Bolivia Cracks Down on Anti-Money Laundering Measures for Public Notaries
In a major move to combat financial crimes, Bolivia’s Financial Investigation Unit (Unidad de Investigaciones Financieras) has issued an administrative resolution requiring public notaries to adhere to stringent anti-money laundering regulations.
New Reporting Obligations for Public Notaries
The new rules impose reporting obligations on public notaries providing services related to real estate and corporate entity transactions. Under the new guidelines, public notaries are now required to:
- Identify the ultimate beneficiary: Verify the identity of each transaction’s ultimate beneficiary before providing any services.
- Conduct due diligence checks: Ensure that employees and clients are not linked to any terrorist organizations or jurisdictions involved in money laundering and terrorism financing.
Suspicious Transactions to Report
The Financial Investigation Unit has outlined a list of suspicious transactions that public notaries must report to the authorities, including:
- Massive real estate purchases without apparent purpose: Purchases that exceed normal market value or appear to be made for illicit purposes.
- Successive property deals within a short timeframe: Multiple property transactions within a brief period, which may indicate money laundering activities.
- High-value purchases by individuals with questionable financial means: Transactions involving large amounts of money, where the individual’s financial situation suggests they cannot afford such purchases.
- Formation of corporate entities with similar names or multiple companies owned by the same individuals: This may indicate an attempt to conceal illicit activities.
Significant Step in Combating Financial Crimes
The move is seen as a significant step in Bolivia’s efforts to strengthen its anti-money laundering regime and combat financial crimes. Public notaries play a crucial role in the country’s financial system, and their compliance with these regulations will help prevent illicit activities and protect the integrity of the financial sector.