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REPUBLIC OF SLOVENIAMINISTRY OF FINANCE
Office for Money Laundering Prevention
GUIDELINES for the Implementation of the Prevention of Money Laundering and Terrorist Financing Act for Dealers in Precious Metals and Precious Stones and
Products Made from These Materials
Ljubljana, June 2009
TABLE OF CONTENTS
1. INTRODUCTION_______________________________________________________2
2. GENERAL REMARKS ON MONEY LAUNDERING AND TERRORIST FINANCING _____3
3. TASKS OF DEALERS IN PRECIOUS METALS UNDER THE PREVENTION OF MONEY LAUNDERING AND TERRORIST FINANCING ACT (APMLFT)
__________4
3.1 Customer due diligence_____________________________________________4
3.2 Reporting information ________________________________________9
3.3 Protection and storage of information and management of records ___________________9
3.4 Professional education and training ________________________10
3.5. Persons under obligation with at least four employees must perform additional tasks _________________________________________________10
3.5.1 Authorised person for money laundering pervention___________________10
3.5.2 Internal control ____________________________________________10
4. RISK ANALYSIS _______________________________________11
4.1 Purpose of risk analysis _______________________________________11
4.2 Preparation of risk analysis_______________________________________11
4.3 Controls of higher risk situations _____15
5. NATIONAL REGULATIONS ON MONEY LAUNDERING AND TERRORIST FINANCING __________________________________16
6. ANNEXES_________________________________________________17
7. SOURCES______________________________________________________29
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1. INTRODUCTION
Organised crime in connection with money laundering remains a topical issue and various forms of terrorist financing have further increased the risk associated with organised crime in recent years. Combating money laundering has moved beyond national boundaries and evolved into a complex global challenge.
In the light of this, the Member States of the European Union undertook to intensify activities in this field by adopting the following two Directives:
– Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing;– Commission Directive 2006/70/EC of 1 August 2006 laying down implementing measures for Directive 2005/60/EC of the European Parliament and of the Council as regards the definition of “politically exposed person” and the technical criteria for simplified customer due diligence procedure and for exemption on grounds of financial activity conducted on an occasional or very limited basis.
These two Directives follow the recommendations of the Financial Action Task Force (hereinafter: the FATF), which is one of the key international bodies involved in combating money laundering and terrorist financing. In line with these recommendations, their implementation is mandatory and no longer a matter of greater or lesser awareness. In June 2007, the National Assembly of the Republic of Slovenia adopted a new Prevention of Money Laundering and Terrorist Financing Act thus complying with the acquis and transposing the requirements of these Directives into Slovenian legislation. The Prevention of Money Laundering and Terrorist Financing Act (hereinafter: the APMLFT) entered into force on the fifteenth day following its publication in the Official Gazette of the Republic of Slovenia (Uradni list RS) no. 60/2007 on 21 July 2007, and became fully applicable on 21 January 2008. One of the important novelties introduced by the APMLFT is the risk-based approach. Persons under obligation referred to in Article 4 of the APMLFT must draw up a risk analysis in order to assess the risk of potential abuse for money laundering or terrorist financing purposes associated with individual groups of customers, business relationships, products and services. The analysis also serves as a basis for the implementation of suitable measures.
Article 90 of the APMLFT gives the Office for Money Laundering Prevention, in its capacity as a supervisory authority, the power to issue recommendations and guidelines implementing the prescribed measures for detection and prevention of money laundering and terrorist financing. These are advisory guidelines designed to facilitate interpretation and implementation of the APMLFT and are addressed to persons under obligation defined in point 16 m) of the first paragraph of Article 4 of the said Act: legal entities and natural persons acting as dealers in precious metals and precious stones and products made from these materials (hereinafter: dealers in precious metals).
The Office for Money Laundering Prevention (hereinafter: the Office) is an administrative body within the Ministry of Finance of the Republic of Slovenia, meaning that it acts as a clearing house between financial institutions and other business entities on the one hand and law enforcement authorities on the other. The Office receives, collects, analyses and disseminates information obtained from persons under obligation referred to in Article 4 of the APMLFT, and submits them to the competent authorities only in cases provided by the law. Since the Office has no powers to act as an inspection body, it can only exercise off-site supervision of the implementation of the
APMLFT; if it detects a violation, the Office acts in accordance with the second paragraph of Article 85 of the APMLFT or the law regulating minor offences (the first instance authority for minor offences).
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2. GENERAL REMARKS ON MONEY LAUNDERING AND TERRORIST FINANCING
The APMLFT defines money laundering as an activity carried out for the purpose of concealing the origin of money or other proceeds of crime, and includes the conversion or transfer of money or other proceeds of crime, and the concealment or disguise of the true nature, source, location, movement, disposition, ownership or rights with respect to money or other proceeds of crime. Money laundering is an independent criminal offence through which one conceals or otherwise disguises the illegal nature or source of proceeds obtained by committing a criminal offence (usually tax evasion, trafficking in drugs or arms, corruption, fraud, etc.) for the purpose of making criminal proceeds appear as legally acquired property. The ultimate objective of money laundering is to gradually integrate laundered money or proceeds into a criminal activity (existing or new) or into standard business flows which form an integral part of a lawful business activity.
In accordance with the APMLFT, terrorist financing means the direct or indirect provision or collection of money or other property of legal or illegal origin, or the attempted provision or collection of such money or other property, with the intention that they be used, in full or in part, for the performance of a terrorist act, or that they be used by a terrorist or terrorist organisation. Contrary to money laundering, where the subject of concealment or disguise may be only illegally acquired property – which means proceeds of a previously committed criminal offence – terrorist financing resources that are intended for the performance of terrorist acts or used by terrorists or terrorist organisations may be either of legal (personal income, profit, humanitarian assets, sponsor assets, etc.) or of illegal origin (criminal proceeds, e.g. tax evasion, offences related to corruption, drug or arms trafficking, etc.).
In the field of combating terrorism, the Republic of Slovenia adopted the Act Relating to Restrictive Measures Introduced or Implemented by the Republic of Slovenia in Compliance with Legal Instruments and Decisions Adopted within International Organisations (hereinafter: the ZOUPAMO – Uradni list RS, no. 127/06). The restrictive measures currently implemented in Slovenia are based on the legal acts of the UN Security Council and the EU, but may also be introduced on the basis of binding or non-binding acts of other international organisations or associations (e.g. the OSCE). These measures may include the partial or full cessation of economic relations, and railway, maritime, air, postal, telegraphic, radio and other means of communication, and the severance of diplomatic ties, while the most common measure in combating terrorism is financial sanctions, including the freezing of funds on accounts and/or the prohibition of the disposal of property (economic resources) in general, a military embargo, which means prohibition from arms trading with a certain country or other entities as well as a travel embargo, which includes banning certain persons from entering a country or transiting through its territory. Restrictive measures may be imposed against countries, international organisations, other entities, natural persons (e.g. heads of state, high state officials, terrorists) and other entities, especially terrorist organisations, whereas persons subject to sanctions may also include legal entities. The lists of persons subject to sanctions form part of legal acts which introduce sanctions.
The implementation of the ZOUPAMO falls within the competence of the Ministry of Foreign Affairs – International Law Division. For more information please visit the webpages of: the Ministry of Foreign Affairs,(http://www.mzz.gov.si/fileadmin/pageuploads/Zunanja_politika/omejevalni_ukrepi_drzave1.docor the Office (http://www.uppd.gov.si/slov/mnenjaAPMLFT/mnenja 13 1.htm).
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3. TASKS OF DEALERS IN PRECIOUS METALS UNDER THE PREVENTION OF MONEY LAUNDERING AND TERRORIST FINANCING ACT (APMLFT)
According to Article 5 of the APMLFT, the measures to detect and prevent money laundering and terrorist financing must be implemented by persons under obligation, which includes dealers in precious metals. In view of the above, the activities of persons under obligation must also include the preventive measures prescribed in order to reduce the risk of money laundering or terrorist financing.
To detect and prevent money laundering and terrorist financing, dealers in precious metals must perform the following mandatory tasks:
1. implement the measures to acquire knowledge of the customer (hereinafter: customer due diligence) in a manner and under conditions stipulated by the APMLFT, and prepare a preliminary risk analysis;
2. report the information prescribed and requested to the Office, and submit the documentation;
3. provide regular professional training and education for employees;
4. protect and store the information and manage the records stipulated by the APMLFT;
5. prepare a list of indicators for the identification of customers and transactions in respect of which there are grounds for suspicion of money laundering or terrorist financing;
In addition to these measures, dealers in precious metals with at least four employees must also:
6. appoint an authorised person and his/her deputy, and provide suitable conditions for their work;7. provide regular internal control over the performance of tasks under the APMLFT.
In addition to the implementation of the prescribed measures, dealers in precious metals must also comply with the limitations of cash operations with customers. In line with Article 37 of the APMLFT, persons trading in products, which include dealers in precious metals, are prohibited from accepting cash payments exceeding EUR 15,000 from their customers or third persons for the sale of products. The limitation for accepting cash payments also applies to payments for products effected by several linked cash transactions that in total exceed EUR 15,000. Dealers in precious metals receive payments from their customers or third persons on their payment accounts.
3.1 Customer due diligence
Customer due diligence is the key element in the system for the identification and prevention of money laundering. Through customer due diligence procedures, persons under obligation in a credible manner establish and verify the identity of a customer, the purpose of a transaction or intended nature of the business relationship in order to reduce the risk of doing business with an unknown customer who might abuse them for money laundering or terrorist financing purposes.
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Customer due diligence measures are applied:
1. when establishing a business relationship with a customer, whereby a business relationship means any business or other contractual relationship that is associated with the obliged person's activity and is, at the time of its establishment, expected to be of a lasting nature; 2. when carrying out a transaction amounting to EUR 15,000 or more, irrespective of whether the transaction is carried out in a single operation or in several operations which are clearly linked;3. where there are doubts about the veracity and adequacy of previously obtained customer or beneficial owner information;4. where there is a suspicion of money laundering or terrorist financing associated with a transaction or customer, irrespective of the transaction amount.A single purchase or sale made between a dealer in precious metals and his customer is considered a transaction and not a business or any other contractual relationship. In such cases customer due diligence is carried out only if a single operation (or several operations which are clearly linked) equals or exceeds EUR 15,000. When such transactions are carried out on the basis of or within a previously established business relationship, only the missing information referred to in paragraph 2 of Article 21 of the APMLFT must be obtained.
3.1.1 Normal customer due diligence procedure
In line with the first paragraph of Article 7 of the APMLFT, customer due diligence comprises the following mandatory measures: 1. identifying the customer and verifying the customer’s identity on the basis of authentic, independent and objective sources;2. identifying the beneficial owner of a legal entity or similar foreign law entity;3. obtaining information on the purpose and intended nature of the business relationship or transaction, and other data under the APMLFT;4. conducting ongoing monitoring of business activities undertaken by the customer with the person under obligation.
The person under obligation must define procedures for the implementation of these due diligence measures in its internal regulations.
Under item 1 – Identifying a customer and verifying a customer's identity
Identifying a customer and verifying a customer's identity includes the following:– identifying the customer by collecting information about the customer, whereby the person under obligation defines the method of identification (e.g. the customer completes a questionnaire – first and last name, address, number of personal identification document, etc. – but the customer does not have to be present at the dealer in precious metals unless otherwise stipulated by regulations); and – verifying the customer’s identity or the collected information about the customer on the basis of authentic, independent and objective sources (e.g. official personal identification documents, public records, qualified digital certificates, passwords, etc.).
By verifying the customer's identity, a person under obligation verifies the accuracy of identity information provided by the customer. The identity can be established on the basis of information provided by the customer or information from reliable and independent sources. When the customer is a natural person, his identity is normally established and verified in one step, i.e. on the basis of an official personal identification document.
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The identity of legal entities or similar foreign law entities is established and verified in the same manner, i.e. on the basis of entries in the court register or any other similar register, and other official documents.
With respect to the customer who is: 1. a natural person, sole proprietor or self-employed person, the dealer in precious metals establishes and verifies identity and acquires information under point 4 of the first paragraph of Article 83 of the APMLFT:
a. by inspecting the official personal identification document in the presence of the customer concerned. An official personal identification document is any valid official document that bears a photograph and was issued by a competent national authority. When all the required data cannot be obtained from this document, the missing data is obtained from another valid official document submitted by the customer, or directly from the customer.
b. by inspecting a qualified digital certificate issued by a certification authority with the registered office in the Republic of Slovenia in accordance with the act governing electronic commerce and electronic signature. Data not available on this certificate are obtained from a copy of the official personal identification document sent by the customer to the obliged person in paper or digital form. When all the required data cannot be obtained in the manner described above, the missing data is obtained from the customer directly. In addition to the qualified digital certificate, a customer can be identified and the customer's identity verified by requesting his attendance in person.
2. a legal entity or similar foreign law entity, the dealer in precious metals establishes and verifies the customer's identity and acquires the information referred to in point 1 of the first paragraph of Article 83 of the APMLFT:
a. by inspecting the original or certified copies of the court register or any other public register submitted on behalf of the legal entity by its statutory representative or authorised person. Documentation submitted to the dealer in precious metals must not be older than three months.
b. by directly accessing the court register or any other public register. The dealer in precious metals notes on the copy from the relevant register the time and date of inspection and the name of the person who inspected the register.
Under item 2 – Identifying a customer's beneficial owner (where the customer is a legal entity or similar foreign law entity)Identification of the customer's beneficial owner is a prescribed measure for normal customer due diligence. The APMLFT stipulates that persons under obligation identify beneficial owners by acquiring information about natural persons that are the beneficial owners. The Act furthermore stipulates that if a customer poses a higher risk, persons under obligation verify the information acquired unless the information was acquired from a credible and independent source (e.g. in case of a written statement of a statutory representative, the obliged person must verify the information acquired to the extent that he/she understands the customer's ownership and supervisory structure and knows all beneficial owners). The term 'beneficial owner' is defined in detail in Article 19 of the APMLFT: the first paragraph refers to beneficial owners of corporate entities and the second to beneficial owners of legal entities.
Detailed instructions for identifying beneficial owners of customers are published on the webpages of the Office.
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Under item 3 – Acquiring information on the purpose and intended nature of the business relationship or transaction, and other data under the APMLFT
In the customer due diligence procedure, the dealers in precious metals must acquire the following information:
1. when establishing a business relationship:
a) with respect to legal entities:– company name, address, registered office and registration number of a legal entity;– first name and last name, address of permanent or temporary residence, date and place of birth, and tax number of the statutory representative or authorised person who for the customer establishes a business relationship or conducts a transaction, and the number, type and name of the authority that issued the official personal identification document;– first name and last name, address of permanent or temporary residence, and place and date of birth of the legal entity's beneficial owner.b) with respect to natural persons:– first name and last name, address of permanent or temporary residence, date and place of birth, and tax number of the natural person or his statutory representative, sole proprietor or self-employed person who establishes a business relationship or conducts a transaction, and the number, type and name of the authority that issued the official personal identification document.c) with respect to a sole proprietor or self-employed person, the following data is obtained in addition:– company name, address, registered office and registration number, if applicable.
When dealers in precious metals establish a business relationship with a customer they in addition obtain information on the purpose and intended nature of the business relationship, including information on the customer's activity and date of establishment of the business relationship.
2. when carrying out a transaction amounting to EUR 15,000 or more, the following data must also be obtained:– first and last name, address of permanent or temporary residence, date and place of birth, and tax number of the authorised person that for the customer requests or conducts a transaction, and the number, type and name of the authority that issued the official personal identification document;– date and time when a transaction was carried out;– transaction amount and currency;– purpose of a transaction, the first and last name, address of permanent residence or company name and registered office of the person to whom the transaction is directed;– method of carrying out the transaction.
Under item 4 – Ongoing monitoring of business activities
Dealers in precious metals must monitor business activities of their customers with due diligence in order to acquire knowledge of the customer, including knowledge of the origin of customer's assets. The scope and frequency of monitoring depend on the size of a business operation and the assessed risks of money laundering and terrorist financing.
The monitoring of business activities undertaken by customers with dealers in precious metals includes:
– compliance of customer’s business operations with the purpose and intended nature of the business relationship established between the customer and the dealer in precious metals;
– compliance of the customer’s business operations with the regular scope of his business operations;
10– updating of obtained documents and information on the customer.
3.1.2 Special types of customer due diligence
Persons under obligation must carry out customer due diligence procedures and the APMLFT envisages two special forms of customer due diligence, namely simplified and enhanced procedures.
a) Enhanced due diligence
Customers posing a higher risk must be subject to enhanced due diligence, whereby the person under obligation ensures additional supervision or adequate management of higher risks associated with such customers. The APMLFT lists cases in which persons under obligation must carry out enhanced due diligence. Enhanced due diligence is also mandatory when the obliged person's risk analysis indicates a higher risk.
A business relationship or transaction amounting to EUR 15,000 or more and involving a politically exposed person from Article 31 of the APMLFT warrants enhanced due diligence. In addition to measures under the first paragraph of Article 7 of the APMLFT, persons under obligation must also adopt the following measures:
– acquire information on the source of assets and property that are or will be the subject of a business relationship or transaction from documents submitted by the customer to the person under obligation. When this information cannot be obtained in the described manner, the person under obligation obtains it directly from the customer’s written statement;– the employee who is responsible for establishing a business relationship with a foreign politically exposed person obtains a written approval of his superior prior to establishing such relationship;– after a business relationship has been established, persons under obligation monitor with due diligence their transactions and other business activities with foreign politically exposed persons.
Enhanced customer due diligence measures are also applied, if a customer is not present in person when his identity is established and verified (Article 32 of the APMLFT). If a customer is not present in person when a business relationship is established or a transaction amounting to EUR 15,000 or more carried out, persons under obligation must for the purpose of identity verification in addition to mandatory measures adopt at least one or several supplementary measures, such as acquisition of additional documents, data or information or a qualified digital certificate. A business relationship can be established in the absence of the customer solely if the person under obligation ensures that prior to carrying out the customer’s subsequent transaction through the obliged person, the customer's first payment is made into an account opened in the customer’s name with a credit institution.
Moreover, persons under obligation apply enhanced customer due diligence measures when they assess that there is or there may be a high risk of money laundering or terrorist financing due to the nature of the business relationship, form or method of executing the transaction, customer's business profile or other circumstances associated with the customer.
b) Simplified due diligence
Simplified due diligence may be applied to customers posing a lower risk, which means that a person under obligation can waive certain measures and acquire a limited set of requisite information. Simplified due diligence may be applied to customers defined in Article
33 of the APMLFT but persons under obligation must not extend simplified due diligence to other categories of customers.
3.2 Reporting information
Reporting information on suspicious transactions
The dealers in precious metals must submit to the Office information from the first paragraph of Article 83 of the APMLFT whenever there is a suspicion of money laundering or terrorist financing associated with a transaction. They must submit this information prior to carrying out the transaction and simultaneously specify the time limit in which the transaction is to be carried out. Such report may be submitted by telephone but must also be sent to the Office in writing the next working day at the latest.
Information on transactions or customers in respect of which there are grounds for suspicion of money laundering or terrorist financing is submitted to the Office in a Reporting Questionnaire which forms an annex to the Rules on the method for reporting information to the Office of the Republic of Slovenia for Money Laundering Prevention (Uradni list RS, no. 10/08) and is also available on the webpage of the Office (http://www.uppd.gov.si/slov/zakonodaja/obrazci APMLFT.htm). This questionnaire is annexed to the Guidelines and constitutes an integral part thereof.
Whether a customer, transaction or business relationship raises suspicion is assessed on the basis of criteria listed as indicators for the identification of customers and transactions in respect of which there is a suspicion of money laundering and indicators for the identification of customers and transactions in respect of which there is a suspicion of terrorist financing. The two lists of indicators are annexed to these Guidelines and help employees detect suspicious circumstances associated with a customer, transaction or business relationship, therefore the employees must be acquainted with the indicators and use them continuously in their work.
What is a suspicious transaction?
The APMLFT does not provide a definition of a suspicious transaction. In line with the APMLFT provisions, a suspicious transaction is any transaction whose nature, complexity, scope, value or relation renders it unusual, and any transaction which has no apparent economic or visible lawful purpose and/or is not in compliance or is out of kilter with the usual or expected business of a customer, as well as other circumstances related to the status and other characteristics of the customer. Individual transactions, customers and business relationships may be qualified as suspicious.
3.3 Protection and storage of information and management of records
Information acquired and managed under the APMLFT and the Rules on exercising internal control, authorised person, storage and protection of information, and management of records with respect to organisations, lawyers, law firms and notaries (Uradni list RS, no. 10/08) must be protected by persons under obligation as a business secret or classified information in accordance with the law regulating classified information, provided that the information is classified as such by the Office.
Persons under obligation must keep the information and supporting documentation for ten years after the expiry of a business relationship or the execution of a transaction.
3.4 Professional education and training
Persons under obligation must provide regular professional training and education for all their employees who perform the tasks for the prevention and detection of money laundering and terrorist financing. Professional training and education relate to information on the provisions of the APMLFT and the ensuing rules and internal regulations, on professional literature on prevention and detection of money laundering and terrorist financing, and on lists of indicators for identifying customers and transactions for which there is a suspicion of money laundering or terrorist financing.
Persons under obligation must draw up annual professional training and education programmes for the prevention and detection of money laundering and terrorist financing by the end of March for the current year.
3.5 Persons under obligation with at least four employees must perform additional tasks
3.5.1 Authorised person for money laundering prevention
In order to detect and prevent money laundering and terrorist financing in line with the tasks defined in the APMLFT and the ensuing regulations, the dealers in precious metals must appoint under Article 40 of the APMLFT an authorised person for the prevention of money laundering and terrorist financing (hereinafter: the authorised person) and at least one deputy authorised person. Persons under obligation must ensure that an authorised person, who performs the tasks under the APMLFT:
1. offers professional assistance to employees in the operational implementation of measures for the detection and prevention of money laundering and terrorist financing;2. advises the management of the obliged person on the risk management policy for money laundering and terrorist financing;3. updates the management of the obliged person on the obliged person's activities in connection with the detection and prevention of money laundering and terrorist financing;4. cooperates with other obliged persons in formulating a uniform policy for the detection and prevention of money laundering and terrorist financing.
3.5.2 Internal control
Persons under obligation set up regular, systematic and independent controls over the implementation of measures for the detection and prevention of money laundering and terrorist financing in accordance with the Rules on exercising internal control, authorised person, storage and protection of information, and management of records with respect to organisations, lawyers, law firms and notaries (Uradni list RS, no. 10/08). The primary purpose of internal control is to detect and remedy deficiencies in the implementation of measures prescribed for detecting and preventing money laundering, and to improve the system for detecting customers or transactions that raise a suspicion of money laundering and terrorist financing.
When requested by the Office in line with the APMLFT, persons under obligation must write an annual report on internal control and measures carried out in the previous year and send it to the Office no later than 15 days after receipt of the request.
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4. RISK ANALYSIS
4.1 Purpose of risk analysis
The dealers in precious metals must comply with the requirements stipulated in primary legislation and implement measures for the prevention of money laundering and terrorist financing under the APMLFT. Notwithstanding the scope and efficiency of these measures, a fact remains that perpetrators of criminal offences will persist in their endeavours to carry out transactions of criminal proceeds unobserved and will therefore also target non-financial companies and sectors. In the context of efficiency of money laundering and terrorist financing prevention, this renders dealers in precious metals more vulnerable or exposed.
According to the APMLFT, risk of money laundering or terrorist financing means a risk of a customer misusing the person under obligation for the purposes of money laundering or terrorist financing or a risk that a business relationship, transaction, product or service offered by a person under obligation will be used for money laundering or terrorist financing. In order to prevent excessive exposure to the negative effects of money laundering and terrorist financing and pursuant to the APMLFT, persons under obligation must prepare a risk analysis to establish the level of risk of money laundering or terrorist financing associated with an individual customer, business relationship, service or transaction (risk assessment). The preparation of the risk analysis is a prerequisite for the implementation of prescribed customer due diligence, as the placement of a customer, business relationship, service or transaction in one of the risk categories determines the type of customer due diligence measures which a person under obligation will have to carry out in accordance with the APMLFT (normal due diligence, enhanced due diligence, simplified due diligence).
The risk analysis or the procedure to establish a risk assessment must reflect the specific features of the dealer in precious metals and its operations (e.g. size and composition of the company, scope and structure of business, types of its customers, types of products offered, etc.).The dealers in precious metals who apply the risk-based approach to their customers and operations can more successfully and efficiently adjust to the current risks and focus their attention and assets on customers and operations posing higher risks of money laundering and terrorist financing.
4.2 Preparation of risk assessment
On the basis of a risk analysis, a person under obligation must prepare a risk assessment of individual customers, business relationships, products or transactions taking into consideration the factors listed below.
The risk criteria most frequently used are the following:– country and geographic risks (different countries imply different levels and types of risk, e.g. countries have different crime rates and regulations),– risks associated with customers and their counterparties (business partners),– product or service risks.
4.2.1 Country or geographic risk
Factors that may influence the decision on the country posing a higher risk of money laundering include:
1. location where precious metals or stones (hereinafter: products) are mined;
2. location where products are refined or finished;3. location of a seller;
4. location of a purchaser;5. location of the delivery of products; and6. location of funds used in this transaction or for the payment of products.
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Mining of precious metals and stones is vulnerable to terrorist financing especially if it takes place in remote locations in countries with a minimal government presence or infrastructure. In some areas, for example, gold mining can be controlled by armed non-governmental groups.
When determining, if a country poses a higher risk, the following factors must be taken into consideration with respect to a business operation involving diamonds, jewels or precious metals:
1. Whether a country that produces rough diamonds or trades in them participates in the KimberleyProcess?2. Have any sanctions, an embargo or similar measures, been imposed against the country?3. What is the scope of national anti-corruption laws and similar regulations governing organised crime?4. What is the level of government oversight of business and labour force and/or trading with respect to precious metals and stones?5. Whether the country from which a transaction was or will be carried out is known for mining precious metals and stones or trade in products subject to transaction (diamonds, jewels or precious metals)? 6. Whether a country would be an anticipated source of large stocks of existing diamonds, jewels or precious metals, based on national wealth, trading practice and culture (trading centres such as Antwerp, Belgium) or unanticipated source (large amounts of old gold jewellery in poor developing countries)? It should also be taken into consideration that gold and silver have cultural and economic significance in many developing countries, and very poor citizens may have, purchase or trade in gold and silver or their products. 7. The extent to which cash is used a country? 8. How is mining of precious metals and stones regulated in a country?9. Are informal banking systems (e.g. hawalas operate in many developing countries) available in the relevant country?10. Whether terrorist or criminal organisations operate within a country, in particular in small areas where precious metals and/or stones are mined by individuals and not big companies? 11. Does the country have access to nearby competitive markets or processing facilities (for example gold mined in Africa is more often refined in South Africa, Europe or the Middle East than in America)? A proposal to process African gold in America would therefore pose a higher risk.
In order to curb the sale of blood diamonds, an agreement was concluded in Kimberley, South Africa, in 2003. It introduced a certification scheme for diamonds on the global market that prevents the flow of diamonds without a certificate of the origin and method of the acquisition of a diamond. Participants in the Kimberley Process undertook to supervise their production of diamonds and trade in them. All international shipments of rough diamonds must be placed in sealed containers and accompanied by an official certificate of the sending country to the effect that they are not conflict diamonds. Controls in the field are in place to check compliance with the requirements of the Kimberly Process, and annual reports, manufacturing and trade records. If a country does not meet the requirements, it is expelled from the programme and thus cannot continue to sell diamonds on the global market. This way prior to his purchase, a customer can acquire information about the supply chain and request a certificate to the effect that he is not buying a conflict diamond (or fuelling a conflict).
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12. Does a country have regulations on the prevention of money laundering and terrorist financing and other measures, and whether these are enforced – according to credible sources1?
4.2.2 Customer risk
Risks associated with retail business
Retail customers or final purchasers of precious metals and precious stones usually do not purchase jewellery with precious stones or precious metals for business purposes but for their personal needs that do not require scrutiny in terms of money laundering and terrorist financing. Nevertheless, higher risk stems from the following payment methods in retail:
1. payment in cash. It should, however, be taken into consideration that many customers wish to remain anonymous or without any paper records of their purchase from purely personal reasons and not for the purposes of money laundering or terrorist financing; 2. payment by a third person or delivery to a third person. Payment by a third person does not necessarily imply money laundering or terrorist financing. Women very often select an article of jewellery, and a man will later make payment and direct delivered to the woman.3. structuring. A customer can split a transaction or purchase into several independent operations or small sums. Thus several small transactions are carried out instead of one big transaction, whereby customer due diligence is bypassed (anonymity provided) together with the duty to report and store information on customers and transactions.
Risks associated with counterparties (business partners)
Higher risk is associated with customers who:
1. have no understanding of the industry or sector where they wish to do business or have no business premises or equipment or financial means that are necessary and suitable for their business, or have no knowledge of usual financial terms and conditions;2. propose a transaction that does not make sense or, that is excessive, given the circumstances, in amount, or quality or potential profit; 3. have significant and unexplained geographic distance from the dealer in precious metals;4. use banks that are not specialised in or do not regularly provide services in such areas, and are not associated in any way with the location of the counterparty and the products;5. make frequent and unexplained changes in bank accounts, especially among banks in foreign countries; 6. involve third parties in transactions, either as payers or recipients of payment or product, without apparent legitimate business purpose;7. will not identify beneficial owners or controlling interests, where this would be commercially expected;8. wish to remain anonymous by conducting ordinary business through accountants, lawyers, or other intermediaries;9. use cash in transactions with the dealer in precious metals, or with his own counterparties in a nonstandard manner;
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1 Data and reports of reputable authorities, such as the FATF, MONEYVAL, the International Monetary Fund, that are otherwise not legally binding, constitute a credible source of information.
10. use money transfer services (e.g. Western Union or Moneygram) or other non-bank financial institutions for no apparent legitimate business purpose;11. is a politically exposed person (see page 7).
4.2.3 Risks associated with products and services
A comprehensive risk analysis should include potential risks associated with individual products and services offered by the dealers in precious metals. The following factors are taken into consideration:
1. Products offered:
a) All diamonds, jewels and precious metals are potentially attractive for money laundering and terrorist financing, but their utility and subsequent level of risk are likely to vary depending on the value of product. Low-value products pose lower risks than high-value products, unless their quantity or volume is significant. The dealers in precious metals must know that the value of the product depends on demand and supply. The relative value of some products can vary greatly between countries.
b) It, however, depends on the nature and scope of business and the customer but gold can increase the risk. Pure or relatively pure gold can be used as a currency. Gold is available in various forms (e.g. jewellery, coins, bars or scrap) that are traded worldwide.
c) Although alloys of gold may require significant processing, the costs are reduced in advance and the scrap will be sold for high amounts. The value of gold scrap is volatile before the scrap is processed, which may pose a risk of money laundering and terrorist financing, if customers under- or overvalue international consignments.
d) Gold dust can imply occasional mining by individuals or small teams usually in areas with informal banking or lack of ruling authority, which in turn increases the risk.
e) Physical properties of products must also be taken into account. Products that are easy to transfer are also less likely to be detected by law enforcement authorities and pose a higher risk for cross-border money laundering. For example, small light diamonds are not detected by metal detectors and can thus be easily smuggled.
f) Risks associated with trade in stolen or fraudulent products must also be taken into account. Since diamonds, gems and precious metals are like any other valuable object attractive to thieves, dealers in precious metals as owners of pawnshops must be alert to the possibility of being offered stolen jewellery. Furthermore, they must be aware of risks associated with fraudulent products, e.g. synthetic diamonds presented for natural diamonds, or 14-carat gold presented for 18-carat gold.
2. Services offered
It has become an established practice around the world that big dealers in precious metals open special accounts which are used by their customers for temporary storage or further investment and consequently for transfer of their business partners' assets between accounts, storage or delivery locations (they actually provide business partners with similar services as banks).
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Such services provided by banks and dealers in precious metals enable those laundering money and financing terrorism to move large sums of money in international trade under the pretence of lawful transactions. Therefore these transactions are often mistakenly considered less risky because customers are not anonymous or other irregularities are overlooked.
3. Market characteristics
The following characteristics that may lower the risk associated with a transaction are taken into consideration in risk assessments:
a) limited possibility of resale of products usually generates less interest among money launderers;b) size of market – it is more difficult to carry out transactions or cover up such activities in small markets therefore these markets are less attractive to money launderers; c) the level of required expertise – when specialised knowledge is required to carry out a specific transaction, this lowers the risk that it will be carried out by money launderers, which in turn does not imply that they are not capable of acquiring or applying such expertise; d) degree of market regulation – transactions carried out in regulated markets pose a lower risk;e) transaction costs – transactions involving high-value products and low transaction costs are especially attractive for money laundering.
4. Financing method
The method of payment used affects the risk of money laundering and terrorist financing taking place. The risk of money laundering and terrorist financing is lower if the transaction is carried out through the banking system. Nevertheless, the risk increases when:
a) cash is used, in particular by an anonymous person or a person intentionally concealing his/her identity; b) payment into or from third parties' accounts; c) payment into or from accounts of financial institutions not linked to the transaction, for example banks with a seat in another country; d) non-bank financial mechanisms or currency exchange businesses or money remitters (e.g. Western Union or MoneyGram).
4.3 Controls of higher risk situations
The dealers in precious metals should implement suitable measures and exercise control to mitigate the risk of money laundering or terrorist financing of those customers that are determined to be higher risk. Such measures and controls should include:
a) general training on methods used in money laundering and terrorist financing, and risks relevant to dealers in precious metals;b) training targeting a specific group of workers and aimed at raising awareness of higher risk customers or transactions;c) enhanced customer due diligence;d) approval of business relationships is subject to stricter scrutiny;
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e) more frequent and careful monitoring of transactions;f) more detailed and frequent checks of concluded business relationships.
5. NATIONAL REGULATIONS ON MONEY LAUNDERING AND TERRORIST FINANCING
Prevention of Money Laundering and Terrorist Financing Act (Uradni list RS, no. 60/07);Rules on the method for reporting information to the Office of the Republic of Slovenia for Money Laundering Prevention (Uradni list RS, no. 10/08);Rules on exercising internal control, authorised person, storage and protection of information, and management of records with respect to organisations, lawyers, law firms and notaries (Uradni list RS, no. 10/08);Rules on determining the list of equivalent third countries (Uradni list RS, no. 10/08);Rules laying down the conditions to be met by a person in order to be allowed to act as a third party (Uradni list RS, no. 10/08);Rules laying down the conditions under which a person may be considered a customer who represents a low risk of being involved in money laundering or terrorist financing (Uradni list RS, no. 10/08).
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6. ANNEXES
Annex 1 – List of indicators for the identification of suspicious transactions regarding money laundering
A list of indicators is based on two principles: knowledge about the customer and knowledge about the customer's business operations. Knowledge about the customer provides the basis for establishing whether there are grounds for suspicion of money laundering under Article 245 of the Criminal Code of the Republic of Slovenia (KZ-1). There are grounds for suspicion in respect of any transaction that is not in line with the customer's ordinary course of transactions with the dealer in precious metals. When dealing with an unknown customer, indicators that do not relate to knowledge about the customer should be taken into account.
When establishing whether there are grounds for a suspicion of money laundering in respect of transactions carried out by individual customers, the indicators should be examined individually or jointly (if there are several indicators present). If only one indicator pointing to a suspicious transaction is present, it may be sufficient to submit information to the Office in some cases, while in other instances this would only be a warning that a transaction and a related customer need to be carefully examined with a view to uncovering other indicators.
Persons under obligation must prepare the indicators to detect suspicious transactions in accordance with the first paragraph of Article 51 of the APMLFT. The Office and the associations and societies whose members are obliged persons under the APMLFT participate in drawing up the list of indicators. The indicators for goldsmiths listed below were prepared by the Goldsmiths' Section, Chamber of Craft and Small Business of Slovenia, some time ago and should be updated.
1. Transaction–related indicators:a) a transaction does not make sense from an economic and legal point of view or is incompatible with the customer's profession or activity, his habits or personal characteristics;b) unusual nature of a transaction or unusual circumstances of a transaction;c) a transaction has a distinguishing feature of economic or other types of crime;d) unusual conditions are provided for the execution of a transaction;e) amounts requiring customer due diligence are fragmented; f) cash offered in various currencies.
2. Person–related indicators:a) use of fraudulent or foreign travel or identity documents;b) person refuses to identify himself with all the requested data or provides false data;c) person cancels the transaction when he learns of customer due diligence;d) person exhibits unusual behaviour (obviously tense, nervous, etc.);e) person is accompanied by suspicious people;f) person has already been sanctioned or criminal charges have been filed against the person (this is known from the media or the Office's notifications); g) person comes from a country known for being a dug producer or tax haven, or carries out transactions with such a country.
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Annex 2 – List of indicators for identifying suspicious transactions regarding terrorist financing
The indicators used to identify instances of money laundering, which also partly cover the indicators of terrorist financing, have already been adopted in respective sectors of the obliged persons under the APMLFT. In view of the above, the indicators on this list are used as a supplement to the existing lists of indicators of money laundering.
These indicators include the lists of natural and legal persons associated with terrorism and terrorist financing subject to the sanction of assets freeze imposed by the UN Security Council and the EU in the framework of its common foreign policy.
The list of the UN Security Council is published on the website:http://www.un.org/sc/committees/1267/consolist.shtmlThe list of the European Union is published on the website:http://ec.europa.eu/comm/external relations/cfsp/sanctions/list/consol-list.htm NOTE: The EU list also includes those persons against whom sanctions were not imposed in connection with terrorist financing, so they do not fall within the competence of the Office for Money Laundering Prevention.
The indicators below relate to all types of persons under obligation, hence some of them might be less appropriate for dealers in precious metals.
1. Account–related indicators
1.1 There are several persons not linked by kinship authorised to operate an account.
1.2 An account is opened for a legal entity with an address identical to that of another legal entity and the same natural person is authorised to operate these respective accounts.
1.3 A natural person opens several accounts to receive small payments.
1.4 An account is opened by a natural person or legal entity involved in the activities of a person under obligation or a foundation supporting the objectives and demands of a terrorist organisation.
1.5 An account is opened by a natural person or legal entity that might be linked to a terrorist organisation.
2. Indicators relating to the establishment of a business relationship
2.1 A business relationship is established for a legal entity with an address identical to that of another legal entity and the same natural person is authorised to conduct their respective business operations.
2.2 A natural person establishes several business relationships on the basis of which a number of minor business deals are concluded.
2.3 A business relationship is established by a natural person or legal entity involved in the activities of a person under obligation or a foundation supporting the objectives and demands of a terrorist organisation.
2.4 A business relationship is established by a natural person or legal entity that might be linked to a terrorist organisation.
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3. Customer–related indicators
3.1 A customer wishes to enter a business relationship that is inconsistent with his objectives.
3.2 There is no logical connection between the executed transactions and a customer's activity.
3.3 Statements and data presented in the identification procedure are inconsistent (erroneous reference to residence, nationality, last name, date of birth, company name, company's registered office, activities).
3.4 A large number of persons authorised to conclude business deals on behalf of a legal entity or non-profit organisation.
3.5 A customer comes from (has permanent or temporary residence) a country or region that supports terrorism of terrorist financing.
3.6 A customer is subject to the sanction of assets freeze imposed by the United Nations Security Council or the European Union and appears on their respective lists.
4. Transaction–related indicators
4.1 One person carries out several transactions in the same branch office with an evident intention to use several cashier's desks.
4.2 Uncounted cash that is after the money is counted deposited into an account in the amounts not subject to the identification or reporting requirement.
4.3 The use of a product associated with a high fee payment (e.g. Western Union, MoneyGram).
4.4 A customer uses products (securities, checks, etc.) bearing informal inscriptions, initials or signs in transactions.
5. Indicators relating to non-profit organisations (NPOs)
5.1 A non-profit organisation fails to submit annual reports to the competent national authorities or a supervisory body.
5.2 A high amount of funds that is an unclear manner paid for expenses not related to the non-profit organisation's activity.
5.3 A non-profit organisation has no programme regarding money raising or donations or use of funds.
5.4 A non-profit organisation has no documentation on general administrative matters, decisions adopted and operational policy.
5.5 A non-profit organisation has no mechanisms in place to verify whether a donation reaches its intended beneficiary or is used for its intended purpose.
5.6 A non-profit organisation records a large share of donations from or to foreign countries.
5.7 High amounts are donated to a non-profit organisation by a certain individual.
5.8 Donations of a non-profit organisation are only given to a narrow group of individuals.
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5.9 Financial activities of a non-profit organisation are inconsistent with its founding objectives and purposes.
5.10 A non-profit organisation transfers funds to countries or regions known to support terrorism or terrorist financing.
5.11 A non-profit organisation carries out most of its transactions in cash.
5.12 A substantial amount of a non-profit organisation's funds is kept in a petty cash box.
5.13 A non-profit organisation's financial assets are deposited in the accounts of natural persons.
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Annex 3 – Draft act on internal control of the implementation of the Prevention of Money Laundering and Terrorist Financing Act for dealers in precious metals and precious stones and products made from these materials
Persons under obligation supervise the implementation of the APMLFT on a regular basis, unless they employ fewer than four employees. Below you will find an example of an act regulating internal control of the implementation of the APMLFT; persons under obligation adjust this draft act to the nature of their operations:
Pursuant to the second paragraph of Article 43 of the Prevention of Money Laundering and Terrorist Financing Act (Uradni list RS [Official Gazette of the Republic of Slovenia], no. 60/07) and the second paragraph of Article 1 of the Rules on exercising internal control, authorised person, storage and protection of information, and management of records with respect to organisations, lawyers, law firms and notaries (Uradni list RS, no. 10/08) I hereby issue the following
ACT ON INTERNAL CONTROL OF THE IMPLEMENTATION OF THE PREVENTION OF MONEY LAUNDERING AND TERRORIST FINANCING ACT FOR DEALERS IN PRECIOUS METALS AND PRECIOUS STONES AND PRODUCTS MADE FROM THESE MATERIALS
I. GENERAL PROVISIONS
Article 1
This act shall regulate in detail the method for exercising internal control pursuant to the Prevention of Money Laundering and Terrorist Financing Act (Uradni list RS, no. 60/07; hereinafter: the Act), in particular the following:
– the status of an authorised person;– the method for exercising internal control;– the method for storage and protection of information on transactions and for keeping of records of transactions.
II. AUTHORISED PERSON
Article 2
With a view to implementing the Act .......................................................... shall be appointed the authorised person for money laundering prevention.
Article 3
The authorised person for money laundering prevention shall ensure the implementation of the Act, and shall in particular:– forward information referred to in the third paragraph of Article 38 of the Act to the Office of the Republic of Slovenia for Money Laundering Prevention;– keep records referred to in Article 10 hereof;– participate in drafting the list of indicators of suspicious transactions.
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Article 4
The authorised person for money laundering prevention shall have access to any document and information of the company or a sole proprietor needed for the implementation of his/her tasks.
Article 5
Persons under obligation shall provide the authorised person for money laundering prevention with professional training and information related to the detection and prevention of money laundering.The authorised person for money laundering prevention shall regularly brief the management and the employees on new developments in the detection of money laundering.
III. INTERNAL CONTROL
Article 6
Internal control under the present act shall include regular control of the implementation of the provisions of the Act. The purpose of internal control is to detect and prevent errors in the implementation of the Act and to improve the system for identifying suspicious transactions.
Article 7
Internal control under the present act shall be exercised by ……………………………. (sole proprietor orcompany owner).
Article 8
Internal control under the present act shall include:– control over the work of the authorised person for money laundering prevention,– consideration of reports of the authorised person for money laundering prevention,– control over storage and protection of data on transactions and keeping of records.
Article 9
In the context of exercising internal control under the present act, the authorised person for money laundering prevention may be required at any time to submit clarifications or data on an individual transaction that was subject to identification or was reported to the Office for Money Laundering Prevention.
IV. STORAGE AND PROTECTION OF DATA ON TRANSACTIONS, KEEPING OF RECORDS ON TRANSACTIONS
Article 10
A company or a sole proprietor shall manage records on customers, business relationships and transactions referred to in Article 8 of the Act in chronological order so that … (Note: it is for the person under obligation to define the method for keeping of records, e.g. to keep manual records in separate file folders stored in a locked cabinet or safe with keys held in a strongbox).
The data on suspicious transactions, which bear an appropriate security classification marking in accordance with the law regulating classified information pursuant to Article 76 of the Act, shall be kept … (e.g. in manual records kept in separate file folders stored in a locked cabinet or safe with keys held in a strongbox).
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Article 11
The data referred to in the preceding Article hereof shall be kept for a period of ten years after a transaction is executed or a business relationship terminated.
Article 12
The data from records referred to in Article 10 hereof shall be deemed a business secret. The owners and the authorised person for money laundering prevention shall have access to records referred to in Article 10 hereof.
V. FINAL PROVISIONS
Article 13
A list of indicators for the identification of suspicious transactions shall form part of the present act. The list of suspicious transaction indicators shall be updated regularly to include new forms of money laundering.
Article 14
This act shall enter into force on …………………………… .
Place and date
Company (director) Sole proprietor
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Annex 4 – Reporting Questionnaire on transactions or customers in respect of which there are grounds for suspicion of money laundering or terrorist financing (Questionnaire II)
REPORTING QUESTIONNAIRE ON TRANSACTIONS OR CUSTOMERS IN RESPECT OF WHICH THERE ARE GROUNDS FOR SUSPICION OF MONEY LAUNDERING OR TERRORIST FINANCING (QUESTIONNAIRE II)
A. TRANSACTION DATA1. Transaction: a. □ has been carried out b. □ has not been carried out yet 2. Date and time of transaction (DDMMYYYY HH:MM):3. Transaction execution method: a. receipt b. delivery c. currency exchange e. other (specify):
4. Purpose of transaction:
5. Amount: 6. Currency:
7. Amount: 8. Currency:
9. Amount in EUR:
B. NATURAL PERSON REQUESTING OR CARRYING OUT THE TRANSACTION10. Transaction is carried out by: a. one person b. two or more persons (see appendix to the questionnaire)Last name: 12. First name:
13. Permanent or temporary place of residence:
14. Date of birth (DDMMYYYY): 15. Place of birth: 16. Tax number:
17. Documents to verify identity:a. identity card b. passport c. driving licence e. other (specify):
18. Document no.:
19. Issued by:
20. Person carries out the transaction: a. in his own name b. as an authorised person
22. 21. The person: a. isb. is not
employed by the customer for whom the transaction is carried out.
C. CUSTOMER FOR WHOM THE TRANSACTION IS CARRIED OUT22. Transaction is carried out in the name or 23. Customer is: a. legal entityon behalf of: b. natural persona. one customer c. societyb. two or more customers (see appendix to the questionnaire)
d. sole proprietor
e. other (specify):
If the customer is a legal entity, society, sole proprietor or other person:oseba:
Company name: Registered office:
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26. Registration no.:
If the customer is a natural person:
Last name: 28. First name:
29. Permanent or temporary place of residence:
30. Date of birth (DDMMYYYY): 31. Place of birth: 32. Tax number:
33. Documents to verify identity: a. identity card b. passport c. driving licence e. other (specify):
34. Document no.:
35. Issued by:
D. CUSTOMER TO WHOM THE TRANSACTION IS DIRECTED (RECIPIENT)36. Transaction is directed to: a. one recipient b. two or more recipients (see appendix to the questionnaire)
37. The recipient is: a. legal entity b. natural person c. societyd. sole proprietor e. other (specify):
If the recipient is a legal entity, society, sole proprietor or other person:
38. Company name: 39. Registered office:
If the recipient is a natural person:40. Last name: 41. First name:
42. Place of residence:
E. SENDEROrganisational unit where the transaction was requested or carried out:43. Name: 44. Address:
45. Registration no.:Person who identified the customer and verified the customer's identity:46. Last name: 47. First name:
48. Signature:
Organisation referred to in Article 4 of the APMLFT:49. Name: Address:
51. Registration no.:Organisation's authorised person, or his/her deputy, as referred to in Article 4 of the APMLFT:52. Last name: 53. First name:
54. Date: 55. Signature:
56. Information has already been transmitted (DDMMYYYY HH:MM):a. by telephone
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a. by fax
F. DATA PROVIDING GROUNDS FOR SUSPICION57. The person or transaction gives grounds to suspect: a. money laundering
b. terrorist financing
58. Date the account was opened or the business relationship established (DDMMYYYY):
59. The reason and/or purpose and the intended nature of the business relationship (opening of account or other business relationship) and information on the customer's activities (specify):
60. Information about the source of the assets or property that are the subject of the transaction (specify):
Grounds to suspect money laundering/terrorist financing:
G. DATA ON THE CUSTOMER'S BENEFICIAL OWNER62.For companies:
a. The person owns _________% of the interest, shares or voting or other rights, on the basis of which he/she participates in the management of the company.b. The person's equity participation in the company amounts to ________%.c. The person has the controlling position in the management of the company's assets.d. The person indirectly provides funds to the company and, on these grounds, has the opportunity to exercise control of or influence the legal entity's decisions concerning the funding and business operations.
For other legal entities, such as institutions and similar foreign law entities: The person is the ____% beneficiary of the proceeds of the property under management. b. The establishment and operation of a legal entity or similar foreign law entity is in the person's interest.The person exercises direct or indirect control over _25% of the property of a legal entity or similar foreign law entity.
The natural person is: a. the owner or manager of the customer (legal entity or foreign law entity) b. the owner or manager of another legal entity that owns the customer
64. Last name: 65. First name:
66. Permanent or temporary place of residence:
67. Date of birth (DDMMYYYY): 68. Place of birth:
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APPENDIX TO QUESTIONNAIRE
A. TRANSACTION DATA
5. Amount: 6. Currency: 7. Amount: 8. Currency: 9. Amount in EUR:
B. NATURAL PERSON REQUESTING OR CARRYING OUT THE TRANSACTION11. Last name: 12. First name:
13. Permanent or temporary place of residence:
14. Date of birth (DDMMYYYY): 15. Place of birth: 16. Tax number:
17. Documents to verify identity: a. identity card b. passport c. driving licence e. other (specify):
18. Document no.:
19. Issued by:
C. CUSTOMER FOR WHOM THE TRANSACTION IS CARRIED OUT23. The customer is: a. legal entity
b. natural person c. societyd. sole proprietor e. other (specify):
If the customer is a legal entity, society, sole proprietor or other person:
24. Company name: 25. Registered office:
26. Registration no.:If the customer is a natural person:27. Last name: 28. First name:
29. Permanent or temporary place of residence:
30. Date of birth (DDMMYYYY): 31. Place of birth: 32. Tax number:
33. Documents to verify identity: a. identity card b. passport c. driving licence d. other (specify)
34. Document no.:
35. Issued by:
D. CUSTOMER TO WHOM THE TRANSACTION IS DIRECTED (RECIPIENT)
37. The recipient is: a. legal entityb. natural personc. societyd. sole proprietore. other (specify):
If the recipient is a legal entity, society, sole proprietor or other person:38. Company name: 39. Registered office:
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If the recipient is a natural person:
40. Last name: 41. First name:
42. Place of residence:
The method for completing the above reporting questionnaires is prescribed in the Instructions on the method for filling out the reporting questionnaires appended to the Rules on the method for reporting information to the Office of the Republic of Slovenia for Money Laundering Prevention (Uradni list RS, no. 10/08) and is also available on the webpage of the Office http://www.uppd.gov.si/slov/zakonodaja/obrazci APMLFT.htm ).
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7. SOURCES
1. Document of the Financial Action Task Force (www.fatf-gafi.org/dataoecd/19/42/41012021.pdf)
2. Prevention of Money Laundering and Terrorist Financing Act (Uradni list RS, no. 60/07)
3. Rules on exercising internal control, authorised person, storage and protection of information, and management of records with respect to organisations, lawyers, law firms and notaries (Uradni list RS, no. 10/08)
4. Rules laying down the conditions under which a person may be considered a customer who represents a low risk of being involved in money laundering or terrorist financing (Uradni list RS, no. 10/08)
Further information is available on the following webpages:
Office of the Republic of Slovenia for Money Laundering Prevention: http://www.uppd.gov.si/Documents of the Financial Action Task Force – http://www.fatf-gafi.orgMinistry of Foreign Affairs (restrictive measures) – http://www.mzz.gov.si/si/zunanja politika/mednarodna varnost/omejevalni ukrepi/ Council of Europe – http://www.coe.int/t/dghl/monitoring/moneyval/
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