On the Prevention of Money Laundering and Terrorism Financing – 5

Record Keeping and Release from Responsibility

Section 37. Storage and Updating of Customer Due Diligence Documents

(۱) The subject of the Law shall document the customer identification and due diligence measures and, at the request of a supervisory and control authority or the Control Service, shall present such documents to the supervisory and control authorities of the subject of the Law, or shall submit the copies of such documents to the Control Service.

(۲) The subject of the Law shall, at least for five years following the end of business relationships, store the following:

۱) copies of the documents attesting to the customer identification data;

۲) information on the customer and the accounts thereof;

۳) the notification regarding the beneficial owner;

۴) correspondence, including electronic mail correspondence; and

۵) other documents, including electronic documents obtained in the process of customer due diligence.

(۳) In special cases, the time period referred to in Paragraph two of this Section may be extended, upon the instructions of the Control Service, but it shall not exceed six years.

(۴) The subject of the Law has the right to process the data regarding the customers, their representatives and beneficial owners, obtained as a result of the customer identification and due diligence, electronically.

(۵) Sworn notaries shall store the customer due diligence documents pursuant to the requirements provided for in the Notariate Law.

Section 38. Prohibition of Disclosure of the Reporting Fact

(۱) The subject of the Law is prohibited from notifying a customer, beneficial owner, as well as other persons, except for the supervisory and control authorities, regarding the fact that the data concerning the customer or the transaction (transactions) thereof have been provided to the Control Service and that the analysis of such data may be or is being performed or that pre-trial criminal proceedings are or may be commenced in relation to the commitment of a criminal offence, including money laundering, terrorism financing or attempts to carry out such actions.

(۲) The prohibition specified in Paragraph one of this Section shall not apply to information exchange between the Member States or such third countries that have the requirements in the field of prevention of money laundering and terrorism financing in force, which are consistent with the requirements of this Law, and between the subjects of the Law belonging to the same group. A legal arrangement having one and the same owner, management or controlling authority is considered to be the same group.

(۳) The prohibition specified in Paragraph one of this Section shall not apply to information exchange between the Member States or such third countries that have the requirements in the field of prevention of money laundering and terrorism financing in force, tax advisors, external accountants, sworn auditors, commercial companies of sworn auditors, sworn notaries, sworn lawyers and other independent providers of legal services, if they perform their professional activities as employees of the same legal person or when working within the same group.

(۴) The prohibition specified in Paragraph one of this Section shall not apply to information exchange between credit institutions, financial institutions, tax advisors, external accountants, sworn auditors, commercial companies of sworn auditors, sworn notaries, sworn lawyers and other independent providers of legal services in the cases, when:

۱) two or more subjects of the Law participate in the transaction;

۲) one and the same customer is involved in the transaction;

۳) the subjects of the Law involved in the transaction are registered in a Member State or third country that has the requirements in the field of prevention of money laundering and terrorism financing in force, which are consistent with the requirements of this Law;

۴) the subjects of the Law involved in the transaction belong to the same professional category and are subject to equivalent obligations as regards professional secrecy and personal data protection; or

۵) the information exchanged is being used only for the prevention of money laundering and terrorism financing.

Section 39. Permission for Disclosure of the Reporting Fact

(۱) The subject of the Law has the right to inform a customer regarding the fact that it has refrained from executing the transaction and has reported it to the Control Service, as well as inform a customer regarding the order issued by the Control Service pursuant to Section 32, Paragraph 2¹ of this Law.

(۲) The Control Service shall inform a customer regarding the following:

۱) the fact that the information has been provided to pre-trial investigation institutions or the Prosecutor’s Office pursuant to the procedure specified in Section 55 of this Law; and

۲) the fact that, due to refraining from executing the transaction, it is impossible to provide the information specified in Paragraph two, Clause 1 of this Section.

[۱۰ December 2009; see Clause 8 of the Transitional Provisions; 7 June 2012]

Section 40. Release of the Subject of the Law from Responsibility

(۱) If the subject of the Law complies with the requirements of this Law, the action thereof may not be qualified for a violation of the norms regulating the professional activity or the requirements of the supervisory and control authorities.

(۲) If the subject of the Law has reported in good faith to the Control Service in compliance with the requirements of this Law, irrespective of whether the fact of money laundering, terrorism financing or an attempt to carry out such actions or another associated criminal offence is proved or not proved during the pre-trial criminal proceedings or on trial, as well as irrespective of the provisions of the contract between the customer and the subject of the Law, the reporting to the Control Service shall not be deemed to be the disclosure of confidential information and, therefore, the subject of the Law shall not be subject to legal and also civil liability.

(۳) If the subject of the Law in good faith has refrained from executing the transaction pursuant to Section 32 of this Law, has ended business relationships or has requested early fulfilment of obligations pursuant to Section 28, Paragraph two of this Law, the subject of the Law shall not be subject to legal and also civil liability due to such refraining or delay of the transaction, end of business relationships or request for early fulfilment of obligations.

(۴) If tax advisors, external accountants, sworn auditors, commercial companies of sworn auditors, sworn notaries, sworn lawyers and other independent providers of legal services refrain a customer from the involvement in criminal offences, it shall not be deemed to be the disclosure of confidential information and, therefore, the subjects of the Law referred to in this Paragraph shall not be subject to legal and also civil liability.

(۵) If the Control Service has issued an order regarding suspension of a transaction pursuant to the requirements of this Law, then, irrespectively of the transaction suspension outcome, the subject of this Law shall not be subject to legal and also civil liability.