Practice Areas

The recent anti-money laundering reform imposes complex and sophisticated requirements on businesses engaged in vulnerable activities and severe penalties on those who fail to comply (fines ranging from $23,000 to $7.3 million and even imprisonment). From now on, businesses engaged in vulnerable activities must include the following in their anti-money laundering system:

1. An annual risk assessment measuring and documenting money laundering risks, their likelihood, and their consequences;
2. A compliance manual (for headquarters and branches) detailing:

• Know Your Customer (KYC) procedures;
• Procedures to prevent high-risk transactions; and
• Procedures for submitting periodic reports to the Ministry of Finance.

3. Human Resources processes screening out —without discrimination—high-risk personnel.

• Annual training for senior management, strategic departments, and general staff.

4. Automated mechanisms (software) detecting —in real time—red flags in transactions, individuals, amounts, etc.;
5. Procedures to identify controlling beneficiaries (beneficial owners) and collect their documents; and
6. Information on transactions must be kept for 10 years, including documentation on customers (actual or potential), any communication with them, and KYC results; and
7. An annual audit of this entire compliance system conducted by an impartial, certified third party.

1 Traveler’s checks; real estate (development, sale, rental); notaries and public brokers; gambling and raffles; jewelry; e-wallets; loans; art; foundations; asset protection; customs brokerage firms; law firms; prepaid cards; transfer of securities; vehicles; and cryptocurrencies.