Amendments To The Law "on Laundering"

Original Language Title: Grozījumi likumā "Par noziedzīgi iegūtu līdzekļu legalizācijas novēršanu"

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The Saeima has adopted and the President promulgated the following laws: law on laundering "make law" on laundering "(Latvian Saeima and the Cabinet of Ministers rapporteur, 1998, no. 3; 2000, No 14; 2002, 16; 2004, nr. nr. 2), the amendments are as follows: 1. Replace the words" the whole law firm (company) "(the number and fold) with the word" businessman "(the number and fold).
2. in article 1: expressions of paragraph 5 by the following: "5) a credit institution registered in Latvia — the bank, electronic money institution or a foreign bank or Member States and electronic money institutions branch;"
to supplement the article with points 7 and 8 as follows: "7) the real beneficiary: the natural person owning the share capital or voting shares (including indirect participation obtained) or control (directly or indirectly) of this law article 2 referred to in the second subparagraph of personal customer or which is made in the interests of the business. For the true beneficiaries of the economic operator is a natural person, which owns 25 percent or more of the operator's share capital or balsstiesīgaj shares (including indirectly for participation);
8) shell bank-bank's management, staff or financial services the place of supply is not in the country where the bank is incorporated, and which does not have its central authorities [the shell bank is also a company that performs non-cash transfers for third parties, except when such transfers shall take place for the electronic money institution or they are made between one lawfully registered in the Group's companies (participants)]. "
3. Supplement to chapter I 5.1, 5.2 and 5.3 of the article as follows: "article 5.1. (1) a credit institution, starting with the pondentattiecīb by the WEU foreign bank, targeted, proportionate and appropriate measures, documenting, to make sure that this country is in force legislation on money laundering and terrorist financing prevention and that the foreign bank shall comply with these regulations.
(2) the first paragraph of this article, the requirements do not apply to cases where the correspondent is established with the bank, registered to a foreign country, which is the Organization for economic cooperation and development.
5.2. To comply with the requirements of this Act, the credit institution and the financial institution has the right to request and receive from the invalid document register, register and Fine the population register information about true beneficiaries, third parties and their existing and potential customers and staff, ensuring the adequate protection of the information received.
5.3 article. 2. This law referred to in the second subparagraph of article subjects must not do business with shell banks. "
4. Express 8, 9 and article 10 by the following: ' article 8. (1) article 2 of the law referred to in the second subparagraph of the person requesting the customer's signed statement about true beneficiaries, including third parties, if this law, articles 6 and 7 of the said transactions are carried out the third parties, as well as targeted, proportionate and appropriate measures to ascertain the real beneficiaries, including third parties, and identifies the applicant.
(2) the first paragraph of this article the statement completed by this law, articles 6 and 7 in certain transactions.
(3) the communication of the true beneficiaries, including third parties, indicates this law, the information referred to in article 6.
(4) in the first and second parts of the operations of the amount, type and frequency of which shall be determined by this law, in the second paragraph of article 2 of the person referred to in the assessment of the possible risks for criminal money laundering or the financing of terrorism that is associated with the customer and the business.
(5) article 2 of this law the persons referred to in the second paragraph are required to document the true beneficiary of the transaction, including the third party, the customer's organizational structure, the nature of economic activities, as well as the customer's ownership and control structure of the clearance of accounts and, on request, to produce these documents this law article 2, persons referred to in the second subparagraph of the supervisory and control bodies.
9. article. This law contained in customer identification and actual beneficiaries, including third party clearance requirements do not apply to: 1) financial transactions in which this law article 2 referred to in the second subparagraph of (a) the person is a customer) in the Republic of Latvia licensed credit institution or financial institution, (b)) a credit institution or financial institution which issued the license in the State where the relevant legislation meets European Union legislation, which sets out to prevent the criminal use of the financial system for money laundering and terrorist financing State or local government, c), or a State or local government authority, or the operator, which is controlled by the State or the municipality;
2 the country of the European Union) or the Organisation for economic cooperation and development of financial instruments registered in a Member State of the market Organizer or the market Organizer, the International Federation of Stock Exchange member, or merchants (the subsidiary), which included the capital market following the organizers officially listed;
3) insurance companies (insurers), if the client periodically paid insurance premiums for a period of one year do not exceed 1000 euro in total to the equivalent of dollars by the Bank of Latvia the rate or lump sum payable to the insurance premium is not more than the equivalent of 2500 euro in dollars at the rate of the Bank of Latvia, irrespective of the insurance amount.
10. article. (1) if the customer is identified in article 6 of this law in accordance with the procedure laid down in article 2 of this law, a person referred to in the second subparagraph the customer identification data, copies of the supporting documents shall be kept for at least five years after the termination of the transaction.

(2) if the customer is identified in article 7 of this law in the order, the actual beneficiary or article 8 of this law referred to in the first subparagraph, the third person established in this law, in article 7 and 8 of the order and the applicant identified in article 8 of this law in accordance with the procedure laid down in article 2 of this law, a person referred to in the second subparagraph and the notifier of the customer identification data, copies of the supporting documents, supporting documents and a statement of the true beneficiaries of the including third parties, shall be kept for at least five years after the transaction. "
5. in article 11: make the first part of paragraph 2 as follows: "2) within 14 days after written request of the control service, provide it in the receipt of the statutory functions of the necessary additional information and documents concerning the financial transactions of the client for which you have received a message from this law, article 2, second paragraph, the said persons or information exchange with this law, article 39 of the said authorities and institutions but for the rest of the business in this customer with the Attorney General or a specially authorised prosecutor's consent. Taking into account the nature and volume of information, and coordination with the control service request execution time can be extended. ";
to complement the second paragraph after the word "responsibilities" with the word "immediately".
6. the supplement to chapter III, article 16.1 the following: ' article 16.1. (1) the objective of this law by the credit institution in a Member State of the European Union or in a foreign country, which is the Organization for economic cooperation and development, the Member States shall, at the request of a registered correspondent provide their customers, the actual beneficiaries, including third party personally identifiable information and details of the transactions, if the national legislation provides for a similar obligation for credit institutions in its jurisdiction.
(2) For the first part of the provision of particulars referred to that institution, the officer or employee does not preclude legal responsibility. "
7. Express article 17 as follows: "article 17. (1) this law, article 2, second paragraph, the said persons must refrain from the transaction or series of related transactions, including from possible certain types of debit transactions in customer's account in the event of suspicion of their links with criminal money laundering, money laundering or terrorist financing attempts.
(2) article 2 of this law the persons referred to in the second subparagraph on abstinence to make a deal immediately reported to the control service in accordance with article 12 of the law's requirements by adding a message to them to abstain to do business-related documents.
(3) within 14 days after receiving a report on abstinence to do business, the control service: 1) makes an order under this section 17.2 of the Act in the first paragraph, the requirements and notify in writing the law in the second paragraph of article 2 of the said person;
2) in writing this law, article 2, second paragraph, the said person that report additional information included in the analysis and the information and documentation on the customer and its business must be requested from the client, including with article 2 of this law the persons referred to in the second subparagraph, to decide the question of whether financial debit the customer's account or other property movement is stopping or in writing this law, article 2, second paragraph, the said person, that there is no basis to order according to this law, the first paragraph of article 10.7.
(4) The fact that the pre-trial investigation authorities article 32 of this law in accordance with the procedure laid down in the information, or for the fact that in connection with withdrawals to make a deal to provide such information is not possible, the inspection service can inform this law article 2, persons referred to in the second subparagraph, as well as its monitoring and control institutions. "
8. Express 17.2 the first paragraph by the following: "(1) where, on the basis of the inspection services of the information available, that there is a suspected criminal offence, including criminal money laundering, money laundering or terrorist financing attempts, the control service can make this law, article 2, second subparagraph, the persons referred to in order to stop the financial debit the customer's account or other belongings movement for a period not exceeding 45 days."
9. To supplement the law with article 17.3 of the following wording: "(1) this law in the first part of article 17.1 and 17.2 the first part in the cases provided for in the control Department may order the holder of the register of property make it the Mission of the measures laid down in order to prevent its renewal period.
(2) the holder of the order comply immediately, as the manner of performance and the results announced by the control service.
(3) if the order is not canceled, the inspection service within 10 working days after the issue of the preliminary information provided to the institutions in article 32 of this law. "
10. Add to chapter IV with the following wording for article 19.2: "19.2 article. (1) article 2 of this law To the persons referred to in the second subparagraph would meet the requirements of this law, they shall have the right to request from their clients and customers have the obligation to provide information and documents about true beneficiaries, including third parties, and any customer's transactions, the economic, personal activity, financial position and sources of funds.
(2) if the customer does not provide, or refuses to give a first paragraph of this article, the information and documents this law article 2, second paragraph, the said party shall decide on the transaction, the relationship with the customer or for the continuation or termination of the respective customer pre-term fulfilment of the request, as well as in respect of the same actions and other customers that have the same true beneficiaries or do business in the same third parties. These activities must be documented, and the documents must be available in this law article 2, persons referred to in the second subparagraph of the supervisory and control bodies.

(3) if the financial institution or credit institution shall terminate the business relationship with their client, the client's account with a financial institution or credit institution is closed and existing funds or financial instruments are at the customer's request, payable only to the same customer account to another financial institution or credit institution from which you received client money or financial instruments or registered and provides financial services, including deposit-taking , in the country of registration, which is another European economic area country.
(4) financial institutions and credit institutions have the right to directly or through specially created for this purpose in the body exchange news about the people with whom the procedure laid down in this article is not started or has ended the business relationship as well as to establish and maintain appropriate records of such persons.
(5) in the fourth paragraph of this article, the above information be considered as restricted access information and disclosed only to the same financial institutions, credit institutions and the institutions established following the exchange of messages, as well as the law of credit institutions referred to in article 63 of the public authorities law.
(6) a credit institution shall not preclude the legal responsibility for the termination of the transaction to the customer or its pre-term fulfillment request in the cases laid down in this article and in order. "
11. Supplement article 20 with 1.1 part as follows: "(11) the financial institutions and credit institutions undertake a targeted, proportionate and appropriate measures to monitor their clients ' transactions as well as made sure customer transactions for compliance with the actual economic activities of this customer-specific. These activities must be documented, and the documents must be available to financial institutions and credit institutions supervision and control institutions. "
12. Replace article 26.1, the words "to reduce the use of the financial system of the Republic of Latvia and the capital market criminal money laundering" by the words "to prevent or reduce the use of the financial system of the Republic of Latvia and the capital market criminal money laundering or the financing of terrorism".
13. Chapter VI supplement to article 26.2 the following: ' article 26.2. Article 2 of this law the persons referred to in the second subparagraph of the supervisory and control bodies have the right to publish statistics on infringements of the provisions of this law and the sanctions applied. "
14. Supplement article 29 with point 6 and 7 by the following: "6) providing monitoring and control bodies information about the crime and money-laundering techniques and typical locations to perform actions that reduce the use of Latvia's financial system and capital markets crime money laundering and terrorist financing;
7) at the supervisory and control body of the request, according to their competence, provide details of this law, article 2, second paragraph of the report of the persons referred to in statistics, quality and efficiency. "
15. Article 30 of the expression as follows: "article 30. The control service shall carry out the necessary administrative, technical and organizational nizatorisko of measures to ensure the protection of information, prevent unauthorized access to information, the unauthorized modification, distribution or destruction. Control services of registration of the information received, processing, storage and destruction procedures for determining the control Chief after coordination with the Attorney General. Information on the financial transactions of the inspection services shall be preserved for at least five years. "
16. the express article 33 paragraph 2 by the following: "2) proposed operational accounting case operational actions 21 and 22 of the law, in accordance with the procedure laid down in the article."
17. Put article 35, second subparagraph by the following: "(2) the information provided by the inspection services can be shared with the moment when the person in question is called to criminal liability."
18. off article 36, third subparagraph, second sentence.
19. Transitional provisions: replace the words "transitional provisions" with the words "transitional provisions";
believe the current transitional provisions the transitional provisions of the text of paragraph 1;
adding to the transitional provisions in paragraph 2 by the following: "2. the provisions of this law also apply to article 2 of this law the persons referred to in the second subparagraph of the departments and subsidiary companies in foreign countries."
The Parliament adopted the law of 26 May 2005.
The President of the Parliament instead of the President i. Otter Riga 10 June 2005 editorial Note: the law shall enter into force with 24 June 2005.

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