On Laundering Of

Original Language Title: Par noziedzīgi iegūtu līdzekļu legalizācijas novēršanu

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The Saeima has adopted and the President promulgated the following laws: on laundering of chapter I General provisions article 1. The law is applied in the following terms: 1) financial transactions (hereinafter also-): a) deposits and other repayable funds solicitation b), c) clear and non-cash payments, d) non-cash means of payment and servicing release, e) in its marketing or customer's behalf with money market instruments (cheques, bills, certificates of deposit, etc.), currency, financial contracts, securities, f) fiduciary (trust), g) storage and administration of securities including collective investment fund and pension fund management, h) surety and other related legislation, which entered into an obligation to reply to the creditor for a debt of a third party, i) value storage, j) participation in share issues and the provision of advice to the customers, k) for the services of a financial nature, l) mediation services in money market instruments, m) such information related to the customer's debt liabilities of the , n) insurance, lotteries and gambling) and maintenance, p) other transactions that are essentially similar to the above;
2) financial institution — the enterprise register of the Republic of Latvia in a registered company (company), also a branch or agency established to perform one or more of the funds referred to in this law, transactions, with the exception of deposits and other repayable funds, fundraising or for participation in another company (the company) share capital. Financial institution within the meaning of this law is considered another legal or natural persons or associations of such persons whose financial activities involve financial transactions, related advice or approval of such transactions;
3) financial resources, means of payment cash and cashless form, precious metals, as well as securities, in accordance with the law "on securities";
4) client — the legal or natural person or Association of persons, what with the credit institution or financial institution associate at least one financial transaction;
5) a credit institution, bank, Credit Union, or foreign bank branches (branch);
6 unusual transaction characteristics) list: Cabinet approved a list that contained signs may indicate a criminal money laundering or legalization attempt.
2. article. (1) this law shall determine the financial institutions, credit institutions and the supervisory and control body of the obligations and rights of criminal money laundering, as well as the prevention of Criminal money laundering prevention service (hereinafter referred to as the control service) and for the creation of the Advisory Forum, the obligations and rights.
(2) this Act applies also to other legal or natural persons and associations of such persons whose professional activity involves financial transactions, related advice or approval of such transactions.
3. article. This law aims to prevent the possibility of using the financial system of the Republic of Latvia of criminal money laundering.
4. article. On the resulting funds are recognised financial assets and other property of the following criminal offences: 1), highly effective toxic substances to the illicit manufacture of narcotic drugs or psychotropic substances is ensured;
2) racketeering;
3) smuggling;
4) illegal movement across the State border;
5) counterfeit money or securities, or the manufacture or distribution of illegal activities in securities or cash vouchers;
6) the taking of hostages, kidnapping, child abduction;
7) infringement of copyright and related rights;
8) offences against property committed on a large scale or done by organized group;
9) without registration or business without a special permit, the malicious bankruptcy, credit fraud;
10) bribery, bribes, intermediation in bribery;
11) pornographic material, method of manufacture or of importation, distribution regulations;
12) of radioactive material in the illegal acquisition, storage, use, transfer or saārdīšan;
13) special features, weapons, munitions or explosives, unlawful (illegal) making or enforcement;
14 living or dead) human tissue or organ removal or illicit trade.
5. article. Criminal money laundering is following when committed in order to hide or mask the financial resources or other property that the criminal origin of: 1) financial resources or other property values of the conversion, the location or change of affiliation;
2) funding or other property of the true nature, source, location, disposition, movement, concealment or disguise of the home;
3) funding or acquisition of other property owned or in use, if this law occurs it is known that the funds or assets is a criminal get;
4) 1 to 3 of this article. the activities referred to in paragraph 1.
Chapter II customer identification article 6. None of the credit institution and the financial institution are not eligible to open an account or to take possession of the financial resources required from the customer's identification data: 1) from: (a) a resident legal person — name), legal address, registration number and location, b) natural persons: the name, surname, personal code;
non-resident-2) from the national issued a personal identification document: (a)): the name of the legal person, legal address, registration number and location, b) natural persons: the name, identity document number and date of issue, the institution that has issued the document.
7. article. (1) a credit institution or financial institution identifies the customer article 6 of this law in accordance with the procedure laid down in the carrying out of any other financial transaction, unless the amount of the individual transaction or series of related transactions apparently total is 10 000 LVL or larger and if earlier, when opening an account or accepting financial features in store, not identification of the customer.
(2) if the financial transaction at the time the total amount determined, identification of the customer, to become known as soon as the total amount of the transaction and it is 10 000 LVL or larger.
(3) regardless of the amount of the financial transaction, the credit institution or financial institution identifies a client, if the deal signs fall into at least one of the unusual characteristics of the transaction characteristics contained in the list or other circumstances suspected criminal money laundering or legalization attempt.
8. article. If a credit institution or financial institution is aware or suspects that this law, articles 6 and 7 of the said transactions are carried out on behalf of a third party, it shall, wherever practicable, to identify the third person.
9. article. This law contained in the client identification requirements do not apply to: 1) financial transactions in which a credit institution or a financial institution's customers are: (a) in the Republic of Latvia) licensed credit institution or financial institution, (b) the credit institution or financial institution), the licence issued to the country mentioned control services within the list. Inspection service in this list include countries which have laws in force adopted on the basis of the UN Convention against narcotic drugs or psychotropic substances, or in accordance with the directive of the Council of the European Union against the use of the financial system for money laundering a crime;
2) European Union country or any other control services within the country to stock exchange members, if this stock is the International Federation of Stock Exchange Member;
3) insurance companies (insurers), if the client periodically paid insurance premiums for a period of one year a total of not more than 500 lats or lump-sum payable to the insurance premium does not exceed 1500 litres, 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, a credit institution or financial institution stores the customer's identification data, copies of supporting documents not less than five years after the termination of the transaction.
(2) if the customer is identified for this law, articles 7 and 8, in accordance with the procedure laid down in the credit institution or financial institution stores identification data of the client certificate, as well as transaction documents not less than five years after the transaction is made. This document, the period of storage of u z also refers to article 8 of this law, the third party referred to in the identification of supporting documents, if any, have been derived.
Chapter III of the Report on unusual and suspicious financial transactions 11. (1) of credit and financial institutions have the responsibility: 1) immediately notify control services for each financial transaction, which features fall into at least one of the unusual characteristics of the transaction characteristics contained in the list. The unusual characteristics of the transaction list in the development control services, taking into account the recommendations of the Board, and approved by the Cabinet of Ministers;

2) after the control service of the written request, promptly provide it on this statutory function requires additional information about the customer financial transaction (transactions) in respect of which (who) has received the message.
(2) credit and financial institution officials and employees have a duty to report also on the control service facts discovered which do not comply with the unusual transaction characteristics characteristics contained in the list, but other circumstances give rise to suspicions of criminal money laundering or legalization attempt.
12. article. The report, by a credit institution or financial institution submitted to the control of the service, if possible, include: 1) customer identification data;
2) copy of identification document of the customer;
3 make or transaction), as well as the recipient of the transaction and the transaction amount, transaction, or a log of time and place;
4) signs provides the basis to believe a transaction is suspicious or unusual transactions meet the characteristics contained in the list of features.
13. article. The news, given in accordance with the requirements of the law, the control service shall have the right to only use this statutory functions. Control staff, who used this information for other purposes or disclosed it to persons not entitled to receive relevant information, is criminally liable in accordance with the procedure prescribed by law.
14. article. Credit institution, financial institution, and such an official and the employee is not entitled to inform the client or a third party that the information about a client or transaction (transactions) are supplied with the control service.
15. article. Not to start a pre-trial investigation of criminal money-laundering fact against the person who delivered the news of it control.
16. article. If a credit institution, financial institution or such officer or employee has provided news control service in accordance with the requirements of the law, regardless of whether the criminal money-laundering fact is or is not proven in court or in the investigation, as well as independent from the customer and the credit institution or financial institution provisions of treaty reporting for the control service is not considered confidential message disclosure u n due to the credit institution , financial institution or such officer or employee not not legal, not material.
Chapter IV to refrain from suspicious financial transactions article 17. Credit institutions and financial institutions should refrain from conducting a transaction if it is suspected that the transaction is related to money laundering or legalization attempt.
18. article. If a credit institution or a financial institution is not likely to refrain from a suspicious transaction, or if the withholding of such a transaction, can serve as information that helps criminal money laundering of the persons involved to avoid liability, a credit institution or financial institution has the right to do business and report on it to the t control services in article 12 of this law established after the transaction is made.
19. article. If a credit institution or financial institution has refrained from such transaction according to this law, the requirements of article 17, due to this abstinence or delay of the transaction to the credit institution, financial institution or such officer or employee not not legal, not material responsibility no matter what is the result of the use of the information provided.
Chapter v of credit and financial institutions ' internal control article 20. (1) to comply with the requirements of this Act, the credit institutions and financial institutions approved by the internal control rules and ensure that they are implemented.
(2) credit institutions and financial institutions to ensure that their employees manage the requirements of this law, as well as employee training in unusual or suspicious transactions for signs of financial transaction in the detection and control of the activities provided for in the rules.
(3) credit and financial institutions are obliged to identify the departments or designate one or several employees who are directly responsible for compliance with this law, a credit institution or financial institution and at the same time are also liable for credit institutions or financial institutions, liaising with the control service. The determination of such departments or employees of the credit institution or the appointment of a financial institution shall notify the control service, as well as the respective credit institution or financial institution supervisory and control body.
21. article. (1) a credit institution, the financial institution and the supervisory and control body inspection services and their officers and employees do not have the right to disclose to third parties the data on their staff or specially designated staff responsible for liaising with the control service.
(2) inspection service does not have the right to disclose the personal data, which provided information on unusual or suspicious financial transactions. This limitation does not apply to the cases provided for in article 33 of this law.
Chapter VI of credit and financial institutions supervisory and control duties of the institutions article 22. Of credit and financial institutions supervisory and control authorities are obliged to notify the control service regarding inspection reveals facts that meet the unusual characteristics of the transaction characteristics contained in the list, and for which the relevant credit institution or financial institution has not notified the control service.
23. article. Of credit and financial institutions supervisory and control bodies have the right to report on the control of the service in the course of the checks carried out reveal facts that do not conform to the unusual characteristics of the transaction characteristics contained in the list, but other circumstances cause suspicion of criminal money laundering or legalization attempt.
24. article. Of credit and financial institutions supervisory and control bodies and their employees do not have the right to inform the credit institutions, financial institutions or third parties that control has details of this law, 11, 12, 22 and 23 in the cases referred to in article and.
25. article. Reporting control service in accordance with the procedure laid down in this chapter are not considered to be confidential report disclosure and due to their credit and financial institutions supervisory and control bodies or their staff not not legal, not material responsibility regardless of whether the criminal money-laundering fact in pre-trial investigation and Court is or is not proven.
26. article. Of credit and financial institutions supervisory and control bodies have the obligation at the request of the inspection services provide the methodological assistance provided for in this Act for the exercise of its functions.
Chapter VII inspection service article 27. Inspection service is specially created national institution under this Act made an unusual and suspicious financial transactions and obtain, receive, record, process, summarize, stored, analyzed and provide a pre-trial investigation authorities and the Court information that can be used by the criminal money laundering or attempted laundering or other related criminal activities for the prevention, detection, pre-trial investigation or hearing.
28. article. (1) inspection service is the legal entity that operates under the supervision of the public prosecutor's Office; This monitoring shall be carried out by authorised Attorney-General and special prosecutors. Control services rules approved by the Council of the Attorney General.
(2) inspection service is financed from the State budget.
(3) the control structure and the State of the service according to the allocated State budgetary resources determined by the Attorney General.
(4) control Chief for four years in Office and released from Office by the Attorney General, but control Chief released from the Office at the time, you can just about an offence, the offence of wilful or negligent, related to his professional activities, or caused significant consequences, or the shameful act which is incompatible with his status.
(5) other control officers recruited, as well as the dismissal of the Chief. Control the agent's remuneration is determined by the Cabinet of Ministers.
(6) control Chief and employees must comply with the requirements laid down in the law "on State secrets" to get the special permission required for access to top secret information. Compliance with these requirements, verifying and certifying constitutional protection Office.
29. article. It is the responsibility of the inspection services: 1) to receive, collect, store and analyze of credit and financial institutions, and other information to determine whether this information can be attributed to criminal money laundering or laundering attempt;
2) to provide pre-trial investigation authorities and the Court information that can be used by the criminal money laundering or attempted laundering or other related criminal offence prevention, detection, pre-trial investigation or hearing;
3) analyze the quality of the information provided and the efficiency of its use and to inform the credit institutions and financial institutions;

4) take criminal money laundering or attempted laundering technique analysis and research, to develop methods to prevent such an operation and detection;
5) in accordance with the procedure laid down in this law, to cooperate with foreign institutions dealing with criminal money laundering or attempted laundering of the fight.
30. article. The control service shall carry out the necessary administrative, technical and organisational measures to ensure the confidentiality 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 determined by the Attorney General, the Council, taking into account the recommendations of the Board. Information on financial transactions is stored in inspection services for at least five years.
31. article. All public authorities have a duty to the Cabinet in order to provide control services to perform its functions for the requested information.
Chapter VIII control of professional cooperation with the national authorities article 32. Control service may, on its own initiative, provide the pre-trial investigation authorities or court information if it allows you to make reasonable assumptions that the person in question in order to hide or mask the financial resources or other property illegal acquisition has taken criminal money laundering.
33. article. Inspection service on the Attorney General or a specially authorised prosecutor accepted operational entity or pre-trial investigation authorities, as well as the request of the Court pursuant to the requirements of this law, shall provide information, if the criminal offences provided for in article 4 of this law, at least one of the following: 1) prosecuted the Latvian Criminal Procedure Code for the order;
2) proposed the development of operational cases operational activities in article 22 of the law.
34. article. At the request of the State revenue service, accepted by the Attorney General or a specially authorised prosecutor, control corruption prevention service provides statutory declaration by State officials check the necessary information at its disposal, if there is reasonable suspicion that an official declaration stated false information about their assets or revenues.
35. article. (1) the validity of the request For information of the applicant and the responsible Prosecutor who accepted the request.
(2) the information provided by the inspection services loses its secrecy status with the moment when the person in question is called to criminal liability.
(3) this law, 32 to 34 in the cases referred to in article inspection services materials shall be submitted to the Attorney General or a specially authorised prosecutor transfers duly authorised bodies.
36. article. (1) inspection service, any information in its possession may be used only for the purposes provided for in this Act and in accordance with the procedure laid down in this Act.
(2) information obtained by the inspection services of the Attorney General and Special Prosecutor authorized the surveillance order, is not a candidate for investigation authorities or court action or use it.
(3) in this Act, a public body referred to in the information they provide inspection service may be used only for the purpose for which it was received. Copying and entering information in the databases is prohibited.
Chapter IX control services Advisory Council of article 37. In order to facilitate the operation of the inspection services and coordinate its cooperation with law enforcement authorities, credit institutions and financial institutions, the Advisory Council is established, with the task of: 1) coordinate national institutions of credit and financial institutions of this law enforcement cooperation;
2) develop recommendations for the control of the service provided for in this Act for the exercise of its functions;
3) to prepare and submit proposals to the inspection services of the unusual characteristics of the transaction list supplement or amendment;
4 inform the Attorney General) at his request or on its own initiative regarding the work of the inspection services and make recommendations to the development of this service.
38. article. Advisory Board composed of one representative appointed by the Minister of Finance: 1);
2) Interior Minister;
3) Minister of Justice;
4) the Bank of Latvia;
5) securities market by the mission;
6) Association of commercial banks;
7) Insurer's Association;
8) Supreme Court.
(2) Advisory Council meeting chaired by the Attorney General.
(3) the Advisory Board shall be invited to their meetings to control Chief and experts.
(4) the proceedings of the Board provides inspection services.
Chapter x international cooperation article 39. (1) inspection service can freely on its own initiative or pursuant to a request to exchange information with foreign authorities notified, which performs a function which is similar to article 27 of this law, if referred to: 1) ensures the confidentiality of the data and use it only for mutually agreed purposes;
2) is guaranteed only to use the criminal prevention and detection, referred to in article 4 of this law.
(2) foreign investigating authorities and courts control service information is provided in the order provided for in international agreements on mutual legal assistance in criminal matters, and by using the specified therein, the Latvian State institutions, moreover, only for the article 4 of this law, the offences referred to, which is also a criminal act.
Transitional provisions to accounts opened before January 1, 1997, without identifying the client, after 1 January 1999, pending identification of the holder of the account, may not carry out any action, except account closure.
The law shall enter into force on 1 June 1998.
The law, adopted in 1997 by the Saeima on 18 December.
The President g. Ulmanis in Riga in 1998 on January 6.

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