Full text of Act No. 523 / 2004 Coll.
Full text of Act No. 61 / 1996 Coll., on certain measures against the legalisation of proceeds from crime and on the amendment and addition of related laws, as resulting from subsequent amendments
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523
PRESIDENT OF THE GOVERNMENT
Announces
full text of Act No. 61 / 1996 Coll., on certain measures against the legalisation of proceeds from crime and on the amendment and addition of related laws, as is apparent from the amendments made by Act No. 15 / 1998 Coll., Act No. 159 / 2000 Coll., Act No. 239 / 2001 Coll., Act No. 440 / 2003 Coll. and Act No. 284 / 2004 Coll.
THE LAW
concerning certain measures against the legalisation of criminal proceeds
Parliament has decided on this law of the Czech Republic:
MEASURES AGAINST LEGALIZATION OF PROCEEDS FROM CRITICAL ACTIVITIES
GENERAL PROVISIONS
Subject matter
The purpose of this law is to lay down certain measures against the legalisation of criminal proceeds in accordance with the law of the European Community1.
Definition of terms
(1) Legalisation of proceeds from crime (hereinafter referred to as "legalisation of proceeds") means, for the purposes of this Act, acts to cover the illegal origin of the proceeds from that activity in order to make it seem to be income acquired in accordance with the law. It is not decisive whether such action took place in whole or in part in the Czech Republic. That action shall consist in particular of:
(a) in the conversion or transfer of property, knowing that it comes from a criminal activity, for the purpose of concealing or concealing its origin or for the purpose of assisting a person involved in the commission of such an activity in order to escape the legal consequences of his actions;
(b) under the cover or covering of the actual nature, source, location, movement and treatment of the property, or any change in the rights relating to the property, knowing that the property originates from criminal activity;
(c) in the acquisition, possession, use or handling of property, knowing that it comes from criminal activity;
(d) in a criminal organisation of persons or any other form of cooperation for the purposes of the conduct referred to in (a), (b) or (c).
(2) The proceeds under this law are any economic advantage arising from conduct showing signs of crime.
(3) Identification for the purposes of this Act means:
(a) in the case of a natural person, the identification of his or her name and surname, and, where applicable, any surname, birth number or date of birth, sex, permanent or other residence, their verification of his or her identity card, if any, as well as the verification of the conformity of the form with the image on the identity card and the verification of the number and duration of the identity card and of the authority or State which issued it; if it is a natural person engaged in a business activity, also the identification of its trading firm, the distinguishing supplement or other designation and identification number;
(b) in the case of a legal person, the identification of a trading firm or a name, including a distinguishing supplement or a further designation, its registered office, identification number or similar number allocated abroad, the name or any aliases, birth number or date of birth and the permanent or other residence of persons who are its statutory authority or its member, the identification of a majority partner or controlling person2) and the identification of the natural person acting on its behalf in the transaction; where the statutory authority or its member is a legal person, the identification of its trading firm or name, including the distinguishing appendix or the further designation, its registered office and identification number or similar number allocated abroad, and the identification details of the persons who are its statutory authority or its member.
(4) The verification or detection of the data referred to in paragraph 3 may also be carried out by remote transmission, provided that the identification of such data is guaranteed under the special legislature3).
(5) For the purposes of this Act, business shall mean any conduct which seeks to move money or move property or directly evoke it, except in the case of an act involving the performance of an obligation laid down by law, imposed by a judgment of a court or by a decision of another State body. This includes the purchase, sale or exchange of an investment instrument.
(6) For the purposes of this Act, suspicious trade shall mean trade carried out in circumstances which give rise to suspicion of seeking to legalise revenue or suspicion that the funds used in trade are intended to finance terrorism, terrorist acts or terrorist organisations; the suspicious trade is in particular:
(a) cash deposits followed by their immediate withdrawals or transfers to other accounts;
(b) the establishment of accounts by one client, where their number is in a manifest disproportion to the subject matter of his business or to his property relationship, and transfers between those accounts;
(c) movements in client accounts which clearly do not correspond to the nature or scope of his business or to his property ratios;
(d) in cases where the number of turnover in the account does not correspond to the usual cash operations of the client within one day or days thereafter;
(e) transactions which clearly have no economic reason;
(f) cases where a participant in the transaction is a legal or natural person directly or indirectly against whom the Czech Republic applies international sanctions under special legislation4),
(g) cases where the subject of trade is, even in part, sanctioned goods or services provided to a sanctioned entity or sanctioned person (4);
(h) transactions directed to a country which does not sufficiently or at all apply anti-legalisation measures.
(7) Obligations under this Act are:
(a) a bank, savings and credit cooperative, insurance company, Czech consolidation agency, postal licence holder and legal or natural person authorised to trade in foreign currency for its own account or for the account of a client, to carry out or brokering cash or cash transfers of funds, to lease, to grant or to trade in loans or money, or to issue non-cash means of payment;
(b) Czech National Bank in keeping accounts and providing other banking services;
(c) the securities centre or any other legal person authorised to keep part of the securities register and the exercise of its other activities (5), the securities market organiser, the security trader (6), which is not a bank, an investment company, an investment fund, a pension fund and a commodity exchange;
(d) the holder of a permit to operate betting games in a casino, odds or lottery;
(e) a legal or natural person authorised to or to facilitate trade in real estate;
(f) the legal or natural person authorised to redeem and trade debts and debts;
(g) a legal or natural person authorised to mediate savings, cash loans or loans or to engage in intermediary activities for the conclusion of insurance or reinsurance contracts (7);
(h) an auditor, a tax advisor or an accountant, where the activity is carried out as an entrepreneur;
(i) the court executor in carrying out the other activity of the executor under the special legislature8);
(j) a lawyer, notary or other undertaking legal or natural person, if he or she carries out or assists in the planning or execution of a transaction relating to:
1. purchase or sale of real estate or enterprise;
2. the administration or custody of money, securities, shares or other assets of a client, including acting on behalf of or on behalf of a client in connection with the establishment of an account with a bank or other money institution or securities account and the management of such an account; or
3. the acquisition and collection of funds or other valuable money for the purpose of establishing, managing or controlling a company, business group or other similar unit, whether or not it is a legal entity;
or acts on behalf or on behalf of its client in any financial transaction or real estate transaction;
(k) a legal or natural person authorised to trade in used goods, cultural monuments or objects of cultural value, or to mediate such transactions or to pledge matters;
(l) a legal or natural person not referred to in points (a) to (k), if he is an entrepreneur if, in the context of an individual transaction or auction, he accepts a cash payment in excess of EUR 15 000.
(8) The competent authority shall also be the branch, organisational component or establishment of the foreign legal or natural person referred to in paragraph 7.
(9) For the purposes of this Act, the identity card shall mean a valid official document issued by a State authority from which the form of the person to be identified, his name and surname, or, where applicable, all names and surnames, birth number or date of birth, citizenship and, where appropriate, other identification data. In the case of a legal person, this official document shall be a valid extract from the register in which it is registered or any other valid document proving its existence.
(10) The value of trade or suspicious trade in the currency of the euro is the corresponding value of any currency determined on the basis of the rate declared by the Czech National Bank for the day on which the obligation under this Act is fulfilled. Payment by high-value commodities, such as precious metals or precious stones, shall also be regarded as cash.
OBLIGATIONS OF PHYSICAL AND LEGAL PERSONS
Obligation to identify
(1) If the obligor is a participant in a transaction with a value exceeding EUR 15 000, he shall always identify the participants in the transaction unless otherwise provided for in this law. If, at the time of the conclusion of the trade or at any later point in time, the exact amount of the whole transaction is not known, that obligation shall arise at a time when it is clear that the specified limit will be reached; where the transaction is made in the form of recurring transactions, the sum of the sub-transactions in twelve consecutive months shall be decisive, except for repeated participation in the lottery or any other similar game under special legislation9).
(2) When entering into a business relationship, the obliged person shall always identify its participants, in particular where:
(a) suspicious trade,
(b) the conclusion of an account or deposit contract on the deposit book or deposit note or the negotiation of another form of deposit (10);
(c) the conclusion of a safety deposit box or custody contract;
(d) payment of the balance of the cancelled deposit from the bearer holding book, in excess of EUR 15 000;
(e) the conclusion of a life insurance contract where the premiums payments in one calendar year exceed an amount of EUR 1 000 or where the one-off premium exceeds an amount of EUR 2 500;
(f) acceptance of instalments for previously completed life insurance, if they exceed the amounts referred to in (e);
(g) the purchase of second-hand goods or goods without proof of acquisition, cultural monuments or objects of cultural value, or the acceptance of goods for pledge.
(3) Where a trade participant is represented by a proxy, the identification of the agent referred to in Article 1a (3) shall be carried out and the presentation of the mandate with an officially certified signature; This authorisation shall not be required if the account holder has authorised a third party with an account with the obliged entity and that person has been identified in accordance with Article 1a (3) (a) and has signed a signature form in front of the staff member of the obliged entity, or if the person who does not have an otherwise available right to that account places cash in the account while delivering signed documents to the obliged entity.
(4) Where, at the time of the conclusion of the transaction, the obliged person finds or suspects that the participant is not acting on his or her behalf or conceals that he or she is acting as a third party, he or she shall be ordered by him to confirm by written declaration who he or she is acting and to provide evidence of the identification of that third party in accordance with Article 1a (1) (b). 3. Everyone is obliged to comply with this call unless otherwise provided in the specific legislation.
(5) The debtor shall not conduct a transaction where the identification obligation referred to in paragraph 1 or 2 is given and the participant refuses to submit to the identification or the identification of the third party referred to in paragraph 4; the obliged person shall simultaneously inform the relevant organisational component of the Ministry of Finance (hereinafter referred to as "the Ministry ').
(6) At the request of the obliged person, in which the purpose of the identification must be indicated, the person who is entitled to carry out the verification of signatures and documents under the special legislature11 shall also carry out the identification. In such a case, the latter shall draw up an identification document containing:
(a) who has carried out the identification at whose request;
(b) the identification data referred to in Article 1a (3);
(c) an indication of on the basis of which identity card and on which supporting documents the person has been identified, or, where appropriate, on the basis of which identity card, the identity of the person acting on behalf of the identified legal person or the identity of the representative of the identified person has been established;
(d) a certificate of declaration of an identified natural person or persons acting on behalf of an identified legal person or a representative of an identified person concerning the purpose of the identification carried out and confirming the accuracy of the identification and, where appropriate, the reservations for the identification carried out;
(e) the place and date of the drawing up of the instrument of identification or, where applicable, the place and date where the identification took place, if different from the place or date of the instrument of identification;
(f) the signature of the person who made the identification and the stamp of the latter.
(7) Whoever has carried out the identification referred to in paragraph 6 shall attach a copy of the relevant documents or parts thereof from which he has carried out the identification to the authentic instrument.
(8) If the identification and other acts referred to in paragraphs 6 and 7 have been carried out, the documents referred to therein must be kept with the person responsible. Until then, the obliged entity shall not conduct any trade with the person so identified under this Act.
(9) If a lawyer takes money or securities from his client in the course of the trial, he shall deposit it in a separate account with the debtor, authorised to keep such accounts. In doing so, the obliged person shall be supported by the identification data of his client within the meaning of Article 1a (3) by the transmission of copies of the relevant parts of the documents from which he has ascertained the identification data and by a written declaration of the veracity of the data. Similarly, the lawyer also proceeds to rent a safety deposit box to store his client's belongings.
(10) The identification is not necessary if the person responsible for the transaction is a participant in the transaction under Article 1a (7) (a) to (c) or a credit or financial institution operating in the territory of a State which imposes an obligation to identify that institution in a comparable manner and there is no doubt as to the identity of the participant in the transaction or the identity of the person acting for it.
Obligation to store the specified data
(1) During the duration of the contractual relationship or in other transactions, the obliged entity shall check the validity and completeness of the identification data referred to in Article 1a (3) and record changes thereto.
(2) Identifying information obtained pursuant to Articles 1a (3) and (2), a copy of the documents or an extract of the relevant identification data submitted for identification and, in the case of representation, the original power of attorney shall be kept by the obliged person for a period of 10 years from the end of the relationship with the customer. The data and evidence of transactions associated with the identification obligation shall be kept at least 10 years after the transaction takes place. The mandatory person referred to in Article 1a (7) (k) shall keep the data and documents for at least 10 years if the value of the trade was more than EUR 10 000, in other cases three years after the end of the trade. This period shall begin on the first day of the calendar year following that in which the last transaction took place known to the obliged person.
Notification obligation
(1) If the obliged entity finds a suspicious transaction or any other fact which might suggest to the suspected transaction in connection with its activity, it shall notify the Ministry without delay, indicating all identified identification details of the participants in the transaction.
(2) The notification shall be made without undue delay, no later than five calendar days after the finding of the transaction. If the circumstances of the case so require, in particular if there is a danger of delay, the notifier shall notify the Ministry immediately after the suspected transaction has been established.
(3) The notification may be made orally or in writing in such a way as to ensure that the information contained therein remains secret from the unauthorised person.
(4) In carrying out the notification obligation referred to in paragraphs 1 to 3, the identification details of the obliged entity acting as notifier, including the name and surname of the person making the notification, the object and the essential circumstances of the conclusion of the transaction, as well as the identification details of the person to whom the notification relates, shall be communicated and additional information shall be attached, in particular the account numbers on which the funds in respect of which the notification is made are concentrated.
(5) The notification obligation referred to in paragraph 1 is also payable to the administrator (12), who has accepted payment for an account or in cash, or if the tax entity applies for a repayable overpayment exceeding EUR 15 000 abroad.
(6) Compliance with the notification requirement under the previous provisions is not a breach of the statutory obligation of secrecy imposed under a special law.
(7) The provisions of paragraphs 1 and 8 (1) shall not apply to notaries, lawyers, auditors, accountants who carry out the activity in question as an entrepreneur or tax advisor in respect of information which he obtains from his client or which he obtains from his client during the investigation of his legal status, during his defence or representation in court or in connection with such proceedings, including advice on the initiation or avoidance of such proceedings, whether such information is obtained before, during or after such proceedings.
(8) Paragraph 7 shall not be applied where it is known to the obliged persons mentioned there that the client requests legal advice for the purpose of legalisation of revenues or for the purpose of financing terrorism, terrorist acts or terrorist organisations, or where the obliged entity itself participates in such activities.
(9) The lawyer shall make a notification within the meaning of paragraphs 1, 3 and 4 through the competent professional body. The Chamber shall ensure that the notification is accompanied by particulars within the meaning of this Act, may comment on its content and shall forward the notification to the Ministry. The lawyer and the competent professional body shall proceed in such a way that the notification is received to the Ministry no later than five calendar days after the finding of the transaction. If there is a danger of delay and the transmission of an alert to the Ministry cannot be obtained immediately through the appropriate professional chamber, the lawyer may notify the Ministry directly.
(10) The notification of a suspicious transaction is without prejudice to the obligation laid down in a separate law to notify the facts suggesting the commission of a criminal offence.
Notification obligation in specific cases
(1) A natural person entering or leaving the territory of the European Communities from a country outside the customs territory of the European Communities (13) shall be required to notify the customs office in writing of the import and export of valid tender in Czech or foreign currency, travel cheques or cash vouchers convertible into cash, bearer securities or series of high-value commodities, such as precious metals or precious stones, in a total value exceeding EUR 15 000.
(2) The obligation referred to in paragraph 1 must also be fulfilled by the legal person who imports or exports the goods referred to in paragraph 1 by means of a natural person who carries such goods with him when crossing the border of the customs territory of the European Communities.
(3) A natural or legal person dispatched from a country outside the customs territory of the European Communities or receiving from it a postal or other consignment containing goods referred to in paragraph 1 at a total value exceeding EUR 15 000 must notify the customs office of that consignment and ensure that the consignment is presented for inspection.
(4) The notification obligation referred to in paragraphs 1 to 3 shall be imposed on a natural or legal person even if he or she brings into or exports from the customs territory of the European Communities or receives or dispatches, during the 12 consecutive months, the items referred to in paragraph 1, in aggregate value in excess of EUR 15 000. The notification obligation shall be established at a time when the person is aware that the specified limit will be reached.
(5) The notification referred to in paragraphs 1 and 2 shall be made on a form issued by the Ministry available at the customs office. The person making the notification shall be responsible for the accuracy and completeness of the data supplied.
(6) The notification obligation referred to in paragraph 3 shall be fulfilled by a natural or legal person at the customs office by a written record of the consignor of the contents of the consignment on the customs declaration or on the international transport document. The consignor shall be responsible for the accuracy and completeness of the alert, which shall contain all the information required in the import or export notification.
(7) The customs authorities shall immediately forward to the Ministry the information on the fulfilment of the notification obligation in travel and the notification, including any available information on the consignor, consignee and subject matter of the notification obligation in respect of consignments, including where there has been a breach of that obligation.
(8) When converting another currency into euro currency, the rate declared for the relevant currency by the Czech National Bank and valid on the Friday of the previous calendar week shall be used for the period of a calendar week; the conversion rates of other currencies not recorded on the exchange sheet shall be communicated by the Ministry to the customs authorities. The customs office shall, upon oral request, communicate to persons the amount of the rates and conversion rates for the purpose of fulfilling the notification obligation referred to in paragraphs 1 to 4. The value of securities and high-value commodities shall be understood as their current market price and, where appropriate, the price determined by official market rates.
(9) The customs authorities shall check the fulfilment of the notification obligation referred to in paragraphs 1 to 4.
Deferred execution
(1) The obligor may comply with the client's orders relating to a suspicious transaction not earlier than 24 hours after receipt of the notification by the Ministry, if there is a risk that the immediate execution could be undermined or significantly impeded by the security of the proceeds. The obligor shall notify the Ministry in the notification of the suspicious store of the delay of the execution of the client's order.
(2) In accordance with paragraph 1, where the postponement of a client's order is not possible, for example for transactions carried out by payment cards, or where such postponement, according to the prior notice of the Ministry or the obliged entity's own knowledge, could thwart the investigation of a suspicious transaction; the obliged person shall inform the Ministry immediately after the execution of the transaction.
(3) The obligor shall delay the execution of the client's order by 24 hours also if the Ministry so requests; the obliged entity shall inform the Ministry of this procedure.
(4) If the examination of a suspicious transaction referred to in paragraph 1 or 3 requires a longer period of time, the Ministry may, within the period referred to in paragraph 1, require the obliged person to extend the period for which the client's order is to be delayed, but not more than 72 hours after receipt of the notification. If, within that period, the Ministry does not inform the debtor that it has lodged a criminal complaint, the debtor shall execute the client's order after the deadline. If a criminal complaint has been lodged within that period, the obligor shall execute the client's order within 3 calendar days of the date of the filing of the criminal complaint, unless the criminal authority has decided within that period to withdraw or secure the subject of the suspected transaction.
(5) The debtor is not liable for damage caused by the fulfilment of the obligation referred to in paragraph 1, 3 or 4; the responsibility for such damage lies with the State if the client's order did not lead to a suspicious transaction. The claim for compensation must be applied to the Ministry.
Confidentiality obligation
(1) Save as otherwise provided in this Act, the notifier is under an obligation to maintain confidentiality with respect to third parties, including the persons to whom the information is disclosed, on the notification of suspicious trade or on acts made by the Ministry under this Act; the obligation of confidentiality shall apply to each member of staff of the notifier as well as to the person who is active under the contract and shall arise from the time when the suspected transaction is established. This obligation of confidentiality shall also apply to the performance of other obligations by the obliged person pursuant to Article 8 (1).
(2) The staff of the Ministry and of the bodies referred to in Article 8 (3) are required to maintain confidentiality regarding the acts taken under this Act and the information obtained in its implementation. The organisational component which performs the tasks and exercises the powers incumbent upon it under this Act must be technically separate from other departments of the Ministry and must be implemented in such organisational, personnel and other measures as to ensure that the information obtained in the application of this Act does not come into contact with an unauthorised person. The obligation to maintain confidentiality under this Act is also for those who are familiar with the information obtained under this Act in connection with the investigation carried out by the Ministry.
(3) The obligation of confidentiality of the persons referred to in paragraphs 1 and 2 shall not cease to have an employment relationship or other relationship with the obliged person or ministry or by the natural person having ceased to pursue the activities referred to in Article 1a (7).
(4) Obligations to maintain confidentiality under paragraphs 1 and 2 shall not be relied upon against:
(a) a criminal authority when carrying out proceedings for a criminal offence relating to the legalisation of proceeds or when the reporting obligation relating to such an offence is fulfilled;
(b) a court ruling in civil proceedings in disputes concerning trade or a claim arising under this law;
(c) persons exercising control pursuant to Article 8 (3);
(d) to the authority authorised under a specific regulation to decide on the withdrawal of an authorisation for a business or other self-employed activity in the event that the Ministry submits an initiative to withdraw such an authorisation;
(e) a person who may claim compensation under the procedure laid down in this law, if it is a subsequent notification of the facts relevant for the exercise of such entitlement; the obliged person may in this case inform the client that it has been acted under this law only after prior written consent by the Ministry,
(f) to the competent foreign authority when transmitting the data used to achieve the purpose laid down by this law, unless specific legislation prohibits this;
(g) the administrative authority which carries out the tasks of the system of certification of rough diamonds in accordance with the specific legislation, when informing the facts referred to in Article 10 (3);
(h) the administrative authority entitled to impose fines under the specific laws of the Czech Republic applying international sanctions (4) in infringement proceedings;
(i) the National Security Office, the Ministry of Defence, the Intelligence Services or the Police of the Czech Republic, if they carry out, within the scope of their authorisation, a security clearance of the proposed person or if the National Security Office carries out a security clearance of organisation or verification of the security capability of natural persons under special legislation14);
j) Security Information Service and Military Defence Intelligence,
(k) a financial arbitrator ruling under a special law in a dispute between the appellant and the transferring institution.
(5) An infringement of the obligation of secrecy imposed under paragraphs 1 and 3 shall be an offence for which a fine of up to CZK 200,000 may be imposed in proceedings under a special law 15; This shall be without prejudice to the liability for damage incurred by the person concerned by the disclosure, or to the possible criminal liability of the person who has violated the obligation of confidentiality. 16).
(6) The data collected by the Ministry under this Act may otherwise only be used in proceedings before the authorities referred to in paragraph 4.
(7) The first sentence of paragraph 1 shall not apply to the obliged entities referred to in Paragraph 4 (7).
Other obligations
(1) The obliged person shall, upon request, communicate to the Ministry within the time limit laid down by him the details of the transactions covered by the identification obligation or in respect of which the Ministry carries out the investigation, provide evidence of such transactions or provide access to them by the authorised staff of the Ministry in the verification of the notifications or the conduct of the inspection activity and provide information on persons involved in such transactions in any way.
(2) In the course of the investigation, the Ministry may require tax authorities to provide data for the entire tax procedure, unless the case can be sufficiently clarified otherwise.
(3) The Ministry checks that the obliged entities comply with the obligations laid down in this Act and that the revenues are not legalised by the obliged entities. In carrying out the inspection, the Ministry shall act in accordance with the specific legislation17). In addition to the Ministry, it also carries out an inspection of compliance under this Act
(a) the Czech National Bank with banks and other obliged persons to whom it grants foreign exchange licences;
(b) the Securities Commission for the obliged entities referred to in Article 1a (7) (c);
(c) the Office for Supervision of Cooperative Deposits for Savings and Credit Cooperatives;
(d) the State Insurance and Pension Insurance Authority of insurance and pension funds;
(e) State supervision of compliance with the Lottery Act and other similar games for persons under its control (18);
(f) Czech Trade Inspection of obliged persons referred to in § 1a (7) (k).
The inspection shall also apply to obliged persons within the meaning of Section 1a (8). In carrying out control activities, the relations between the control authorities and the controlled persons shall be governed by the State Control Act. The authorities referred to in points (a) to (e) shall, at the request of the Ministry, provide a written opinion within the time limit set by them or any other cooperation required.
(4) In the course of an inspection carried out with a lawyer or notary, the Ministry shall always require the cooperation of the relevant professional chamber. The official of the Ministry shall have the right to consult only the documents and other documents of the lawyer or notary directly related to the activity of the lawyer or notary covered by this law. The representative of the Chamber shall decide which document or document has this character.
Internal principles and training programmes
(1) The obliged entity shall establish and apply adequate internal control and communication procedures to fulfil the obligations laid down by this law. The mandatory person referred to in Article 1a (7) (a) to (g) shall, within the scope of the applicable permits or authorisations for activities falling within the scope of this Law, draw up in writing a system of internal principles, procedures and control measures to fulfil the obligations laid down in this Act (hereinafter referred to as the "Internal Principles System '). A person who contractually carries out an activity falling within the scope of this Act for another obliged person is not required to draw up his own system of internal principles, provided that his activity is adequately covered by the system of internal principles of that other obliged person and that he does not employ or operate in another form.
(2) The obliged person shall designate a specific staff member to fulfil the notification requirement of Section 4 and to ensure that the Ministry is in constant contact, unless such activities are directly provided by the statutory authority. The mandatory person referred to in § 1a (7) (a) to (d) shall immediately inform the Ministry of designation.
(3) The internal principles system referred to in paragraph 1 must include:
(a) a detailed demonstration of the characteristics of the suspicious transaction;
(b) how the client is identified;
(c) a mechanism to make the data stored under Article 3 available to the Ministry;
(d) the procedure of the obliged entity from the time of the suspected transaction's detection until the date of receipt of the notification to the Ministry in order to comply with the time limits laid down in Article 4 (2), as well as the rules governing the processing of the suspected transaction and the identification of the persons who evaluate the suspected transaction;
(e) measures to prevent the imminent risk that the immediate execution of the client's order could be undermined or significantly impeded by the provision of the proceeds;
(f) technical and personnel measures to ensure that the Ministry is able to carry out the acts referred to in paragraphs 6 and 8 against the debtor in the legal terms.
(4) The obliged person shall, upon request, provide the Ministry with information and documentation on the fulfilment of the obligations imposed under paragraphs 1 to 3.
(5) The compulsory person referred to in Article 1a (7) (a) and (b) is obliged to deliver to the Ministry a system of internal principles and amendments within 30 days of the creation or effectiveness of changes to the internal principles system. The mandatory person referred to in Section 1a (7) (c) has these obligations in relation to the Securities Commission. If the text submitted does not comply with this law or fails to fulfil its purpose sufficiently, the Ministry or the Securities Commission shall draw the attention of the debtor in writing; in such a case, the obligor shall remove the defects within 30 days of receipt of the notification and inform the Ministry or the Securities Commission thereof in the case of the obligor referred to in Article 1a (7) (c). The time limit for the removal of defects and for notification shall be binding even if the internal principles system has been requested for inspection by the Ministry or by the authority referred to in § 8 (3) (a) to (e).
(6) The obliged person shall ensure at least once during 12 calendar months the training of staff members who, in the performance of their duties, may encounter suspicious transactions. Training programmes shall focus on ways of identifying suspicious transactions and applying procedures under this law.
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(1) The Ministry shall perform data collection and analysis functions under this Act. In addition to the authorisations referred to in Articles 6 (3) and (4), 8 and 9 (4), the following provisions shall apply:
(a) conduct own investigations concerning trade subject to an identification obligation under this law;
(b) impose fines for failure to fulfil obligations under this law;
(c) initiate withdrawal of entitlement to business and other self-employment.
The Ministry also operates within the scope laid down by this Act in damages proceedings.
(2) If the Ministry finds that there is a suspicion that a criminal offence has been committed, it shall make a notification in accordance with the Code of Criminal Procedure and at the same time provide the criminal authority with all the information and evidence available to it if it is related to the notification.
(3) Where the Ministry ascertains the facts relevant to the performance of the tasks of the system of certification of rough diamonds and where there is no reason for the procedure referred to in paragraph 2, it shall inform the administrative authority responsible for carrying out the tasks of the system of certification of rough diamonds in accordance with specific legislation.
(4) If the authority referred to in § 8 (3) (a) to (f) finds facts suggesting suspicious trade within the meaning of § 1a (6), it shall immediately inform the Ministry thereof in accordance with the procedure laid down in § 4.
(5) The police of the Czech Republic, the intelligence services, the authorities of the state, including the authorities implementing the state administration, and other state authorities are required to provide the Ministry with the necessary data in the exercise of its powers under this Act, unless the special law prohibits them from doing so.
(6) The Ministry is entitled to keep the data obtained in the implementation of this Act in the information system under the conditions laid down in the Special Act 19). To this end, it is entitled to pool information and information systems for different purposes. The Ministry does not provide, on request by the person concerned, a report on the information that is stored in the information system under this Act.
(7) To the extent provided for by the international treaty, which the Czech Republic is bound by, or on the basis of reciprocity, the Ministry shall cooperate with foreign authorities with the same substantive competence, in particular in the transmission and acquisition of data to achieve the purpose set out in this Act. Under the conditions that the information will only be used to achieve the purpose of this Act and will enjoy protection at least to the extent provided for by this Act, the Ministry may also cooperate with other international organisations.
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General principles
(1) Unless otherwise provided, the provisions of the Czech National Council Act No. 337 / 1992 Coll., on the Administration of Taxes and Fees, as amended, shall apply mutatis mutandis to the proceedings carried out by the Ministry under this Act, in so far as they concern:
(a) the official language;
(b) persons involved in the proceedings and their rights;
(c) representation,
(d) the local investigation;
(e) service;
(f) exclusion;
(g) subpoena and presentation;
(h) costs;
(i) the decision;
(j) fines and block proceedings.
(2) Where the Act of the Czech National Council No. 337 / 1992 Coll., on the administration of taxes and charges, as amended, refers to the tax administrator, tax management and tax entity, this means, for the purposes of this Act, the Ministry, the management carried out by the Ministry under this Act and whoever is required under this Act.
(3) The administration of the Ministry under this law is always private.
Fines
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Regulation Information
| Citation | Full text of Act No. 523 / 2004 Coll., Act No. 61 / 1996 Coll., on certain measures against the legalisation of proceeds from crime and amending and supplementing related laws, as is apparent from subsequent amendments |
|---|---|
| Regulation Type | Declared full text |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 08.10.2004 |
|---|---|
| Effective from | - |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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