Law on Combating Money Laundering and Terrorism Financing: Key Points and Analysis
Authorized Body
The Authorized Body plays a crucial role in combating money laundering and terrorism financing. Its key functions and authorities include:
- Receiving reports from reporting entities and information from state bodies and organizations
- Analyzing received reports and information
- Sending statements to criminal investigation authorities in cases stipulated by Article 13 of the Law
- Requesting other information from reporting entities and state bodies
Reporting Entities
Reporting entities, such as banks and financial institutions, are required to:
- Conduct additional scrutiny on complex transactions with unusual patterns or no apparent economic purpose
- Maintain transaction data for at least 5 years and submit it as requested by the Authorized Body
- Establish internal measures to counteract money laundering and terrorism financing risks associated with new or developing technologies
Registration of Legal Persons
When registering a legal person, founders (participants, members, shareholders) are required to file a declaration on beneficial owners. The state body performing registration shall provide the Authorized Body with a copy of this declaration upon request.
Sanctions and Penalties
The Authorized Body can impose sanctions on financial institutions and legal persons for non-compliance with the Law. Reporting entities may also face penalties if they fail to submit accurate or complete reports, or if their internal legal acts have deficiencies.
Additional Scrutiny and Suspicious Transactions
Reporting entities must conduct additional scrutiny on complex transactions with unusual patterns or no apparent economic purpose. They are also required to suspend or reject suspicious transactions or business relationships.
Data Protection and Confidentiality
The Law stipulates that reporting entities shall maintain confidentiality when submitting reports or providing information to the Authorized Body, except in cases established by Part 3 of Article 4 of this Law.
This summary is not exhaustive, and it’s recommended to consult the original text for a more detailed understanding of the Law.