Official Gazette of RM, 1-Oct-03
LAW ON THE PREVENTION
OF MONEY LAUNDERING
I. GENERAL PROVISIONS
Article 1
This Law shall determine the measures and actions for detecting and preventing
money laundering activities.
Article 2
In the context of this Law, money laundering shall mean:
1. exchange or any transfer of money or other property originating from criminal
offence,
2. acquisition, possession or use of money or other property proceeding from
criminal offence,
3. concealment of the true nature, origin, place where the money is deposited,
movement, use, ownership or rights concerning money or other property
originating from criminal offense,
4. concealment of illegally acquired property and capital obtained by privatization of
state capital.
Article 3
Measures for detecting and preventing money laundering shall be implemented in
all businesses and transactions of receiving, exchanging, keeping, using or other form of
dealing with money or other property (hereinafter referred to as: transaction), and other
transactions where required by this law and related subordinate regulations, as well as in
any business transactions where the suspicion of money laundering exists.
The measures from paragraph 1 above shall be implemented by the following
legal and natural persons (hereinafter referred to as: organizations):
1) banks and financial institutions,
2) organizations performing payment transactions,
3) post offices,
4) investment funds, pension funds and other participants on the capital market,
5) stock exchanges and stock exchange intermediaries,
6) insurance companies,
7) gambling houses and other organizers of games of chance,
8) exchange offices,
9) pawnbroker offices,
10) business organizations, entrepreneurs and natural persons engaged in a trade or
business of:
- sale and purchase of claims,
- factoring,
- managing the property of third persons,
- issuing and performing operations with debit and credit cards,
- leasing,
- travel organization,
- trade in real estate,
- safekeeping,
- trade in precious metals and precious stones and products made from these
materials,
- issuing guarantees and other warranties,
- crediting and credit agencies,
- offering loans and brokering in the negotiation of loan deals,
- brokering in the sale of insurance policies,
- organization and execution of auctions,
- trading with works of art,
- sale of automobiles
- sale of boats and
- other activities in connection with similar transactions of using money or
other property.
II. DUTIES AND OBLIGATIONS OF ORGANISATIONS
1. Identification
Article 4
Prior to and during the execution of certain transactions, an organization shall
identify the client, acquire information about the client, about the transaction and other
information required under this Law (hereinafter referred to as: identification).
Article 5
When an organization opens an account for a client or establishes a business
relationship with a client, the organization shall at the same time identify the client.
An organization shall be required to identify the client during each transaction
exceeding EUR 15,000 or in case of mutually connected transactions, which exceed the
amount of EUR 15,000.
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Irrespective of the provisions of paragraphs 1 and 2 above, insurance companies
and intermediaries selling insurance policies, shall identify the client only when carrying
out life insurance business, in the cases when:
1) the amount of the separate or several installments of premium that need to be paid
in the period of one year exceed the amount of EUR 1,000,
2) the payment of a single premium exceeds the amount of EUR 2,500, or
3) separate or several installments of premium that need to be paid in the period of
one year increase and exceed the amount of EUR 1,000.
Insurance companies or other organizations also perform identification in pension
insurance businesses, if the insurance policy can be transferred or used as collateral for a
loan or a credit.
An organization that performs activities of organizing or executing auctions or
trading with pieces of art, shall perform the identification only when carrying out cash
transaction or several connected cash transactions, exceeding the amount of EUR 15,000.
Gambling houses and other organizers of games of chance shall perform
identification of each participant in the game who makes a profit or loss exceeding EUR
1,000, and/or each participant who bought, brought or exchanged chips in that value.
Article 6
The administrative authority for anti-money laundering may prescribe that
identification shall not be required in the execution of specific transactions referred to in
Article 5 above, if the client is:
1. a state body or an organization with public authorities;
2. a credit or financial institution with the headquarters in EU member countries, or
in those countries which, according to the data of international organizations and
other competent international bodies, respect standards in the area of prevention
and detection of money laundering.
Article 7
The organization shall perform the identification of the bearer of the passbook at
every transaction that is performed on the basis of a passbook that is not such bearer’s
passbook.
The identification shall be always necessary when reasons for suspicion of money
laundering exist in connection with a transaction or a client.
Article 8
In case of identification referred to in paragraphs 1 and 4 of Article 5 of this Law,
the information listed in points 1, 2, 3, 4, 5 and 14 of paragraph 1 of Article 43 hereof
shall be obtained by the organization.
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In case of identification referred to in paragraph 2 of Article 5 of this Law, the
information listed in points 1, 2, 3, 6, 7, 8, 9, 10 and 11 of paragraph 1 of Article 43
hereof shall be obtained by the organization.
In case of identification referred to in paragraph 3 of Article 5 of this Law, the
information listed in points 1, 2, 3, 4, 5, 6, 8, 9 and 10 of paragraph 1 of Article 43 hereof
shall be obtained by the organization.
In case of the identification referred to in paragraph 5 of Article 5 of this Law, the
information listed in points 1, 2, 3, 6, 7, 8, 9, 10 and 14 of paragraph 1 of Article 43
hereof shall be obtained by the organization.
In case of the identification referred to in paragraph 7 of Article 5 of this Law, the
information listed in points 3 and 5 of paragraph 1 of Article 43 hereof shall be obtained
by the organization.
In case of the identification referred to in paragraph 1 of Article 7 of this Law, the
information listed in points 1, 2, 3, 6, 7, 8, 10 and 14 of paragraph 1 of Article 43 hereof
shall be obtained by the organization.
In case of the identification referred to in paragraph 2 of Article 7 of this Law, the
information listed in paragraph 1 of Article 43 hereof shall be obtained by the
organization.
When transactions described in paragraphs 2, 3, 5 and 6 of Article 5 of this Law
are performed on the basis of an opened account and/or a business relationship with a
client, only the missing information shall be obtained at each particular transaction.
In case of identification during the performance of activities related to
safekeeping operations, the information listed in points 1, 2, 3, 5, 6 and 7 of paragraph 1
of Article 43 hereof shall be obtained.
When depositing money into day-night safes, the information specified in point 2
of paragraph 1 of Article 43 of this Law shall be acquired, on the responsible persons of
legal persons.
Article 9
The organization shall request the information on legal persons referred to in
point 1 of paragraph 1 of Article 43 of this Law by examination of the original or
certified documentation from the public register that may not be older than 3 months.
The organization shall request the information referred to in points 2 and 3 of
paragraph 1 of Article 43 of this Law from the client's official personal identification
documents. If it is not possible to obtain all the necessary information from the client's
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submitted official personal identification document, then the missing information should
be obtained from other client's official personal identification document issued by a
relevant authority.
The organization shall request the information referred to in points 4, 5, 6, 7, 8, 9,
10, 11 and 12 of paragraph 1 of Article 43 of this Law from the review of the acts and
business documentation.
If it is not possible to obtain from the official personal documents, acts and
business documentation, all the information listed in paragraph 1 of Article 43 of this
Law, the missing information, with the exception of the information referred to in points
12 and 14 of paragraph 1 of Article 43 of this Law, shall be requested from the client.
In case of identification of a foreign national in accordance with paragraphs 1, 5
and 6 of Article 5 and Article 7 of this Law, a Xerox copy of the client's official personal
document shall also be made.
Article 10
In case of identification referred to in Articles 5 and 7 of this Law, the
organization shall be obliged to demand from a client a statement as to whether the client
is acting on his own behalf or on authorization.
If transactions are made on behalf of the client by an authorized person, the
organization shall obtain the information specified in points 2 and 3 of paragraph 1 of
Article 43 of this Law from the written authorization made by the client on whose behalf
the authorized person is acting. The organization shall obtain all the other information
listed in paragraph 1 of Article 43 of this Law, with the exception of the information
referred to in point 14 of paragraph 1 of Article 43 of this Law in the manner stipulated in
Article 9 hereof.
If the authorized person is opening an account or performing transactions, listed
in paragraph 5 of Article 5 and paragraph 2 of Article 7 of this Law in the name of the
foreign legal person, which does not or must not perform commercial or manufacturing
activity in the country in which it is registered, or in cases when other foreign legal
persons with unknown owners and managers are involved, the organization shall obtain
the information listed in point 14 of paragraph 1 of Article 43 of this Law, by examining
the original and verified documentation from appropriate public register, that shall not be
older than 3 months. If all the information cannot be obtained from the register, the
organization shall obtain missing data by examining the acts and business documentation
that are presented by the authorized person. The organization acquires the missing data
that cannot be obtained for objective reasons in the above-mentioned way from the
written statement of the authorized person.
While obtaining the information listed in paragraph 3 above, the organization
must, in all cases when another legal person is the indirect or direct owner of 20% of the
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business share, stocks or other rights of the legal person or it participates in its capital
with at least 20% share, obtain the information from point 14 of paragraph 1 of Article 43
of this Law for this other legal person.
Article 11
If the organization doubts the truthfulness of the information referred to in
paragraph 4 of Article 9 and paragraph 1 of Article 10 above, the organization shall
demand also a written statement from the client.
If a foreign legal person, with the exception of international governmental
organizations, carries out the transactions referred to in Article 5 above, the organization
shall be required to re-identify the client, at least once annually, by obtaining the
information specified under points 1 and 14 of paragraph 1 of Article 43 and by acquiring
new authorization in accordance with paragraph 2 of Article 10 hereof.
Article 12
When opening an account or establishing a business relationship, the
organizations may identify a client also in his absence, nevertheless it shall indisputably
establish the client's identity by obtaining all the information in accordance with this Law
and in the manner prescribed by the administrative authority for anti-money laundering.
Identification described in paragraph 1 above is possible only when the customer
is a state body, an organization with public authorities or an organization from Article 3
of this Law.
Identification on the basis of paragraph 1 above may only be performed for:
- a citizen of the Republic of Montenegro (hereinafter: the Republic) who is not
residing in Montenegro, or
- a foreign national from a country that pays regard to standards in the area of
prevention and detection of money laundering.
As an exception from paragraphs 1, 2 and 3 above, identification of the client in
his absence at the opening of an account or establishing a business relationship is not
possible, if the client is a foreign legal person, that does not or must not perform
commercial or manufacturing activity in the country in which it is registered, or in cases
when other foreign legal persons with unknown owners and managers are involved.
2. Reporting
Article 13
The organization shall be obliged to forward to the administrative authority for
anti-money laundering the information listed in points 1, 2, 3, 6, 7, 8, 9, 10 and 11 of
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paragraph 1 of Article 43 of this Law regarding each transaction exceeding the amount of
EUR 15,000 and several connected transactions whose total exceeds the amount of EUR
15,000.
An organization shall be obliged to forward to the administrative authority for
anti-money laundering the information referred to in paragraph 1 of Article 43 of this
Law in all cases where a transaction or client raises suspicion of money laundering
activity, including but not limited to the transactions:
1) with unusual structure or amount,
2) without clear financial purpose or
3) non-consistent with the client’s financial condition or operations,
4) of a client from a country that does not apply the standards in the area of detection
and prevention of money laundering.
The organization shall forward to the administrative authority for anti-money
laundering the information referred to in paragraph 1 and 2 above in the manner
prescribed by the administrative authority for anti-money laundering.
The administrative authority for anti-money laundering shall determine the
conditions under which an organization shall not be required to forward to the
administrative authority for anti-money laundering information from paragraph 1 above
about the transactions of a client, whose transactions regularly exceed EUR 15,000 in the
normal course of its business.
Article 14
In such cases as referred to in paragraph 1 of Article 13 above, the organization
shall forward the data to the administrative authority for anti-money laundering
immediately after the transaction is completed, but not later than three days after the
completion of the transaction.
In such cases as referred to in paragraph 2 of Article 13 above, the organization
shall forward the data to the administrative authority for anti-money laundering before
the transaction is completed and shall state the period during which the transaction is
expected to be executed.
The notification referred to in paragraph 2 above may be given also by telephone,
but the administrative authority for anti-money laundering must be notified subsequently
in writing not later than the next working day.
If, in such cases as referred to in paragraph 2 of Article 13 above, an organization
cannot, due to the nature of the transaction or because the transaction was not completed
or due to other justified reasons, act as provided for in paragraph 2 above, it shall be
obliged to forward the data to the administrative authority for anti-money laundering
immediately, or immediately after suspicion of money laundering activity is raised. The
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organization shall explain in the report the reasons for not acting in accordance with the
provisions of paragraph 2 above.
3. Compliance Plan, Authorized Person and List of Indicators
Article 15
In accordance with the standards and methodology prescribed by the
administrative authority for anti-money laundering, the organization shall establish a
written compliance plan as a basis to establish and develop policies, procedures and
practices for identification of suspicious transactions, develop special compliance
programs, including establishment of internal procedures and controls, helping all
employees understand a list of indicators for identification of suspicious transactions and
training for the staff who perform duties provided for in this Law.
The organization shall notify the administrative authority for anti-money
laundering of its authorized person and deputies of such authorized person, who shall be
responsible to conduct activities from paragraph 1 above, to forward information to the
administrative authority for anti-money laundering and perform other duties under this
Law.
The persons from paragraph 2 above shall be employees with special powers and
responsibilities in the organization.
Article 16
Irrespective of the provisions of Article 15, those organizations with less than four
employees shall not be required to name an authorized person and shall not be required to
conduct internal control as provided by this Law.
III. DUTIES AND RESPONSIBILITIES OF ADMINISTRATIVE AUTHORITY
FOR ANTI-MONEY LAUNDERING
Article 17
The activities related to detection and prevention of money laundering, as well as
other activities specified in this Law, shall be conducted by the administrative authority
for anti-money laundering.
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1. Money Laundering Detection
Article 18
The administrative authority for anti-money laundering shall receive, collect,
analyze and submit to competent authorities data, information and documentation that it
obtained in accordance with provisions of this Law.
Article 19
If the administrative authority for anti-money laundering evaluates that submitted
data regarding certain transaction or certain person provide grounds for the suspicion of
money laundering, it may require from the organization data from paragraph 1 of Article
43 of this Law, as well as all other data and information that organization holds as its
official records that are necessary for money laundering detection.
In cases from paragraph 1 of this Article, the organization is obliged to submit to
the administrative authority for anti-money laundering upon its request all other relevant
documentation.
The administrative authority for anti-money laundering may require from the
organization information in written form, data and documentation regarding performing
of activities in accordance with provisions of this Law, as well as other necessary data.
Organization is obliged to submit to the administrative authority for anti-money
laundering without delay data, information and documentation from paragraphs 1, 2 and
3 of this Article and within 8 days as from the day of request reception.
Because of the extensiveness of documentation or other justified reasons,
administrative authority for anti-money laundering may extend the term from paragraph 4
of this Article to the organization by the announcement in written form, upon such
request from the organization is submitted in written form or it may accept the
proposition of the organization to review documentation in premises of the organization.
Article 20
The administrative authority for anti-money laundering may temporarily suspend
the transaction by the order in written form if it evaluates that there is a reasonable
suspicion of money laundering and notify competent bodies of it.
In emergences, the order from paragraph 1 of this Article may be provided in
verbal form but the Administrative authority for anti-money laundering is also obliged to
submit such order in written form the next business day at the latest.
Temporary suspension of the transaction may last 72 hours at the most.
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In the case of temporary suspension of transaction, when in pre-criminal or
criminal proceedings is necessary to collect additional data or from other justified
reasons, the administrative authority for anti-money laundering may give to the
organization instruction on how to proceed in connection with persons to which such
transaction is related to.
Upon received notification, competent authorities from paragraph 1 of this Article
have to act urgently and within 72 hours from the beginning of transaction suspension at
the latest, take measures in accordance with their powers.
Article 21
If the administrative authority for anti-money laundering determines within the
time period from paragraph 3 of Article 20 above that there is no money laundering, it
shall inform the competent authorities and the organization, which may then execute the
transaction immediately.
If the administrative authority for anti-money laundering does not act within the
time period from Article 14 paragraph 2 of this Law, the organization may execute the
transaction immediately.
Article 22
If it evaluates that there is suspicion of money laundering regarding certain
transactions or certain persons, the administrative authority for anti-money laundering
may require data, information and documentation necessary for detection and verification
of money laundering from the lawyer, law firm, auditing company, independent auditor
and legal entity or natural person, which performs accounting or similar services.
Regarding time limits for submitting data, information and documentation from
paragraph 1 of this Article, provisions of paragraphs 4 and 5 of Article 19 above shall be
applied accordingly.
Article 23
If it evaluates that there is suspicion of money laundering regarding certain
transaction or certain persons, the administrative authority for anti-money laundering
may require data, information and documentation necessary for money laundering
detection from state authorities and organizations with public powers and authorities.
The administrative authority for anti-money laundering may require data,
information and documentation necessary for initiating criminal proceedings from state
authorities and organizations with public powers and authorities, in accordance with
provisions of this Law.
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State authorities and organizations with public powers and authorities are obliged
to submit data, information and documentation from paragraphs 1 and 2 of this Article to
the administrative authority for anti-money laundering within 8 days as from the day of
request reception at the latest, or to provide to the administrative authority for anti-money
laundering, free of special charges, direct electronic access to certain data and
information.
Article 24
The Administrative authority for anti-money laundering is obliged, on the basis of
a written initiative submitted by the Court, State Prosecutor, Ministry of Internal Affairs,
Central Bank of Montenegro, Securities Commission, Public Revenues Directorate,
inspections bodies and other competent authorities, to check, within its authorities, all
transactions and persons for which there is suspicion that they may present money
laundering and to notify the result of its review to the requesting authority in writing.
a) International Cooperation
Article 25
The administrative authority for anti-money laundering is authorized to obtain
data, information and documentation regarding detection and prevention of money
laundering from authorized bodies of other countries and international organizations.
The administrative authority for anti-money laundering is authorized to submit
available data, information and documentation to authorized bodies of other countries and
international organizations upon their request or on its own initiative, under reciprocity
condition.
The administrative authority for anti-money laundering may submit personal data
to authorized bodies of other countries (users) if the state to which data are submitted has
established personal data protection and with confirmation that authorized body of such
country (user) will use personal data only in order to detect and prevent money
laundering.
The head of the administrative authority for anti-money laundering is authorized
to conclude agreements on data, information and documentation exchange with
authorized bodies of other countries and international organizations.
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b) Suspicious Transactions Notification
Article 26
If the administrative authority for anti-money laundering determines that, on the
basis of data, information and documentation regarding certain transaction or certain
person and obtained in accordance with provisions of this Law, there is suspicion of
money laundering, it is obliged to submit the notification to the competent authority in
written form with necessary documentation.
The administrative authority for anti-money laundering does not state data on
authorized person or other employee from the organization, which provided data on the
basis of paragraph 3 of Article 13 above in the notification from paragraph 1 of this
Article, unless there are reasons to suspect that organization or its employee have
committed criminal act of money laundering or unless submission of such data have been
required by the competent Court in written form.
The administrative authority for anti-money laundering is obliged to submit also
the notification in written form to competent state authorities in cases when according to
data, information and documentation obtained in accordance with provisions of this Law
it determines that there is suspicion that regarding certain transaction or person some
other criminal act has been committed.
c) Information Feedback
Article 27
After consideration of data, information and documentation that are in accordance
with provisions of this Law submitted when there is suspicion of money laundering in
connection with a transaction or a client, the administrative authority for anti-money
laundering shall notify the organization, that is, the person that submitted such data of its
findings in writing, except if the administrative authority for anti-money laundering
evaluates that it could be detrimental for the further proceedings.
2. Money Laundering Prevention
Article 28
In the performance of activities related to money laundering prevention, the
administrative authority for anti-money laundering shall have the following authorities:
1. To initiate changes and additions (amendments) to regulations that relate or
regard to detection and prevention of money laundering with competent
authorities;
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2. To participate in the preparation of and to compile the list of indicators for
identifying suspicious transactions and to submit it to persons that have duties
determined by this Law;
3. To participate in training of employees and authorized persons in organizations,
competent bodies, organizations with public powers, lawyers, law firms, auditing
companies, independent auditors and legal entities and natural persons that
perform accounting or other similar services;
4. To publish a list of countries that do not apply standards in the area of money
laundering detection and prevention;
5. To publish statistical data from money laundering field at least once a year and to
notify the public in other appropriate manner on different forms of money
laundering.
3. Other Tasks
Article 29
Upon receiving the request in written form from the Court, the administrative
authority for anti-money laundering is obliged to submit available data from its records of
transactions and persons needed by the Court for determination of circumstances related
to establishing and confiscating of proceeds.
IV. DUTIES OF STATE BODIES, ORGANISATIONS WITH PUBLIC
AUTHORITIES, LAWYERS, LAW FIRMS, AUDIT COMPANIES,
INDEPENDENT AUDITORS AND LEGAL OR NATURAL PERSONS
PERFORMING ACCOUNTANCY OR OTHER SIMILAR SERVICES
1. Customs Administration Authorities
Article 30
Customs administration authorities shall be obliged to forward to the
administrative authority for anti-money laundering within 3 days information about every
carrier transporting across the state border cash, checks, securities, precious metals and
precious stones exceeding the amount of EUR 15,000.
2. Lawyers, law firms, audit companies, independent auditors and legal and
natural persons performing accountancy or other similar services
Article 31
An audit company, an independent auditor or legal or natural person performing
accountancy or other similar services establishes a business relation with a client, it shall
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also be obliged to perform an immediate identification in compliance with the provisions
of this Law.
If a lawyer, law firm, an audit company, an independent auditor or legal or natural person
performing accountancy or other similar services assists in planning or execution of
transactions for his client concerning the buying and selling of real property or business
entities managing of client money or other assets opening or management of bank,
savings or securities accounts creation, operation or management of legal entities acting
on behalf of and for his client in any financial transaction, and discovers during the
performance of his work that there exist reasons for suspicion of money laundering in
connection with a transaction or a particular person, or when a client seeks for advise
concerning money laundering, he shall notify the administrative authority for anti-money
laundering in writing immediately upon finding the reasons for suspicion.
A lawyer and law firm shall identify their clients in accordance with provisions of
this Law only in cases referred to in paragraph 2 above.
Legal entities and natural persons referred to in paragraphs 1 and 2 of this Article
shall be obliged, at the written request of the administrative authority for anti-money
laundering, to submit all required data on a transaction or a person that is suspected to be
money laundering.
Article 32
Legal entities and natural persons under Article 31 of this Law shall be obliged to
provide training for all employees who shall be exercising duties in compliance with the
provisions of this Law and shall compose a list of indicators for recognizing suspicious
transactions.
Article 33
Exceptionally from Article 31, paragraph 1 of this Law, a lawyer, law firm, an
audit company, independent auditor or legal or natural person performing accountancy or
other similar services, shall not be obliged to submit information they receive from or
obtain on one of their clients, in the course of ascertaining the legal position for their
client or performing their task of defending or representing that client in, or concerning
judicial proceedings, including advice on instituting or avoiding proceedings, whether
such information is received or obtained before, during or after such proceedings.
Under conditions of paragraph 1 above, a lawyer, law firm, audit company,
independent auditor or legal or natural person performing accountancy or other similar
services is not obliged to forward the data, information and documentation on the basis of
a request of the administrative authority for anti-money laundering from Article 31,
paragraph 4 of this Law, but he shall inform the administrative authority for anti-money
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laundering in writing, within 8 days, on the reasons why he has not acted in accordance
with the request of the administrative authority for anti-money laundering.
3. Forwarding of Statistical Data
Article 34
To enable the centralization and analysis of all data related to money laundering,
courts, Public Prosecutor and other state authorities shall forward to the administrative
authority for anti-money laundering data on offences as provided by this Law and data on
criminal offences of money laundering.
State authorities shall be obliged to forward to the administrative authority for
anti-money laundering regularly and upon specific request the following information:
date of filing criminal charge, name, surname, date of birth and address, statutory
definition of the criminal offence and the place, time and manner of committing the
action.
Public Prosecutor, courts and bodies competent for managing criminal offense
proceedings shall be obliged to forward to the administrative authority for anti-money
laundering semi-annually and upon specific request the following information: name,
surname, date of birth and address of a person in connection with whom an order for the
temporary protection of the request for the seizure of financial profit, or a person against
whom a request for initiating criminal proceedings has been filed, the stage of
proceedings and their decision in each individual stage of proceedings, the statutory
definition of the criminal offence or misdemeanor, and the amount of money seized or
the value of unlawfully acquired assets and the date of seizure.
4. Participation in the Preparation of List of Indicators
Article 35
The Central Bank, the Securities Commission, Institute for Accountancy and
Audit, Ministry of Internal Affairs, Directorate of Public Revenues and other bodies that
are competent for supervision in compliance with other laws (hereinafter referred to as:
the supervision bodies) shall cooperate in drawing up the list of indicators for recognizing
the suspicious transactions in entities they supervise and control.
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V. PROTECTION AND KEEPING OF DATA AND RECORD KEEPING
Article 36
The organization, audit company, independent auditor and legal or natural person
performing accountancy or other similar services and their staff shall not reveal to a client
or third person whether the data, information or documentation about the client or
transaction referred to in paragraph 3 of Article 13, paragraphs 1, 2 and 3 of Article 19,
Article 22, and paragraph 2 of Article 31 of this Law were or shall be forwarded to the
administrative authority for anti-money laundering or that the administrative authority for
anti-money laundering has in accordance with the provisions of Article 20 of this Law
temporarily postponed the transaction or gave the organization instructions in this
connection.
Information about a request or about the forwarding of data, information or
documentation and about the temporary postponement of a transaction or about the
instructions referred to in paragraph 1 above shall be official secret.
The head of the administrative authority for anti-money laundering shall decide
on the lifting of the classification referred to in paragraph 2 above.
Provisions of paragraphs 1, 2 and 3 above that refer to the official secret shall be
accordingly applied with regard to lawyers, law firms and notaries except, when they
forward to the administrative authority for anti-money laundering data in accordance with
Article 33 of this Law.
Article 37
When forwarding data, information and documentation to the administrative
authority for anti-money laundering under this Law, the obligation to protect bank
secrecy, business and official secrecy shall not apply to an organization, an organization
with public authorization, state body, court, lawyer, law firm, audit company,
independent auditor or to a legal or natural person performing accountancy or other
similar services and their staff.
The organization, a lawyer, law firm, an audit company, independent auditor and
a legal or natural person performing accountancy or other similar services shall not be
liable for damage caused to clients or to third persons due to their submission of data,
information or documentation to the administrative authority for anti-money laundering
or due to the implementation of the administrative authority for anti-money laundering's
order to temporarily postpone a transaction or for complying with the instructions issued
in connection with the said order in accordance with the provisions of this Law or in
accordance the regulations passed on the basis of this Law.
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Article 38
The administrative authority for anti-money laundering, state bodies,
organizations, organizations with public powers and authorities, lawyers, law firms, audit
companies, independent auditors and legal and natural persons performing accountancy
services or tax advisory services and their staff may use the data, information and
documentation obtained under this Law solely for the purposes stipulated herein.
Article 39
The organization shall keep the information obtained on the basis of Articles 5, 7,
8, 9 and 10 of this Law and the corresponding documentation for at least ten years after
the completion of the transaction, closure of the account or termination of the validity of
the contract.
The organization shall keep the information and corresponding documentation on
the authorized person and deputy authorized person, on the professional training of the
staff and the execution of internal control referred to in Article 15 of this Law for at least
four years after the appointment of the authorized person and deputy authorized person
and after the completion of professional training and the execution of internal control.
A lawyer, law firm, audit company, independent auditor and a legal or natural
person performing accountancy or other similar services shall keep the information
obtained on the basis of paragraph 1 of Article 31 and corresponding documentation for
at least 10 years after the completion of the identification.
A lawyer, law firm, audit company, independent auditor and a legal or natural
person performing accountancy or other similar services shall keep the information and
corresponding documentation on the professional training of the staff for at least four
years after the completion of professional training.
Article 40
Customs administration authorities shall keep information on the transport of cash
and securities across the state border, for a period of ten years from the date the data was
obtained.
Article 41
The administrative authority for anti-money laundering shall keep data and
information from records collected under this Law for ten years from the date the data
was obtained.
The administrative authority for anti-money laundering shall not inform the
person concerned that data about them has been compiled.
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The persons referred to in paragraph 2 above shall have the right to inspect their
personal data ten years after the data has been obtained.
Article 42
Organizations shall keep records of all clients and transactions referred to in
Articles 5 and 7 hereof.
Customs administration authorities shall keep records of cross-border transport of
cash and securities.
A lawyer, law firm, audit company, independent auditor and a legal or natural
person performing accountancy or other similar services shall keep records on clients and
transactions from paragraph 2 of Article 31 of this Law.
1.
2.
3.
4.
5.
6.
The administrative authority for anti-money laundering shall keep the following:
records of the persons and transactions referred to in Article 13 of this Law,
records of the initiatives received in accordance with the provisions of Article 24
of this Law,
records of the data sent to foreign state bodies and international organizations in
accordance with the provisions of Article 25 of this Law,
records of the data, information and documentation submitted to competent
bodies in accordance with the provisions of Article 26 of this Law,
records of the notifications referred to in paragraph 2, Article 31 of this Law,
records of the offences and criminal offences obtained from competent bodies in
accordance with the provisions of Article 34 of this Law.
The administrative authority for anti-money laundering may also establish and
maintain other records, as needed.
Article 43
The records of clients and transactions referred to in Articles 5 and 7 of this Law
shall include the following data:
1. the company name, seat and registration number of the legal person opening an
account, establishing a business relation or conducting the transaction or of the
legal person on whose behalf the account is being opened, a permanent business
relation is being established or the transaction is being carried out;
2. the name, surname, permanent address, date and place of birth and the unique
birth registration number (hereinafter: the personal data) of the employee or
authorized person who, on behalf of a legal person is opening an account,
establishing a business relation or conducting the transaction, and the number of
the personal document and name of the authority that issued the official personal
identification document;
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3. the personal data of the natural person who is opening an account, establishing a
business relationship enters into the premises of a gambling house or other
concessionaire for special lottery games or conducts the transaction, or of the
natural person on whose behalf the account is being opened, a business
relationship is being established or the transaction is being carried out, and the
number of personal document and name of the authority that issued the official
personal identification document;
4. reasons for opening the account or for establishing a business relation and
information about the activities of the client;
5. date of opening the account and/or of establishing a business relationship;
6. date and
time of execution of transaction;
7. amount of the transaction and currency in which the transaction is being carried
out;
8. purpose of the transaction and the name, surname and address or name of the
company and seat of the person to whom the transaction is being directed;
9. manner of executing the transaction;
10. name and surname or name and seat of the person sending the order in case of
transfers from abroad;
11. information about the source of money or property that is subject of the
transaction;
12. reasons for suspicion of money laundering;
13. the personal data of a natural person, who indirectly or directly owns at least 20%
of the business share, stocks or other rights, on which grounds he participates in
the managing of the legal person or he participates in the capital of the legal
person with at least 20% share or has the dominant position in managing the funds
of the legal person.
The records of the transport of cash and securities across the state border under
Article 30 of this Law shall include the following data:
1. the name, surname, permanent address and date and place of birth of the natural
person who is transporting cash or securities across the state border;
2. the name and seat of the legal person or the name, surname and permanent
address of the natural person on whose behalf the transport of cash or securities
across the state border is being carried out;
3. the amount, currency, type and purpose of transaction and place, date and time of
crossing the state border;
4. information whether the transaction was reported to the customs service
authorities.
The records of the persons and transactions referred to in Article 13 of this Law
shall include the information listed in paragraph 1 of this Article.
The records of the received initiatives referred to in the provisions of Article 24 of
this Law shall include the following data:
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1. the name, surname, date of birth, permanent address or name and seat of the legal
person in connection with whom there exist reasons for suspicion of money
laundering;
2. information about the transaction in connection with which there exist reasons for
suspicion of money laundering (amount, currency, date or period of execution of
transaction);
3. reasons for suspicion of money laundering.
The records of the data sent to foreign state bodies and international organizations
in accordance with the provisions of Article 25 of this Law shall include the following
data:
1. the name, surname, date of birth and permanent address or name of the natural
person or the name and seat of the legal person whose data is being sent abroad;
2. the name of the country and title of the authority to which the data is being sent.
The records of notifications and the information sent to competent bodies in
accordance with the provisions of Article 26 of this Law shall include the following data:
1. the name, surname, date of birth and permanent address of the natural person or
name and seat of the legal person in connection with whom the Administrative
authority for anti-money laundering forwarded notification or information;
2. information about the transaction, in connection with which there exist reasons for
suspicion of money laundering (amount, currency, date or period of execution of
transaction);
3. reasons for suspicion of money laundering and statutory definition of predicate
offence or reasons for suspicion of other criminal offences.
The records of the clients and transactions referred to in Article 31 of this Law
shall include the following data:
1. name, surname, permanent address, date and place of birth of the natural person
or the name and seat of the legal person or an entrepreneur for whom a lawyer or
a law firm performs services, or for whom auditing is being conducted or for
whom accountancy or other similar services are being performed;
2. the name and surname, date of birth and permanent address of the employee or an
authorized person, who establishes a business relationship or carries out the
transaction for the legal person mentioned in the point 1;
3. data from the paragraph 1, point 14 of this Article with regard to the legal person,
for which a lawyer or law firm performs services, or on whom auditing is being
conducted or for whom accountancy or other similar services are being
performed;
4. date of establishing the business relation;
5. date of carrying out the transaction;
6. the amount of transaction and the currency in which the transaction was
performed;
7. purpose of transaction and the name, surname and permanent residence or the
name and seat of the legal person, for whom the transaction is intended;
8. the manner of performing the transaction;
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9. name, surname, date of birth and permanent residence or the name and seat of the
legal person, in connection with whom there exist reasons for suspicion of money
laundering;
10. information about the transaction in connection with which there exist reasons for
suspicion of money laundering (amount, currency, date or period of execution of
transactions);
11. reasons for suspicion of money laundering.
The records of offences and criminal offences referred to in Article 34 of this Law
shall include the following data:
1. the name, surname, date of birth and permanent address, or the name and seat of
the denounced person, a person in connection with whom an order for the
temporary protection of the request for seizure of illegal financial profit, or a
person against whom a request for initiating criminal proceedings has been filed;
2. place, time and manner of committing an action which has signs of a criminal
offence or misdemeanor;
3. the stage of proceedings on the case, the statutory definition of the criminal
offence or misdemeanor;
4. the amount of money seized or the value of unlawfully acquired assets and the
date of seizure.
Irrespective of the provisions of paragraph 1 of this Article, the records shall not
include the birth registration number in the case of foreign nationals.
Article 44
All data, information and documentation from the official personal data records
shall be forwarded to the administrative authority for anti-money laundering under this
Law free of charge.
Article 45
The administrative authority for anti-money laundering shall prescribe the manner
of work of the authorized person, the manner of conducting internal supervision, the
keeping and protection of data, record keeping and the professional training of the staff of
the organization, lawyers, law firms, audit companies, independent auditors and legal or
natural persons performing accountancy or other similar services.
The administrative authority for anti-money laundering shall prescribe the
compulsory inclusion of specific indicators on the list of indicators for recognizing
suspicious transactions.
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VI. SUPERVISION
Article 46
The implementation of the provisions of this Article by organizations, lawyers,
law firms, audit companies, independent auditors and legal or natural persons performing
accountancy or other similar services shall be supervised, within their individual
competencies, by the administrative authority for anti-money laundering and the
supervision bodies referred to in Article 35 hereof.
Article 47
If the supervision bodies discover a violation referred to in Articles 50 and 51 of
this Law, under provisions of special laws which govern the operation of organizations,
audit companies, independent auditors and legal or natural persons performing
accountancy or other similar services, they shall order the implementation of the
appropriate control measures and shall without delay notify in writing the administrative
authority for anti-money laundering about the violations discovered.
The notification referred to in the paragraph 1 shall include especially the
following data: name, surname, date of birth and permanent address of the natural person
or, name and seat of the legal person that committed the offence, place, time and manner
of committing the action which has signs of an offence, and information as to whether
supervision bodies ordered any control measures under their competencies.
The notification referred to under paragraph 2 of this Article shall be
accompanied by the documentation providing evidence of the violation.
Articles 48
The administrative authority for anti-money laundering shall supervise the
implementation of the provisions of this Law by gathering and comparing data,
information and the documentation received on the basis of the provisions of this Law.
If during supervising the administrative authority for anti-money laundering
discovers in a manner stipulated under paragraph 1 of this Article a violation of the
provisions of this Law that can be eliminated subsequently, it may:
1. demand that the of organization, lawyer, law firm, audit company, independent
auditor and legal or natural person performing accountancy or other similar
services, removes the violation;
2. propose to supervision bodies to implement the appropriate control measure
within their competencies;
3. request for the initiation of administrative proceedings.
When taking the decision about the measure referred to in paragraph 2 of this
Article the administrative authority for anti-money laundering shall take into account the
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circumstances under which the offence was committed, repetition of the offence and the
control measures imposed by another supervisory body on the organization or on another
person referred to in the Article 46 that is being supervised.
Regarding the deadline for the removal of the offence referred to in point 1 of
paragraph 2 above; paragraphs 4 and 5 of Article 19 of this Law shall accordingly apply.
Article 49
The administrative authority for anti-money laundering shall notify the competent
supervisory body, i.e. the Bar Association upon filing a request for the initiation of
administrative proceedings under this law if the request has been filed against a lawyer or
a law firm.
VII. PENALTY PROVISIONS
Article 50
A legal person who has committed an offence shall be fined an amount ranging
from fifty-fold to three hundred -fold minimum monthly wages in the Republic:
1. for failure to identify the client opening an account, establishing a business
relationship, entering a gambling house or premises of other concessionaire, or
carrying out a transaction, or when there is suspicion of money laundering (Art. 5,
7);
2. for failure to re-identify a foreign legal entity at least once a year (Art. 11,
paragraph 2);
3. for failure to forward to the administrative authority for anti-money laundering
the prescribed information or for failure to forward it to the administrative
authority for anti-money laundering within the prescribed time (Art. 13, 14);
4. for failure to forward to the administrative authority for anti-money laundering
the required data, information and documentation or for failure to forward them
within the specified period (Art. 19);
5. for failure to act according to the administrative authority for anti-money
laundering's order to temporarily cease a transaction or failure to implement the
instructions issued by the administrative authority for anti-money laundering in
connection with the order (Art. 20);
6. for failure to forward to the administrative authority for anti-money laundering
information about a transaction or a particular person in connection with whom
there exist reasons for suspicion of money laundering or failure to forward it
within the specified period (Art. 22);
7. for failure to keep data and documentation for at least ten years after the
completion of the transaction, closing of the account or the termination of the
validity of the contract, or data and related documentation on the authorized
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person and deputies of such person and on training of employees, or for failure to
keep them until the prescribed time (Art. 39);
8. for failure to keep the prescribed records of clients and transactions (Art. 43).
The responsible person i.e. natural person working for the legal person or engaged
in another manner by the legal person shall be fined in the amount from five-fold to
twenty-fold minimum wages in the Republic for committing an offence referred to in
paragraph 1 of this Article.
Article 51
A legal person who has committed an offence shall be liable to a fine ranging
from ten-fold to two hundred-fold amount of the minimum wage in the Republic:
1. for failure to acquire all the prescribed data or to acquire them in a prescribed
manner (Art. 8, 9, 10);
2. for failure to forward to the Administrative authority for anti-money laundering
data about an authorized person and deputies of such authorized person, for
failure to establish and develop policies, procedures and practices to perform
duties under the Law, for failure to develop a special compliance plan, for failure
to make employees understand a list of indicator for identification of suspicious
transactions and for failure to train employees in identification of suspicious
transactions (Art. 15).
The responsible person, i.e. natural person working for the legal person or
engaged in another manner by the legal person shall be fined in the amount of three-fold
to fifteen-fold minimum monthly wage in the Republic for committing an offence
referred to in paragraph 1 of this Article.
VIII. TRANSITIONAL AND FINAL PROVISIONS
Article 52
The administrative authority for anti-money laundering founding act shall be
adopted by the Government within 30 days as of the effective date of this Law.
Article 53
The enabling regulations for the implementation of this Law shall be adopted
within six months as of the date of foundation of the administrative authority for antimoney laundering.
Organizations, lawyers, law firms, audit companies, independent auditors and
legal or natural persons performing accountancy or other similar services shall compose a
list of indicators for recognizing suspicious transactions within six months after the
effective date of this Law.
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Article 54
The provision of Article 64 and Article 92, paragraph 1, point 19 of the Law on
Banks (“Official Gazette of the Republic of Montenegro”, No. 52/00, 32/02) shall cease
to be valid as of the effective date of this Law.
Article 55
This Law shall become effective eight days after its publication in the “Official
Gazette of the Republic of Montenegro”.
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