertion of new section 31a in the principal enactment

The following new section is hereby inserted immediately after section 31 of the principal enactment, and shall have effect as section 31a of that enactment: -

31a. (1) An Institution shall ensure that its branches and majority-owned subsidiaries in foreign countries or foreign States comply with the provisions of this Act and any regulations, rules, Orders and directions made or issued under this Act where the relevant written laws of such foreign countries or foreign States provide less stringent requirements in relation to combatting money laundering, terrorist financing and financing of proliferation of weapons of mass destruction than those provided for by this Act and any regulations, rules, Orders and directions made or issued under this Act.

Where the relevant written laws of any foreign country or foreign State do not permit the implementation of the provisions of this Act, and any regulations, rules, Orders and directions made or issued under this Act, every such Institution shall apply appropriate additional measures to manage and mitigate money laundering, terrorist financing and financing of proliferation of weapons of mass destruction risks.

For the purpose of subsection (2), additional measures shall include extra precaution and increased oversight and controls.”.