UN Security Council Resolutions Lists Designated as Global Threats
In a significant move to combat global threats, Article 3 of the Law has been updated to incorporate lists published by or in accordance with United Nations Security Council resolutions. These lists include individuals associated with terrorism or proliferation of weapons of mass destruction.
Enhancing International Cooperation and Coordination
The amendment aims to enhance international cooperation and coordination in preventing money laundering, terrorism financing, and the financing of proliferation of weapons of mass destruction. The inclusion of these lists will enable authorities to more effectively identify and track individuals and entities involved in these illegal activities.
Risk-Based Approach for Financial Institutions and Non-Financial Entities
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Article 4 of the Law outlines the risk-based approach that financial institutions and non-financial entities must adopt to prevent money laundering, terrorism financing, and the financing of proliferation of weapons of mass destruction.
- Identify, assess, and mitigate risks associated with customers, transactions, and business relationships.
- Implement effective customer due diligence measures.
- Conduct regular monitoring and reporting.
- Maintain records of activities.
Reporting Obligations for Financial Institutions and Non-Financial Entities
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Article 6 of the Law outlines the reporting obligations for financial institutions and non-financial entities. These entities are required to report certain transactions and activities to the relevant authorities, including:
- Cash transactions above AMD 5 million.
- Non-cash transactions above AMD 20 million.
Reports must include information on parties involved in the transaction, nature of the transaction, and any other relevant details. Authorities will use this information to monitor suspicious activity and take enforcement action against entities that fail to comply with reporting obligations.
Designated Reporting Entities
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Article 6 of the Law identifies specific entities that are required to report certain transactions and activities, including:
- Notaries
- Organizers of casinos, games of chance, and lotteries
- State authority in charge of registering legal persons (State Registry)
- Authorized body in charge of maintaining the integrated state cadastre of real estate
These entities must report transactions related to:
- Buying and selling of real estate
- Managing client property
- Managing bank and securities accounts
- Providing property for creation or management of legal persons
- Carrying out functions involving creation, operation, or management of legal persons
Implementation and Enforcement
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The Law requires financial institutions and non-financial entities to implement effective anti-money laundering and combating the financing of proliferation of weapons of mass destruction programs. Authorities will enforce compliance with reporting obligations and take enforcement action against entities that fail to comply.
Conclusion
In conclusion, the amendments to Article 3 of the Law aim to strengthen international cooperation and coordination in preventing global threats. The risk-based approach outlined in Article 4 requires financial institutions and non-financial entities to identify, assess, and mitigate risks associated with their activities. The reporting obligations outlined in Article 6 require designated entities to report certain transactions and activities to the relevant authorities.
The implementation and enforcement of these measures will be critical in preventing money laundering, terrorism financing, and the financing of proliferation of weapons of mass destruction.