Law No. 21 On 18 January 1999 In Order To Prevent And Punish Money Laundering

Original Language Title:  LEGE nr. 21 din 18 ianuarie 1999 pentru prevenirea şi sancţionarea spălării banilor

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Law No. 21 on 18 January 1999 in order to prevent and punish money laundering published in PARLIAMENT ISSUING the OFFICIAL GAZETTE nr. 18 of 21 January 1999 the Parliament adopts this law.


Chapter 1 General provisions Article 1 this law regulates the prevention and sanctioning of money laundering activities.


Article 2 for the purposes of this law: money laundry) means the conduct referred to in article 1. 23, though there have been perpetrated through natural or legal persons referred to in art. 8;
  

b) means any goods categories, whether tangible or intangible, including money, movable or immovable, and legal documents or documents that attest to their property.
  


Chapter 2 procedures for identifying and processing information on money laundry in article 3 (1) as soon as an employee of a legal person or physical person from among those referred to in article 1. 8 has concerns that the transaction to take place aimed at money laundry will refer the person or persons designated in accordance with article 4. 16, which, on the basis of thorough indexes, will inform you, in turn, the national Office for prevention and combat of money laundering, hereinafter referred to as the Office. It will certify the receipt of the information immediately.
  

(2) where the Office considers it necessary, it may be decided, justifiably, the suspension of the transaction. The decision will be communicated in writing immediately, or physical legal person to whom the request transaction.
  

(3) for deposit or withdrawal of cash, in lei or foreign currency amounts exceeding the equivalent in MDL of EUR 10,000, the staff referred to in article 1. 8 will report to the Office within 24 hours from the date of the transaction. The transfer of these amounts from bank accounts will be applied to paragraphs. (1) and (2).
  

(4) where the Office considers that the 24-hour period referred to in paragraph 1. (3) is insufficient, he may make this range a reasoned request by the public prosecutor's Office attached to the Supreme Court of Justice, in order to extend the period by a maximum of 3 working days. Prosecutor's Office attached to the Supreme Court of Justice may, once the requested extension, reasoned, or may terminate the suspension of the transaction.
  

(5) where the application for extension of the period with a maximum of 3 working days turns out to be unfounded, the Office will respond to the financial loss incurred by the civil or legal cause.
  

(6) if the decision of the benefits is not made available to businesses. 8 within the period referred to in paragraph 1. (2) and (3), they will be able to perform the transaction.
  


Article 4 If a person of the type referred to in article 1. 8 knowledge as a transaction for which he received instructions to carry out aimed at money laundry and it is impossible not to carry it out or not through them, it is possible to zadarniceasca efforts to pursue the beneficiaries of operation suspected of money laundering, the institution or person concerned shall notify the Office immediately after the transaction. In such cases it shall state the reason they could transmit information about the transaction before it is performed.


Article 5 where the Office receives information under art. 3 or 4, he may ask any competent institutions to provide the data needed for their verification.


In article 6, the Office will proceed with the review of the information which had been provided under art. 3. Where this review brings strong clues or data relating to money laundry, information will be transmitted without delay to the Office of Supreme Court Justice.


Article 7 Provision in good faith in accordance with the provisions of art. 3-5, made by legal entities referred to in article 1. 8 or the employees ' representatives referred to times art. 16, may not attract disciplinary, civil or criminal penalties.


Article 8 fall under this law: a) banks, branches of foreign banks and credit institutions;
  

b) financial institutions, such as investment funds, investment companies, asset management firms, companies, storage, custody, securities companies, pension funds and other funds that meet the following: crediting, including, inter alia, consumer credit, mortgage credit, factoring, financing of commercial transactions, including forfetarea, financial leasing, payment transactions, issuing and administering means of payment , credit cards, traveller's cheques and the like, the granting or taking of guarantees and underwriting commitments, transactions on own account or for account of customers through money-market instruments, traveller's cheques, money orders, certificates of deposits and others, foreign exchange, financial derivatives, financial instruments linked to exchange rates interest rate times, securities, participation in the issuance of shares and offering services related to these broadcasts advice given to the enterprises, the problems of capital structure, industrial strategy and advisory services in the field of mergers and acquisitions of companies, interbank markets brokerage, portfolio management and consultancy in this field, the custody and administration of securities;
  

c) insurance companies and reinsurance;
  

d) economic agents performing gambling times pawn;
  

e) natural and legal persons who grant specialized legal assistance, notarial, accounting, banking and finance;
  

f) any other person or entity, through physical acts and deeds committed in the financial and banking system out.
  


Article 9 (1) legal persons referred to in art. 8 have the obligation to establish the identity of clients for any transaction whose minimum limit, in lei or foreign currency equivalent to 10,000 euros, regardless of whether the transaction takes place by means of a single operation or in several operations that are related to each other.
  

(2) where the amount is not known at the time of acceptance of the transaction, the person or entity required to establish the identity of the customer, will immediately proceed to identify them, when they shall be informed of the amount of the transaction and when he determined that the minimum limit has been reached.
  

(3) as soon as any information that by pursuing transaction money laundry, will proceed to the identification of clients, even if the amount of the transaction is lower than the minimum limit established by the Office.
  


Article 10 (1) the data for identification of the customers will include: a) in the case of natural persons: civil status data specified in identity documents provided by law;
  

b) in the case of legal persons: the particulars mentioned in the registration documents as provided by law, as well as proof that the person who conducts the transaction represents a legal entity.
  

(2) in the case of legal persons, the opening of bank accounts will be requested those documents indicating the identity of the company, the registered office of the company, the type, place of registration, the authorization of which he represents in the transaction, as well as a Romanian-language translation of the documents authenticated by a notary public.
  


Article 11 where there is information concerning the customers referred to in article 1. 9 and 10, as the transaction is not carried out on his behalf, the legal entities referred to in article 1. 8 will take measures to obtain information about the true identity of the person in whose name the times interest in acting on these clients, including Office.


Article 12 (1) Identification Requirements will not be imposed on the insurance and reinsurance undertakings referred to in article 1. 8 in connection with life insurance policies if insurance premium or annual payment rates are less than or equal to the equivalent in MDL of EUR 1,000 times unique insurance paid first is equivalent in lei, up to 2,500 euros. If the rates of the first periodic or annual payment amounts are times to be increased so as to exceed the limit of the amount of 1,000 euro 2,500 euro or equivalent in lei, will be asked to identify clients.
  

(2) the identification Requirements are not mandatory in the case of the underwriting of insurance packages issued by the pension funds obtained by virtue of a contract of employment or the insured's profession, provided that his policy may not be redeemed before maturity and not to be used as security or collateral for a loan.
  

(3) Identification Requirements are not required, unless it is established that the payment is made by debiting an account opened in the name of the customer at a bank or at an institution for savings.
  


Article 13 (1) In every case where the identity is requested under the provisions of the present law, a legal entity or natural person referred to in art. 8, which is required to identify the customer, will retain a copy of the document as proof of identity or identity references, for a period of 5 years from the date when ending the relationship with the customer.
  


(2) legal and physical Persons. 8, subject to the provisions of this law, shall keep, in a form that can be used as a means of sample, or obvious operative and secondary records of all financial transactions that are subject to this law, for a period of five years from each transaction, after which they will be handed over to the Office for the archive.
  


Article 14 (1) natural and legal Persons as referred to in art. 8 will prepare a written report for each transaction which, in virtue of its nature or unusual relative to the context of the regular activities of the client, may be linked to money laundry.
  

(2) the report, whose shape will be determined by the Office, to be submitted to it.
  


Article 15 the Office will provide, at his own expense, special programs for training of persons referred to in art. 8. Legal persons referred to in art. 8 will establish procedures and internal control methods to prevent and to prevent money laundry and ensure training of employees for the recognition of transactions that may be linked to money laundry and the immediate measures to be taken in such cases.


Article 16 (1) the legal entities referred to in article 1. 8 shall appoint one or more persons who have responsibilities in the implementation of this law, whose names will be communicated to the Office, together with the nature and the limits of responsibilities.
  

(2) every person designated pursuant to paragraph 2. (1) legal entities specified at art. 8 be responsible for carrying out the tasks set out in the application of this law.
  


Article 17 the Authorities financial control in accordance with the law and supervision of legal persons prudentiala specified in art. 8, taking the knowledge database that indicate money laundering actions, they will inform the Office.


Article 18 (1) staff of the Office has an obligation not to disclose information received during the activity only in terms of legal proceedings, including after termination, for a period of 5 years.
  

(2) it is prohibited to use privately by the employees of the Office of the information received, both during and after its termination.
  

(3) the provisions of paragraphs 1 and 2. (1) and (2) do not apply to communications in the framework of mutual cooperation made on the basis of international treaties to which Romania is party or on the basis of reciprocity, foreign institutions made communications which have similar functions and having the obligation to secrecy in conditions similar to the Office, if such communication is made in order to meet the duties resulting from the activity.
  


Chapter 3 the national Office for prevention and combat of money laundering in article 19 (1), is hereby established the national Office for prevention and combat of money laundering, the specialized body with legal personality, subordinated to the Government, with its headquarters in Bucharest.
  

(2) the Office has as object the prevention and combating of money laundering, in which receives, analyzes, processes the information and notifies the authorities empowered by law.
  

(3) for the purposes of the exercise of its functions, the Office has its own device constitute, at both central and regional levels, as appropriate.
  

(4) at the level of counties and Bucharest city co-operative structures may be established, hereinafter referred to as structure, headed by a director.
  

(5) the functions, conditions for study and work experience for employment and promotion of staff of the Office are proposed by him and approved by decision of the Government, taking into account the remuneration of judicial authority bodies.
  

(6) the Office shall be composed of one representative of the Ministry of finance, Ministry of Justice, Ministry of Interior, the Prosecutor's Office attached to the Supreme Court of Justice, the National Bank of Romania, the Romanian Banks Association and the Court of Auditors, appointed officials, over a period of five years, by decision of the Government.
  

(7) the Office is headed by a President with the rank of Secretary of State, appointed by the Government from among the members of the Office, which has the status of authorising officer for loan principal.
  

(8) the members of the Office must, at the time of appointment, the following conditions are met: a) to be licensed and have at least 10 years of service in an economic or legal function;
  

b) have their domicile in Romania;
  

c) have only Romanian citizenship;
  

d) to have the exercise of civil and political rights;
  

e) to enjoy a professional reputation and moral nestirbita.
  

(9) in the event of a holiday post within the Office, the competent authority will propose to the Government a new person within 30 days after the date of vacantarii.
  

(10) the members of the Office are required to communicate immediately in writing to the President of the Office the emergence of any situations of incompatibility with the conditions laid down in paragraph 1. 8. (11) function of the Office is incompatible with any other public or private office, except for teaching positions in higher education.
  

(12) employment function, members of the Office will be detached, i.e. their employment contract will be suspended as from the expiry of his return.
  

(13) the term of Office of a member of the Office shall cease in the following situations: a) on the expiry of the period for which it is named;
  

b) resignation;
  

c) death;
  

d) through failure to pursue the mandate for a period greater than six months;
  

e) to carry out a incompatibilities;
  

f) through the revocation that appointed him.
  

(14) personnel employed within the Office fold in its structures may not occupy any post and will not perform any function in any one of the institutions referred to in article 1. 8 simultaneously with employee of the Office or of its structures.
  


Article 20 (1) for the operation of the Office and its structures, the Government and, where appropriate, local public administration authorities shall transmit the necessary administration buildings-land and buildings-in the field of public or private law, within 60 days from the date of registration of the application.
  

(2) the Office shall draw up its own draft budget and submit it to the Government.
  

(3) the annual times when Government decides, the Office shall submit activity reports.
  

(4) in the exercise of his powers the Office take decisions by majority vote.
  


Chapter 4 Responsibilities and penalties Article 21 violation this law shall entail, if applicable, civil liability, disciplinary, administrative or criminal liability.


Article 22 (1) is subject to and is sanctioned with fines ranging from 5,000,000 lei la 20,000,000 lei non-compliance with the obligations laid down in article 21. 3 paragraphs 1 and 2. (1), art. 4, 6, 9 and 11 to 16, if the Act is not committed under such conditions as to be considered, according to the criminal law, the offence.
  

(2) the penalties provided for in paragraph 1. (1) shall also apply to legal persons.
  

(3) to establish Offences and fines applies to persons within the Office designated for that purpose.
  

(4) the provisions of this law shall be supplemented, as appropriate, with the provisions of law No. 32/1968 for establishing and sanctioning of offences, with the exception of art. 25 and 26.
  


Article 23 (1) shall constitute the crime of money laundering and shall be punished by imprisonment from 3 to 12 years: a) changing or transferring values, knowing that they are derived from committing certain offences: drug trafficking; failure to observe the regime of weapons and ammunition in the form of aggravated; failure to observe the regime of nuclear or other radioactive materials; failure to observe the regime of explosive materials; the counterfeiting of coins or other valuables; pimping; smuggling; blackmail; being deprived of freedom unlawfully; deception in banking, finance or insurance; fraudulent bankruptcy; motor vehicle theft and concealment; inobservance of such property; trafficking in protected animals in their countries; trade in human organs and tissues; the crimes perpetrated through computers; crimes related to credit cards; offences committed by persons forming part of the associations of criminals; failure to comply with the provisions relating to the import of wastes and residues; failure to comply with the provisions relating to gambling; for the purpose of concealing the illicit origin or disimularii of them, and tainuire purposes or to persons involved in such activities or alleged that would circumvent the legal consequences of their deeds;
  

b) hiding or concealing the real nature of provenance, affiliation, disposition, movement or ownership of the right over them, knowing that these goods come from committing one of the offences referred to in a);
  

(c) the acquisition, possession or) use of property, knowing that such property is derived from committing one of the offences referred to in a). (2) the Association, initiation, joining or assisting in any form for the purposes of the offence of money laundering, punishable by imprisonment from 5 to 15 years.
  

(3) the attempt shall be punishable.
  


Article 24 non-compliance with the obligations laid down in article 21. 18 constitutes infringement and is punishable with imprisonment from 2 to 7 years.


Article 25 in the case of offences referred to in articles. 23 and 24 will become available under the terms of art. 118 of the penal code, and the confiscation of property that are the subject of the crime, and if they are not found, the offender is obliged to pay their equivalent in money.



Chapter 4 final provisions article 26 Identification reviews under art. 9 will be made after the entry into force of this law.


Article 27 minimum transaction Limit provided for in art. 9 para. (1) maximum limits, and the amounts provided for in art. 12(3). (1) may be amended by the Government, upon the proposal of the Office.


Article 28 the present law shall enter into force 90 days after its publication in the Official Gazette of Romania, except the provisions of article 7. 19, which enters into force from the date of publication.


Article 29 to 30 days before the date of entry into force of this law the Office shall submit to the Government for approval or regulation of organization and operation, as well as the regulations on the organisation and functioning of its structures.
This law was adopted by the Chamber of Deputies and the Senate sitting in the commune of 17 December 1998, in compliance with the provisions of art. 74 para. (1) and of article 23. 76 para. (2) of the Constitution of Romania.
p. CHAMBER of DEPUTIES PRESIDENT, VASILE LUPU, PRESIDENT of the SENATE, pp. CRISTIAN DUMITRESCU------------