Dear clients and friends,
This is a kind reminder of the upcoming entry into force of the “INSTRUCTIONS FOR THE PREVENTION, DETECTION AND CONTROL OF LAUNDERING OF MONEY AND OTHER ASSETS, FINANCING OF TERRORISM AND FINANCING FOR THE PROLIERATION OF WEAPONDS OF MASS DESTRUCTION”. The State Prosecutor’s Office issued Accord No. 618 of November 29th, 2021, delaying the entry into force of the Instructions for six months. This extension began on December 7th, 2021 and will end on June 6th, 2022.
The entry into force of the Instructions will completely repeal the ones in force to date, approved on May 17th, 2013, through Accord No. 85 by the State Prosecutor’s Office and published in the Official Bulletin on July 1st, 2013.
The new Instructions elaborate the duties of obligated parties under Article 2 of the Money and Asset Laundering Act. Such parties governed by the Instructions include all commercial entities in general, non-profit associations and foundations, among others.
In general, the main duties to be strictly observed by obligated parties are: • To register before the Financial Investigations Unit.
• To appoint a Compliance Officer.
• To apply an approach based on risk and on the proportionality principle.
• To adopt prevention, control and detection policies.
• To create an Institutional Code of Ethics.
• To implement measures of due diligence for client identification.
• To report regulated and suspicious transactions to the Financial Investigations Unit.
• To create an annual training plan for employees and subcontractors liked to the obligated party.
• To safeguard information.
• To establish an internal control system.
• To implement external audits.
It is important to mention that, among the sanctions for breach of these duties, the Money and Asset Laundering Act (Articles 7 and 8) defines who shall be considered as accessories and abettors. Thus, if concealment occurs through negligence or inexcusable ignorance in the duties of officials or employees of obligated parties, the sanction may be two to four years’ imprisonment.
We remind you that we remain at your disposal for any advice regarding obligations and the implications of the new Instructions for your business activities.
For more information, you may reach us at our telephone numbers listed on our website www.mayora-mayora.com.
Mayora & Mayora, S.C.
