3.6. Risk-assessment obligations and decisions for countries
Countries assess risks of
Assessments should be kept up-to-date
(ii) Assist in allocation and prioritization of AML/CFT resources
By competent authorities
Money laundering
Terrorist financing
(iii) Provide financial institutions and DNFBPs with
(i) Inform potential changes to the AML/CFT regime
R. 1, IN
Information necessary for conducting aml/cft risk assessments
Including changes to
Relevant competent authorities
Laws
Regulations
Other measures
Self-regulatory bodies (SRBs)
Appropriate information on the results of assessments should be provided to
Financial institutions
DNFBPs
Countries assess risks of
At risk of abuse from money laundering or terrorist financing
Consider applying AML/CFT requirements
Money laundering
Terrorist financing
3. Another type of:
institution
activity
business
profession
Strictly limited circumstances
1. Financial institutions
2. DNFBPs
Exemptions: decide not to apply AML/CFT requirements
Proven low risk
Relates to a particular type of financial institution, activity or DNFBP
Gathered information should be retained as in R. 11
An activity other than the transferring of money or value
A financial activity is carried out on an occasional or very limited basis
Having regard to quantitative criteria
Lecture 4. Legal requirements for a national AML/CFT regime
Key words
Adverse implications of ML
dual criminality
objective factual circumstances
state of mind of a money launderer
knowledge
intent
purpose
aim
agreement
perpetrator
self-laundering
confiscation
provisional measures
bona fide third parties
freezing
seizure
non-conviction based confiscation
corporate liability
lawful origin of property
criminal conviction
civil liability
criminal liability
administrative liability
common law tradition
civil law tradition
contamination effect
Key Questions
What are the arguments against holding the perpetrator of the predicate offence liable for laundering the proceeds?
Why some scholars insist that the perpetrator of the predicate offence should be held liable for money laundering?
List adverse macroeconomic implications of wide-spread money laundering.
Which risks and damages of money laundering are law-abiding intermediaries facing?
Define the contamination effect of money laundering.
How does wide-spread money laundering influences the average yield and risk ratios of investments?
Define dual criminality.
What is the difference between the minimum standard and the broader approach to applying dual criminality test?
Where the intent and knowledge required to prove the offence of ML may be inferred from?
Define the term “objective factual circumstances”.
Which three parts of a money launderer’s state of mind are listed in the Vienna and Merida conventions?
Which convention allows to determine money launderer’s state of mind on the grounds of his suspicion that the property was proceeds from crime? What are the other grounds of such determination listed in the same article of the convention?
What is the difference between confiscation and provisional measures?
Define bona fide third parties. Why should their rights not be prejudiced during confiscation of property?
What is the reason for confiscating the property of corresponding value?
Why is it important to confiscate the instrumentalities used in money laundering?
What is the difference between freezing and seizure of property?
Why is it important to have mechanisms that allow competent authorities to effectively manage seized or confiscated property?
Give an example of confiscating proceeds from money laundering.
Under what circumstances is it possible to confiscate proceeds of money laundering without a criminal conviction?
What are the three general qualities of all sanctions directed at money launderers and financiers of terrorism?
What is the reason for imposing measures of criminal liability on legal persons?
What law tradition should a country have, to allow it to impose criminal liability measures on entities involved in money laundering?