On The Measures Against The Legalization Of Proceeds Of Crime

Original Language Title: o opatřeních proti legalizaci výnosů z trestné činnosti

Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=67290&nr=281~2F2008~20Sb.&ft=txt

281/2008 Sb.



DECREE



from day 1. August 2008



about some of the requirements for a system of internal policies, procedures and

control measures against the legalization of proceeds of crime and

the financing of terrorism



Change: 129/2014 Sb.



The Czech National Bank pursuant to section 56 of the Act provides for 253/2008 Coll., on certain

measures against the legalization of proceeds from crime and the financing of

terrorism, (the "Act"):



§ 1



The subject of the edit



This Decree regulates the requirements for the introduction and implementation of



and procedures for the performance of control) client, and scope

the client checks the corresponding risk of the legalization of proceeds of crime

the activities and the financing of terrorism, depending on the type of customer,

business relationship, product or transaction and



b) methods and procedures for risk assessment, risk management, internal control

and ensuring control over the compliance with the obligations laid down by law,

applied in the context of internal policies, procedures and control

measures of persons referred to in paragraph 2, in respect of which performs Czech national

bank supervision ^ 1).



§ 2



Personal scope



(1) the requirements of this Decree shall apply to the credit or

financial institution (hereinafter referred to as "institutions"), which is



and) Bank,



(b)) and úvěrním, a savings cooperative,



c) CSD of dematerialised securities, the person leading

Register of building on the central register of securities, led by

CSD of dematerialised securities, the person leading

separate registers of investment instruments, or the person of the head of the registration

follow-up on separate registers of investment instruments,



d) investment instruments market Organizer,



(e)) with the permission of the person to provide investment services with the exception of

the investment intermediary



(f)), the Government investment company investment fund, the main

the administrator of the pension investment fund, company or personal pension

the Fund,



(g) payment institutions) the payment service provider of a minor nature,

electronic money institution or issuer of electronic money

small scale,



h) insurance company, reinsurance company, insurance agent, or

separate claims by the liquidator in the exercise of activities

associated with the operation of life insurance, with the exception of

the insurance provider for which insurance company is responsible for

damage caused by its activities, or



I) by a person authorised to operate the Exchange activity under the law on

currency exchange activities.



(2) the requirements laid down by this Decree shall also apply to

a foreign legal or natural person referred to in paragraph 1, which

on the territory of the Czech Republic has been operating through its branch,

organizational folder or the establishment, to the extent the activities of this

the branch, departments or carried out by the establishment.



§ 3



Definition of terms



(1) For the purposes of this Ordinance, means the opaque ownership

the structure of the State, when it cannot determine who is the real owner of the client



and the statement from) commercial register, other similar records residence of

foreign persons not entered in the commercial register in Czech

Republic, and if it is not in the country of the seat of this foreign entity such

the evidence, then of the certified social contract, or



(b)) of the other documents, which the foreign person based and that

It contains all of its changes, or



(c)) from a trusted source, to which the institution reasonably relies.



(2) For the purposes of this Ordinance, means the countries of origin



and natural persons), each State, for which that person is a national,

at the same time all other States that have opted for permanent

or another residence,



(b)) a legal entity that is subject to obligations in accordance with § 25 para. 4 of the law

or similar duties, the State in which it has its registered office,



(c)) a legal entity that is not subject to obligations in accordance with § 25 para. 4

law or similar duties, the State in which it has its registered office, and

at the same time all the States in which he has an establishment, or organizational unit

place of business.



(3) on the opaque ownership structure referred to in paragraph 1 shall not,

If the client is a company whose securities are admitted to

trading on a regulated European market or the foreign market

similar to the regulated market and which is subject to disclosure requirements

information to the equivalent requirements of European Union law.



§ 4



(1) institutions in the risk management approach that is based on an assessment of the

the risks of legalization of proceeds of crime or financing of terrorism.



(2) the introduction and implementation of the system of internal policies, procedures and

control measures, including the identification and control of a client, the institution

account of the recognized and proven principles and practices in the field of

the prevention of the legalization of proceeds from crime and the financing of

terrorism (hereinafter referred to as "recognized standards"). An overview of selected recognized

standards published by the Czech National Bank.



(3) a separate insurance claims adjuster in the performance of activities

related to the operation of a life insurance beneficiary

Exchange activity may not operate in relation to those activities

fulfill the requirements referred to in § 5 para. 1 to 4. During the discovery and

evaluation of the suspect, however, takes into account the nature of the trade, trade and

the circumstances of its implementation and the nature and volume of the usual shops

client.



(4) the institution in relation to a client submits an exception

from the obligation of identification or client check in accordance with section 13 of the

the Act is not required in relation to this client, to the extent

applicable exceptions, meet the requirements of section 5 of this order. When

risk assessment in accordance with § 13 para. 3 of the Act, however, the institution shall take into account

at least risk factors referred to in § 5 para. 2 and the circumstances

referred to in § 5 para. 3 (b). (c)) of this order.



§ 5



Rules of acceptability to the client, the determination of the risk profile, and more

procedures



(1) institutions in the framework of the risk management system associated with the legalisation of

the proceeds of crime or terrorist financing shall be established and

apply the rules and procedures with regard to the risk

the client profile



and categorisation of clients)



(b)) Decides to trade or establishing a business relationship with

the client or ongoing business or an existing business relationship with the

the client terminates



(c)) to determine the risk factors referred to in paragraph 2 for new clients and

throughout the duration of the business relationship with all clients; in doing so,

updates the classification of the client to the appropriate risk category according to

the discovered information and



(d) adopt appropriate measures against) to clients, which was detected

risk factor (hereinafter referred to as "risk client").



(2) the risk profile of the client institution shall compile and evaluate at least with

Given these risk factors:



and the fact that one) of the client's country of origin, the person with the

institution acting on behalf of a client, or some of the countries of origin of the actual

the owner of the client, it is the State which does not adequately or at all

measures against the legalization of proceeds from crime and the financing of

terrorism, or State institution on the basis of its assessment,

considered a risk,



(b)), the fact that according to the information that the institution has available,

the subject of the trade was or is to be transferred in connection with a trade or

provided from the State that lack or not at all apply measures

against the legalization of proceeds from crime and the financing of terrorism,

or from a State institution on the basis of its assessment, it considers

risk, or that the subject of trade or be in connection with the

trade provided to transferred or of such State,



(c)), client enrollment of the person with the institution acts on behalf of the client,

the beneficial owner of the client, a person with whom the client takes place

trade, or, if they are known to the institution of the final beneficiary of the subject

trade or the beneficial owner a person with whom the client takes place

the store, on the list of people and movement, against which sanctions are applied

measures, in accordance with other legislation ^ 2)



d) opaque ownership structure of the client,



e) unclear origin of the funds of the client,



(f)) the fact of the suspicion that the client is not acting on his own behalf

or that the obscure, as the instruction of the third party



g) unusual way of making the sale, particularly with regard to the type of

the client, subject, amount and method of settlement of the trade, the purpose of the business

the relationship and scope of business of the client,



h) ascertains that the client carries out the suspect

trade,



I) the fact that according to the information that the institution has available is with the

the subject of client activity associated increased risk of money laundering

criminal activity or financing of terrorism.



(3) the establishment of a business relationship with the client, as well as in its course, and

When executing trades which are not part of a business relationship

the institution of the



and stores) to determine and on such information to the client, which will allow her to

assess whether the risk of the client,



(b)) checks the validity and completeness of the data on the client, and carried their

Update and



(c)) is paying increased attention shops



1. in which it occurs any of the risk factors according to § 5 para. 2,




2. by natural persons in the framework of the services based on

individual approach to the client, with the services of the institution

only provides such clients who meet special institutions

the specified conditions



3. politically exposed persons,



4. where the institution is known to be the actual owner of the client is

politically exposed person or that they are politically exposed person

otherwise participate in, or



5. the high volume or high levels of complexity, in particular with regard to the

client type, subject, amount and method of settlement of the trade, the purpose of the business

the relationship and scope of business of the client.



(4) in the provision of services based on individual approach to

the client referred to in paragraph 3 (b). (c) point 2 shall be subject to the conclusion of) business

the relationship with the new client prior approval of at least one

an employee of the institution, the functional classification is a level higher than

is a functional classification of employees or employees of institutions proposer

conclusion of the contract with the client. If this is not taking into account the size, method of

control or the number of employees of an institution which is a legal person,

possible, approving the conclusion of such a business relationship the statutory authority

of the institution.



(5) when carrying out trade with the use of means of distance communication

the institution creates and enforces such procedures, which verifies whether the

trade is conducted with an already identified by the client.



§ 6



The institution shall ensure that the person who evaluates the trade, should

access to the information contained in the information system of the institution

fast and effective search, monitoring and evaluation

the necessary information.



§ 7



All approval and decision-making processes and control activities in the framework of the

the system of internal policies, procedures and control measures, including

related responsibilities, powers, and the assessment of the evaluation

a report pursuant to section 8, it must be possible to reconstruct. To secure

This requirement, the institution shall establish and maintain an adequate system of

preservation of information, which also includes information on the findings

made when you check the client and when it examines the shops and

correspondence relating to business and trade relations. The backward-

rekonstruovatelný must be a process that results in a conclusion,

they are not reasons to change the risk profile of a client or for

the submission of a notification of suspicious trade.



§ 8



The evaluation report



(1) the institution in the context of internal control activities at least once

each year prepare a report evaluating the activities of the institutions in the area of

the prevention of the legalization of proceeds from crime and the financing of

terrorism (hereinafter referred to as the "evaluation report") assessing whether the



and) procedures and measures that institutions in the area of the prevention of

the legalization of proceeds from crime and the financing of terrorism, are

sufficiently effective,



(b)) were in the system of internal policies, procedures and control measures

institutions in the recent period, deficiencies, and what is the risk of

can accrue for the institution.



(2) any conclusions and assessments contained in the evaluation report must be

duly justified. If the evaluation report does not handle contact person ^ 3),

contains a message expressing the contact person for the completeness and correctness of

the assessment report.



(3) the assessment report also on the territory of the United States acting

the branch, the branch or place of business of the institution according to § 2 (2).

2.



(4) institutions in the evaluation report presents statistical information on the notices of

suspicious trades for the past period. These data be broken down by

organisation or by the commercial activities of the institution.



(5) in the event of the detection of deficiencies in the area of the prevention of the legalization of

the proceeds of crime and terrorist financing institutions in the assessment

the report presents a proposal to remove them.



(6) If an institution has the statutory authority, that authority shall discuss the evaluation

report no later than 4 months after the end of the period for which it is processed,

and expressed to the identified weaknesses and proposals contained in it. If it is to

the institution of the Supervisory Board, the Administrative Board or the Audit Commission shall perform the following

the obligations also this authority. In the case of a branch, branches or

the establishment of the institution according to § 2 (2). 2 carries out the following duties of the head of

This branch, branches or establishments.



(7) the assessment report together with the observations provided for in paragraphs 2 and 6 of the institution

hold for at least 5 years.



§ 9



Regulation (EEC)



Repealed the Decree No 247/2007 Coll., laying down some of the

requirements for the management and control system of banks and credit unions

cooperatives.



§ 10



The effectiveness of the



This Decree shall enter into force on 1 January 2000. September 2008.



Governor:



doc. Ing. Tůma, CSc. v. r.



Selected provisions of the novel



Article. (II) Decree No. 129/2014 Sb.



Transitional provision



The institution shall communicate its system of internal policies, procedures and control

measures to meet the obligations laid down by Act No. 253/2008 Coll., on

certain measures against the legalization of proceeds of crime and

the financing of terrorism, as amended, in accordance with the

Decree No. 281/2008 Coll., on certain requirements of the system of internal

policies, procedures and control measures against the legalization of proceeds of crime

the activities and the financing of terrorism, as amended by this Ordinance, no later than

six months from the date of entry into force of this Decree.



1) section 44 of the Act No. 6/1993 Coll. on Česká národní banka, as amended by

amended.



for example, law No 2) 69/2006 Coll., on the implementation of international sanctions, in

as amended, Council Regulation (EU) No 267/2009 of 23 July.

March 2012 concerning restrictive measures against Iran and repealing Regulation

Regulation (EU) no 961/2010, in wording of later regulations, Council Regulation (EC) No.

329/2007 of 27 April. March 2007 concerning restrictive measures against the Korean

Lao People's Democratic Republic, as amended.



3) section 22 of Act No. 253/2008 Coll., on certain measures against the legalization of

the proceeds of crime and the financing of terrorism, as amended

regulations.