The Minister of Finance and Development Planning, Dr Timothy Thahane, says Money laundering affects economic growth in many parts of the world.

He was addressing Senators at a two-day workshop on Money Laundering and Proceeds of Crime Bill 2007.

He noted that in many countries, drug trafficking has been singled out as one of the contributing factors to money laundering as it cannot be accountable through the banking system because it travels through illegal sources.

He said that in Lesotho, money laundering is still a problem as money is diverted into inappropriate channels and sometimes the government pays for non existing debts.

Dr Thahane therefore emphasized that it is essential for Senators as law makers to have a clear understanding of the Crime Bill that he said aims to make it possible for unlawful proceeds of all serious crimes to be identified, traced and be confiscated or forfeited.

"The Directorate on Corruption and Economic Offenses will be an Anti Money Laundering Authority for the enforcement of the Bill once is promulgated", he added.

Also speaking, the President of the Senate, Chief Letapata Makhaola said money laundering and financing of terrorism are global problems, and that commitment to fight these heinous crimes could be manifested through developing national legislations.

He said that although Lesotho does not currently have legislation that criminalise money laundering and financing terrorism, the encompassing of the Money Laundering and Proceeds Bill, which has been tabled before Parliament is a serious initiative.

He added "Through the Bill, accountable institutions will be enjoined to take prudential measures when establishing business relations with their customers."

The Bill will be cited as Money Laundering and Proceeds of Crime Act, 2007 and shall come into operation on a date to be fixed by the Minister of Finance by notice in the Gazette.

Source: LENA 12/11/2007