LAW ON PREVENTING MONEY LAUNDRY ("Official Herald of the Republic of Serbia" No.107/2005, 117/2005 – correction, 62/2006 – other law and 63/2006 – correction of other law)

 

I BASIC PROVISIONS

Article 1

The present Law shall regulate activities and measures to be undertaken for the purpose of discovering and preventing money laundry.

The present Law shall regulate the authority of the Office for Preventing Money Laundry (hereinafter referred to as: the Office) and competence of other bodies in charge of the implementation of the present Law.

Article 2

The present Law shall define the term money laundering to be the following:

1) the conversion or transfer of property, knowing the property at stake has been acquired as a result of committing a crime, for the purpose of hiding or inaccurately presenting the illegal property origin;

2) hiding or inaccurately presenting the facts concerning the property, knowing the property at stake has been acquired as a result of committing a crime;

3) acquiring, holding or using the property with the knowledge the property at stake, at the moment of its reception, has been acquired as a result of committing a crime;

4) hiding illegally acquired social or state property and social or state capital during the process of ownership transformation of companies and other legal entities.

The present Law shall define the property as objects (movables or immovables), money, rights, securities and other documents establishing the ownership right and other rights.

The present Law shall define the money as cash, effective foreign currency, bank account deposits (dinars and foreign currency), as well as other forms of payments.

The present Law shall define the party as an individual, entrepreneur and legal entity executing a transaction, opening an account or establishing business cooperation with the obligor.

Article 3

Activities and measures for discovering and preventing money laundry shall be undertaken before, during and after receiving, exchanging, keeping and using the property, depositing and withdrawing cash and effective foreign currency to and from bank accounts, transferring the property across the state borders, making business deals in order to acquire the property or other operations with the property at stake (hereinafter referred to as: the transactions).

Article 4

The legal entities (hereinafter referred to as: obligor) and responsible persons in legal entities shall undertake activities and measures for discovering and preventing the money laundry.

The present Law shall define the obligor as follows:

1) banks and other financial organizations (savings banks, savings and credit organizations and savings and credit cooperative societies);

2) exchange offices;

3) post office enterprises and other companies and cooperative societies;

4) insurance companies;

5) investment funds and other institutions doing business on the financial market;

6) stock exchange markets, stock brokers, custody banks, banks authorized to deal with securities and other subjects dealing with transactions involving securities, precious metals and precious stones;

7) organizers of classical and special (casinos, gambling machine clubs, betting houses) games of chance, as well as other games of chance;

8) pawnshops.

The present Law shall also define the obligors as other legal entities, entrepreneurs and individuals performing affairs related to the following:

1) managing other people’s property;

2) factoring and forfeiting;

3) leasing;

4) issuing payment cards and doing business with such cards;

5) real estate transactions;

6) transacting work of arts, antiques and other objects of high value;

7) transacting cars, vessels and other objects of high value;

8) treatment and turnover of precious metals and precious stones;

9) organizing trips;

10) intermediating in the process of loan negotiations;

11) intermediating and representing in insurance business;

12) organizing auctions.

II ACTIVITIES AND MEASURES TO BE UNDERTAKEN BY OBLIGORS

Article 5

The obligor shall identify the party, collect data about the party and about the transaction, as well as other data relevant for discovering and preventing the money laundry (hereinafter referred to as: identification) in the following cases:

1) when opening an account or establishing some other form of business cooperation with the party;

2) in the process of any transaction (cash or cashless) or in the process of several mutually linked transactions totally amounting to 15.000 euros or more in dinars equivalent, calculated according to the medium exchange rate of the National Bank of Serbia valid on the day of the transaction (hereinafter referred to as: dinars equivalent), except for those cases when identification has been done in accordance with item 1) of this paragraph;

3) when running a business related to life insurance:

- when value of a single insurance premium or several insurance premium installments to be paid in one year amounts to 1.000 euros or more in dinars equivalent;

- when paying insurance premium on a one-time basis exceeds the value of 2.500 euros in dinars equivalent;

- when single insurance premium or several insurance premium installments to be paid in one year increase and exceed the value of 1.000 euros or more in dinars equivalent;

4) in the process of any transaction (cash or cashless), regardless of the transaction value, if there is a doubt about money laundry related to the transaction or to a party;

5) in the process of depositing or withdrawing money at organizers of classical games of chance or other games of chance amounting to 1.000 euros or more in dinars equivalent, and in case of an organizer of special games of chance - immediately upon entering the gambling house.

The obligor shall not perform identification in cases of inter-banking transactions.

Article 6

In the process of the identification mentioned in the Article 5 paragraph 1 item 1) of the present Law, the obligor shall determine the data mentioned in the Article 34 paragraph 1 items 1), 2), 3), 5), 6) and 13) of the present Law.

In the process of the identification mentioned in the Article 5 paragraph 1 item 2) of the present Law, the obligor shall determine the data mentioned in the Article 34 paragraph 1 items 1) to 4) and 7) to 10) of the present Law.

In the process of the identification mentioned in the Article 5 paragraph 1 item 3) of the present Law, the obligor shall determine the data mentioned in the Article 34 paragraph 1 items 1) to 10) of the present Law.

In the process of the identification mentioned in the Article 5 paragraph 1 item 4) of the present Law, the obligor shall determine the data mentioned in the Article 34 paragraph 1 of the present Law.

In the process of the identification mentioned in the Article 5 paragraph 1 item 5) of the present Law, the obligor shall determine the data mentioned in the Article 34 paragraph 1 item 3) and items 6) to 9) of the present Law.

In case transactions mentioned in the Article 5 paragraph 1 items 2) to 4) of the present Law are performed on the grounds of an open account or on the grounds of the established business cooperation, the obligor shall determine all the missing data in the process of the identification.

The obligor shall determine the data concerning the legal entity mentioned in the Article 34 paragraph 1 item 1) of the present Law by inspecting the original or verified documentation issued by the competent body of the state where legal entity at stake has its seat and submitted by the party itself, providing the documentation is less than three months old.

The obligor shall determine the data concerning an individual mentioned in the Article 34 paragraph 1 items 2) and 3) of the present Law by inspecting personal documents of the individual at stake issued by the competent state body (identity card, passport or other public document providing the undoubted identification of the individual at stake).

The obligor shall determine the data mentioned in the Article 34 paragraph 1 items 4) to 11) of the present Law by inspecting documents and business documentation submitted by the party.

In case it is not possible to determine all the data mentioned in the Article 34 paragraph 1 of the present Law from the documents issued by the competent bodies, and from the documents and business documentation, the obligor shall determine the missing data on the grounds of party’s written statement, except for data mentioned in the Article 34 paragraph 1 items 12) and 13) of the present Law.

In case party is a foreign citizen, the obligor shall acquire a photocopy of this person’s personal document in the process of the identification mentioned in the Article 5 paragraph 1 items 1) and 4) of the present Law.

In case a foreign legal entity, except for international government organizations, performs transactions mentioned in the Article 5 of the present Law, the obligor shall, at least once a year, perform another identification by determining the data mentioned in the Article 34 paragraph 1 items 1) and 13) of the present Law and on the grounds of the new authorization mentioned in the Article 7 paragraph 2 of the present Law.

Article 7

In the process of identifying the party, the obligor shall request the party to give a statement on whose behalf is performing the transaction, opening an account or establishing the business cooperation.

In case the party is performing the transaction, opening an account or establishing the business cooperation on third person’s behalf (a representative), the obligor shall request the written authorization (mandate) from the party, along with the documentation mentioned in the Article 6 of the present Law, for the purpose of identifying the person on whose behalf the transaction is performed, an account is opened or the business cooperation is established.

The obligor shall refuse to perform the transaction if it is not able to identify the party in accordance with the Article 6 of the present Law and the present Article.

In case a representative is opening an account or performing the transaction mentioned in the Article 5 paragraph 1 items 2) and 4) of the present Law on behalf of a foreign legal entity which does not perform or may not perform productive or commercial activity in the country of its registration, or on behalf of a foreign legal entity with unknown owners or managers, the obligor shall determine the data mentioned in the Article 34 paragraph 1 item 13) of the present Law by inspecting the original and verified documentation from the court registry or other appropriate public registry, not older than three months. In case it is not possible to determine all the data from the court registry or other appropriate public registry, the obligor shall determine the missing data by inspecting the documents and business documentation delivered by the representative. In case the missing data cannot be objectively determine in such a way, the obligor shall determine the missing data by taking the representative’s written statement.

In a case mentioned in paragraph 4 of the present Article, in all cases when other legal entity owns 10% of business portion, shares or other rights of the legal entity at stake or if it participates in its capital with minimum 10%, the obligor shall determine the data mentioned in the Article 34 paragraph 1 item 13) of the present Law for that other legal entity too.

When opening an account or establishing the business cooperation, the obligor may identify the party without the party’s presence, but when doing so it shall undisputedly determine the party’s identity by determining all the data in accordance with the present Law and in accordance with regulations enacted on the grounds of the Article 13 paragraph 2 of the present Law.

An identification based on paragraph 6 of the present Article is possible only if party is a non-resident, a state body or an organization with vested public authorizations or the obligor mentioned in the Article 4 of the present Law.

On the grounds of paragraph 6 of the present Article the obligor may identify the non-resident party if this party is the citizen of the Republic of Serbia or citizen of a foreign country that is applying standards related to discovering and preventing the money laundry.

The party’s identification without the party’s presence when opening an account or establishing the business cooperation shall not be done if at stake is a foreign legal entity which does not perform or may not perform productive or commercial activity in the country of its registration or if at stake is a foreign legal entity with unknown owners or managers.

Article 8

The obligor shall deliver to the Office the data mentioned in the Article 34 paragraph 1 items 1) to 4) and items 7) to 10) of the present Law related to every cash transaction, i.e. to several mutually linked cash transactions totally amounting to 15.000 euros or more in dinars equivalent.

The obligor shall deliver to the Office the data mentioned in paragraph 1 of the present Article related to life insurance affairs : when value of a single insurance premium or several insurance premium installments to be paid in one year amounts to 1.000 euros or more in dinars equivalent; when paying insurance premium on a one-time basis exceeds the value of 2.500 euros in dinars equivalent; when single insurance premium or several insurance premium installments to be paid in one year increase and exceed the value of 1.000 euros or more in dinars equivalent.

The obligor shall deliver to the Office the data mentioned in the Article 34 paragraph 1 items 1) to 4) and items 7) to 10) and item 12) of the present Law related to transactions (cash or cashless) for which there are doubts to be linked with the money laundry.

The obligor shall deliver to the Office the data mentioned in paragraphs 1 to 3 of the present Article in accordance with regulations enacted on the grounds of the Article 13 paragraph 2 of the present Law.

Article 9

The competent customs bodies shall deliver to the Office the data on every transfer across the state border of cash, effective foreign currency, checks, securities, precious metals and precious stones that are exceeding limits allowed by regulations on carrying out and carrying in dinars, effective foreign currency, checks and securities across the state border, the latest within three days starting from the day of the transfer.

Article 10

The obligor shall inform the Office in writing about transactions mentioned in the Article 8 paragraph 1 and 2 of the present Law immediately upon executing such transactions, the latest within three days starting from the day when the transaction has been executed.

The obligor shall inform the Office in writing about transactions mentioned in the Article 8 paragraph 3 of the present Law before executing such a transaction and state the period to execute the transaction.

Information mentioned in paragraph 2 of the present Article may be given by telephone, but it shall be confirmed in writing, the latest the next working day starting from the day when the transaction has been executed.

If due to a nature of the transaction mentioned in the Article 8 paragraph 3 of the present Law the obligor cannot inform the Office about the transaction before executing the transaction, the obligor shall do that after the execution, the latest within the next 24 hours along with the written statement explaining reasons for not acting in accordance with paragraph 2 of the present Article.

If an authorized person mentioned in the Article 11 of the present Law suspects the money laundry, it may issue an order to temporarily suspend the transaction execution, maximally for 72 hours, and it shall immediately inform the Office about it.

Article 11

The obligor shall appoint one or more persons in charge of discovering, preventing and reporting transactions and persons to the Office, if there is a doubt to be linked with the money laundry (hereinafter referred to as: an authorized person).

The obligor shall provide employees conducting activities regulated by the present Law with training in accordance with standards and methodology the regulations based on Article 13 paragraph 2 of the present Law shall define, it shall perform internal control of affairs exercised by the present Law, and it shall make a list of indicators for recognizing suspicious transactions.

The obligor shall not be responsible for causing damage to parties or third persons, providing it has followed the procedure set by the present Law.

III THE OFFICE FOR PREVENTING MONEY LAUNDRY

Article 12

The Office for Preventing Money Laundry shall be established as an administrative organ within the ministry in charge of finance.

The Office shall be run by Director, appointed and dismissed by the Government of the Republic of Serbia (hereinafter referred to as: the Government), following the proposal coming from the minister in charge of finance (hereinafter referred to as: the Minister).

Article 13

Following the proposal coming from the Office Director, the Minister shall perform the following tasks:

1) define the internal organization and job systematization within the Office, prescribing particular knowledge and abilities for specific jobs;

2)* define the rights and duties of the Office employees (titles, wages, allowances, criteria for stimulating remunerations, acclaims, disciplinary procedures and disciplinary measures, as well as an authorization for running disciplinary procedure and transfer of that authorization);

3) decide on the vocational education, training and upgrading of the Office employees;

4) define the code of conduct of the Office employees;

5) define the jobs incompatible with official duties;

6) define other issues in accordance with law.

Following the proposal coming from the Office Director, the Minister shall define the methodology for performing tasks the obligor shall execute in accordance with the present Law, the procedure and deadlines when the obligor shall inform the Office about the transaction mentioned in the present Law, determine the list of foreign countries not applying standards in the field of the money laundry prevention, as well as cases in which certain obligor shall not be obliged to report to the Office the cash transactions amounting totally to 15.000 euros or more in dinars equivalent.

Article 14

The Office shall perform the tasks from its scope of work, such as:

1) collect, process, analyze and keep records on the data and information obtained from the obligor and state bodies;

2) follow the implementation of the present Law and apply measures from its scope of work for the purpose of removing irregularities noticed in the process of the implementation of the present Law, as well as to propose to the Minister the amendments of the present Law and other regulations which are defining the discovery and prevention of the money laundry;

3) receive and request from competent state bodies the data and information necessary to estimate whether certain transaction or certain person is linked with the money laundry, data and information on misdemeanor procedures, business offences and crimes related to the money laundry, as well as their perpetrators (the obligor, other legal entities and individuals), and from the ministry in charge of internal affairs - to request the data from criminal records and data on the pressed criminal charges;

4) cooperate with competent state bodies on exchanging data and information significant for discovering and preventing the money laundry;

5) participate in making the list of indicators for recognizing suspicious transactions;

6) deliver to competent state bodies data and information on transactions and persons suspected of executing the money laundry;

7) evaluate data and information related to organized crime and financing terrorism and to estimate whether concrete transaction could be the money laundry;

8) perform bilateral and multilateral cooperation, to exchange data in the field of discovering and preventing the money laundry based on reciprocity, to initiate signing of agreements on cooperation with international bodies and organizations and to participate in the work of international bodies and organizations in the field of discovering and preventing the money laundry;

9) plan and implement the training of the Office employees and to organize seminars for the obligor related to the implementation of regulations in the field of preventing the money laundry;

10) keep records on data and information in accordance with the present Law;

11) other duties in accordance with the present Law and other regulations.

Article 15

If necessary, the Office Director shall order the overtime work on Saturday and Sunday, as well as on holidays.

The Office employee shall not perform duties incompatible with his job within the Office and with the Office duties, and when performing duties from its scope of work an employee shall respect the code of conduct of the Office employees.

Article 16

In case the Office shall estimate that certain transactions or persons are executing the money laundry, it may request the obligor to submit the data on the property situation and bank deposits, data on the financial transactions instruments (cash and cashless) in the country and abroad, as well as other data and information required for discovering and preventing the money laundry.

In a case mentioned in paragraph 1 of the present Article, following the request coming from the Office, the obligor shall immediately deliver to the Office the documentation mentioned in paragraph 1 of the present Article, and the latest within eight days starting from the day when the request has been received, or to enable the Office to have the direct electronic access to data and information, free of charge.

Exceptionally from the regulations mentioned in paragraph 2 of the present Article, due to documentation volume or other justified reasons, the Office may determine a longer deadline to the obligor to deliver the documentation or to inspect the documentation at obligor.

Article 17

The Office may issue an order to temporarily suspend the transaction execution if it suspects the transaction or the person executing a transaction is linked with the money laundry, and it shall inform the competent judiciary and inspection bodies about it, as well as internal affairs bodies, for the purpose of those bodies applying measures from their scope of work.

The Office Director or a person he authorizes may in emergency cases verbally order the temporary suspension of the transaction execution, providing it makes an official note about it and providing it confirms it in writing the next day, the latest.

The temporary suspension of the transaction execution mentioned in paragraphs 1 and 2 of the present Article may last 72 hours starting from the moment the temporary transaction execution has been suspended, the latest.

The obligor shall obey the Office orders and instructions related to the transaction that has been temporarily suspended.

Article 18

In case the Office suspects that certain transactions or persons are linked with the money laundry, it may order the obligor to follow all the transactions executed through the accounts defined in this order.

The obligor shall immediately notify the Office about every transaction executed through the accounts defined in the order mentioned in paragraph 1 of the present Article.

The measure mentioned in paragraphs 1 and 2 of the present Article may last three months starting from the moment the order mentioned in paragraph 1 of the present Article has been issued, the latest.

Article 19

The competent state bodies mentioned in the Article 17 paragraph 1 of the present Law shall immediately upon receiving information on a possible money laundry undertake measures in accordance with their competencies and inform the Office about it straight away.

Article 20

In case the Office does not confirm the suspicion on the money laundry within a deadline mentioned in the Article 17 paragraph 3 of the present Law, it shall inform the obligor the transaction may be executed.

In case the Office does not inform the obligor about results of undertaken activities within a deadline mentioned in the Article 17 paragraph 3 of the present Law, it shall be considered as if the obligor has been allowed to execute the transaction.

Article 21

For the purpose of estimating whether certain transactions or certain persons are linked with the money laundry, the Office may request the state bodies, organization and legal entities with vested public authorities to provide data, information and documentation necessary for discovering and preventing the money laundry.

The bodies and organizations mentioned in paragraph 1 of the present Article shall deliver in writing the requested data to the Office within eight days starting from the day the request has been received or they shall enable the Office to have the direct electronic access to data and information, free of charge.

For the purpose of estimating whether certain transactions or certain persons might be linked with the money laundry, the Office may request data, information and documents required for discovering and preventing the money laundry from the attorney at law, partnership law company, audit company, authorized auditor and legal entity and individual engaged in providing bookkeeping services or tax consultation services.

The legal entities and individuals mentioned in paragraph 3 of the present Article shall deliver the requested data in writing to the Office, within eight days starting from the day the request has been received.

Article 22

Following the initiative coming from the court, public prosecutor, National Bank of Serbia, ministry in charge of internal affairs, ministry in charge of finance, Agency for Privatization, Commission for Securities and other competent state bodies, the Office may check all the transactions and persons that might be linked with the money laundry.

Article 23

The competent state bodies shall regularly deliver to the Office the data and information related to misdemeanors, business offences and crimes linked with the money laundry, as well as data and information related to their perpetrators (personal data, the phase of the procedure, the valid decision).

The competent state bodies shall deliver to the Office the data mentioned in paragraph 1 of the present Article twice a year, and more frequently if the Office requires so.

The courts shall deliver to the Office reports on all concluded real estate transaction contracts at least four times a year, and more frequently if the Office requires so.

Following the proposal coming from the Office Director, the Minister shall closely regulate the content of the report mentioned in paragraph 3 of the present Article.

The data mentioned in paragraphs 1 and 3 of the present Article shall be delivered to the Office for the purpose of its consolidation and analyses.

Article 24

In case the Office on the grounds of the obtained data, information and documents suspects the certain transaction or certain person is linked with the money laundry, it shall notify the competent state bodies about it in writing, for the purpose of those bodies undertaking measures from their competence.

Article 25

The Office may request data, information and documents required for discovering and preventing the money laundry from the competent bodies of foreign states or international organizations.

The Office may deliver data and information linked with money laundry to the competent bodies of foreign states or international organizations following their request or on its own initiative, on the reciprocity basis.

The Office may deliver the personal data to competent bodies of foreign states providing the state at stake has arranged protection of personal data and providing the state at stake issues a certificate it shall use the personal data only for the purpose of discovering and preventing the money laundry.

Article 26

The Minister shall submit to the Government a report on the Office’s work in the previous year until March 31 of the current year, the latest.

IV COMMITMENTS OF ATTORNEYS AT LAW, PARTNERSHIP LAW COMPANIES, AUDIT COMPANIES, AUTHORIZED AUDITORS AND LEGAL ENTITIES AND INDIVIDUALS ENGAGED IN PROVIDING BOOKKEEPING SERVICES OR TAX CONSULTATION SERVICES

Article 27

In case an attorney at law, partnership law company, audit company, authorized auditor and legal entity and individual engaged in providing bookkeeping services or tax consultation services, when participating in planning or executing their client’s transactions related to real estate or legal entity purchase deals, money or property management, opening or managing bank accounts or securities accounts and establishing, running and managing legal entities, as well as when they represent their client in a financial transaction or transaction related to the real estate purchase deal, estimates that certain transaction or person is linked with the money laundry or when the client seeks advice related to the money laundry, it shall notify the Office about it in writing, within three days starting from the day the reason for suspicion has been discovered.

Article 28

When establishing a business relationship with their client, as well as in case when there is a reason to believe it is the money laundry case, the legal entities and individuals mentioned in the Article 27 of the present Law shall identify their client in accordance with the Articles 6 and 7 of the present Law, they shall keep records on it and they shall keep those records for at least five years starting from the day their business relationship has ended or from the day the transaction has been executed.

The records mentioned in paragraph 1 of the present Article shall contain data mentioned in the Article 34 paragraph 1 of the present Law.

Following the written request coming from the Office, the legal entities and individuals mentioned in the Article 27 of the present Law shall immediately deliver the requested data, information and documents on a transaction or a person believed to be linked with the money laundry.

The legal entities and individuals mentioned in the Article 27 of the present Law shall provide employees performing duties mentioned in the present Law with the training in line with standards and methodology defined in a regulation passed on the grounds of the Article 13 paragraph 2 of the present Law, and make the list of indicators for recognizing suspicious transactions.

The legal entities and individuals mentioned in the Article 27 of the present Law shall not be responsible for the damage caused to parties or third persons because they have acted in accordance with provisions of the present Law.

Article 29

The legal entities and individuals mentioned in the Article 27 of the present Law shall not deliver to the Office information obtained from their client or information about their client, when they are engaged in defining the client’s legal status or when representing the client in the court procedure or in a matter associated with the court procedure, including consultations on initiating or avoiding the court procedure, with no regard whether these information have been collected before, during or after the court procedure.

In case the Office requires so, the legal entities and individuals mentioned in the Article 27 of the present Law shall not deliver to the Office data, information and documents on a transaction or a person believed to be linked with the money laundry in cases mentioned in paragraph 1 of the present Article.

In a case mentioned in paragraph 2 of the present Article, the legal entities and individuals mentioned in the Article 27 of the present Law shall inform the Office in writing about reasons causing them not to proceed in accordance with paragraph 3 Article 28 of the present Law, within eight days starting from the day the request has been received.

V KEEPING RECORDS, PROTECTION AND CUSTODY OF DATA

Article 30

Data, information and documents collected in accordance with the present Law shall have the status of the official secret and may be used, in accordance with the present Law.

The Office Director, or a person he authorizes, may deal with data, information and documents mentioned in paragraph 1 of the present Article.

The delivery of data, information and documents mentioned in paragraph 1 of the present Article to the Office, to the competent state bodies and to the competent bodies of foreign states and international organizations shall not be treated as an official secret violation, in accordance with the present Law.

Article 31

The Office, the other state body, the obligor, the attorney at law, the partnership law company, the audit company, the authorized auditor and the legal entity and the individual engaged in providing bookkeeping services or tax consultation services shall not reveal data, information and documents collected in accordance with the present Law and activities associated with these data, information and documents to the individual or to the legal entity at stake, nor to the third person.

Article 32

The obligor shall keep records on data mentioned in the Articles 5 to 7 of the present Law.

The competent customs body shall keep records on transferring cash, effective foreign currency, checks, securities, precious metals and precious stones across the state border.

The Office shall keep records on the following subjects:

1) the persons and transactions mentioned in the Articles 8 and 9 of the present Law;

2) the initiatives mentioned in the Article 22 of the present Law;

3) the data the competent state bodies have delivered to the Office, in accordance with the Article 23 of the present Law;

4) the data, information and documents the Office delivers to the competent state bodies, in accordance with the Article 24 of the present Law;

5) the data, information and documents the Office delivers to the competent state bodies of foreign countries and international organizations, as well as the data, information and documents the Office requires from the competent state bodies of foreign states or international organizations, in accordance with the Article 25 of the present Law;

6) the data mentioned in the Articles 27 and 28 of the present Law.

Article 33

The obligor shall keep in custody the data and information mentioned in the Articles 5 to 7 of the present Law, as well as other documents related to opening an account, establishing a business relationship, including data on the executed transaction or a party, for at least five years starting from the day the transaction has been executed or from the day the business cooperation has been finished.

The competent customs body shall keep in custody the data on transferring cash, effective foreign currency, checks, securities, precious metals and precious stones across the state border, for at least five years starting from the day of the transfer.

The Office shall keep in custody the data from the records it keeps in accordance with the present Law for at least 10 years starting from the day it has obtained them. The data shall be archived after this period.

The Office archive shall keep the data mentioned in paragraph 3 of the present Article for three years, and it shall destroy it after this period.

Article 34

The records of persons and transactions mentioned in the Articles 8 and 9 and in the Article 32 paragraph 1 of the present Law shall contain the following:

1) the firm, the seat, the registration number, the tax identification number (hereinafter referred to as: the TIN) of the legal entity opening an account, establishing the cooperation or executing the transaction, i.e. the legal entity the account is opened for, the business cooperation is established for or the transaction is executed for;

2) the name and the family name, the date and the place of birth, the residence, the number of the personal document and the place of issuance, the unique personal citizen number (hereinafter referred to as: the UPCN) of the worker or representative opening an account, establishing the business cooperation or executing the transaction on behalf of the legal entity;

3) the name and the family name, the date and the place of birth, the residence, the number of the personal document and the place of issuance and the UPCN of an individual opening an account, establishing the business cooperation, entering the gambling house belonging to the organizer of special games of chance or executing the transaction, i.e. an individual on whose behalf the account has been opened, the business cooperation has been established or the transaction has been executed;

4) the type and the purpose of the transaction and the name, the family name and the UPCN of an individual, i.e. the firm, the seat, the registration number and the TIN of the legal entity the transaction has been designed for;

5) the reasons for opening an account or establishing the business cooperation and information on party’s activities;

6) the date of opening an account or establishing the business cooperation or entering the gambling house belonging to the organizer of special games of chance;

7) the date and the time of the transaction execution;

8) the transaction amount in dinars;

9) the currency of the transaction execution;

10) the modality of the execution of the transaction, and in case the transaction is executed on the grounds of the concluded agreements, than the agreement subject and agreement parties;

11) the information on the origin of the money or the property which is the subject of the transaction;

12) the reasons for suspecting the money laundry;

13) the name and the family name, the date and the place of birth, and the residence of an individual who possesses at least 10% of a business portion, shares or other rights that enable him to participate in managing the legal entity, i.e. to participate in the capital of the legal entity with at least 10 % or who has the dominant position when managing the assets of the legal entity.

The records on initiatives mentioned in the Article 22 of the present Law shall contain the following:

1) the name, the family name, the residence and the UPCN of an individual, i.e. the firm, the seat, the registration number and the TIN of the legal entity believed to be involved in the money laundry;

2) the data on the transaction believed to be involved in the money laundry (the transaction amount, the currency, the date, i.e. the period of the transaction execution);

3) the reasons for suspecting the money laundry.

The records on the data the state bodies have delivered to the Office, in accordance with the Article 23 of the present Law, shall contain the following:

1) the name, the family name, the date and the place of birth, the residence and the UPCN of an individual, i.e. the firm, the seat, the registration number and the TIN of the legal entity against whom the criminal or the misdemeanor procedure has been initiated;

2) the place, the time and the model of activity believed to be the crime or the business offence;

3) the phase in which the court procedure currently stands, the legal definition of the money laundry crime and the crime mentioned in the Article 2 of the present Law or the legal definition of the business offence;

4) the amount of the seized money or the value of illegally acquired funds and the date and the place of a seizure.

The records on the data, the information and the documents the Office delivers to the competent state bodies, in accordance to the Article 24 of the present Law, shall contain the following:

1) the name, the family name, the date and the place of birth, the residence and the UPCN of an individual, i.e. the firm, the seat, the registration number and the TIN of the legal entity against whom the Office has delivered the data, the information and the documents to the competent state body;

2) the data on the transaction believed to be the money laundry (the amount of the transaction, the currency, the date, i.e. the period of the transaction execution);

3) the reasons for suspecting the money laundry.

The records on the data, the information and the documents the Office delivers to the competent bodies of foreign states and international organizations, as well as records on the data, the information and the documents the Office requires from the competent bodies of foreign states or international organizations, in accordance with the Article 25 of the present Law, shall contain the following:

1) the name of the state or the body the Office delivers to or requests from the data, the information and the documents;

2) the data on the transactions or the persons about whom the Office delivers to or requests from the data mentioned in paragraph 1 of the present Article.

The records on the reports mentioned in the Article 28 of the present Law shall contain the following:

1) the firm, the seat, the registration number and the TIN of the legal entity, i.e. the name, the family name, the date and the place of birth, the residence and the UPCN of a self-employed individual whose accounts are being audited or for whom the bookkeeping services are being done or to whom advices concerning taxation are being given;

2) the information on the transaction believed to be the money laundry (the amount, the currency, the date or the time of the transaction execution);

3) the reasons for suspecting the money laundry.

The records mentioned in the Article 32 paragraph 2 of the present Law shall contain the following: the name, the family name, the date and the place of birth, the UPCN, the residence, the passport number and the state issuing the passport that belongs to the person executing the transaction, the transaction amount, the place and the time of crossing the state border, as well as the purpose of transferring the cash, the checks, the effective foreign currency, the securities, the precious metals and precious stones.

VI THE SUPERVISION

Article 35

The National Bank of Serbia, the ministry in charge of internal affairs, the ministry in charge of finance, the Commission for Securities, the Bar Association of Serbia and the inspection bodies, within the competences defined by law, shall supervise the implementation of the present Law by the obligors, attorneys as law, the partnership law companies, the audit companies, the authorized auditors and the legal entities or the individuals engaged in providing the bookkeeping services or the tax consultation services.

The competent bodies mentioned in paragraph 1 of the present Article shall deliver the supervision reports to the Office at least once in three months.

In case bodies mentioned in paragraph 1 of the present Article while supervising the obligors, attorneys as law, the partnership law companies, the audit companies, the authorized auditors and the legal entities or the individuals engaged in providing the bookkeeping services or the tax consultation services find some of the activities mentioned in the Article 37 of the present Law and undertake appropriate measures within their scope of competence, they shall immediately notify the Office about it in writing and enclose the required documents.

Article 36

The Office shall supervise the implementation of the present Law by collecting, processing and analyzing the data, the information and the documents delivered to the Office in accordance with the present Law.

In case the Office while supervising shall find some of the activities mentioned in the Articles 37 and 38 of the present Law, it may do the following:

1) it may request the elimination of irregularities found at the obligor, the audit company, the authorized auditor and the legal entity or the individual engaged in providing the bookkeeping services or the tax consultation services;

2) it may request the competent bodies to undertake measures within their scope of competence;

3) it may request the competent body to initiate the procedure for defining the business offence or the misdemeanor.

The Article 16 paragraphs 2 and 3 of the present Law shall be applied to deadlines for the elimination of the irregularities mentioned in paragraph 2 item 1 of the present Article.

VII THE PENALTY PROVISIONS

1. The Business Offences

Article 37

The fine to the amount from 45.000 to 3.000.000 dinars shall be pronounced to the legal entity for the committed business offence in the following cases:

1) if it does not identify the party (the Articles 5, 6 and 7);

2) if it does not inform the Office on the transactions, i.e. if it does not inform it within given deadlines (the Articles 8 and 10);

3) if it does not appoint the person who shall be responsible for discovering, preventing and reporting to the Office of the transactions and the persons believed to be linked with the money laundry - an authorized person (the Article 11 paragraph 1);

4) if it does not provide internal control of affairs performed in accordance with the present Law, if it does not provide training to employees who perform activities mentioned in the present Law according to standards and methodology defined in a regulation enacted in accordance with the Article 13 paragraph 2 of the present Law and if it does not make the list of indicators for recognizing suspicious transactions (the Article 11 paragraph 2);

5) if it does not deliver to the Office the data, the information and the documents or if it does not deliver it within given deadlines (the Articles 16 and 21);

6) if it does not apply the Office’s order to temporarily suspend the transaction execution or if it does not follow the Office’s orders and instructions related to the temporarily suspended transaction (the Article 17);

7) if it does not obey the Office’s order to monitor the transactions executed through the accounts mentioned in that order and if it does not inform the Office about all transactions executed through these accounts (the Article 18);

8) if it does not use the data, the information and the documents in accordance with the present Law (the Article 30);

9) if it reveals the data, the information and the documents collected in accordance with the present Law and activities performed in relation with these data, information and documents to the individual or to the legal entity at stake, or to the third person (the Article 31);

10) if it does not keep the prescribed records (the Article 32);

11) if it does not keep the data and the documents for at least five years after the transaction has been executed or after the business cooperation has been finished (the Article 33);

12) if the kept records do not contain the prescribed data (the Article 34).

The fine to the amount from 3.000 to 200.000 dinars shall be pronounced to the obligor’s authorized person for the business offence mentioned in paragraph 1 of the present Article.

The fine to the amount from 3.000 to 200.000 dinars shall be pronounced to the responsible person in the legal entity for the business offence mentioned in paragraph 1 of the present Article.

2. The Misdemeanors

Article 38

The fine to the amount from 5.000 to 500.000 dinars shall be pronounced for the misdemeanor to the entrepreneur if he performs some of the activities mentioned in the Article 37 of the present Law.

VIII THE TRANSITIONAL AND CONCLUDING PROVISIONS

Article 39

The regulations enacted pursuant to the Law on Preventing Money Laundry ("The Official Gazette of the FRY", No.53/01) shall be applied until the appropriate regulations in accordance with the present Law are to be enacted, unless they are opposed to the present Law.

Article 40

The Law on Preventing Money Laundry ("The Official Gazette of the FRY", No.53/01) shall cease to exist on the day the present Law comes into force.

Article 41

The present Law shall come into force on the eighth day following the day of its publication in the "Official Herald of the Republic of Serbia".