Reform The Law Against The Laundering Of Money And Assets.

Original Language Title: REFÓRMASE LA LEY CONTRA EL LAVADO DE DINERO Y DE ACTIVOS.

Read the untranslated law here: http://www.asamblea.gob.sv/eparlamento/indice-legislativo/buscador-de-documentos-legislativos/reformase-la-ley-contra-el-lavado-de-dinero-y-de-activos-1/archivo_documento_legislativo



1. Decree No. 749 the Legislative Assembly of the Republic of EL SALVADOR, considering: I.-that, through Legislative Decree N ° 498, dated 02 December 1998, published in the official journal N ° 240, volume 341, of the 23rd of the same month and year, issued the law against the laundering of money and assets.
II.-that the aforementioned law aims to prevent, detect, punish and eradicate the crime of laundering of money and assets, and related offences, as well as the cover-up; in that it is applicable to any natural or legal person, even if the latter is not constituted legally.
III.-that, through Legislative Decree N ° 568, date 05 December 2013, published in the official journal N ° 9, volume 402, January 16, 2014, were issued reforms mentioned regulatory body.
IV.-that, in order to harmonize the legislation of El Salvador to the international standards on combating the laundering of money and assets, financing of terrorism and proliferation, reflected in various recommendations that this respect has dictated the action financial international group (GAFI), and seeking to improve and remedy the gaps under the law against the laundering of money and assets it becomes imperative to modify the content of some of its current provisions.
V-which, for the reasons previously stated, it becomes necessary to issue the relevant legal reforms.
Therefore, use of his constitutional powers and at the initiative of the members José Antonio Almendáriz Rivas, Eugenio Donato Vaquerano Rivas, Mario Marroquin Mejia, Roberto José d'Aubuisson Munguia, Antonio Echeverría Veliz and Misael Mejia Mejia.
DECREES the following: reforms to the law against the money and of laundering.
Article 1.-reforming article 2, in the following manner: "subjects of law enforcement and OBLIGORS."

2 article 2.-this law will be applicable to any natural or legal person even when the latter is not constituted legally; those who must submit the information required them the competent authority, allowing to demonstrate the lawful origin of any transaction that you make.
Obligors are all those which shall, inter alia, report the proceedings or suspicious financial transactions or that exceed the threshold of the law, to appoint and train a compliance officer, and other responsibilities that this law, the regulation of the same, as well as the instructions of the FIU to determine them.
Are considered to be bound by this law, the following subjects: 1) every society, company, or entity of any kind, domestic or foreign, that integrates an institution, group or financial conglomerate overseen and regulated by the Superintendence of the financial system;
(2) micro-finance, credit intermediary financial and not financial;
(3) importers or exporters of products and agricultural inputs, and hire new or used;
(4) companies stations in credit cards, Co-emisores and related groups;
(5) natural and legal persons carrying out systematic or substantial transfers of funds, including pawn shops and others that lend;
(6) casinos and play houses;
(7) traders of metals and precious stones;
(8) companies and intermediaries in real estate;
9) travel agencies, air, land and maritime transport companies;
(10) natural and juridical persons engaged in sending and receiving parcels and remittances;
11) construction companies;
(12) private security companies and importers and distributors of fire arms, ammunition, explosives and similar articles;
13) hospitality companies;
(14) parties politicians;
(15) suppliers of corporate services and trusts;

(3-16) non-governmental organizations;
(17) investors national and international;
(18) drugstores, pharmaceutical companies and pharmacy chains;
(19) advertising companies and the media of any kind;
(20) associations, consortiums and business associations; and 21) any private institution or mixed economy, and corporations.
The same lawyers, notaries, accountants and Auditors will be required to inform or report transactions that do or are made to their offices, over ten thousand dollars of the United States of America, as established in article 9 of this law.
Obligors which are not supervised by official institution in its ordinary business activities, shall only be exempted from name and have a compliance officer; Therefore, no is relieved them of the fulfilment of other obligations that they refer to in the second paragraph of this article."
Article 2.-reforming article 9, in the following manner: "article 9.-the obligors shall inform the FIU, in writing or any means electronic and within a maximum of five working days, any operation or cash transaction, may be single or multiple, independently are considered suspicious or not, made by each user or customer that exceeds ten thousand dollars of the United States on the same day or at the end of a month of" America or its equivalent in any foreign currency. The deadline for sending the information will be calculated starting from the next day of operation or transaction. Equal responsibility will be if it's financial operations carried out by any other means, if this is more than twenty-five thousand dollars of the United States of America or its equivalent in any foreign currency.
The insurance companies, within the period specified in the foregoing paragraph, also inform the FIU of all payments to perform for compensation of the risks that ensure in excess of the amount indicated in the preceding paragraph."
Article 3.-Reforming paragraph first and add a final paragraph to article 9-A, in the following manner: "article 9 - a.-reports of suspicious operations must be sent to the unit's financial research within a maximum period of five working days from the moment in which, according to the analysis carried out, there are sufficient elements to consider them irregular" inconsistent or that do not relate to the type of economic activity of the client. "" This analysis should be more no later than within fifteen days working, extendable only once, equal period, upon request to the UIF. "" The FIU may perform inspections, tests or audits to the obligors, random procedure or when there are indications of irregular actions, with the purpose of 4 verify compliance to the above."
Article 4.-reforming article 9-B, in the following manner: "9-b.-obligors must establish, based on the regulation of this law, a domestic policy for reliable identification and due diligence of politically exposed persons, as well as the identity of any other natural or legal person on whose behalf Act, requiring complementary about the condition and up-to-date information to its customers."
Politically exposed person, there will be understood all of that subject which is covered in the Arts. "236 and 239 of the Constitution of the Republic, and literal" a ","b"and"c"of the article 2 of the of the United Nations Convention against corruption."
Article 5.-reforming the first paragraph and the literal e) article 10, as well: "article 10.-subjects bound in addition to the obligations laid down in the preceding article, shall have the following:" "e) under the terms provided for in article 9-B of this law, banks and financial institutions, exchange houses and stock, shall adopt policies, rules and mechanisms of behavior that will observe its administrators (, officers and employees, consisting in: l) adequately know the economic activity carried out their customers, its magnitude, frequency, features basic transactions that are involved on a daily basis and, in particular, who performed any kind of deposit, installment, savings accounts, deliver goods on trust or trust custom, or those who deposited in safe deposit boxes , among others. Customers, at the request of the obligors shall provide any documentation financial, accounting, tax, representative of the ownership, possession or ownership of movable and immovable property, proof of salary, or income that would justify the origin and the purpose of each operation;
(II) in the event that the customer does not provide the information or documentation required by the obligors, these will be able to end the contractual relations with the client, which shall inform the FIU;
(III)) establishing that the volume, value and movement of funds of their clients pertaining to economic activity thereof;

IV) report to the Attorney General of the Republic, through UIF, in accordance to article 9-A of this law, any relevant information on the management of funds, whose amount or characteristics are unrelated to the economic activity of their clients; or transactions of its users that the amounts involved, by their number, complexity, characteristics or special circumstances, alejaren usual or conventional patterns of transactions of the same kind; and therefore it may reasonably concluded that could be using or attempting to use the 5 financial institution to transfer, manage, exploit or invest moneys or proceeds from criminal activities."
Article 6.-reforming article 11, in the following manner: "article 11.-obligors must maintain personal records of their users." They do not keep anonymous accounts or accounts in which have incorrect or fictitious names."
Article 7.-reforming article 12, as follows: "article 12.-the obligors must be kept for one period of not less than fifteen years the necessary records on transactions, both national and international, enabling you to respond promptly to requests for information of corresponding supervision or inspection bodies, the public prosecutor of the Republic and the competent courts" , in relation to the offence of laundering of money and assets. Such records will be used to reconstruct each transaction, in order to provide, if necessary, evidence of criminal conduct."
Article 8.-be reformed first and second paragraph with its literal to) Art. 13, follows: "article 13.-obligors should control transactions that make its customers and users, which exceed the established quantities and conditions set forth in article 9, first paragraph, of this law."
To have the indicated control, obligors may catch in their systems in an automated manner relevant data to identify their customers and users, use the form designed by the financial research unit for that purpose, provided that the following requirements are met: a) identification of the person physically making the transaction, noting its full name date of birth, nationality, domicile and residence, profession or trade, family status, document presented identity;"
Article 9.-reformed first and second, subsection literals to) and d), Art. 14, in the following manner: "article 14.-obligors must establish a compliance Oficialia, in charge of an officer appointed by the Board of directors or responsible."
Certification "(El Oficial de Cumplimiento debe reunir los siguientes requisitos: a) ratified by the Attorney General of the Republic, on prevention of laundering of money and assets, financing of terrorism, and two years of experience in these branches;"
"(d) academic degree at university level and knowledge on legal and administrative aspects of the rotation of the business or activity in question count."
Article 10.-reforming article 15, in the following manner: 6 "article 15.-in the event of breach of the obligations set forth in this Act and other legal provisions, the obligated subject shall assume responsibility that regulates article 38 second subsection of the criminal code, without prejudice to personal criminal responsibility which may be applicable in accordance with chapter II of this law" as well as the ways of criminal partnership which are regulated in the Penal Code and other consequences that are applicable, even the administrative order."
Article 11.-reform the third and fifth paragraph of article 20, in the following manner: "If after the period, unless the person concerned has apersonado to justify under the terms of the foregoing paragraph, the total amount of retained value will enter the Special Fund referred to in article 93 of the special law of extinction of domain and administration of origin of assets or illicit destination."
"Yes not be demonstrates convincingly the legality of the origin of the money, property, and retained values, they will enter the Special Fund referred to in article 93 of the special law of extinction of domain and the administration of the goods of origin or illegal destination."
Article 12.-repeal of article 23.
Article 13.-reforming article 26-A, in the following manner: "article 26-A-not shall incur any liability the obligors, their legal representatives and employees, because refer to the financial investigation unit established reports or any information which is required;" as well as, to perform the acts in compliance with the provisions of this law."
Article 14.-insert between the article 29 and article 30, article 29-A as a transitional provision, thus: "(Art. 29-A.-El cumplimiento deel requisito establecido en el literal a) of article 14 of this law, shall be payable six months after the entry into force of this Decree."
Article 15.-this Decree shall enter into force eight days after its publication in the official journal.
GIVEN in the blue room of the Legislative Palace: San Salvador, on sixteenth day of the month of July in the year two thousand fourteen.
OTHON SIGFRIDO REYES MORALES, PRESIDENT.
ENRIQUE ALBERTO LUIS VALDEZ SOTO, GUILLERMO ANTONIO GALLEGOS NAVARRETE, SENIOR VICE PRESIDENT. SECOND VICE PRESIDENT.
JOSE FRANCISCO MERINO LÓPEZ, LORRAINE GUADALUPE PENA MENDOZA, THIRD VICE PRESIDENT. FOURTH VICE PRESIDENT.

7 CARLOS ARMANDO REYES RAMOS, FIFTH VICE PRESIDENT.
WILLIAM FRANCISCO MATA BENNETT, MANUEL VICENTE MENJIVAR ESQUIVEL, FIRST SECRETARY. SECOND SECRETARY.
SANDRA MARLENE SALGADO GARCÍA, JOSÉ RAFAEL MACHUCA ZELAYA, THIRD SECRETARY. FOURTH SECRETARY.
IRMA PALACIOS LOURDES VASQUEZ, ERNESTO ANTONIO ANGLE MILE, FIFTH SECRETARY. SIXTH SECRETARY.
FRANCISCO JOSE ZABLAH SAFIE, JOSE SERAFIN RODRIGUEZ ORANTES, SEVENTH SECRETARY. EIGHTH SECRETARY.
Presidential House: San Salvador, seven days of the month of August two thousand fourteen year.
PUBLISHED, Salvador Sanchez Ceren, President of the Republic.
Benito Antonio Lara Fernandez, Minister of Justice and public security.
D. o. No. 143 volume no. 404 date: August 7, 2014 JQ/ngcl 04-09-2014 legislative index