The Crime Of Money Laundering And Terrorist Financing Prevention Requirements When Making Foreign Currency Cash Buying And Selling

Original Language Title: Noziedzīgi iegūtu līdzekļu legalizācijas un terorisma finansēšanas novēršanas prasības, veicot ārvalstu valūtu skaidrās naudas pirkšanu un pārdošanu

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.

The Bank of Latvia Regulation No 141, Riga 2014 September 15 Criminal money laundering and terrorist financing prevention requirements when making foreign currency cash buying and selling of Issued in accordance with the Crime of money laundering and terrorist financing Prevention Act 47. the third paragraph of article i. General provisions 1. Rules lays down the requirements for the enterprises, which have received the license of the Bank of Latvia, foreign currency cash purchase and sale (hereinafter the Corporation) Crime of money laundering and terrorist financing Prevention Act for the enforcement of obligations in respect to 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 activities.
II. Internal control system 2. to take the Crime of money laundering and terrorist financing Prevention Act requirements and reduce the possibility of the Corporation to be involved in criminal money laundering and terrorist financing, and to provide service to clients who could be involved in criminal money laundering transactions or terrorist financing, the Corporation carries out foreign currency cash for purchases and sales, and its customers the quintessential criminal money laundering and terrorism financing risk analysis and on the basis of risk analysis, establish internal control systems and the development of the internal control system documents (policies and procedures), approved by the governing body of the Corporation. 3. Internal control system documents States: 3.1 client's criminal money laundering and terrorism financing risk assessment procedures; 3.2. the unusual and suspicious transactions detected; 3.3. the customer's and true beneficiary identification procedures; 3.4. customer research; 3.5. to refrain from suspicious transactions; 3.6. reporting of unusual and suspicious transactions and reporting documents; 3.7. monitoring of customer transactions; 3.8. customer identification and research, as well as the client's transactions monitoring data and document retention procedures; 3.9. the Corporation's employee rights, duties and responsibilities of the internal control system requirements.
III. Client's criminal money laundering and terrorism financing risk assessment procedures 4. Corporation internal control system determines the client's document crime money laundering and terrorist financing risk assessment procedures. 5. The Corporation shall assess the client's criminal money laundering and terrorism financing risk, assessing such risks: 5.1. risks arising from the customer's residence (registration); 5.2. risks arising from customer's legal form; 5.3. the risk posed by the client's economic or personal action; 5.4. risks arising from customer's use of services. 6. client risk is the crime of money laundering and terrorist financing risks inherent in the customer's residence (registration) or the client's legal form, the owner of the structure or the economic or private activity. 7. High risk customer registration (residence) country considered a country or territory: 7.1 included in the Republic of Latvia Cabinet of Ministers approved low tax and duty free list of countries and territories; 7.2. against which the United Nations or the European Union established the financial or civil restrictions; 7.3. included in the international financial action task force (Financial Action Task Force) on the list of non-cooperative countries or for which that organization published a statement as the country or territory that has no laws against criminal money laundering or financing of terrorism or in which they are with significant disabilities and therefore does not meet international requirements. 8. For the high risk posed by the client shall be regarded as the legal form of the risk associated with the following entities: 8.1. legal person where the owner or members of the structure makes it possible to determine the true beneficiary; 8.2. Association, Foundation and similar legal formations that are not profit-oriented in nature. 9. About the risk posed by the client in the economic or personal activity, considered as: 9.1. customer's business or private activity not related to the Republic of Latvia; 9.2. the customer business is related to: 9.2.1. organisation of gambling; 9.2.2. collection service; 9.2.3. mediation in transactions with real estate; 9.2.4. the trade in precious metals and precious stones; 9.2.5. the trade in arms and ammunition; 9.2.6. the provision of services. 10. the risk posed by the client, the service used to be regarded as risk capital companies the service supplied can be used for criminal money laundering or terrorist financing.
IV. An unusual and suspicious transactions detected 11. Corporation internal control system in the document indicates signs of unusual or suspicious transaction. 12. The transaction is considered suspicious if it meets at least one of the following signs: 12.1 for the customer: 12.1.1. customer identification problems (the customer does not wish to provide identifying information or give it to a minimal extent, provide bogus information, provides a difficult test information, have reasonable suspicion that the person is forged formal); 12.1.2. the customer is nervous for no apparent reason; 12.1.3. the customer has to escort him; 12.1.4. customer will bring money, he is not counted; 12.1.5. the customer makes a series of similar low-value transactions, which implies a deliberate avoidance of the identification or the transaction, who according to the law comply with the unusual characteristics of the transaction; 12.1.6. more clients sequentially similar transactions, which implies a deliberate avoidance of the identification or the transaction, who according to the law comply with the unusual characteristics of the transaction; 12.1.7. customer makes a complex transaction (transaction does not have a clear economic or legal purposes); 12.1.8. of Criminal money laundering prevention service or other law enforcement authorities received or criminal money laundering prevention service website published news about the client or the true beneficiaries of the suspicion; 12.1.9. have a reasonable suspicion about the client or the true beneficiary's possible links with terrorism, although he is not included in the Crime of money laundering prevention service maintain the terrorist list and has not previously been reported about her Criminal money laundering prevention service; 12.2. concerning: 12.2.1. customer makes him atypical transaction (the customer an unusually large volume of transactions); 12.2.2. There is reasonable suspicion that the transaction used to obtain criminal means (not clear origin of the funds used in the transaction); 12.2.3. a customer conducts a transaction that does not meet his financial situation; 12.2.4. transaction related to another suspicious transaction, which already reported Criminal money laundering prevention service; 12.2.5. There is reasonable suspicion that a transaction using the forged document; 12.3. in relation to the transaction of money used in the signs: 12.3.1. the nominal value of the banknotes are not typical of customer; 12.3.2. packaging banknotes is not typical of customer; 12.3.3. the transaction, the amount of which is equivalent to 2 000 euro or exceed this amount, coins or banknotes with denominations are changed little against the larger denomination notes (or vice versa) or against other banknotes of the same denomination; 12.4. the client has a transaction or other signs that leads to the suspicion of illegal money laundering or the financing of terrorism. 13. The transaction is unusual if it meets at least one of the following signs: 13.1 the client buys or sells the currency for the amount that is equivalent to 8 000 euro or exceed this amount; 13.2. client or the real beneficiary is suspected of committing terrorist acts or complicity, includes the Crime of money laundering prevention service maintain the terrorist list, and the Corporation informed him of Criminal money laundering prevention service.
V. customer's and true beneficiary identification in

14. The Corporation's internal control system determines the client's document and the true beneficiary identification procedures. 15. The Corporation's physical personal identification is carried out on the basis of the following identity of formal: 15.1 resident – passport or identity card under the identity card Act; 15.2. entry for non-residents in the Republic of Latvia valid identity documents. 16. The Corporation legal personal identification is carried out based on the Crime of money laundering and terrorist financing documents mentioned in the law. A corporation can take the identification of the legal person, gaining information about the legal entity from the publicly available reliable and independent source. 17. If a Corporation customer identification in addition to the documents submitted by the customer using other sources of information, the Corporation shall document the source of information used and the information received from it. 18. Entering into business relations or if a transaction is unusual or suspicious, a corporation, or make the true beneficiary identification in the following order: 18.1. customer makes sure that your transactions or the true beneficiary's behalf; 18.2. copies the client and, if possible, the actual beneficiary identification documents; 18.3. finding that the customer is a legal person, if possible, identify and document the physical persons who actually owns the majority of shares; 18.4. the client and, if possible, the actual beneficiaries of the identity document, as well as to the authenticity of documents submitted and validity; 18.5. immediately notify the competent law enforcement authority if there is reasonable suspicion the person submitted the evidence of forgery or other document; 18.6. the verification of Criminal money laundering prevention service maintain the terrorist list and other available information to make sure that the client or the real beneficiary is not related to terrorism or criminal money laundering or not politically significant person. 19. If the business is not unusual or suspicious and will not commence business relations, but the amount of the transaction is the equivalent of 2 000-999 Euro 7, the Corporation shall make, or the true beneficiary identification in the following order: 19.1. copies of identification documents of the client; 19.2. make sure that the customer's identity document authenticity and validity; 19.3. immediately notify the competent law enforcement authority if there is reasonable suspicion of identity presented in document forgery. 20. If this rule 19, paragraph one customer transactions total one month reached 13.1. these regulations the amount referred to in the Corporation identifies the client this provision in paragraph 18. 21. A Corporation do not deal with a customer who has not fully identified in accordance with the Crime of money laundering and terrorist financing Prevention Act.
Vi. Dealing with major political parties 22. The Corporation's internal control system determines the important political document of identification procedures, the person performing the customer's and true beneficiary identification. 23. Until the countries of the European Union, t.sk. In Latvia, will be established, the institution responsible for preparing the list of such persons and issues and such list will be issued, the Corporation uses the information in their possession about that person. 24. If the customer in identifying unusual or suspicious transaction case, found that the customer or the real beneficiary is politically significant person, employee of the Corporation before the transaction, shall take the following measures: 24.1. in and document the risk assessment-based measures to impose politically significant personal wealth characteristic and welfare funds; 24.2. inform the Board of a corporation or its particular authorised Member of the Board of the Corporation for the transaction with the politically significant person and receives the Corporation Board or particular notified the Corporation with the consent of the members of the Executive Board of the transaction.
VII. Client research arrangements 25. The Corporation's internal control system the document determines the customer research. 26. the Corporation carried out a customer survey in the following cases: 26.1. entering into business relations with the customer; 26.2. doing business with high risk customer; 26.3. doing business with the politically important person; 16.4. If there is suspicion of criminal money laundering or the financing of terrorism. 27. the customer research, a corporation required to provide the following information and documents: 27.1. customer information representative of the wealth and prosperity of the funds origin; 27.2. information on financial resources involved in the transaction for the purpose of the use; 27.3. information about the client's business and personal activity; 27.4. for information on the financial position of the client; 27.5. other required information. 28. A Corporation means, using publicly available information, whether a customer, the authorised person and the real beneficiary not previously convicted or suspected fraudulent activity, money laundering, financing of terrorism or such attempts. 29. The Corporation provides business relationships within the client's research, information and regular updating of documents.
VIII. Deterrence from an unusual and suspicious transactions 30. If a transaction is related to or has a reasonable suspicion that it is related to criminal 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 criminal attempt, the Corporation shall adopt one of the following decisions: 30.1. not to make suspicious transaction; 30.2. to refrain from suspicious transaction, retention of funds 12.1.8. these provisions, 12.4 and 13.2 12.1.9,. in the cases referred to in (a); 30.3. to carry out suspicious transactions. 31. the Corporation shall designate the person empowered to adopt this rule 30 the decisions referred to in the paragraph. 32. If a corporation in accordance with the Crime of money laundering and terrorist financing Prevention Act takes the decision to refrain from unusual or suspicious transaction, such restraint may be made only in good faith and refrain from transaction can only in case of criminal money laundering or financing of terrorism or has a reasonable suspicion about it. 33. The Corporation's decisions on abstinence from unusual or suspicious transaction, retention of funds, or the termination of such abstinence should be motivated, looking for writing and forthwith, but not later than the next working day, reported Criminal money laundering prevention Office and the Bank of Latvia. 34. A corporation decides to make a suspicious transaction, if it is not possible to abstain from the transaction, or if the withholding from the transaction, can serve as information that helps criminal money laundering or terrorist financing of the parties involved to avoid responsibility. Following the transaction, the Corporation shall immediately notify the money laundering Crime.
IX. registration of transactions and reporting arrangements

35. The Corporation's internal control system determines the document order for a site to be recorded, stored, protected and news about the Corporation's customers, the real beneficiaries and customer transactions. 36. The Corporation shall establish a special register in which erratic, suspicious and that rule 19. transactions referred to in points. 37. On unusual or suspicious transactions of the Corporation shall prepare a report of criminal money laundering prevention Department, which, if possible, include or be accompanied by: 37.1. the client and the true beneficiary identification data; 37.2. the customer's copy of the identification document; 37.3. your log in or in the currency exchange business description, place and time; 37.4. signs that give a basis to consider foreign exchange transaction of unusual or suspicious transactions; 37.5. any other information and documents that can play a role in the evaluation of a particular transaction. 38. A corporation that the report referred to in paragraph 37 personally submitted to Criminal money laundering prevention services: 38.1. unusual or suspicious financial transactions, without delay; 38.2. abstention from the transaction, retention of funds, without delay, but no later than the next working day. 39. Customer identification and copies of documents and information about the rules for registered 36. transactions referred to in paragraph t.sk. Money laundering crime prevention service of the copy of the sent message, a corporation shall be kept for at least five years. 40. The Corporation is not entitled to inform the client or a third party that the information about a client or transaction provided Criminal money laundering prevention Department. 41. The Corporation shall ensure that the provisions referred to in paragraph 37 of the document and all of the Corporation's internal control system availability monitoring and control bodies. 42. The Corporation registers and records of Criminal money laundering prevention service requests for the Corporation's customers and customer transactions.
X. customer transactions monitoring 43. Corporation provides customer transactions continued surveillance.
44. the monitoring of customer transactions within the Corporation regularly conducts customer transaction analysis and, based on customer transaction information obtained within the framework of monitoring and criminal money laundering prevention service and other law enforcement authorities, determine: 44.1. transactions with the customers only to the governing bodies of the Corporation or the responsible employee's consent; 44.2. customers ' transaction limits; 27.5. increased monitoring of customer transactions; 27.6. other types of surveillance or restrictions. 45. The Corporation's internal control system determines the customer document the supervision procedure, t.sk. monitoring of customer transactions, monitoring of the regularity of the customer within the framework of the actions to be taken and the manner of, as well as the strengthening of the surveillance of the responsible person.
XI. The Corporation workers ' rights, duties and responsibilities of the internal control system in compliance with the requirements of executive body of Corporation 46. ensure effective internal control system implemented in the everyday work. 47. The Corporation shall designate a Department or appoint one or more employees who are empowered to make decisions and are directly responsible for the Crime of money laundering and terrorist financing prevention compliance with legal requirements and to ensure the exchange of information with the Bank of Latvia. The departments responsible for posting or the appointment of a staff member in charge of the Corporation within 30 days after the license of the Bank of Latvia, foreign currency cash purchase and sale entered into force or the Department or employee shifts shall notify the Bank of Latvia. 48. The Corporation prohibited from disclosing information about the responsible Department or designated responsible employee to third parties. 49. The Corporation in charge of the Department or responsible employee: 30.5. familiar with the crime of money laundering and terrorist financing Prevention Act regulatory requirements, regulations and criminal money-laundering and terrorist financing prevention-related risks; 30.6. the Corporation regularly informed the authorities about the internal control system in a corporation and, where necessary, make proposals for the operation of internal control systems. 50. The Corporation in charge of the Department or responsible employee is responsible for: 50.1. the Corporation's internal control system; 50.2. the Corporation's employee information and training of the internal control system; 50.3. the reporting of criminal money laundering prevention service of unusual and suspicious transactions; 50.4. customer identification and research, information and document storage and protection; 50.5. Criminal money laundering prevention service request for the Corporation's customers and customer transactions carried out logging, tracking and protection. 51. The Corporation's employees who deal with customers, is responsible for: 51.1. customer identification and analysis; 51.2. unusual or suspicious transactions and the capture of the responsible employee of a corporation, for information on detected unusual and suspicious transactions. 52. Documenting the procedures of the Corporation at least once a year, evaluate the system of internal control effectiveness and, if necessary, take measures for the internal control system efficiency. 53. The Corporation provides: 53.1. the new corporation officers in the internal control system; 53.2. permanent staff training and regular development of skills of the internal control system. 54. This rule 53.2. training referred to at least once a year, and they include the following topics: 54.1. the crime of money laundering and terrorist financing prevention regulatory acts; 54.2. the crime of money laundering and terrorist financing risks prevention; 54.3. the Corporation's internal control system guidelines; 54.4. unusual and suspicious transactions detected. 55. details of exercises a corporation registers the relevant documents (instruction logbooks). The fact that an employee is trained in internal control system, attest to the signature of the employee briefing log.
XII. concluding issues 56. Be declared unenforceable Council of the Bank of Latvia 13 May 2009. Recommendations No 37 "Criminal money laundering and terrorist financing prevention internal control framework recommendations the Corporation that received the license of the Bank of Latvia, foreign currency cash purchase and sale" (Latvian journal, 2009, 77). 57. The Corporation until 1 January 2015 to ensure compliance with the internal control system and rules of other criminal money laundering and terrorist financing Prevention Act regulatory requirements of the regulations. By 2015 1 January 2004, the Corporation's internal control system approved documents submitted to the Bank of Latvia. 58. the rules shall enter into force on 16 September 2014. The President of the Bank of Latvia is Rimšēvič.


Related Laws