LAWON PREVENTING MONEY LAUNDERING(Official Gazette of the FR of Yugoslavia No. 53 of September 28, 2001) |
I GENERAL PROVISIONS
Article 1
This Act shall prescribe measures and actions to be undertaken for the purpose of discovering and preventing money laundering.
Article 2
In terms of the present Law, the term money laundering shall be understood to mean depositing the money acquired through illegal activity (gray economy, illicit traffic in arms, narcotic drugs and psychotropic substances and the like) in the accounts kept with banks and other financial organisations and institutions, or introducing such money in any other manner into legal financial flows - which domestic and foreign natural and legal persons perform with the aim to carry out permissible economic and financial activities.
In terms of paragraph 1 of the present Article, the term money shall be understood to mean cash, including foreign currencies in cash and other financial assets.
The following shall be considered as acts enabling money laundering:
- concealment or disguise of the origin of money or the location where the money has been deposited, concealment of the purpose of using the property and all the rights resulting from the performance of forbidden activity;
- exchange or transfer of property resulting from the performance of forbidden activity;
- acquisition, possession or utilisation of the property resulting from the performance of forbidden activity;
- concealment of illegally acquired social property and social capital, in the process of ownership transformation of enterprises.
Article 3
In terms of the present Law, the term illegally acquired money shall be understood to mean the money illegally acquired (cash and cash equivalents in domestic and foreign currency, securities and other means of payment denominated in domestic or foreign currency) and the property (rights and objects) acquired by using such money.
Article 4
Actions and measures aimed at discovering and preventing money laundering shall be undertaken at the moment of receiving, exchanging or obtaining small change of the money (breaking greater amounts into smaller ones and depositing the latter in accounts), at entering into transactions of acquiring property, or at any other handling such money or property which enables money laundering (hereinafter: transactions).
In terms of the present Law, the term transaction should not be understood to mean withdrawal of cash from the current account or giro account, and/or savings account as well as other account, or withdrawal of foreign currencies in cash from foreign currency account or foreign currency savings account.
Article 5
Legal entities and the responsible persons therein (hereinafter: obligors) shall be obliged to undertake actions and measures aimed at discovering and preventing money laundering.
In terms of the present Law, the obligors shall be:
- banks and other financial organisations (Post Office Savings Bank, savings banks, savings and credit organisations, and savings and credit cooperatives);
- Post Office enterprises, other enterprises and cooperatives;
- government agencies, organisations, funds, establishments, institutions as well as other legal entities which are in whole or in part financed from public revenues;
- the National Bank of Yugoslavia - Clearing and Settlement Bureau as the executor of the country's payment operations;
- insurance companies;
- stock exchanges, stock brokers and other persons engaged in transactions involving cash, securities, precious metals and jewels as well as sale and purchase of claims and debts;
- money exchange offices, pawnshops, gambling rooms, betting places, slot machine clubs as well as organisers of commodity and money lotteries and other games of chance.
In terms of the present Law, the term obligor shall also include other legal entities as well as natural persons (entrepreneurs) engaged in transactions relating to purchase and sale of claims and debts, asset management for third parties, leasing and factoring, forfeiting, issuing of payment cards and credit cards, including business operations with such cards, real estate business, trade in artworks, antiques and other valuable objects as well as treatment of and trade in precious metals and jewels transactions.
II ACTIONS AND MEASURES TO BE UNDERTAKEN BY OBLIGORS
Article 6
The obligor shall be bound to determine the identity of the client:
1) when opening an account or establishing any other kind of lasting business cooperation with a client;
2) in case of any money transaction (cash, foreign currency in cash, securities, precious metals or jewels whose value exceeds 600,000 Dinars as well as transactions concerning life insurance where the value of a single premium exceeds 40,000 Dinars;
3) in case of several interconnected transactions whose total value exceeds the value specified in sub-paragraph 2 of the present paragraph;
4) when the value of transaction is smaller than the amount referred to in sub-paragraph 2 of the present paragraph, if there are reasons to suspect money laundering.
Article 7
The identity of a domestic natural person shall be determined by inspecting such person's identity documents (identity card, passport or other document).
The identity of a foreign natural person shall be determined by inspecting such person's documents (passport or other official document).
The identification of a domestic legal entity shall be effected by inspecting the data of the court register (name, head office and registration number of the legal entity), and the identity of the natural person conducting a transaction on behalf of the legal entity shall be determined in the manner prescribed in paragraphs 1 and 2 of the present Article and by inspecting the written authority given to that natural person by the mentioned legal entity.
Article 8
Obligor shall be bound to appoint a person who will further be responsible for detecting the transaction for which there is a suspicion of the money laundering case, for detecting the person who executes such a transaction, as well as for notifying the case to a competent federal agency (hereinafter: authorised person).
If, on the ground of the data on the transaction, and/or on the person specified in paragraph 1 of the present Article, which are at the disposal of the obligor, the authorised person suspects the existence of a money laundering case, the latter will address a report, with all the relevant data, to the competent federal agency.
Article 9
The obligor, when carrying out the transaction specified in Article 6, paragraph 1 of the present Law, shall be bound to request the party thereto to give a written statement as to whether it is carrying out the transaction on its own behalf or as a proxy.
If the party is carrying out the transaction as a proxy, the obligor shall be bound to request the party to submit the corresponding authority.
Article 10
The obligor shall be bound to keep the data obtained on the ground of articles 7 and 9 of the present Law, as well as other documentation relating to the effected transaction, at least five years after the transaction has been carried out.
Article 11
The activities concerning collection, processing, analysing and keeping data and information obtained from the obligors, providing competent governmental agencies with information, and undertaking measures to prevent money laundering shall be performed by the federal agency responsible for preventing money laundering (hereinafter: competent federal agency).
The Federal Government shall regulate the organisation and sphere of activity of the competent federal agency.
Article 12
The obligor shall be bound to inform the competent federal agency of each cash transaction and/or several interconnected transactions that exceed the values specified in Article 6 of the present Law.
The Federal Government shall prescribe the manner and time limits for providing information referred to in the present Article.
Article 13
The competent customs authorities shall be bound to provide the competent federal agency with the data on each transfer over the state border of cash, checks, securities, precious metals and jewels whose value exceeds 30,000 Dinars, within three days of such transfer at the latest.
Article 14
The obligor shall inform in writing the competent federal agency of the transactions referred to in Article 12, paragraph 1of the present Law, before carrying out the transaction, and shall state the time limit within which the transaction shall be carried out.
The information referred to in paragraph 1 of the present Article may be provided by telephone, but must be confirmed in writing within the next two days at the latest.
Should, owing to the nature of the transaction referred to in Article 12, paragraph 1 of the present Law, the obligor be unable to inform the competent federal agency thereof before the carrying out of the transaction, the obligor shall inform the agency thereof after its carrying out, but within the next 24 hours at the latest.
Article 15
Should the authorised person assess that there exist reasons for the suspicion of money laundering, such person may issue the order for temporary suspension, 48 hours at the longest, of carrying out the subject transaction, whereof it shall inform the competent federal agency.
The competent federal agency shall inform the competent judicial and inspection bodies as well as the police of the suspension of the transaction specified in paragraph 1 of the present Article, in order that they undertake measures within their respective competence.
Article 16
Should the competent federal agency, within the time limit specified in Article 15 of the present Law, find that there are no reasons to suspect the money laundering, the competent federal agency shall inform the obligor thereof immediately.
Should the competent federal agency, within the time limit specified in Article 15 of the present Law, fail to undertake measures, the obligor may carry out the transaction immediately.
Article 17
For the purpose of assessing whether there is a suspicion of money laundering connected with a given transaction or a given person, the competent federal agency may request the obligor to provide the data specified in Article 25 of the present Law, the data on the that person's financial condition and bank deposits, as well as on other data and information necessary for discovering money laundering.
In the case referred to in paragraph 1 of the present Article, the obligor shall be bound to provide the competent federal agency, at its request, with all necessary documentation.
The competent federal agency may request the obligor to provide a written information on conducting the operations specified in the present Law, as well as the documentation in connection with these operations.
The obligor shall be bound to provide the competent federal agency with data, information and documentation referred to in the present Article within the time limit not exceeding eight days from the day of receiving the request.
Owing to the size of documentation requested or other justified reasons, the competent federal agency may grant the obligor a time limit longer than that specified in paragraph 4 of the present Article, of which the competent federal agency shall inform the obligor in writing, or it shall inspect the documentation at the obligor's premises.
Article 18
With the aim to assess whether there is a suspicion of money laundering connected with a given transaction or given persons, the competent federal agency may also request government agencies and organisations to provide the data and information necessary to it for discovering the money laundering.
Article 19
The competent government agencies shall be bound to provide regularly the competent federal agency with information together with data on the proceedings in progress in connection with infractions, economic violations, and criminal offences relating to money laundering as well as on the perpetrators thereof (personal data, the stage of the procedure, finally binding decision).
The judicial bodies shall also, at least once a year, provide the competent federal agency with the data specified in paragraph 1 of the present Article.
The data specified in the present Article shall be provided for the purpose of their aggregation and analysis.
Article 20
The obligor shall be bound to provide internal control of the activities carried out in conformity with the present Law.
The Federal Government shall prescribe the methodology of the control referred to in paragraph 1 of the present Article.
Article 21
If the competent federal agency assesses, on the ground of data and information, that there is a suspicion of money laundering in case of given transactions, the competent federal agency shall inform thereof the competent judicial and inspection bodies as well as the police, in order that they undertake measures within their respective competencies.
Article 22
Data, information and documentation collected in conformity with the present Law shall be an official secret and may be used only for the purposes prescribed by this Law.
Provision of data, information and documentation, referred to in paragraph 1 of the present Article, to the competent federal agency and competent government agencies shall not be considered a breach of official secret.
Article 23
The competent federal agency may as well, under the condition of reciprocity, provide the agencies of foreign states or international organisations with data and information on money laundering, at their request or on its own initiative.
III RECORDS AND PROTECTION OF PERSONAL DATA
Article 24
The obligors shall keep records of the transactions referred to in Article 6 of the present Law.
The competent customs authorities shall keep records of the transfer over the state border of cash, checks, securities, precious metals and jewels.
The competent federal agency shall keep records of the transactions referred to in Article 12 of the present Law and of the data specified in Article 19 of the present Law.
Article 25
The records specified in Article 24, paragraph 1, of the present Law shall contain the following data:
- the firm's name and head office of a legal person carrying out a transaction, or on whose behalf the transaction is being carried out;
- the name and the surname, the permanent residence, the day, month and year of birth of the worker or proxy that is carrying out the transaction on behalf of the legal person, the number of the personal document and the place of issue thereof;
- the name and the surname, the permanent residence, the day, month and year of birth of the natural person that is carrying out the transaction and/or on whose behalf the transaction is being carried out, the number of the personal document and the place of issue thereof;
- the type and purpose of transaction and the name of the individual, and/or the firm's name and head office of the party to whom the transaction is directed;
- the date and time of the transaction;
- the amount of the transaction;
- the currency of transaction;
- the manner of carrying out the transaction and, if the transaction is being carried out on the basis of concluded contracts, the subject matter of the contract and the contracting parties.
The records specified in Article 24, paragraph 2 of the present Law shall contain the following data: the name and the surname, the permanent residence of the person carrying out the transaction, the amount of the transaction, the place and time of crossing the state border, as well as the purpose of transferring cash, checks, securities, precious metals and jewels.
The records specified in Article 24, paragraph 3 of the present Law shall contain the data referred to in paragraph 1 of the present Article and the data referred to in Article 19 of that Law.
Article 26
The obligors, government agencies and judicial bodies shall provide the competent federal agency with the data referred to in Article 25 of the present Law on the ground of their official records.
The competent federal agency may not provide the data referred to in paragraph 1 of the present Article to persons to whom such data relate.
The person to whom the data referred to in paragraph 1 of the present Article relate shall have the right to inspect such data after the expiry of a ten-year period running from the date of provision of such data. Thereafter, the data shall be put into the archives.
The data referred to in paragraph 1 of the present Article shall be kept in the archives for three years and destroyed thereafter.
IV PENAL PROVISIONS
1. Criminal Offence
Article 27
Whoever, contrary to the provisions of the present Law, deposit money (cash, foreign currency in cash and other financial assets) acquired through illegal activity (gray economy, illicit traffic in arms, narcotic drugs and psychotropic substances and the like) into the accounts held with banks and other financial organisations and institutions in the territory of the Federal Republic of Yugoslavia, or introduce in any other way such money, knowing that it was acquired by criminal act, into legal financial flows with the aim to carry out permissible economic and financial activities, shall be punished by imprisonment of from 6 months to five years.
If the amount of the deposited money specified in paragraph 1 of the present Article exceeds 1.000,000 Dinars, the perpetrator shall be punished by imprisonment of from one year to eight years.
Whoever commits the offence specified in paragraphs 1 and 2 of the present Article, while being able to known or was obliged to know that the money had been acquired by a criminal offence, shall be punished by imprisonment of up to three years.
The responsible person in the legal entity shall also be subject to the prescribed punishment for the offence specified in paragraphs 1 through 3 of the present Article, if knowing and/or was obliged to know that the money has been acquired by a criminal offence.
The money and/or the proceeds deriving from the offence specified in paragraph 1 of the present Article shall be confiscated.
2. Economic Violations
Article 28
A legal entity shall be fined in the amount of from 45,000 to 450,000 for an economic violation if:
- it fails to establish the identity of the party (Article 6, paragraph 1);
- it fails to keep the data and documentation at least five years after the transaction has been carried out (Article 10);
- it fails to inform the competent federal agency of the transactions and/or fails to do so within the prescribed time limits (Article 12 and Article 14, paragraphs 1 and 3);
- it fails to comply with the order of the authorised persons to temporarily suspend the carrying out the transaction (Article 15);
- it fails to provide the competent federal agency with data, information and documentation, or fails to do so within the prescribed time limits (Article 17);
- it fails to establish internal control of the activities it carries out pursuant to the present Law (Article 20, paragraph 1);
- it uses data, information and documentation for the purposes that are not prescribed by the present Law (Article 22, paragraph 1);
- it fails to keep records of the transactions (Article 24, paragraph 1);
- the records it keeps do not contain the prescribed data (Article 25, paragraph 1).
A responsible person employed at the obligor, too, shall be punished for a violation specified in paragraph 1 of the present Article, by a fine in the amount of 3,000 to 30,000 Dinars.
A responsible person in the legal entity, too, shall be punished for violation specified in paragraph 1 of the present Article by a fine in the amount of from 3,000 to 30,000 Dinars.
3. Infractions
Article 29
When committing acts referred to in Article 28 of the present Law, an entrepreneur shall be punished for infraction by a fine in the amount of from 900 to 9,000 Dinars.
V TRANSITIONAL AND CONCLUDING PROVISION
Article 30
Regulations for the implementation of the present Law shall be enacted within 30 days following the day of its coming into force.
Article 31
The present Law shall come into force on the eighth day following the day of its publication in "Official Gazette of the FRY", and shall be implemented as of July 1, 2002.