Parliament Act no. 5 of 19 May 2010 on the prevention of money laundering and financing of terrorism (Money Laundering Act)

Modified repeals, hovedlov replaces information


Chapter 1

Scope etc.


§ 1. This law applies to the following companies and individuals:
1) Undertakings and persons that commercially carry out activities involving currency exchange.
2) Undertakings and persons that commercially carry out financial leasing or exercising lending.
3) Brokers.
4) Undertakings and persons that otherwise commercially supply the same services as real estate agents.
5) Providers of services for businesses, see. § 3, no. 5
Subsection. 2. This Act § 2 applies for retailers.


Cash Prohibition


§ 2. Retailers may not receive cash payments of 100,000 kr. Or more, whether the payment is made at once or as several payments that seem to be interconnected.



Chapter 2

Definitions


§ 3. For the purposes of this Act:
1) Companies: Legal persons.
2) Companies: Companies and other similar legal arrangements.
3) Regulated market: A market as defined in Article 4 (14) of Directive 2004/39 / EC on markets in financial instruments. The market is in the European Union or in a country with which the Community has concluded an agreement for the financial area, the market must be included in the list referred to in Article 47 of Directive 2004/39 / EC on markets in financial instruments. The market is in a country outside the European Union, the Community has not concluded an agreement for the financial area, the market must be a member of the World Federation of Exchanges (WFE).
4) Beneficial owners: natural persons who ultimately own or control the customer or the natural person on whose behalf a transaction or activity conducted, including:
a) Individuals who ultimately owns or controls a company through direct or indirect ownership or control of more than 25 per cent. the ownership interests or voting rights in the company other than a company whose shares are traded on a regulated market.
B) Persons who otherwise exercises control over a company's management.
C) Persons who, according to the articles of association or otherwise to receive 25 per cent. or more of a fund or another similar legal arrangement distribution funds or other property if the persons are known.
D) The group of persons in whose main interest the fund or another similar legal arrangement has been established or acts.
E) Persons who exercise control over 25 per cent. of a fund or another similar legal arrangement distribution funds or other property.
5) Providers of services for businesses: Anyone who commercially carry out the following activities:
a) Forming companies.
B) Acting as or arranging for another person to act as a director of a company or as partner of a partnership or a similar position in other companies.
C) Provides a domicile address or another address, which is similarly suitable as contact address and related services available to a business.
D) Acting as or arranging for another person to act as a trustee or administrator of a fund or similar legal arrangement.
E) Acting as or arranging for another person to act as a shareholder to a third party, unless this is a company whose ownership interests etc. traded on a regulated market.
6) Politically exposed persons: Persons who have or have had prominent public functions, such persons' immediate family members or persons known to be close partners.
7) Money Laundering Secretariat: The Money Laundering Secretariat of Greenland is located in the Money Laundering Secretariat in Denmark, which is physically located at the Public Prosecutor for Serious Economic Crime (SEC), but not subordinate to the State Prosecutor.
Subsection. 2. Administration of Taxation may lay down rules as to what is meant by politically exposed persons in paragraph. 1 pt. 6

§ 4. For Money Laundering In this Act
1) unlawfully to accept or acquire for oneself or others a share in profits obtained by an offense which may be undertaken,
2) unlawfully to conceal, store, transport, assist in disposal or otherwise subsequently serve to ensure the economic benefit from an offense may be initiated or
3) attempting or participating in such actions.
Subsection. 2. Paragraph. 1 also includes transactions made by the person who committed the offense for which the profits originate.


§ 5. For the financing of terrorism in this Act the financing of terrorism as defined in the Penal Code §§ 28-34.



Chapter 3

Investigation and reporting obligations


§ 6. covered by the law firms and people should be aware of customers' activities which, because of their nature, to be related to money laundering or terrorist financing. This is especially complex or unusually large transactions and all unusual patterns of transactions in relation to the customer as well as transactions relating to countries or territories where, according to statements made by the Financial Action Task Force considered to be a particular risk of money laundering or financing of terrorism. The tax authority may establish detailed rules on when the obligation to pay attention to transactions related to the countries and territories to take effect.
Subsection. 2. The purpose of the transactions referred to in paragraph. 1, must be investigated and the results of a study should be recorded and kept, see. § 19.

§ 7. If there is suspicion that a customer's transaction or inquiry is or has been associated with money laundering or terrorist financing, to be covered by the law firms and individuals investigate the transaction or inquiry in more detail. If the suspicion is related offenses may be initiated with measures placing in over 1 year, and this suspicion can not be disproved, the Money Laundering Secretariat notified immediately.
Subsection. 2. If the suspicion is related to money laundering and the transaction is not already implemented, should be suspended until there is informed in accordance with paragraph. 1.
Subsection. 3. If the suspicion is related to financing of terrorism may only be conducted transactions from the account or person in agreement with the Money Laundering Secretariat. Money Laundering Secretariat decide as soon as possible and by the end of the banking day following receipt of notification, whether there should be seized.
Subsection. 4. Police may, under the rules of the Administration of Justice Act for Greenland demand any information necessary in the case of covered by the law firms and individuals.

§ 8. If the tax administration becomes aware of circumstances that are presumed to be related to money laundering or terrorist financing subject to the notification requirements of § 7, it shall inform the Money Laundering Secretariat accordingly.

§ 9. The tax authority may, when the recommendations of the Financial Action Task Force set further rules on the in § 1 of the undertakings and persons systematic obligation to provide information to the Secretariat on financial transactions with non-cooperative countries in the fight against money laundering or financing of terrorism. The tax authority can set in this context that the notification must be done systematically and without that there is a suspicion.



Chapter 4

Diligence, etc


§ 10. They covered by the law firms and individuals should always require that customers identify themselves when there is a suspicion that a transaction is related to terrorist financing or money laundering covered by the reporting obligations in accordance with § 7th


Solid customer relationships


§ 11. covered by the law firms and individuals must have knowledge of their customers in accordance with paragraph. 2-8, including require identification of their customers when entering into business relations with them, including the opening of an account or a custodian.
Subsection. 2. If the customer is a natural person, proof of identity shall include name, address and civil registration number. or similar documentation if the person does not have a CPR number.
Subsection. 3. If the customer is a company, proof of identity shall include name, address, GER no. or similar documentation if the company does not have a GER no. The company's ownership and control structure must be clarified, and the company's beneficial owners shall be legitimized see. However, § 17 paragraph. 1 pt. 2
Subsection. 4. There shall be obtained about each customer's objective regarding the business relationship and the intended extent hereof.
Subsection. 5. customer relationship shall be regularly monitored. Transactions carried out as part of the customer relationship, should be supervised to ensure that transactions are consistent with the company's or person's knowledge of the customer and the customer's business and risk profile, including on the purpose. Documents, data or other information about the customer shall be continuously updated.
Subsection. 6. If there is doubt as to whether previously obtained customer identification data are correct or sufficient, required new proof referred to in paragraph. 2 and 3.

Subsection. 7. covered by the law firms and individuals may decide to implement the identification procedure etc. in paragraph. 1-5 from a risk assessment depending on the risk to the individual customer or business relationship, product or transaction. The company or person must be able to demonstrate to the authority that supervises the person's compliance with the law, the scope of the study is adequate in relation to the risk of money laundering and terrorist financing.
Subsection. 8. For customer relationships established before the commencement of this Act, and for whom the absence in paragraph. 1-5 above information must be proof of identity and collection of information in accordance with paragraph. 1-5 at the appropriate time and on the basis of a risk assessment.

§ 12. The identification procedure in § 11 is to be completed in connection with the establishment of the customer relationship and no later than before carrying out the transaction. If it is necessary not to interrupt the normal course of business, the identification procedure based on a risk assessment completed in immediate continuation of the establishment of the customer relationship. In the second section. cases referred to the identification procedure shall be completed as soon as practicable after the initial contact with the customer.
Subsection. 2. If kundelegitimationen can not be made in accordance with § 11 paragraph. 1-4, do not establish a solid customer relationships, business relationships or transactions carried out for the customer. It should also examine whether to be made notification in accordance with § 7


Apartment Customers


§ 13. For customers with single transactions (occasional customers) undertakings and persons covered by this Act shall meet the requirements of § 11 paragraph. 1-4 and § 12 for each transaction of amounts that correspond to 100,000 kr. Or more. The requirements apply regardless of whether the transaction is carried out in one or more related operations if these appear to be connected.
Subsection. 2. If the transaction is not known at the time of commencement, shall be required, as soon as the undertaking suspects that there is a transaction covered by paragraph. 1.


Transactions for third


§ 14. Undertakings and persons covered by this Act shall determine whether the one they have contact with, acting on its own behalf or on behalf of another person or company. Furthermore, the undertakings and persons covered by this Act shall ensure that the person who acts on behalf of another authorized to sign them.
Subsection. 2. If a person or company acting on behalf of another, the person's identity clarified on the basis of a risk assessment. The actual customer must be identified and legitimized in accordance with the requirements of this Act.
Subsection. 3. The requirement in paragraph. 1, point 2. Shall not apply if the person who acts on behalf of another, belongs to the group of companies mentioned in § 17 paragraph. 1, no. 1, or if that person is a lawyer by appointing in this country or in a country as described in § 17 paragraph. 1 pt. 1
Subsection. 4. The requirement of paragraph. 2 The identification of the person who acts on behalf of another, does not apply if the person concerned is covered by the group of companies mentioned in § 17 paragraph. 1 1.


Stricter requirements for identification, etc.


§ 15. They covered by the law firms and individuals should be based on a risk assessment impose additional requirements for identification of a customer than as specified in § 11 of the situations, which in itself carries an increased risk of money laundering and terrorist financing. This means that they must at least meet the requirements of paragraph. 2-4.
Subsection. 2. When the customer has not been physically present for identification purposes, the company or person shall take further steps to ensure the customer's identity. This may be done by taking one or more of the following measures:
1) Ensure that the customer's identity is established by additional documentation.
2) Checking or verifying the documents supplied, or requiring confirmatory certification by one in § 1. 1, no. 2-3, said companies or individuals.
3) Require that the first payment of the operations is carried out through an account opened in the customer's name with a bank.
Subsection. 3. covered by the law firms and individuals should
1) be in possession of adequate procedures to determine whether the customer is a politically exposed person residing in another country
2) have senior daily management approval for establishing business relationships with such customers
3) take reasonable measures to obtain information on property and income sources that are involved in the business relationship or transaction, and
4) continuously monitor the business relationship.

Subsection. 4. For customer relationship with a politically exposed person resident in another country, the senior management approve continuation of customer relationships established before 1 June 2010.
Subsection. 5. Undertakings and persons covered by this Act shall be particularly aware of any money laundering and terrorist financing that may arise from products or transactions that might favor anonymity, and take measures if necessary to prevent the products or transactions used for money laundering and terrorist financing.


Exemption from the requirement for proof etc.


§ 16. Proof of identity requirement in § 11 and § 15 paragraph. 2 may be omitted with regard to the following products and transactions:
1) Life insurance and pension contracts if the annual premium is an amount equivalent to 7,500 kr. Or less, or if a single premium is an amount corresponding to 18 750 kr. or less.
2) Life assurance and pension contracts entered into pursuant to a contract of employment or the insured's occupation, provided that the agreements do not contain a buy-back or be used as collateral for loans.
3) Life assurance and pension contracts where the premium or contribution is to be debited to the customer's bank account.
4) Life assurance and pension contracts entered into pursuant to a contract of employment or the insured's occupation, with a limited buy-back option where proof of identity is according to § 12 if the customer uses repurchase option.
5) Electronic money as defined in § 308 paragraph. 1, 2 and 3 shall., Of the Financial Business Act as in force for Greenland by royal decree
a) where the rechargeable card maximum storage 1125 kr., Or
b) where for rechargeable card maximum storage up to 18,750 kr. within a calendar year and the maximum can be redeemed 7,500 kr. within one calendar year.
Subsection. 2. Regardless of the transaction size or nature of the product shall be required when there is suspicion that the transaction is associated with money laundering or terrorist financing subject to the notification requirements of § 7.

§ 17. The identification requirements in § 11 does not apply when the customer is
1) one of the in § 1. 1 pt. 1 and Annex 1, nos. 1-10, mentioned or a similar company based in a country within the European Union or a country with which the Community has concluded an agreement for the financial area covered by third Money laundering Directive, or a similar undertaking established in a country outside the European Union, the Community has not concluded an agreement for the financial area, which are subject to requirements to combat money laundering and terrorist financing, corresponding to the requirements deriving of the third Money laundering Directive and the monitoring of compliance with these requirements,
2) a company whose securities are admitted to trading on a regulated market or
3) a Danish public authority.
Subsection. 2. The identification requirements in § 11 does not apply where the beneficial owner has funds in a notary or a lawyer common client account, if the notary or lawyer is subject to regulations corresponding to this Act. It is a condition that the information about the beneficial owner etc. is made available to the account holding institution when said institution requests this.
Subsection. 3. In all cases, obtain enough information to ascertain that the customer is covered by any of the paragraph. 1 and 2 exceptions.

§ 18. If it is decided by the Commission, the tax administration decide that individuals and companies covered by the law can not apply the exception in § 17 of credit and financial institutions or listed companies or other entities from a country outside the European Union which the Community has not concluded an agreement for the financial area.


Storage of identity information, etc.


§ 19 covered by this Act companies and individuals should keep identity information for at least 5 years after the customer relationship has ended. Copies of the identification documents obtained pursuant to §§ 11, 13, and 15 may be stored.
Subsection. 2. Documents and records relating to transactions shall be stored so they can be located together for at least 5 years after the transactions. This also applies pursuant to § 6 paragraph. 2, quoted information.
Subsection. 3. undertaking ceases activities, the last acting management shall ensure that identity information etc. continues to be stored in accordance with paragraph. 1 and 2. Dissolve a company by the bankruptcy court intervention, the bankruptcy court may decide that other than the last acting management must keep identity information, etc.



Branches and subsidiaries in third countries


§ 20. of Act § 1. 1, no. 1-2 included companies must ensure that their branches and subsidiaries established in countries outside the European Union, the Community has not concluded an agreement for the financial area have measures with regard to customer due diligence and record identity information, etc., corresponding to the requirements of the third Money laundering Directive, to the extent its laws permit.
Subsection. 2. If the law in paragraph. 1 country does not permit application of the corresponding measures referred to in paragraph. 1, the company must inform the authority which shall ensure the company's compliance with this Act. Chapter 8. The company must also ensure that the risk of money laundering and terrorism in the branch or subsidiary undertaking is countered in another way.
Subsection. 3. The provisions of paragraph. 1 said companies must ensure that their branches and subsidiaries established in countries outside the European Union, the Community has not concluded an agreement for the financial area have written internal rules regarding customer due diligence and record keeping, corresponding to the requirements of § 21 paragraph. 1, to the extent its laws permit.



Chapter 5

Internal rules and training etc.


§ 21 covered by this Act companies and individuals should prepare adequate written internal rules about customer due diligence, reporting, record keeping, internal control, risk assessment, risk management, management control and communication as well as training and instruction programs for employees in order to forestall and prevent money laundering and terrorist financing. PCS. 2. Companies and persons covered by § 1. 1, no. 1-2, must appoint a person at management level to ensure that business or person complies with its obligations under the Act, the regulations issued thereunder.
Subsection. 3. Those of § 1 companies and individuals must make sure that in paragraph. 2 designated management person has access to customer information and other relevant information to ensure that businesses and individuals comply with obligations under this Act.
Subsection. 4. Those of § 1 companies and individuals must ensure that their employees are aware of the obligations stipulated by this law.
Subsection. 5. In employment lies in paragraph. 1 and 2 the employer.
Subsection. 6. The tax authority may establish specific rules for in paragraph. 1 mentioned requirements.



Chapter 6

Confidentiality and responsibility


§ 22. The notifications and information that undertakings and persons covered by this Act shall in good faith pursuant to § 7 and suspension of transactions pursuant to § 7, paragraph. 3 inflict no company or person, its employee or director of any responsibility. Disclosure of information relating thereto shall not be considered as a breach of any duty of confidentiality.

§ 23. Undertakings and persons covered by this Act, management and employees of these companies and in these individuals as well as auditors or others who perform or have performed special tasks for the company or person shall be obliged to keep secret the fact that there are following notification in accordance with § 7, that this is being considered, or that there is or will be launched an investigation on the case of money laundering or terrorist financing, see. however paragraph. 2-6.
Subsection. 2. Information that notification has been effected in accordance with § 7, that this is being considered, or that there is or will be launched an investigation of whether there is case of money laundering or terrorist financing, may be disclosed to the authorities and organizations, who shall ensure compliance with this Act.
Subsection. 3. Information that notification has been effected in accordance with § 7, that this is being considered, or that there is or will be launched an investigation on the case of money laundering or terrorist financing may be provided to companies belonging to the same group as defined in Article 2, no. 12 of Directive 2002/87 / EC.
Subsection. 4. Information that notification has been effected in accordance with § 7, that this is being considered, or that there is or will be launched an investigation of whether there is case of money laundering or terrorist financing, can be passed between people or companies covered by § 1 piece. 1, no. 1-2, provided
1) the information relates to a company or person who is a customer of both the company or person who provided the information, and the company or person receiving the information, and the information relates a transaction involving both parties,
2) to the company or person who provided the information, and the company or person receiving the information have the same occupation,

3) to the company or person who provided the information, and the company or person receiving the information are subject to uniform requirements as regards confidentiality and protection of personal data and
4) that the information exchanged only be used for prevention of money laundering and terrorist financing.
Subsection. 5. The information referred to in paragraph. 3-4 can only be provided to companies and individuals who have established or resident in a country outside the European Union, the Community has not concluded an agreement for the financial area, if the company or person is subject to requirements to combat money laundering and financing of terrorism corresponding to the requirements arising from the 3rd Money laundering Directive and the monitoring of compliance with these requirements.

§ 24 tax administration via the Danish government inform the other Member States and the Commission of cases where they decide that a country outside the European Union, the Community has not concluded an agreement for the financial area have requirements to combat money laundering and financing of terrorism corresponding to the requirements arising from the 3rd Money laundering Directive and the monitoring of compliance with these requirements.

§ 25. If the Commission decides, can tax administration determine atvirksomheder and persons covered by this Act shall not disclose information to countries outside the European Union, the Community has not concluded an agreement for the financial area, in accordance with § 23



Chapter 7

Counterfeit money


§ 26. Companies and individuals as part of their enterprise engaged in the processing and distribution of notes and coins to the public, including individuals and companies whose activity consists in exchanging notes and coins of different currencies, has a duty to take all the notes and coins which they know or have sufficient reason to believe to be counterfeit, out of circulation. Counterfeit banknotes and coins shall be handed over to the police.



Chapter 8

Supervision etc.


§ 27. The tax authority shall ensure that undertakings and persons covered by this law, respect the law and the regulations issued thereunder.
Subsection. 2. Individuals and companies covered by the Act must register with the tax administration in order to provide such services.
Subsection. 3. The tax authority shall refuse to register in paragraph. 2 persons and undertakings mentioned if the persons or members of management or the beneficial owners of the company have been convicted of a relationship which may be undertaken and the facts established show an obvious risk of abuse of position or office. Criminal Code for Greenland § 164 paragraph. 3 shall apply mutatis mutandis.
Subsection. 4. Tax Administration shall deregister in paragraph. 2 persons and undertakings mentioned if a registered person or a member of management or beneficial owners of a registered company is convicted of a relationship which may be undertaken and the facts established show an obvious risk of abuse of position or office. Criminal Code for Greenland § 164 paragraph. 3 shall apply mutatis mutandis.
Subsection. 5. in paragraph. 1 mentioned companies and individuals to provide Tax Administration with the information necessary for supervision of compliance with this Act, the regulations issued thereunder.
Subsection. 6. The tax authority may at any time on proof of identity without a court order, gain access to undertakings and persons covered by paragraph. 1 in order to obtain information, including during inspections.
Subsection. 7. The tax authority may order the undertakings and persons referred to in paragraph. 1, within a period established by the Authority to undertake the necessary measures in case of violation of the provisions of the Money Laundering Act, the rules laid down in pursuance thereof.



Chapter 9

Feedback


§ 28. Money Laundering Secretariat may, if investigative considerations do not contradict, inform the notifying about the status of the case, including whether the charge has been made, and there may inform about deletion from the money laundering register at the Money Laundering Secretariat and the final decision on conviction possibly in the form of a judgment or judgment.
Subsection. 2. The paragraphs. 1 above messages may not unlawfully disclosed to others.



Chapter 10

Complaints provisions


§ 29. Decisions taken by the tax administration under the Act or regulations issued pursuant to the law, of which the decision targets, referred to the Ministry of Industry and Labour at least 4 weeks after the decision was communicated to him .



Chapter 11

Penalties



§ 30. Intentional or grossly negligent violation of § 2, § 6, paragraph. 2, § 7, paragraph. 1, point 2. Paragraph. 2 and paragraphs. 3, first paragraph., § 10, § 11 paragraph. 1-6, § 12 paragraph. 1, 1st and 3rd section. Paragraph. 2 and paragraphs. 3, 2nd sentence., §§ 13 and 14, paragraph. 1, point 1., § 14 paragraph. 2, § 15 paragraph. 1 piece. 2, first sentence. And paragraphs. 3-6, § 19 paragraph. 1, point 1. Paragraph. 2 and paragraphs. 3, first paragraph., § 20, § 21 paragraph. 1-4, § 23 paragraph. 1, § 26, second paragraph., And § 27 paragraph. 2 and 5, requires a fine. Intentional or grossly negligent violation of § 28 para. 2, requires a fine, unless more action is prescribed by the Criminal Act.
Subsection. 2. In particularly aggravating circumstances, violation of § 2, § 7, paragraph. 1, point 2. Paragraph. 2 and paragraphs. 3, first paragraph., § 11 paragraph. 1-6, § 13, § 14 and § 19 paragraph. 1, point 1. Paragraph. 2 and paragraphs. 3, first paragraph., Lead to action by the Prison Act, Chapter 31
Subsection. 3. In regulations issued pursuant to this Act may be imposed measure of fines for violation of the provisions of the rules.
Subsection. 4. If a person or company to fulfill the duties and obligations imposed on them pursuant to § 27 paragraph. 5, the tax administration as a coercive require the person, company, or the company responsible persons daily or weekly fines.
Subsection. 5. A fine arranged a person or company that does not comply with an order given pursuant to § 27 paragraph. 7.
Subsection. 6. There can be imposed on companies etc. (legal persons) criminal liability under the rules of the Penal Code Chapter 5.



Chapter 12

Entry into force


§ 31. This Act shall come into force on 1 June 2010.





Greenland, May 19, 2010




Kleist
/
Ove Karl Berthelsen