THE LAW OF TURKMENISTAN
ABOUT STRUGGLE AGAINST LEGALIZATION
OF THE INCOMES RECEIVED BY CRIMINAL WAY
AND AGAINST FINANCING OF TERRORISM
The present Law is directed to protection of the rights and
legitimate interests of citizens, society and the state, as well as the
integrity of the financial system of Turkmenistan from criminal
encroachments, by creation of the legal mechanism of struggle
against legalization of the incomes received by criminal way and
struggle against financing of terrorism.
Section I. General provisions
Article 1. The basic terms and concepts used in the present Law
Terms and concepts used in the present Law have the following
means:
1) the incomes received by criminal way are money resources
both other movable and real estate, got as a result of carrying out of
illegal actions against the objects protected by the Criminal law of
Turkmenistan;
2) legalization of the incomes received by criminal way is
giving of the lawful kind to possession, using or disposal of money
resources or other property, got obviously by criminal way, as well
as use of the specified means or property for realization of the
entrepreneur or other economic activities, including for financing of
terrorism;
3) property - any subject which is in possession, application,
disposal and which is get in unlimited quantity by legal and physical
persons who are not forbidden by the law and not contradicting
norms of morals;
4) the suspicious transaction and operation - the transaction
and operation, falling under signs of suspicious transactions and
operations in conformity with the present Law, as well as according
to the list of signs of suspicious operations, confirmed by the
representative of the state body, namely transactions and operations
made with money resources and/or with other property which have
no clear economic or obvious lawful purpose also are not
characteristic for activity of the given legal or physical person
(persons);
5) the authorized state body is the state body created by the
act of the President of Turkmenistan and according to the present law
authorized to carry out gathering, analysis and transfer of
information about suspicious transactions and operations and about
the potential financing of terrorism, as well as to carry out the
corresponding actions directed to struggle against legalization of
incomes, received by criminal way and struggle against financing of
terrorism;
6) Financing of terrorism - socially dangerous criminal action
directed to maintenance of terrorist actions by financial, materialand-technical and other resources;
7) The persons representing data - any legal and/or physical
persons, from listed below:
The banks licensed and supervised by the Central Bank of
Turkmenistan;
Others financial and credit institution;
The insurance organizations;
The establishments which are engaged in leasing activity;
Pawnshops;
Business participants of the equity market;
commodity-raw stock exchanges;
currency stock exchanges;
Legal and physical persons who are organizers of the gambling
games;
The establishments which are carrying out the state registration
of the rights to real estate, as well as the establishments rendering
services in the state registration of the rights to real estate, or
transactions with other property, subjects of the state registration;
The organizations of post and cable communication which are
carrying out transfers of money resources, as well as other
organizations which are carrying out of calculations and/or
payments;
Agents on operations with the real estate (realtors) when they
take part in operations under the purchase or sale of real estate for
the client;
Dealers of precious metals and dealers of jewels when they
carry out cash operations with the client over the established
threshold sum;
Organizers of the biddings and auctions;
Lawyers, persons who are carrying out notarial activity, other
independent lawyers and bookkeepers, the individual businessmen
rendering legal services when they prepare or make for the client
transactions on real estate purchase and sale; to management of
money resources, securities or other property of the client; to
management of bank, savings accounts or accounts of securities; as
well as accumulation of means for creation, maintenance of
functioning or management of the companies, as well as their
creation, maintenance of functioning or management of the legal
body or formation and purchase and sale of the enterprises;
8) the obligatory control – the set of accepted by the
authorized body of the measures regulated by the present Law and
other acts of Turkmenistan accepted in conformity with it, under the
control over operations with money resources or other property,
carried out on the basis of the information given by the organizations,
carrying out such operations, as well as on check of this information
according to legislations of Turkmenistan;
9) the internal control - activity of the organizations which are
carrying out operations with money resources or other property, for
granting of information to the authorized state body about the
operations which are subject to the obligatory control, as well as
other operations with money resources or other property, connected
with legalization of incomes received by criminal way and struggle
against financing of terrorism;
10) beneficiary proprietor - the physical person who is the
final owner or carrying out the control over the client or the person
on behalf of which the transaction is carried out.
11) bank-cover - the bank registered in the states and territories
at which it physically is not present;
12) offshore zones - zones with special favorable conditions of
realization of bank and insurance operations in a foreign currency for
servicing of non-residents.
Article 2. The task and sphere of application of the present Law
1. The primary purpose of the present Law is prevention,
detection of the activity connected with legalization of incomes,
received by criminal way and struggle against financing of terrorism,
as well as an establishment of rules of law on creation of the
authorized state body allocated with powers of reception of the
information, carrying out the analysis and distribution of data
concerning suspicious transactions and operations, as well as
transactions and operations which are subject to the obligatory
control according to the present Law.
2. The present Law regulates relations of citizens of
Turkmenistan, foreign citizens and persons constantly living in
Turkmenistan without citizenship, the organizations which are
carrying out the transactions and operations with money resources
and/or other property, as well as the state bodies which are carrying
out the control in territory of Turkmenistan behind carrying out of
transactions and operations with money resources and/or other
property, for the purposes of prevention, revealing and suppression
of the acts connected to legalization of incomes, received by criminal
way and struggle against financing of terrorism.
Section II. Prevention of legalization of the incomes received by
criminal way and struggle against financing of terrorism
Article 3. The measures directed to struggle against
legalization of incomes, received by criminal way and struggle
against financing of terrorism
1. Banks as well as other credit institutions having the right of
opening and conducting of bank accounts, are not entitled to open
anonymous bank accounts (contributions), accounts (contributions)
to bearer and to carry out any operations without identification of
counterparts and/or clients according to the legislation of
Turkmenistan.
2. Banks as well as other credit institutions having the right of
opening and conducting of bank accounts as well as other persons,
representing data, should refuse the legal and physical persons in
opening of the bank account (contribution) or carrying of operation
under the account, as well as in preparation and carrying out of
transaction if the person will not submit necessary documents, for
identification of the client, or documents causing obvious suspicion
or if the data received according to the present Law, are specified
that the person is engaged in terrorist activity. In the cases specified
in the present part, banks as well as other credit institutions having
the right of opening and conducting of bank accounts, are entitled to
terminate the contracts with clients (owners of accounts) and
investors, the persons representing data, should consider the
question about submission of the information to the authorized body
according to article 4 of the present Law.
3. The persons representing data are obliged to execute
following procedures:
- To reveal and check up the person of the client, namely to
carry out number of actions establishing the person of the client - the
physical person (surname, name, patronymic, registration and
residence place, date of birth, passport details, powers under the
allocation of means on the account as well as other data demanded
according to the legislation Turkmenistan);
- To verify the legal status of the client - the legal person,
including the information about the name of the client, about the
organizational-legal form of activity of the client, the address,
officials as well as other data concerning authorized documents,
regulating activity of the client;
- To verify the powers and identity of the person entitled to make
operations on behalf of the client who is not present physically; to
reveal and check up the person of the beneficiary proprietor;
- To carry out other operations established by the legislation of
Turkmenistan.
4. Procedures specified in the third part of the present article,
are to be applied in following cases:
- At definition of business relations;
- At carrying out of any single transactions for the established
threshold amount;
- At suspicion in legalization of the incomes received by
criminal way, or in financing of terrorist activity;
- In a case of doubts at the person representing data in reliability
and/or conformity of previously received data concerning identity of
the client.
5. The persons representing data are obliged continuously to
carry out appropriate check of business relations.
6. Banks and other credit institutions entitled to opening and
conducting of bank accounts, are not entitled to establish straight
lines correspondent relations with banks which are registered in
offshore zones, with their affiliated persons, affiliated banks and
isolated divisions which are not the independent Legal entities.
This restriction does not extend on the establishment of direct
correspondent relations with the branches registered in offshore
zones which parent organizations which are registered out of
offshore zones.
Creation of banks-covers is forbidden.
Banks as well as other credit institutions entitled to opening and
conducting of bank accounts, are not entitled to establish or continue
direct correspondent relations with banks-covers, as well as should
accept safety measures against carrying out of transactions and
operations with the foreign financial establishments-respondents,
allowing banks-covers to use the accounts.
7. The legal entity having the status of the company (society),
registered in an offshore zone according to the legislation of the state
of its registration, cannot be the founder or the shareholder of the
bank-resident of Turkmenistan.
8. For the purposes of licensing and regulation of banks and
other credit institutions activity the Central Bank of Turkmenistan
defines the list of subjects, the states and territories of offshore zones
and establishes conditions and restrictions on carrying out of
transactions and operations with them.
9. The persons representing data shall:
- To develop rules of the internal control for struggle against
legalization of the incomes received by criminal way and struggle
against financing of terrorism and procedure of their realization;
- To store not less than five years from the moment of
completion of any operation the data and records concerning
transactions and operations with money resources and/or other
property. To store not less than five years from the moment of
closing of the account and termination of business relations the data
and records concerning an establishment of identity of the client, as
well as data on business relations, business correspondence, and also
other information. The information in such records should be
sufficient to have possibility to restore separate transactions and
operations for the purpose of submission of corresponding proofs for
consideration and investigation;
- Not to disclose the information transferred to the authorized
state body. The disclosure before the third parties the facts of transfer
of such information to the authorized state body is possible only in
the cases directly provided by the legislation of Turkmenistan.
Workers of the agencies giving data are not entitled to inform clients
of these organizations or other persons about submission of
information to the authorized state body.
10. Banks and other credit institutions entitled to opening and
conducting bank accounts, are to be stopped operations of physical
and legal entities, in which relation from the representative state
bodies the data about participation in the terrorist activity (financing
of terrorism) are received, for three working days from date, when
the order of the client about its realization should is to be carry out,
and not later than the day of suspension of operation to represent the
information about it to the authorized state body.
At non receipt during the specified term of the decision of the
authorized body about suspension of corresponding operation of
physical and legal entities in which relation there are data about
participation in terrorist activity (financing of terrorism), for
additional term, banks and other credit institutions entitled to
opening and conducting of bank accounts are carried out operation
with money resources or other property under the order of the client.
Suspension or arrest of operations with money resources and
other property of the physical and legal entities in which relation
there are data about participation in terrorist activity (financing of
terrorism), over the term specified in the decision of authorized body,
may be carried out only under the decision of court and investigatory
bodies.
At non receipt during the term specified in the decision of
authorized body, the decision of court and investigatory bodies with
the sanction of the public prosecutor about suspension of
corresponding operation for additional term or about arrest imposing,
the banks as well as other credit institutions entitled of opening and
conducting of bank accounts are carried out operation with money
resources or other property under the order of the client.
11. The persons representing data, and their employees are
released from the liability for damages, not received profit or the
moral damage, caused to physical and legal entities by lawful
execution of the duty provided by the present Law to represent in
established order the information about suspicious transactions and
operations if thus it has not been admitted infringements of the
established order of carrying out of such actions provided by the
second part of the present article.
12. Termination of operations, refusal in opening of the bank
account (contribution) or carrying out of operation under the account,
as well as cancellation of the contract of the bank account and
closing the account which provided in present article and have been
carried out according to the present Law, are not the basis for
occurrence of civil-law and other responsibility of the persons
representing data.
13. The persons representing data, should pay special attention
to business relations, as well as transactions and operations with the
organizations and persons from the states and territories which do not
apply or apply in insufficient degree the recommendation of the
international organizations, as well as with the affiliated
organizations, branches and representations which basic companies
are registered in such states and territories. The list of such states and
territories is approved by the Cabinet of Ministers of Turkmenistan
under representation of the authorized state body.
14. The control over execution by physical and legal entities of
the present Law in the part of fixation, keeping and submission of
information about transactions and operations which are subject to
the obligatory control, over the organization of the internal control is
carried out by corresponding supervising bodies according to their
competence and an order established by the legislation of
Turkmenistan, as well as the authorized body in case of absence of
supervising bodies in the field of activity of the separate
organizations which are carrying out the transactions and operations
with money resources or other property.
Article 4. Requirements (conditions) of the obligatory control
1. The persons representing data to authorized state body under
the form established by it are obliged to represent the information
about operations in which relation there are suspicions about
legalization of money or financing of terrorism, as well as
transactions and operations with money resources or other movable
and real estate, falling under the list of criteria of operations and
transactions subject to the obligatory control of authorized state body
not later than the working day following day of carrying out of the
transaction and operation.
2. In a case if at the persons representing data, arise suspicions,
that any transactions or operations are carried out for the purposes of
legalization of the incomes received by criminal way or financing of
terrorism, this person is obliged to submit to the authorized state
body the data about such transactions and operations irrespective the
fact that transactions and operations are in categories provided by
article 5 of the present Law.
3. The persons giving data, depending on circumstances should
fix actually established circumstances in writing about the difficult,
unusually large transactions and operations, as well as transactions,
operations and remittances carried out under the unusual scheme, not
having economic target.
Article 5. The list of criteria according to which transactions and
operations are subject to the obligatory control
1. The transaction or operation with money resources or other
property, as well as some interconnected transactions or operations
made within ten days, are subject to the obligatory control if by its
character the given transaction or operation concerns to one kind of
transactions or operations provided by the second part of the present
article and thus the amount on which it is made, in foreign and
national currency is equal or exceeds the threshold amount
established by the authorized state body of Turkmenistan.
2. The following are transactions or operations with money
resources or other property which are subject to the obligatory
control:
1) internal and external transactions and operations which are
carried out by banks as well as other credit institutions, entitled of
opening and conducting bank accounts (contributions) on character
of operation causing suspicion in its practicability;
2) transactions or operations, in a case if at least one of the
parties is the physical or legal entity having accordingly registration,
the residence place or location in the state (in territory) in which (on
which) disclosing or submission of information is not provided at
carrying out of financial operations, or one of the parties is the
person who is the owner of the bank account, registered in the
specified state (in the specified territory).
The list of such states and territories is defined by the Cabinet
of Ministers of Turkmenistan by representation of the authorized
state body on the basis of the lists approved by the international
organizations, engaged in struggle against legalization of the
incomes received by criminal way and struggle against financing of
terrorism;
3) other operations and transactions, over the established
threshold amount:
- purchase or sale of the cash foreign currency;
- acquisition by the physical person securities for cash;
- an exchange of banknotes of one denomination to banknotes
of other denomination;
- entering by the physical person into the authorized capital of
the organization the money resources in the cash form;
- Movement of money resources of charitable, public
organizations and establishments, funds;
4) other transactions with movable and real estate above the
established threshold amount:
- Deposit of securities, precious metals, jewels or other values
in a pawnshop;
- Payment by the physical person of an insurance payment or
reception from it the insurance award on life insurance as well as
other kinds of memory insurance and pension allowances;
- The transaction with real estate;
- The transaction with the personal estate;
- Reception or granting of property under the contract of
financial rent (leasing);
- Payment of money resources in the form of the prize received
from game in a lottery, the tote or from other games based on risk;
5) transfer of money resources:
- Carried out by the instructions of the client (the physical
person) over the established threshold amount.
3. Transactions or operations with money resources or other
property are subject to the obligatory control in case at least one of
the parties participating in these transactions or operations is the
physical or legal entity in which relation there are data about
participation in terrorist activity (financing of terrorism).
4. Transactions and operations in which relation there are
suspicions about legalization of the money received by criminal way
or financing of terrorism are subject to the obligatory control.
Section III. Arrangement of activity on struggle against
legalization of the incomes received by criminal way and struggle
against financing of terrorism
Article 6. The authorized state body
1. Tasks, functions and competence of the authorized state body
founded by the decree of the President of Turkmenistan, in sphere of
struggle against legalization of the incomes received by criminal way
and financing of terrorism, are established on the basis of the present
law.
Intervention of public authorities in the decision of the
questions carried by the present Law to conducting of authorized
state body, is not allowed, except the cases provided by the present
Law.
2. The authorized state body within its competence:
1) carries out gathering and analysis of information connected
to transactions and operations which are subject to the obligatory
control;
2) establishes the limiting amount of transactions or operations
in the foreign or the national currency, provided by the first part of
article 5 of the present Law;
3) demands from the persons representing data, acceptances of
measures, directed to struggle against legalization of the incomes
received by criminal way and struggle against financing of terrorism,
according to the present Law as well as other legislative acts of
Turkmenistan;
4) develops and carries out measures on perfection of system of
the prevention, revealing and suppression of suspicious transactions
and operations, as well as transactions and operations connected to
legalization of incomes, received by criminal way and struggle
against financing of terrorism, including submission of explanations
on application of measures of struggle against legalization of the
incomes received by criminal way and struggle against financing of
terrorism, in particular, in revealing of suspicious transactions and
operations and submission of the appropriate report on them;
5) represents to the court (to the judge), the public prosecutor,
in investigation agencies and bodies the inquiry documents as well as
other materials connected to legalization of incomes, received by
criminal way and struggle against financing of terrorism, on the basis
of official letters of inquiry on the raised affairs according to the
legislation of Turkmenistan. The specified information can be given
by the authorized state body in law enforcement bodies and courts
and under own initiative;
6) carries out the activity under the prevention and suppression
of legalization of the incomes received by criminal way;
7) according to the current legislation has the right of access
(using) to databases (of registers), formation and (or) conducting of
which are carried out by the state bodies;
8) has the right to request of the persons giving data,
information and documents for the purpose of struggle against
legalization of incomes received by criminal way and struggle
against financing of the terrorist activity;
9) in the presence of the sufficient bases, testifying that the
transaction or operation is connected to legalization of the incomes
received by criminal way and financing of terrorism, directs the
corresponding information and materials to law enforcement bodies
in conformity with their competence.
3. The authorized state body terminates for the term up to five
working days realization of transactions and operations with money
resources or other property in case at least one of the parties
participating in these transactions and operations, is the physical or
legal entity in which relation there are data about participation in
terrorist activity (financing of terrorism).
Section IV. The international cooperation in sphere of struggle
against legalization of the incomes received by criminal way and
struggle against financing of terrorism
Article 7. Information interchange and legal assistance
1. The authorized state body according to the international
contracts of Turkmenistan cooperates with competent bodies of the
foreign states at stages of gathering of the information, preliminary
investigation, proceeding and execution of judgments in sphere of
struggle against legalization of incomes received by criminal way
and struggle against financing of terrorism.
2. The authorized state body, as well as other public authorities
and management bodies of Turkmenistan which are carrying out
activity, connected to struggle against legalization of incomes
received by criminal way and struggle against financing of terrorism,
shall submit the appropriate information to competent bodies of the
foreign states by their inquiries or under own initiative in order and
on the bases which are provided by the international contracts of
Turkmenistan, with the consent of the President of Turkmenistan.
3. Transfer to competent bodies of the foreign state of the
information connected to revealing, withdrawal and confiscation of
the incomes received by criminal way and/or in connection with
financing of terrorism, is carried out with the consent of the President
of Turkmenistan in the event that it does not put the damage to
interests of national safety of Turkmenistan.
4. The information connected to revealing, withdrawal and
confiscation of the incomes received by criminal way and/or in
connection with financing of terrorism, is to be submitted on demand
of the competent body of the foreign state provided that it will not be
used without the preliminary consent of appropriate public
authorities and management bodies of Turkmenistan which has given
it, for the purposes not specified in inquiry.
5. The authorized state body which has directed inquiry to the
competent body of the foreign state, provides confidentiality of the
submitted information and uses it only for the purposes specified in
the inquiry.
The state governing bodies of Turkmenistan which are carrying
out activity, connected to struggle against legalization of the incomes
received by criminal way and struggle against financing of terrorism,
according to the international contracts of Turkmenistan and laws of
Turkmenistan shall carry out, within the competence, inquiries of
competent bodies of the foreign states about confiscation of the
incomes received by criminal way, as well as about execution of
separate remedial actions on affairs about revealing of the incomes
received by criminal way, arrest imposing on property, about
property withdrawal, including inspection, interrogations of the
suspects accused, the witnesses who have suffered as well as other
persons, searches, dredging, transfer material evidences, carry out
delivery and transfer of documents.
6. The expenses connected to performance of specified
inquiries, are compensated according to the international contracts of
Turkmenistan.
7. The requirement about submission of information (materials)
for the purposes of struggle against legalization of the incomes
received by criminal way and struggle against financing of terrorism,
are shown and are carry out in territory of Turkmenistan according to
conditions, provided by the present Law.
Section V. Final provisions
Article 8. The Liability for infringement of the present Law
1. Infringement by the organizations or physical persons,
carrying out transactions or operations with money resources or other
property the requirements provided by the present Law, attracts the
responsibility in an order provided by the legislation of
Turkmenistan.
2. The management and employees of the authorized state body
and other state bodies, including former employees, who in
conformity with the present Law have or had access to the
information from the persons representing data, bear criminal and
other responsibility for illegal disclosure, use of official, commercial,
bank, tax secret and secret of communication (regarding the
information on postal orders of money resources), abusing of office
position according to the legislation of Turkmenistan.
3. Submission of the information about suspicious transactions
and operations with money resources or other property and the
operations which are subject to the obligatory control, the authorized
state body according to the requirements established by the present
Law, is not disclosure of office, commercial, bank, tax secret and
secret of communication (regarding the information on postal orders
of money resources).
4. The Central Bank of Turkmenistan gives to the authorized
state body, including by its inquiry, the information and the
documents necessary for realization of its functions.
5. The submission the information and documents to authorized
state body by the state governing bodies, local governments for the
purposes of and an order, provided by the present Law, is not
considered as the infringement of official, commercial, bank, tax
secret and secret of communication (regarding the information about
the post transfers of money resources).
Article 9. Public prosecutor's supervision
Supervision of performance of the present Law in conformity
with the legislation of Turkmenistan is carried out by the General
Public Prosecutor of Turkmenistan and public prosecutors being in
its submission.
10. Coming into force of the present Law
1. The present Law comes into the force after three months
from the date of its official publication.
2. Laws of Turkmenistan, other legislative acts of Turkmenistan
before their adjusting in accordance with the present Law shall
operate in the part, which are not contradicting the present Law.
The President
of Turkmenistan
Ashgabat
May 28, 2009
Gurbanguly
Berdymuhamedov