Law Against Reformed Money Laundering And Asset.

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/archivo_documento_legislativo



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DECREE No. 568 THE LEGISLATURE OF THE REPUBLIC OF EL SALVADOR, CONSIDERING
:
I.- by Legislative Decree No. 498, dated December 2, 1998, published in the Official Gazette No. 240, Volume 341, 23 of the same year, the Law Against Money Laundering and Asset it was issued.
II.- That Law to which reference has been made in the previous recital, it aims to prevent, detect, punish and eradicate Money Laundering and Asset and its cover-up; which shall apply to any natural or legal person even if the latter is not legally constituted.
III.- That the purpose of the legislation of El Salvador is in accordance with the International Standards on combating money laundering and asset financing terrorism, organized crime, drug trafficking and any of its variants.
IV.- That taking into account the Recommendations of the Financial Action Task Force (FATF), which seeks to contribute to the adaptation of international standards with relevant legislation in the fight against money laundering and terrorist financing.
V.- That for the above reasons, it becomes necessary to issue the necessary legal reforms.
THEREFORE,
in exercise of its constitutional powers and initiative of the President of the Republic, through the Ministers of Justice and Public Security and Finance, and deputies Jose Antonio Almendáriz Rivas, Antonio Ernesto Angulo Milla Benito Antonio Lara Fernandez, Ramon Aristides Valencia Arana, Sigifredo Ochoa Perez, Antonio Echeverria Veliz, Rodolfo Antonio Parker Soto, Arnoldo Martyr Marin Villanueva, Blanca Coto Noemi Estrada and Misael Mejia Mejia; likewise, of Deputies Zoila Beatriz Quijada Solís, Gerson Martinez, Ruben Orellana Mendoza, Santos Guevara Ramos and Ana Guadalupe Martinez Menendez, Legislative Period 2009-2012; and Salvador Deputies Sanchez Ceren, Walter Eduardo Duran Martinez, Humberto Centeno Najarro, José Salvador Arias Penate, Luis Arturo Fernández Peña, Calixto Mejía Hernández, Carlos Alfredo Castaneda Magana, Carlos Rolando Herrarte Rivas, Julio Milton Parada Dominguez and Mauricio Ernesto Rodriguez, Legislative Period 2006-2009.
DECREES the following:
AMENDMENTS TO THE LAW AGAINST MONEY LAUNDERING AND ASSET

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Art. 1. reformed Article 2 as follows:.
"SUBJECTS OF ENFORCEMENT
Art 2.- This Act shall be applied to all natural, national or foreign person and any legal person legally. registered under the laws of the Republic of El Salvador or are legally registered in other countries have these diplomatic or relations with El Salvador, also are subject to this Act, all organizations develop legal or formal activities in any commercial, financial, investment, development, politics, sports, social assistance or help with domestic or foreign roots and any other that their activity generates profits, assets or profits of funds whose origin is unlawful, which must comply with the obligations under this Act . and others that so require
thus be bound by this law, especially the following subjects:
1) National Banks and Foreign Banks, branches, agencies and subsidiaries thereof;
2) Financial, Micro Finance, Credit Banks, Cooperative Banks and Securitization;
3) Exchange Foreign Currency;
4) Exchanges and houses Stockbrokers;
5) Bags agricultural products and services;
6) importing or exporting Agricultural products and inputs and new and used vehicles;
7) Insurance Companies and Intermediaries;
8) Issuers of Credit Cards and Related Groups;
9) Institutions and individuals who perform systematic or substantial transfers of funds, including pawnshops, Telephone Operators and others that lend;
10) Casinos and gambling houses;
11) Trade in precious metals and stones;
12) Real Estate Transactions;
13) Travel Agencies and Companies Air Transport, land and sea;
14) Agencies sending and receiving parcels and remittances;
15) Construction Companies;
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16) Private Security Agencies and Importers and Distributors in Firearms, Ammunition, Explosives and Related Articles;
17) Hotel Industry;
18) Political Parties;
19) Providers of Corporate and Trust Services;
20) Non-Governmental Organizations;
21) Sports Associations;
22) National and International Inversoras;
23) Drugstores, Pharmaceutical Laboratories and Pharmacy;

24) Judges, Prosecutors and staff of the Administration of Justice;
25) Media companies of any type;
26) Associations, Consortia and Guilds Business; and
27) Any Private or Mixed Economy Institution, Association, Sociedad Mercantil, group or financial conglomerate.
Which must comply with the obligations under this Act, and the other to do so by requiring "reformed
Art 2. Art 4 as follows:..
". MONEY LAUNDERING AND ASSET
Art. 4. Whoever deposits, withdraws, converts or transfers funds, goods or related rights arising directly or indirectly from criminal activity to conceal or disguise their illicit origin, or help evade the legal consequences of their acts who participated in the commission of such criminal activities within or outside the country, shall be punished with imprisonment from five to fifteen years and a fine of fifty two thousand five hundred monthly minimum wages for trade, industry and services at the time the corresponding ruling.
It was also understood to money laundering and asset, any operation, transaction, action or omission intended to conceal the illicit origin and legalize property and assets derived from criminal activities committed within or outside the country.
In the case of legal persons, sanctions will be applied to natural persons over 18 who agreed or executed the act constituting money laundering and assets. "


4 Art. 3. Article 9 reformed, as follows:.
"Art. 9. Individuals, institutions or any other entity within the Art. 2 of this Act, are obliged to inform in writing or by any electronic means within a maximum period of five working days to the FIU of any transaction or transaction cash and / or any other means, regardless of single or multiple, by each user or customer in one day exceed ten thousand dollars of the United States of America or its equivalent in any foreign currency, whether it is deemed suspicious or not . The deadline for submitting information is calculated from the day following the operation or transaction conducted.
Insurance companies, within the period specified in the preceding paragraph shall also inform the FIU of all payments made as compensation for the risks they insure in excess of the amount stated in the preceding paragraph.
For the application of this Article shall take into account the regulations issued for that purpose. "
Art. 4. Intercálanse between Art. 9 and Art. 10 Art. 9-A and Art 9-B as well.
"Art. 9-A.- The suspicious transaction reports must be submitted to the Financial Investigation Unit within a maximum period of five working days from the time when the institutions determine that there is sufficient evidence to consider or irregular or inconsistent unrelated to the type of economic activity of the client.
The amount of transactions or transactions is irrelevant for the purposes of this article.
The subjects referred to in Art. 9 of this Act, they will also be required to report suspicious attempted transactions. The FIU will issue form to report such operations.
Notwithstanding the provisions of special laws on the subject, subjects referred to in Art. 9 of this Act, are required to send a suspicious transaction report when there are reasonable grounds to believe that the money or assets are related or could be used for terrorist acts or terrorist organizations, organized cr ime, drug trafficking and all its variants. "
" Art. 9-B.- Institutions should establish an internal policy for identifying individuals in all financial operations it carried out, especially those listed in Art. 2 of this Act. "
Art. 5. reformed the Art 10, as follows:.
"Art. 10. The institutions besides the obligations mentioned in the previous article shall have the following:
a) Identify reliably and with the necessary diligence to all users requiring their services as well as the identity of any other natural person or legal, on whose behalf they are acting;

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B) File and keep documentation of operations for a period of five years, counted from the date of completion of each transaction. For the same period shall file and keep identification data, account files and business correspondence of its customers, from the termination of an account or business relationship. The customer information and transactions, should be available when required by the competent authorities in due form;
C) Train staff on processes or money laundering techniques and assets, so that they can identify abnormal or suspicious situations;
D) establish internal audit mechanisms to verify compliance with the provisions of this Act; and
e) Under the terms provided in Art. 9-B of this Act, banks and financial institutions, exchange houses and stock, adopt policies, rules and mechanisms of conduct to observe its directors, officers and employees, consisting of:
I) a better understanding of the economic activity carried out their customers, their magnitude, frequency, basic characteristics of transactions ordinarily involved, and in particular of those who make any kind of demand deposit , term, savings, deliver goods in trust or fiduciary assignment; or depositing in safe deposit boxes;
II) Set the volume, value and movement of funds from customers relate to economic activity thereof; and
III) Report to the Attorney General of the Republic, through the FIU pursuant to Art. 9-A of this Act, any relevant information on fund management, whose amount or characteristics unrelated with economic activity of its customers; or transactions of its members that the amounts involved, by their number, complexity, characteristics or special circumstances, alejaren habitual or conventional patterns of transactions of the same gender; and therefore might reasonably conclude that it could be using or pretending to use the financial institution to transfer, manage, use or invest money or resources from criminal activities. "
Art. 6. reformed Art. 13, as follows:
"Art. 13. Institutions should monitor their transactions its customers and users, which exceed the amounts established and the conditions set out in Art. 9 paragraph of this Act first.
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To carry the indicated control institutions can capture in their automated systems relevant data to identify their customers and users, use the form designed by the Financial Investigation Unit for that purpose, provided when the following conditions are met:
a) Identification of the person physically making the transaction, noting their full name, date of birth, nationality, domicile and residence, profession or occupation, family status, identity and presented firm;
B) Identification of the person in whose name the transaction is conducted, expressing the data indicated in the preceding paragraph;
C) Identification of the beneficiary or recipient of the transaction, if any, which contain similar information under subparagraph a);
D) transaction type in question;
E) Code that identifies the institution where the transaction occurred;
F) code official or employee of the institution processing the transaction;
G) The amount of the transaction; and
h) The place, time and date of the transaction.
The institutions shall send this form to the UIF "
Art reformed 7. Article 14 as follows:..
". Art. 14. Institutions should establish an Administrative Office of Compliance, by an official appointed by the respective Board of Directors or equivalent body.
The Compliance Officer must meet the following requirements:
a) Certification ratified by the Attorney General of the Republic, on the prevention of money laundering and financing of terrorism, organized crime, drug trafficking and any of its variants and three years of experience in these branches;
B) To hold managerial position;
C) Skills and knowledge about business legal aspects, and controls; and
d) Have a university degree and knowledge of administrative and legal aspects, the line of business in question.
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The members of the Administrative Office of Compliance enjoy independence, taking power for decision-making in what concerns its function. They can not be fired, disciplined or removed from office by meeting the responsibilities inherent therein.

The structure and operation of the Administrative Office of Compliance will be regulated under the Rules of this Act.
In cases of Financial Conglomerates, pursuant to paragraph c) of Art. 133 of the Banking Act, the same Official Compliance may perform this function in different companies in the same cluster, when determined by the Board based on the number of customers, number of employees and volume of operations of these companies. "
Art. 8. Intercálase between Art . 15 and Article 16, Article 15-a, as follows:..
"Art. 15-A.- All records and reports required by this Act should be stored and transmitted in paper or electronic form "reformed
Art 9. Art 19, as follows:...
"Art. 19. Previous administrative order issued by the Attorney General's Office, the National Civil Police may practice registration of all land, air or sea vehicle entering the country or if otherwise appropriate of circulating in it, holding the or minimum essential time to practice diligence; and to proceed to registration or investigation of suspicious persons and their luggage, handbags or any other receptacle that is possible to keep evidence related to the crime of money laundering and assets. The research will be done respecting the dignity and modesty of the person.
The National Civil Police may proceed without prior administrative order referred to in the preceding paragraph, in the cases provided for in Articles 196 and 197 of the Criminal Procedure Code.
Anyone who upon entering or leaving the territory of the Republic by any means, regardless of nationality, must declare whether carries with it notes, drafts, personal or other checks, BNI, in national or foreign currency or securities in the amount of Ten Thousand Dollars of the United States or more, or the equivalent in foreign currency, according to fluctuations in the national currency, otherwise, their amount should be determined; Otherwise, you will be met express that fact by affidavit "reformed
Art 10. Art 20, as follows:..
". Art. 20. It is the responsibility of the Directorate General of Customs, checking the veracity of the statements referred to in Art. 19 of this Law.
Falsehood, omission or inaccuracy of the statement will cause retention values ​​and once established, be notified to the person concerned for the peremptory term of thirty business days prove the legal origin of the money and securities held.
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After the deadline, without the interested party has appeared in it to justify in terms of the preceding paragraph, the total amount of retained value enters the General Fund of the Nation through the corresponding Colecturía the Ministry of Finance .
The head of falsehood, omission or inaccuracy incur a fine of five percent of the total amount of the value of the retentate, which will be effective to the corresponding Colecturía the Ministry of Finance.
If not conclusively show you the legality of the origin of the money and retained values, they will enter the General Fund of the Nation through the corresponding Colecturía the Ministry of Finance. .
The resolutions that the General Customs Directorate shall be appealable issue. "Reformed
Art 11. Art 21, as follows:.
" Art. 21.- At any stage of the procedure the Directorate General of Customs determines that attends the probable commission of a crime, the steps taken forward with the securities withheld the Attorney General of the Republic, within eight hours from resolution determined that circumstance, who will take charge of the process in coordination with the National Civil Police; the foregoing without prejudice to cases of arrest in flagrante delicto "
Art 12. Intercálase between Article 23 and Article 24, Article 23-A, as follows:....
". Art. 23-A.- The Superintendency of the Financial System in coordination with the Attorney General's Office and other agencies related to financial activities should be performed annually awareness campaigns for the prevention of money laundering and asset nationwide. "
Art 13.- Intercálanse between Article 26 and Article 27, Article 26-a and 26-B Art and.....
"Art. 26-A.- not incur any liability institutions, their legal representatives and employees, by the fact refer to the Financial Investigation Unit established reports or any information that it requires; as well as for performing acts in compliance with the provisions of this Act. "

"Art. 26-B.- Anyone who reveals, divulgare improperly or uses information that subjects under the control of this Act are required to report to the FIU of the Attorney General of the Republic, will be punished with imprisonment of three to six years.
he who destroys, mutilates, desapareciere, alters or deteriorare the information that has been referred to in the preceding paragraph shall be punished with imprisonment from four to eight years.
the commission of the offenses to which reference are made in the preceding paragraphs, by the officer, employee or public and private authority is increased by up to a third of the maximum


9, being likewise , just cause for removal from office prior to the procedure laid down in whatever regime applicable service.
the application of the sanctions provided for in this Act shall be without prejudice to other criminal, civil or administrative responsibilities They incurred by offenders. "
Art. 14. 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 the fifth day of December in the year two thousand and thirteen.
OTHON Sigfrido Reyes Morales, president.
LUIS VALDEZ ENRIQUE ALBERTO SOTO, GUILLERMO ANTONIO NAVARRETE GALLEGOS, FIRST VICE. SECOND VICE PRESIDENT.
MERINO JOSE FRANCISCO LOPEZ, FRANCISCO ROBERTO DURAN LORENZANA, THIRD VICE. FOURTH VICE.
CARLOS ARMANDO REYES RAMOS, FIFTH VICE.
PEÑA LORENA GUADALUPE MENDOZA, MENJIVAR VICENTE MANUEL ESQUIVEL, First Secretary. Second Secretary.
SALGADO SANDRA MARLENE GARCIA, JOSE RAFAEL MACHUCA Zelaya, Third Secretary. Fourth secretary.
IRMA VASQUEZ PALACIOS LOURDES, ERNESTO ANTONIO ANGULO MILE, QUINTA Secretariat. SIXTH SECRETARY. JOSE FRANCISCO
ZABLAH SAFIE, ORANTES SERAFIN JOSE RODRIGUEZ, seventh Secretary. EIGHTH SECRETARY.
PRESIDENTIAL HOUSE: San Salvador, on the thirteenth day of January of the year two thousand and fourteen.
Published, Carlos Mauricio Funes Cartagena
, President of the Republic.
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Ricardo Perdomo Jose Aguilar, Juan Ramon Caceres Carlos Enrique Chavez, Minister of Justice and Public Security. Minister of Finance.
Tomo OJ No. 9 No. 402 Date: 16 January 2014 JQ
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Adar 20/02/2014 LEGISLATIVE INDEX