Amendments To The Proceeds Of Money Laundering And Terrorist Financing Prevention Act

Original Language Title: Grozījumi Noziedzīgi iegūtu līdzekļu legalizācijas un terorisma finansēšanas novēršanas likumā

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The Saeima has adopted and the President promulgated the following laws: amended Criminal money laundering and terrorist financing Prevention Act, to make the Crime of money laundering and terrorist financing Prevention Act (the Saeima of the Republic of Latvia and the Cabinet of Ministers rapporteur, 2008, no. 16; 2009, no. 2; Latvian journal, 2009, 196, 205. no; 2011, 60 no; in 2012, 100 no; 2013, 187, 227. No.) the amendments are as follows: 1. Article 1: to make point 7 by the following: ' 7) financial institution, recorded in the commercial merchant, branch or agency or other Member State or third country where the merchant is registered in the register, other than a credit institution, and which provides one or more financial services within the meaning of the credit institutions act. Including financial institution considered: (a) insurance) merchant who carried out life insurance and private pension fund, b) an insurance intermediary, providing life insurance services c) investment brokerage company, d) investment management company, e) Corporation, which deals with foreign currency cash buying and selling, f), (g) payment authority) an electronic money institution, h), (i) credit unions) in the "f", "g" and "h" are not mentioned in the payment service provider , j) alternative investment fund manager, k) reinsurance provider, l) financial leasing service provider; "; Express 17 the following: "17 suspicious transaction — transaction), which leads to the suspicion that it is involved directly or indirectly obtained as a result of a crime or related to the financing of terrorism or such attempts;"; to supplement the article with points 18 and 19 by the following: "politically significant person) 18-person: a) which in another Member State or in a third country or has taken holds significant positions in the country last year, including a person who occupies another country or has taken any of the following posts: head of State, members of Parliament, the head of the Government, the Minister, Deputy Minister or Deputy Minister, Deputy Secretary of State or other top officials in the Government , judge of the Supreme Court or Court of another high-ranking member of the institution's decisions does not appeal, the judge of the Constitutional Court, the Supreme Audit (audit) of the Council of the authority or a member of the Board, Council or a central bank Board Member, Ambassador, Chargé d'affaires, senior armed forces officer, National Council of the Corporation or of the Board or other high level person, important officials of a political party, b) of this paragraph is a person referred to in older , spouse or their child-like person, his spouse or the spouse of the person treated. The person of the spouse of a person considered to be comparable only if national law it determines this status, c) is known to the public that it has a business relationship with one of the "a" of this paragraph the persons referred to in point, or with any of them jointly own a share capital company, as well as the individual who is the sole owner of a legal arrangement which is known that it actually created the "(a)" person referred; 19) freezing of funds — barring any movement of funds and transactions, including transfers, amendments, changes, use, access or handling them, which results in any way to change this amount, amount, location, ownership, possession, characteristics or purpose or encounter other changes that would make possible the use of the funds, including portfolio management. " 2. in article 3: make the first part of paragraph 9 by the following: "9) other legal or natural persons, which deals with vehicles, cultural monuments, precious metal, precious stones, their products or other goods, as well as with mediation in those transactions or other services if the payment is made in cash or cash on deposit with a credit institution in such transactions the seller's account in 15 000 euros or more or currency in accordance with the accounting used in the foreign exchange rate at the date of transaction is equivalent to Euro 15 000 or exceed this amount, regardless of whether the transaction is carried out as a single operation or in several related operations. "; make the second paragraph as follows: "(2) subject to the law, ensure that it departments, affiliates and subsidiaries, providing financial services to the Member States and third countries, the crime of money laundering and terrorist financing prevention requirements at least to the extent provided for in this law, in so far as is not incompatible with national law." 3. To make article 4, fourth subparagraph by the following: "(4) for information on the third paragraph of this article, the persons referred to in Criminal money laundering prevention service (hereinafter referred to as the control service) maintains on its Web site that makes them available to the subjects of the law and their supervisory and control authorities." 4. in article 5: to make the third paragraph as follows: "(3) the financing of terrorism is in any way obtain financial resources or other property, directly or indirectly, a collection, or transfer with the aim to use them or knowing that they will be entirely or partly used to perform one or more of the following operations: 1) terrorism; 2) of the Convention on the fight against the illegal seizure of aircraft referred to in article 1; 3) 10 March 1988 Convention on illegal action against shipping safety control referred to in article 3; 4) International Convention against the taking of hostages in the operation referred to in article 1; 5) International Convention on the fight against the terrorist bombings of the Act referred to in article 2; 6) nuclear physical protection referred to in article 7 of the Convention; 7) of the Convention on the fight against illegal activities that jeopardise the security of civil aviation, referred to in article 1; 8) Protocol on the fight against unlawful acts of violence at airports serving international aviation, complementary to the Convention on the fight against illegal activities that jeopardise the security of civil aviation, referred to in article 2; 9) to the Convention on the prevention of criminal offences against internationally protected persons, and for such a criminal offence committed by the punishment referred to in article 2; 10) 10 March 1988 Protocol on illegal activities to strengthen the security of the platform in the fight against the Continental Shelf set out in article 2. '; to supplement the article with the fourth paragraph as follows: "(4) is also the financing of terrorism in any form for financial resources or property transfer terrorist group or individual terrorists." 5. To make article 6 the first subparagraph by the following: "(1) subject to the Act: a legal person — according to their type of activity shall take measures to identify, assess and understand their operations and customers the quintessential crime money laundering and terrorist financing risks and, on the basis of risk analysis, establishing the crime of money laundering and terrorist financing prevention system of internal control, including developing and documenting the policies and procedures." 6. To make article 7 the second subparagraph by the following: "(2) this Act referred to in article 45 of the supervisory and control body establishes the crime of money laundering and terrorism financing risk and assessment methodology for the clearance of those monitored and controlled subject to the operation of this law." 7. Express article 10 the first paragraph by the following: "(1) subject to the Act: a legal person — determined by the Department or appoint one or more employees who are empowered to make decisions and are directly responsible for the implementation of this law and to ensure the exchange of information with the supervisory and control body. The subject of this law within 30 days after the statutory entity status or change in this Department or staff notify the relevant supervisory and control authorities. " 8. Add to article 12 paragraph 2 of the first subparagraph following the words "date of birth" with the words "personal photo". 9. Express article 15 the following: ' article 15. Prohibition to keep anonymous accounts to the credit institution and the financial institution are prohibited to open and maintain anonymous (does not identify the customer) accounts or accounts with bogus (identity documents inappropriate) words. " 10. Add to article 17, paragraph 4, first subparagraph after the word "client" with the words "identification and". 11. Express article 18 as follows: "article 18. The true beneficiaries of the clearance of accounts (1) the subject of the Act establish the customer's true beneficiaries of legal and natural persons, if you know or suspect that the transaction is carried out in the interests of another person or task. (2) subject to the law before the deal for the launch of enquire the true beneficiary, gaining at least the following information: 1) on resident-name, surname, personal code; 2) for non-resident: first name, last name, date of birth, identity document number and date of issue, country, and institution that issued the documents. (3) subject to the Act clarified the true beneficiaries of the client on at least one of the following ways: 1) obtaining the customer's signed statement of the true beneficiary; 2) based on the information or documents from the Republic of Latvia or foreign information systems; 3) found himself the true beneficiary, if news of it can not be obtained otherwise. (4) subject to the Act, based on the client's risk assessment, take the necessary measures to ensure that the originally cleared real beneficiary is the real beneficiary of the client. (5) the insurance and the insurance broker authorized economic operator is entitled to make sure that the client specified the real beneficiary is the real beneficiary of the transaction, even after the commencement of the relationship, but not later than the time when the beneficiary starts to use the insurance contract rights. " 12. Article 19: to exclude the words "what is the origin of the funds of the client"; to supplement the article with the words "and, if necessary, what is the origin of customer funds and wealth welfare wellbeing origin". 13. Turn off the third subparagraph of article 22. 14. Express article 23, first subparagraph as follows: "(1) If, when entering into business relations, customer is not identified by law, its employees or authorized person, subject to the law, using the risk-assessment-based approach, do one or more of the following measures: 1) obtained additional documents or information indicating that the customer's identity; 2) in addition to the examination of the documents submitted or registered in a Member State of another credit institution or financial institution confirmation that the customer has a business relationship with the credit institution or financial institution and credit institution or financial institution has made the identification of the client face-to-face; 3) provides that the first payment transaction is carried out within the framework of relations with the account that credit institution, subject of this law, or European Union law requirements arising for criminal money-laundering and the financing of terrorism, opened for the customer's name; 4) requires personal presence of the client first transaction; 5) if the customer is a natural person, resident, obtained the client identity information from the document that the customer has signed with a secure electronic signature. " 15. Express article 25, third subparagraph of paragraph 2 as follows: "2) and document the risk assessment-based measures to determine the origin of customer funds and wealth welfare wellbeing." 16. Article 29: make the first paragraph by the following: "(1) subject to the law has the right to recognize and accept the customer's identification and research results relating to this law, article 17, first paragraph, point 1 and 2 set out the measures which the Member States and third countries, where the legislation of the crime of money laundering and terrorist financing prevention is equivalent to European Union requirements done by credit and financial institutions, which is not a corporation, dealing with the foreign currency cash buying and selling, as well as payment authority. "; to make a fifth by the following: "(5) if the subject of the law under the first part of this article recognises the other person client identification and research, it does not give the Act subject the right to rely on that other person monitoring. The entity must act independently to monitor customer's business relationship. " 17. Make 30 the first part of the article as follows: "(1) it is the duty of the holder of the law: 1) immediately to report to the control service for every unusual or suspicious transaction; 2) within seven working days of the receipt of the written request of the control service, which derives from the message or subject of the law this law referred to in article 62 of the authorities or institutions of information provided, to give the subject of the law on the information and documents, as well as additional information to the control authorities in carrying out their duties in accordance with the requirements of the law. Taking into account the nature and volume of information, and coordination with the control service request execution time limit may be extended; 3) within three working days of the receipt of the written request of the control service, linked to this service order issued for a temporary freeze on five working days to provide the subject of the law on information and documents to inspection service to perform their duties in accordance with the requirements of the law. Taking into account the nature and volume of information, and coordination with the control service request execution time can be extended. " 18. Put the title of chapter V and article 32 the following: "chapter V to refrain from conducting transactions and freezing of funds article 32. Abstinence from the transaction (1) subject to the Act decide to abstain from completing the transaction, if the transaction is or has a reasonable suspicion that it related to the crime of money laundering or terrorist financing if there is reasonable suspicion that the funds are directly or indirectly obtained as a result of a crime or related to the financing of terrorism or crime. (2) subject to the law of abstinence from the deal immediately, but not later than the next working day, notify the control service in accordance with the requirements of the law. (3) subject to the law, refrain from transaction, does not perform any operations with transactions involving funds until the control service receives the order to end abstention from the transaction. If the subject of the law receives order for inspection services for the freezing of funds, it shall act in accordance with the law of the third paragraph of article 32.1. " 19. To supplement the law with article 32.1 and 32.2 as follows: "article 32.1. Order the freezing of funds (1) the control services shall have the right to legislate on the subject or national information system webmaster binding order for the freezing of funds, if you have reason to believe that happens or is made a criminal offence, including criminal money laundering or the financing of terrorism, the criminal offence of attempt. (2) inspection service issued an order for the freezing of funds: 1), after receiving the report on the subject of the law to abstain from such transaction; 2) on its own initiative; 3. this Act 62) referred to in the first paragraph the foreign authorized bodies on the freezing of funds. (3) subject to the law or national information system administrator has an obligation, after receiving the order for inspection services for the freezing of funds, immediately provide a freezing order of this service in the specified date or until the control service is received the order to end the freezing of funds. (4) subject to the law or national information systems administrator, in writing, inform the customer of the service control order to freeze the funds and send the customer a copy of this order of service that explains it for appeal. Article 32.2. The order in which the control service of the order on the freezing of funds (1) inspection service no later than five working days after the subject of the law received the message about abstinence from transaction, consider whether the subject is the law passed by this law, the decision provided for in article 32 of this law, appropriate terms and the specific person or a specific legal limit is reasonable, and orders an end to abstinence from transaction, or perform the temporary freeze. Order for inspection services, in accordance with which the law entity shall terminate abstinence from transaction, it is necessary to base. (2) if the inspection service has ordered a temporary freeze on the basis of a report on the subject of the law to abstain from the transaction, then this service collects and analyzes information and no later than 40 days after the subject of the law received the message about abstinence from transaction and, in exceptional cases, the Attorney General or a specially authorised prosecutor she within the additional time limit (not longer than 40 days) It takes substantial communication of the information requested, including from abroad, and carried out one of the following: 1) makes an order for the freezing of funds for a fixed period, if: (a)) cash or other means in accordance with article 4 of this law, the third part is to say on get. In this case, the freezing of funds, as set out on the order of time, but not more than six months, b) on the basis of the control service, the information suspect that happens or is made a criminal offence, including criminal money laundering or attempted offence. In this case, the freezing of funds made to order in the down time, but not more than 45 days; 2) in writing to the holder of this law or national information system administrator that the temporary freeze is terminated because the second paragraph of this article referred to in paragraph 1 is not issued; 3) not later than forty days from the moment when the subject of the law received the message about abstinence of the transaction, by order in writing of the extension of the freeze of funds shall be notified to the holder of the law or national information system on this administrator provided for in the second subparagraph of article of the Attorney General or his or her attorney expressly authorized to determine the additional time limit. (3) the control of the service, on the basis of the information available to it, on its own initiative or at the article 62 this law referred to in the first paragraph the foreign authorized bodies or institutions to request for the freezing of funds have the right to order the temporary freezing of up to five working days. (4) if the inspection service has ordered a temporary freeze on the basis of the information available to it, on its own initiative or at the article 62 this law referred to in the first paragraph the foreign authorized bodies or institutions on a freezing, then this service no later than five working days after the date referred to in the third subparagraph in order to perform one of the following: 1) makes an order for the freezing of funds for a fixed period of time where: (a)) cash or other means in accordance with article 4 of this law, the third part is to say on get. In this case, the freezing of funds, as set out on the order of time, but not more than six months, b) on the basis of the control service, the information suspect that happens or is made a criminal offence, including criminal money laundering or attempted offence. In this case, the freezing of funds made to order in the down time, but not more than 45 days; 2 by order in writing about) the temporary freezing of the termination shall be notified to the holder of this law or national information system administrator that the temporary freeze is terminated because the order on the freezing of funds for a fixed period of time. (5) the control services shall have the right in the second and fourth in the cases set out in part by order fix a freezing for up to 45 days without issuing an order for temporary freezing of funds. (6) inspection service cancels an order issued for the freezing of funds, if the customer has provided reasonable information about the legality of the origin of the funds. That information submitted to the entity of law or national information system administrator, who shall without delay, and the control service. (7) the control services shall have the right to cancel the order for the freezing of funds before the deadline. (8) If an order for the freezing of funds for a fixed period is not canceled, the inspection service within 10 working days after it is issued provide information during the pre-trial investigation authorities, Prosecutor's Office or in article 55 of this law. " 20. Replace article 33, first paragraph, the words "and article 32 paragraph 1 of part three" with numbers and the words "the second subparagraph of article 32 (1) and the fourth part". 21. Replace 33.1 in the first paragraph, the words "and article 32 paragraph 1 of part three" with numbers and the words "the second subparagraph of article 32 (1) and the fourth part". 22. in article 33.3: replace the numbers in the first paragraph and the words "article 32 paragraph 1 of part three" with numbers and the words "the second subparagraph of article 32 (1) and the fourth part"; replace the numbers in the second paragraph and the words "the third subparagraph of article 32, paragraph 1" with numbers and the words "the second subparagraph of article 32 (1) and the fourth part". 23. Article 34: make the first paragraph by the following: "(1) in the cases specified in this law and order control orders issued by the authorities of the entity or state law information systems manager and persons whose funds are frozen, or the authorized representative of that person can be a challenge especially authorized the public prosecutor the deadlines set in this Act."; turn off 1.1; turn off the second part of the name and the number "and" 1.1 ". 24. Article 37 of the turn in the third paragraph, the words "but not more than six years". 25. Article 38: replace the second and third paragraph, the words "which have the effect of this law has equivalent requirements for the crime of money laundering and terrorist financing prevention" with the words "where the legislation of the crime of money laundering and terrorist financing prevention is equivalent to European Union requirements"; make quarter point 2 as follows: "2) transaction involves the same person;" replace the fourth subparagraph in paragraph 3, the words "which are in effect equivalent to this rule requirements for criminal money laundering and terrorist financing prevention" with the words "where the legislation of the crime of money laundering and terrorist financing prevention is equivalent to European Union legal requirements". 26. Replace article 39, first paragraph, the words "and article 32 of the order issued, part 2.1" with a number and the words "issued orders to article 32.1. 27. Express article 40 the fifth subparagraph by the following: "(5) if the inspection service has ordered the freezing of funds in accordance with the requirements of the law, then no matter what the result of the freeze of funds, subject to this Act, does not preclude legal, including civil, responsibility." 28. Article 41: make the second part of paragraph 2 as follows: "2) registry of the State revenue service, the details of the client, its representatives and the true beneficiary, as well as the person who expressed the desire to start a business relationship with a credit institution or insurance company, its representatives and the true beneficiaries: (a)) in the last five years, income, the income of the paying agent (b));"; Add to paragraph 7 the second subparagraph following the words "personal code" with the words "the identity document number and expiry date". 29. To complement article 43 second paragraph with the sentence the following wording: "If there is suspicion of criminal money laundering or terrorist financing, a credit institution or financial institution accounts funds not transferred and shall notify the control service." 30. Article 45: Supplement 1 of the first subparagraph of paragraph after the words "investment management company" with the words "credit unions, reinsurance providers"; make the second paragraph, point 5 and 6 by the following: "5) other legal or natural persons, which deals with vehicles, precious metals, precious stones, their products and other goods, as well as with mediation in those transactions or other services if the payment is made in cash or cash on deposit with a credit institution in such transactions the seller's account in 15 000 euros or more or the foreign currency in accordance with the accounting used in the foreign exchange rate at the date of transaction is equivalent to Euro 15 000 or exceed this amount, regardless of whether the transaction is carried out as a single operation or in several related operations; 6) other financial institutions not mentioned in this law article 1. '; make the third paragraph as follows: "(3) the second subparagraph of the Act referred to in the subject, with the exception of the second paragraph of article 5 of the law referred to in paragraph shall, within 10 working days of the registration in the register of companies or State revenue service taxpayer register submitted to the State revenue service to report on its activities."; to supplement the article with the fourth paragraph as follows: "(4) the second paragraph of article 5 of the law referred to in paragraph entities within 10 working days of the date of commencement of the business relationship, agreement of the counterparty of a transaction, service delivery and receipt shall be submitted to the State revenue service to report on their activities." 31. Supplement article 46, first paragraph, point 2 after "training" with the words "and the development of the guidelines". 32. Supplement article 47 with the third subparagraph by the following: "(3) the Bank of Latvia established a corporation, dealing with the foreign currency cash buying and selling, binding requirements in the statutory duties concerning the internal control system, the real beneficiaries of the clearance of accounts and making sure that the person designated as the real beneficiary is the real beneficiary of the client, as well as for the monitoring of customer transactions and customer control of economic activity." 33. Article 51: Supplement 1 of the first subparagraph after the word "keep" with the words "collect, systematize"; make the first part of paragraph 12 the following: "12") collect and submit the inspection services of the Advisory Board of the first part referred to in paragraph 8 of the statistical information, as well as the purpose of the evaluation of the effectiveness of the summary statistics on the activities of the crime of money laundering and terrorist financing prevention and treatment, including suspicious or unusual transactions, the quality of the report; " to supplement the first part of paragraph 13 by the following: ' 13) to develop law bodies recommendations and take steps to mitigate the crime of money laundering and terrorist financing risks, including deciding on the reporting of unusual or suspicious transactions and withdrawals from a business by a subject of the law. "; Add to the second part of paragraph 7 as follows: "7) to request and receive from the pre-trial investigation authorities, Prosecutor's offices, courts, the Ministry of the Interior and the Ministry of Justice, the Court Administration, the available information about the results of the activities carried out criminal money-laundering and the financing of terrorism, including statistics on pre-trial investigation, prosecution, trial results, for the seizure and confiscation of property and international cooperation in the criminal money-laundering and the financing of terrorism. " 34. Add to article 59 paragraph 5 with the following: "5) to examine information on criminal activities of money laundering and terrorist financing prevention and treatment field, including the work done in the previous year, related to the subjects of law supervision and control, as well as suspicious and unusual transactions report quality." 35. Supplement article 62 with 1.1 part as follows: "(11) control services based on information requests received from the United Nations Security Council and in accordance with its legislation established subsidiary bodies (hereinafter referred to as the UN Security Council), may, with the Ministry of Foreign Affairs put the UN Security Council resolutions, in particular the implementation of the sanctions regime, the necessary information, if the information provided is the confidentiality of the data and information are guaranteed only the use of UN Security Council resolutions, in particular the implementation of the sanctions regime." 36. Article 68: replace the first subparagraph of paragraph 1, the numbers and the word "article 32" with 2.1 a number and "20.0" first; Replace paragraph 2 of the first paragraph and the words "in article 32 the third" with a number and the words "in article 32.2 of the second"; to supplement the first part with the 2.1 point as follows: "21) according to this law, the fourth paragraph of article 32 paragraph 2 of the law subject to the inspection service issued an order, declaring that the temporary freeze is terminated because the control service is not found grounds to issue this law, in article 32.2 of the fourth part of the order referred to in paragraph 1;" Replace paragraph 3 of the first paragraph and the words "in article 32 the fifth and sixth" with a number and the words "in article 32.2 sixth and seventh" and the number and the words "the third" article 32 — with a number and the words "in article 32.2 of the second"; replace the first subparagraph of paragraph 4, the words "and article 32 or third-part 2.1" with a number and the words "the first paragraph of article 32.2 or second"; replace the numbers in the second paragraph and the words "article 32" with 2.1 and the words "first" in article 32.2. 37. the transitional provisions be supplemented by the following paragraph 11: "the amendments to this law, 11. Article 41 of the second subparagraph of paragraph 2 shall enter into force on 1 March 2015." The Parliament adopted the law in 2014 on august 13. The President a. Smith in Riga 2014 September 2

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