Law 4/2011 From The 25Th Of May, Of The Law Of International Criminal Cooperation And The Fight Against The Laundering Of Money Or Securities Of International Crime And The Financing Of Terrorism, Of 29 December 2000

Original Language Title: Llei 4/2011, del 25 de maig, de modificació de la Llei de cooperació penal internacional i de lluita contra el blanqueig de diners o valors producte de la delinqüència internacional i contra el finançament del terrorisme, del 29 de desembre del 2000

Read the untranslated law here: https://www.bopa.ad/bopa/023041/Pagines/6DE96.aspx

Law 4/2011 from the 25th of may, of the law of international criminal cooperation and the fight against the laundering of money or securities of international crime and the financing of terrorism, of 29 December 2000 since the General Council in its session of the 25th May 2011 has approved the following : Act 4/2011 from the 25th of may, of the law of international criminal cooperation and the fight against the laundering of money or securities of international crime and the financing of terrorism, of 29 December 2000 preamble the implementation of international standards for the prevention of money laundering and financing of terrorism has become a national priority that has led to the adoption of legislative initiatives in recent years and the revision of the whole system of prevention and repression in order to achieve the most effective framework for the fight against these criminal behaviour.

Law 28/2008, of 11 December, on the modification of the law of international criminal cooperation and the fight against the laundering of money or securities of international crime, of 29 December 2000, and the regulation of development approved by Decree of April 22, 2009, they were taken into special consideration the criteria established by the recommendations of the Financial Action Task Force-FATF-according to the observations made in the evaluation report approved at the plenary session The MONEYVAL (Council of Europe) on 14 July 2007. This new policy framework was completed with the adaptation of the legal system of criminal law repression of money laundering and the financing of terrorism by law 15/2008, of 3 October, amending the law 9/2005, of 21 February, Andorran penal code, and law 16/2008, of 3 October, qualified for the modification of the law for the modification of the code of criminal procedure , 10 December 1998.

The progress reports approved in MONEYVAL plenary session of 10 December 2008 and on December 9, 2010 show the evolution and intensification of repression and prevention measures taken by the Principality of Andorra. In this context of constant adaptation to the internationally accepted practices, this law incorporated into the Andorran legal system modifications that, due to its technical nature, recommend an immediate legislative initiative and that complement each other with the revision of the regulation approved by Decree of 22 April 2009.

The law consists of seven articles that, for the most part, turned into positive law preventive measures already applied by the compulsory subjects and that, in accordance with international standards, require a forecast explicit regulations. Among other issues, extending the concept of beneficiary cash, reducing the amount of cash sales of articles of great value that the obligations established by law, intensifies the regime of simplified due diligence measures and establish additional measures for the protection of subjects forced when made declarations of suspicion.

With this legislative reform, urgent and necessary, Andorra strengthens its commitment in the prevention and repression of money laundering and of the financing of terrorism, through a process of constant adaptation of criminal law in the evolution of international standards, in accordance with the fundamental principles that inform the criminal policy of the Principality of Andorra.

Article 1 amendment to article 41 of the law 1. Modifies the letter (g) of article 41 of the law of international criminal cooperation and the fight against the laundering of money or securities of international crime and the financing of terrorism, which is written as follows: "g) True successor or beneficiary effective, person or natural persons who ultimately control the client and/or the person for whose account the transaction or activity is carried out. The true successor includes, at least:-In the case of legal entities with corporate form: * the person or persons who ultimately control the legal entity through ownership or control, direct or indirect, of a sufficient percentage in their share capital or of the voting rights. For this purpose it is considered enough of a percentage higher than 25%.

* the person or persons who by any other means they exercised effective management.

Excepts societies that make contributions to regulated markets of countries that comply with the regulatory requirements of information in accordance with international standards, which will be considered true successors.

-In the case of other legal entities, legal instruments of trust and other fiduciary structures that manage and distribute funds: * When the prospective beneficiaries have already been appointed, the person or persons beneficiary of a percentage higher than 25% of the funds.

* When the prospective beneficiaries have not been designated, the category of people for the benefit of which has been created or performs mainly the person or legal instrument.

* The person or persons who, by any other means, developing effective management of the entity or legal instrument. ".

2. Add the letter (h) in article 41 of the law of international criminal cooperation and the fight against the laundering of money or securities of international crime and the financing of terrorism, with the following wording: "h) Other legal entities, legal instruments of trust and other fiduciary structures, which have this nature, whether or not regulated by Andorran legislation as the foreign foundations without general interest or trusts in its various forms. ".

Article 2 Amendment 45 article modifies the letter (c) of article 45 of the law of international criminal cooperation and the fight against the laundering of money or securities of international crime and the financing of terrorism, which is written as follows: "c) sellers of articles of great value, such as stones and precious metals, when the payment is made in cash and by an amount equal to or more than € 15,000 , or the equivalent in any other currency; ".

Article 3 Amendment 47 article modifies the article 47 of the law of international criminal cooperation and the fight against the laundering of money or securities of international crime and the financing of terrorism, which is worded as follows: "Article 47

The obligation to declare should meet, regardless of what the country where it has been committed or may commit the alleged crime of money laundering or of the financing of terrorism, or where you come from or are intended for the funds.

The Declaration must be made before the subject must have the financial or economic operation doubtful. In this case, if there are sufficient indications that the UIF, orders temporarily blocking the operation.

This blockage may not exceed five days, within which the UIF should raise it if these signs have been distorted, and must authorize the execution of the operation or, otherwise, it should send the proceedings to the public prosecutor.

In any case, the UIF has no responsibility for damages caused by the blockade of capital carried out within the scope of their functions.

The issue of the Declaration of suspicion and any other additional information does not carry any responsibility for the sender even if done without knowing exactly what type of crime or illegal activity has been committed.

The UIF and any other administrative or judicial authority takes all appropriate measures to protect the subjects required towards any threat or hostile action arising from the fulfilment of the obligations imposed by this law. In particular, confidentiality will be maintained on the identity of the subject required and employees who have been involved in the declarations of suspicion in all administrative and judicial procedures with origin or relation to the statements issued.

For this purpose, the UIF discusses the Declaration of suspicion and, in the case of appreciate evidence or the existence of money laundering or financing of terrorism, the report refers to the public prosecutor or to the corresponding judicial or administrative bodies. The report of the UIF does not incorporate the declarations of suspicion of compulsory subjects or their identification or the officials or members of the UIF who have taken part in the instruction.

The report of the UIF has no probative value and may not be incorporated into the judicial or administrative proceedings that therefrom. ".

Article 4 modification of paragraph 3 of article 49 modifies paragraph 3 of article 49 of the law of international criminal cooperation and the fight against the laundering of money or securities of international crime and the financing of terrorism, which is worded as follows: "3. The compulsory subjects of surveillance measures, constant financial regarding new technologies in order to prevent its misuse for money laundering or the financing of terrorism and any action that causes a false identification of the client in all transactions carried out at a distance. ".

Article 5 Amendment of article 49 bis modifies the article 49 bis of the law of international criminal cooperation and the fight against the laundering of money or securities of international crime and the financing of terrorism, which is worded as follows: "Article 49 bis 1. The compulsory subjects must verify the identity of the customer and with diligence of true successors, before establishing any transaction or business relationship.

2. Notwithstanding the provisions of the preceding paragraph, the verification of the identity of the customer and of the true successor can be carried out subsequent to the first business relationship, when it is necessary not to put obstacles to the development of the operation provided that the risk of money laundering or of the financing of terrorism is weak. The identification process should be concluded as soon as possible. In the event that will develop an operation without prior verification of the identity of the customer and of the true successor, and prior to their implementation, it is necessary to write a report detailing the circumstances that prevent the identification of the data which are known to the client and the successor in title, and also the operation, detailing the necessary aspects for a follow-up of the money transaction object or for a correct traceability of legal business carried out.

3. In the field of life insurance, the identity check can be carried out subsequent to the recruitment of the policy provided that this is done before the time when the beneficiary based or intends to exercise the rights that the policy gives.

4. You can proceed with the opening of bank accounts before the identification and verification of customer and the true successor as long as there are guarantees that no fee will be operations until they have fulfilled the obligations of identification.

5. cross-border transfers to an amount higher than 1,000 euros made by financial compulsory subjects must include complete information on the payer. The complete information on the payer should include the following information: a) name of the ordering party.

b) source account number of the transfer.

In the absence of account number, the subject required financial must be accompanied with a transfer transaction identification number that allows your monitor to the ordering party.

c) address of the ordering party. The address may be replaced by the place and date of birth of the payer, his customer number or national identity number.

In the national transfer of any amount, the information can be limited to the source of the transfer account number or identifying number of the transaction, provided that the subject must transfer the running financial can provide complete information on the payer to the receiver of the transfer or the UIF, over a period of three working days.

The compulsory subjects properly should inform financial on the transmission of data relating to ordering transfers, prior to their execution.

The compulsory subjects must adopt financial measures of enhanced diligence referred to in article 49 c based on a risk analysis, when recipients of transfers that do not include the information on the payer required by this article.

6. In the event that the identification of the client and of the true successors will not be able to carry out in accordance with article 49, the subject required to establish a business relationship may not be financial or carry out operations or transactions.

In the case of relationships already initiated, it should put an end to the relationship between business and assess the transmission of a communication to the UIF.


7. The financial subjects forced have to apply also the procedures of due diligence in respect of existing customers, at the right time based on the analysis of the risk. ".

Article 6 Amendment of article 49 ter modifies the article 49 ter of the law of international criminal cooperation and the fight against the laundering of money or securities of international crime and the financing of terrorism, which is worded as follows: "Article 49 ter. simplified due diligence measures 1. Notwithstanding the provisions of the previous articles, the subjects required can reduce the compliance with the obligations established in article 49 of this law provided that the customer is a subject bound to this financial credit institution or financial law or established in a country in the OECD that can impose requirements equivalent to those of this law and be monitored to ensure compliance with these requirements.

2. the financial subjects forced can also reduce the fulfilment of the obligations set forth in article 49 in the following cases: a) life insurance policies with an annual premium that does not exceed 1,000 euros or with a single premium that does not exceed 2,500 euros.

b) insurance policies for pension plans, as long as they do not include rescue clause nor can serve as collateral for a loan.

c) The pension plans, retirement or similar that include the payment of retirement benefits to employees, as long as the contributions are made through tax deductions on salary and the rules of the plan does not allow the transfer of its participation.

of electronic money) when the maximum amount of storage does not exceed 150 euros if this is not rechargeable, or the total amount available in a calendar year is limited to 2,500 euros, except when the carrier may request the refund of an amount equal to or greater than 1,000 euros in one year.

e) other products or transactions that represent a low risk of money laundering or of the financing of terrorism in accordance with the statements of the UIF.

In any case, it is necessary to accompany the transcript of each operation with a short note identifying and justifying the technical release of the UIF applied to each case.

3. In all cases provided for in this article are compulsory subjects must obtain sufficient information to confirm that the client meets the conditions for the application of simplified due diligence measures, a circumstance that implies, at least, identify and verify the identity of the client and make the monitoring of the business relationship in order to ensure that it maintains the continuous fulfilment of the requirements for the application of this article.

4. Cannot apply simplified due diligence measures: a) when there is suspicion of an act of money laundering or financing of terrorism.

b) When the subjects required to have doubts about the veracity of the documents, information and any other data previously obtained for the purposes of the verification of compliance with the conditions required by paragraph 3 of this article.

c) when there are situations that may present a high risk of money laundering or financing of terrorism. ".

Article 7 amendment of paragraph 1 of article 49 c modifies the letter (c) of paragraph 1 of article 49 c of the law of international criminal cooperation and the fight against the laundering of money or securities of international crime and the financing of terrorism, which is worded as follows: "(c)) in relation to the transactions or business relationships with politically exposed persons who exercise important public functions to another State , corresponding to the compulsory subjects: financial-have suitable procedures in terms of risk in order to determine whether the client or the effective beneficiary is a person politically exposed.

-To obtain the authorization of the Directorate to establish a business relationship with your fingers customers.

-Adopt appropriate measures to determine the origin of the assets and the funds subject to the business relationship or transaction.

-Perform a reinforced monitoring and permanent business relationship.

These obligations are equally applicable when subsequent to the identification and initial verification of a client or beneficiary cash, this happens to be a politically exposed person. ".

Single final provision this law shall enter into force the day after being published in the official bulletin of the Principality of Andorra.

Casa de la Vall, 25 May 2011 Monica Bonell Tuset General Subsíndica Us the co-princes the sancionem and promulguem and let's get the publication in the official bulletin of the Principality of Andorra.

Joan Enric Vives Sicília Nicolas Sarkozy President of the French Republic and the Bishop of Urgell Co-prince of Andorra Co-prince of Andorra