Anti-Money Laundering and Combating the Financing of Terrorism Law
Chapter One: Definitions
Article (1) Definitions
The following words and expressions shall have the meanings assigned to each of them, unless the context otherwise requires:
Monetary Office: The Central Monetary and Payments Office.
Co-Chair: Co-chairmanship of the Central Monetary and Payments Office.
Board of Directors: The Board of Directors of the Central Monetary and Payments Office.
Directorate: Directorate of Anti-Money Laundering and Terrorist Financing at the Central Monetary and Payments Office.
Property: Assets or property, of any kind, whether tangible or intangible, movable or immovable, whatever the method of obtaining them, and all rights related thereto, and all documents or documents evidencing their right of ownership or ownership of a share therein, whatever their form, including electronic or digital documents. It includes, but is not limited to, money in local and foreign currencies, virtual and electronic currencies, bank account balances, commercial papers, bank credits, tourism instruments and money transfers, securities such as shares and bonds, letters of credit or guarantee, documents for collection and insurance policies.
Person: A natural or legal person.
Telegraph Transfer: Any transaction conducted by a financial institution by electronic means on behalf of the person ordering the transfer (natural or legal person) with the intention of providing a sum of money to a beneficiary person in another financial institution, and this also includes cases where the person ordering the transfer and the beneficiary are the same person.
Money or Value Transfer Service: refers to financial services that involve accepting cash, instruments or other monetary instruments or stored values and paying an equivalent amount thereof in cash or other form to a beneficiary via a call, message, transfer or via a clearing network to which the money or value transfer service provider belongs, and may include transactions involving one or more intermediaries and a final payment in favor of a third party, and can also Include any new payment methods.
Exchange Business: Dealing in foreign currencies allowed to be dealt in the markets of the Autonomous Administration areas of northeastern Syria and transferring them in accordance with the Law Regulating Exchange and Remittance Business, and banking services by one bank (correspondent bank) to another bank (the beneficiary bank), including but not limited to local cash management and transfer services. International funds, clearing instruments, intermediate accounts payable, foreign exchange and other similar relationships.
Convertible Currency: Any currency that can be used in the markets of the Autonomous Administration Areas of North and East Syria under the law.
Exchange Company: A company licensed to practice exchange and remittance business in accordance with the provisions of Article (21) of the Law Regulating Exchange and Remittance Business.
Exchange Office: The office licensed to practice exchange business as specified in the provisions of Article (21) of the Law Regulating Exchange and Remittances.
“Teller” means a natural or legal person licensed by the Monetary Office to practice exchange business under the provisions of the Law Regulating Exchange and Remittances.
Correspondent company: The exchange company or bank operating outside the areas of self-administration with which the exchange company deals.
Public Entity: All public entities or entities that have specific responsibilities in combating money laundering and terrorist financing, and the seizure and confiscation of funds related to crime.
Regulatory Authority: Any entity competent to monitor and supervise financial institutions, exchange companies and offices, and designated professions, and follow up on their compliance with the provisions, rules, controls and standards governing their prescribed activities, including those governing anti-money laundering and terrorist financing.
“Committee” means the Supreme Committee for Combating Money Laundering and Terrorist Financing provided for in this Law.
Means: Any instrument used or intended to be used, in whole or in part, in any way, in the commission of a crime.
Proceeds of crime: Any funds resulting or obtained, directly or indirectly, from money laundering, terrorist financing or predicate offences, including funds that have been converted or exchanged, in whole or in part, into other funds, as well as any interest, profits or returns from such funds, or the value due from or arising therefrom.
Money laundering: Any of the acts stipulated in Article (2) of this Law.
Financing of terrorism: means any of the acts stipulated in Article (3) of this Law.
Financing of weapons of mass destruction: Any of the acts stipulated in Article (4) of this Law.
Terrorist act: Any act or attempt committed in the areas of the Autonomous Administration of North and East Syria or in any other place of the following:
a. An act intended to cause death or serious bodily injury to a civilian or other person when that person is not taking part in hostilities in the event of an armed conflict, the purpose of which is to intimidate the population or to compel a Government or an international organization to do or refrain from doing any act.
b. If the act constitutes a crime of terrorism in accordance with the definitions stipulated in the laws of the Autonomous Administration of North and East Syria international conventions or protocols.
Terrorist: Any natural person, whether in the areas of the Autonomous Administration of North and East Syria or abroad:
a. commits or attempts to commit a terrorist act intentionally, by any means, in accordance with the provisions of this Law, directly or indirectly.
b. Intentionally participates in a terrorist act.
c. Organizes the commission of a terrorist act or directs other persons to commit it.
d. Intentionally contributes to the commission of a terrorist act by a person or group of persons acting for a common purpose, either with the aim of expanding the terrorist act or knowing the intention of the person or group of persons to commit a terrorist act.
e. It shall be named by virtue of any decision issued by the competent court in the areas of the Autonomous Administration of North and East Syria.
Terrorist Organization: Any group of natural persons, whether in the Autonomous Administration areas in northern and eastern Syria or abroad, who carry out, plan to carry out or are formed to carry out any of the acts mentioned in the previous definition or have been identified as such in accordance with Article (3) of this Law.
Freezing: It is the prohibition of the disposal or transfer of funds based on a decision issued by the Public Prosecution Authority on the proposal of the Directorate of Anti-Money Laundering and Terrorist Financing and for the duration of the validity of that decision. Such funds shall remain the property of persons who had an interest in such funds or property at the time of freezing and shall be managed by the judicial authority.
Confiscation: It is the permanent deprivation of funds, based on a judicial ruling, or a decision issued by a competent authority in accordance with the law, according to which the ownership of the confiscated funds is transferred to the Autonomous Administration in the regions of northern and eastern Syria.
Illicit funds: Illicit funds, within the meaning of this Law, means tangible or intangible assets, movable or immovable, including legal documents or documents evidencing the right of ownership of such assets or any share therein, resulting from the commission or attempt to commit a punishable act or from participation in any of the predicate offences.
Predicate crimes: committing, attempting to commit or participating in incitement to commit any of the following crimes, whether these crimes occurred inside northern and eastern Syria or outside this region.
Financial institution: Any activity or operations carried out for the benefit of its clients or on its behalf, whatever its legal form and whether it takes the form of a company or a sole proprietorship.
Specific professions: Those that practice any of the activities or operations, for the benefit of its clients or on its behalf, whatever its legal form and whether it takes the form of a company or a sole proprietorship and which carries out the following activities:
1- Real estate agents and brokers, when they sell or buy real estate for the benefit of their clients.
2- Dealers of precious metals or stones.
3- Antiquities dealers.
4- Lawyers , notaries, accountants and auditors, whether any of them is practicing his profession independently, or a partner or employee of a company, when they prepare or carry out operations for the benefit of their clients related to the following activities:
a. Buying and selling real estate.
b. Management of funds, securities or other assets.
c. Managing bank accounts, savings accounts or securities accounts.
d. Organizing contributions for the purpose of establishing, operating or managing companies.
e . Create, operate or manage legal persons, and buy or sell commercial entities.
5- Any other person, to whom a decision is issued by the Central Monetary and Payments Office.
Transiting Customer: A customer who does not have an ongoing relationship with the financial institution or exchange offices and companies and designated professions.
Continuous relationship: Any financial or commercial relationship that is expected upon its establishment to extend for a period of time and include multiple operations, and the continuous relationship includes any commercial or professional relationship related to one of the activities or operations practiced by financial institutions, exchange offices and companies, and specific professions whenever the institution expects the relationship to extend for a period of time.
Bearer shares: Cash instruments that are in the form of a bearer document, such as tourist coke, negotiable instruments including bank instruments, bills of exchange, promissory notes, payment orders, etc., which are either bearer orback without restrictions or issued to a fictitious beneficiary, or in any form that enables the transfer of the right to them through delivery.
Beneficial Owner: A natural person who owns or exercises effective and final control over the Client, as well as a natural person on whose behalf the operations are carried out, or who has actual and final control over a legal person or arrangement In respect of any Client who is a legal person , the “Beneficial Owner” is: Natural person(s):
(1) Who actually owns and benefits from the capital or other assets of the legal person.
(2) Those who exercise, by any means, effective control over the legal person.
(3) Those who own or control 20% or more of the capital of a legal person, whether directly or indirectly.
In the event that there is no natural person who owns at least 20% of the client’s capital, then the identity of natural persons who occupy positions in senior management or who exercise control over the legal person through other means (such as voting rights, the right to appoint or dismiss the majority of the administrative or supervisory body…) must be identified.
Risky political persons: persons entrusted with, or entrusted with prominent public functionslocally or from a foreign country, such as heads of state or government, senior politicians, senior government, judicial and military officials, senior executives of companies owned by the Autonomous Administration and senior officials of political parties, and senior executives in companies and bodies affiliated with the Autonomous Administration areas in northern and eastern Syria or in a foreign country, including family members up to the second degree, or their close associates.
Company or shell bank: A company or bank that does not have a physical presence in the country in which it is incorporated, from which it has obtained a license, and does not belong to any financial group subject to effective unified supervision.
A physical presence in a State means the existence of a physical administration in the State, and the presence of a local agent or employees of low administrative levels does not constitute a physical presence.
Non-profit organizations or associations: Any legal person, legal arrangement, organization or institution that collects and spends funds for charitable, religious, cultural, educational, social or solidarity purposes or performs any charitable work.
United Nations Sanctions Committee: These are the UN Security Council sanctions committees established pursuant to Security Council resolutions 1267 (1999) and 1988 (2011) which include but are not limited to resolutions 1373, 1452, 2178, 2253, 2255 and all resolutions thereof.
Chapter Two: Crime of Money Laundering and Terrorist Financing
Article (2) Crime of Money Laundering
First: Any person who commits one of the following types of conduct shall be deemed to have committed the crime of money-laundering:
A Concealing the true source of illicit funds or giving a false justification for this source, by any means, knowing that the funds subject to the act are illicit.
B Transfer, transfer, exchange or use of funds for the purchase of movable or immovable property or to carry out financial operations for the purpose of concealing or disguising their illicit origin or with the intention of assisting any person involved in the commission of any of the offences set forth in article I to evade prosecution knowing that the funds subject of the act are illegal.
C Possession, possession or use of funds, knowing that these funds are the proceeds of a crime at the time of receipt.
Second: The criminalization provided for in the preceding paragraph includes contributing to money laundering, whether by participation,agreement, incitement, aiding or conspiracy tocommit, facilitate, provide advice, or other means of contribution.
Third: The crime of money-laundering is considered a separate crime from the predicate crime, and punishing the perpetrator of the predicate crime does not prevent him from being punished for the crime of money laundering or any of the related crimes.
Article (3) Crime of Financing Terrorism
First: Any person is guilty of the offence of financing terrorism if he intentionally provides, collects or makes available by any means, directly or indirectly, funds with the unlawful intention of using them or with the knowledge that they will be used, in whole or in part, for the commission of a terrorist act or by a terrorist or terrorist organization.
Second, this includes financing or receiving the travel of individuals for the purpose of committing, planning, preparing, participating in or facilitating terrorist acts, or providing or receiving training in terrorist acts.
Third: The offence under this article shall be deemed to have occurred even if the terrorist act has not occurred or has not been attempted, regardless of where it occurred, the place where it is intended to be committed, or where the terrorist or terrorist organization is present, and whether the funds are used tocommit the act or not.
Fourth: The criminalization provided for in the preceding paragraph includes contributing to the financing of terrorism, whether by participation,agreement, incitement, assistance, facilitation, advice, or other means of contribution, and the criminalization includes organizing or directing others to carry out or attempt to carry out the acts stipulated in thefirst paragraph.
Article (4) Crime of financing the proliferation of weapons of mass destruction
Any operation to provide funds or financial services used, wholly or partially, in the manufacture, acquisition, possession, development, export, trans-shipment, brokering, transport, transfer, storage, or use of nuclear, chemical or biological weapons, their means of delivery and related materials including technological means and dual-use goods that are used for illicit purposes, in contravention of domestic laws or international requirements, where That applies.
Chapter Three: Duties of Financial Institutions, Exchange Offices and Companies and Designated Professions
Article (5) Compliance with international sanctions
Financial institutions, exchange offices and companies, and designated professions shall abide by international sanctions, especially the Law on the Protection of Syrian Civilians, in terms of complying with the following:
• Adopting electronic systems to examine the names of customers on international sanctions lists.
• Immediately suspend transactions and freeze accounts and transactions belonging to names that are included in international sanctions lists.
• Examine incoming and outgoing transactions and transfers to verify that the names associated with these transactions are not listed or linked to names listed on international sanctions lists.
• Verify that transactions and transfers carried out for the benefit of its clients are not linked to sectors covered by international sanctions lists.
• Inform the Anti-Money Laundering and Combating the Financing of Terrorism Directorate at the Central Monetary and Payments Office, immediately and without any delay, of any accounts or operations associated or suspected of being associated with names listed on the international sanctions lists, provided that the report is accompanied by the balances of accounts and transactions that have been frozen in addition to customer files. (Know Your Customer, and Account Statements) form
Article (6) Obtaining a License
It is prohibited to practice any of the activities of financial institutions, exchange offices and companies, and the professions specified in Article (1) of this Law without obtaining a prior license from the competent authorities in accordance with the provisions of the laws in force.
Article (7) Risk-Based Approach
1. Financial institutions, exchange offices and companies, and designated professions should adopt a risk-based approach to understand, manage and assess the risks of money laundering, terrorist financing, and proliferation of weapons, reduce them, and monitor the implementation of these measures on an ongoing basis and develop them when needed. It must also keep the risk assessment study and related information in writing, update it periodically and provide it to the competent authorities upon request. All financial institutions, exchange offices and companies and designated professions classify each of their customers and transactions in any form, whether a natural person, legal person, non-profit organization or association, as low risk, medium risk, and high risk.
2. When determining the appropriate level of risk for a customer or transaction, financial institutions, exchange offices and companies and designated professions must consider each of the following factors:
• Client risk
• Risks of products and services
• Geolocation risks
• Service Delivery Network Risks
3. Financial institutions, exchange offices and companies, and designated professions develop proactive and continuous strategies and procedures to identify, monitor, manage, control and mitigate the risks associated with each of their customers and their transactions.
4. Financial institutions, business offices, exchange offices and companies, and designated professions shall apply strict due diligence measures when the risks of money laundering and terrorist financing are considered high, and financial institutions, businesses, exchange offices and companies, and designated professions may apply due diligence measures in accordance with what is stated in Articles (8) and (9) of this Law when the risks of money laundering and terrorist financing are considered low to medium, and mitigating measures may not be applied when the risks of In the case of money laundering or terrorist financing, enhanced diligence procedures shall be applied in accordance with Article (10) of this Law.
5. Financial institutions, exchange offices and companies, and designated professions shall identify and assess the risks of money laundering and terrorist financing arising from the development of new products and practices or when there are substantial changes in the nature of products and services, including risks related to modern distribution channels, as well as the use or development of modern or sophisticated technologies for new or existing products, and to assess the risks of such products, practices and technologies prior to their operation, and take adequate measures to manage and reduce these risks.
6. Within the sixty days period after the end of each calendar year, financial institutions, bureaux de change and designated professions, when assessing risk, shall review their approved risk rating strategy and such strategy shall be reviewed by an independent external auditor. No later than five working days after the expiry of the aforementioned sixty-day period, the auditor shall submit his report to the Directorate of Anti-Money Laundering and Combating the Financing of Terrorism at the Central Monetary and Payments Office.
7. Within the sixty days period following the end of each calendar year, financial institutions, exchange offices and companies and designated professions shall prepare an annual assessment of all current and potential risks associated with customers and transactions no later than fifteen working days after the expiry of the indicated sixty-day period, the annual assessment shall be submitted to the Directorate of Anti-Money Laundering and Terrorist Financing at the Central Monetary and Payments Office accompanied by a strategy to mitigate each identified risk.
8. Financial institutions, exchange offices and companies and designated professions shall prepare a customized assessment whenever there are indications of a material change in the risks associated with a particular customer or transaction. This assessment must be prepared and submitted to the Anti-Money Laundering and Combating the Financing of Terrorism Directorate at the Central Monetary and Payments Office, together with the strategy adopted to eliminate each newly emerging risk, within fifteen working days after the risk change is detected.
9. The Supreme Anti-Money Laundering and Combating the Financing of Terrorism Committee shall issue one or more circulars containing additional detailed instructions that may be necessary to ensure the implementation of the above-mentioned provisions.
Article (8) Due Diligence Procedures
First: Financial institutions, exchange offices and companies and designated professions shall take due diligence measures to identify customers and real beneficiaries, especially in the following cases:
1. When establishing an ongoing business relationship.
2. When carrying out a transaction for transit and permanent customers in the form of wire transfers, or the exchange of funds worth more than five thousand US dollars or its equivalent in other currencies.
3. When there is a suspicion of a crime of money laundering or terrorist financing, regardless of any amounts set forth in this Law.
4. When there is doubt as to the accuracy, adequacy or correctness of the previously obtained data regarding customer identification.
Second: Financial institutions are prohibited from entering into or continuing correspondence business relationships with shell banks, and these entities may not have or continue working relations with beneficiary financial institutions if they allow the use of their accounts by shell banks.
Third, financial institutions are prohibited from maintaining any anonymous accounts or accounts with obviously fake names.
Fourth: Financial institutions , exchange offices and companies, and designated professions shall take all measures when establishing a commercial relationship or executing a transaction with any client who requests to carry out an operation in a face-to-face manner, for the purposes of identifying him, to deal with the risks associated with money laundering and terrorist financing .
Fifth: Financial institutions shall apply customer identity verification procedures and due diligence procedures to financial institutions and correspondent banks when establishing a business relationship with them, and the following due diligence procedures must be taken:
1. Obtain the approval of senior management before establishing a relationship with financial institutions and correspondent banks.
2. Gather sufficient information about financial institutions and correspondent banks to fully understand the nature of their business and determine, through available information, the type of reputation they enjoy and the type of monitoring to which they are subject, including whether they have been investigated for money laundering, terrorist financing, or other regulatory action.
3. Evaluate the controls used by financial institutions and correspondent banks to combat money laundering and terrorist financing and ensure that they are adequate and effective through a questionnaire and survey through which the financial institution or correspondent banks are obligated to answer the questions included therein, which clarify the position of the financial institution and correspondent bank on compliance with their local legislation and controls, the standards and procedures for identity verification applied to their customers, their efforts in the field of money laundering and terrorist financing, and the availability of effective internal policies and procedures in this regard. Matter.
4. Determine the liability of the financial institution and correspondent bank for combating money laundering and terrorist financing in writing.
5. Ensure that the financial institution and correspondent bank are subject to effective supervisory supervision by the competent authorities.
6. Documenting all information, documents and written agreements obtained with the financial institution and correspondent bank and making them available to the competent authorities when necessary.
7. Ensure that financial institutions or correspondent banks that maintain correspondent payment accounts with local financial institutions apply due diligence procedures to their customers who are entitled to access those accounts and are able to provide relevant customer identification data upon request.
Sixth: Financial institutions, exchange offices and companies and designated professions, taking into account the results of the risk assessment in accordance with the provisions contained in Article(7), shall carry out the following due diligence procedures:
1. Identify and verify the identity of customers, whether permanent or transient, natural or legal persons, by checking documents, data or information related to them, through independent and reliable sources.
2. Verify that anyone claiming to act on behalf of the customer is authorised to do so, and that person must have identification and verification procedures in place.
3. Identify the Customer’s Beneficial Owner, and take all reasonable measures to verify this identity, using documents, information or data from independent and reliable sources to ensure that the financial ornon-financial institution and the designated profession are satisfied that they have identified the Beneficial Owner.
4. Conduct continuous scrutiny of the business relationship with the client, including ensuring that the transactions arising from this relationship are in line with the available information about the customer, his activity, and the size of the risks he represents, including the source of his funds if required.
5. Periodically review and verify documents, data and information related to customer identification, and ensure that updated and appropriate data and information in this regard are maintained according to the customer’s risk degree as follows:
A. Every four years for low-risk clients.
B. Every two years for medium-risk clients.
C. Every year for high-risk clients.
6. Financial institutions, exchange offices and companies, and designated professions shall update the customer’s data and documents whenever there is a fundamental change in the customer’s status that may affect the customer’s degree of classification.
Article (9) Simplified Due Diligence
Financial institutions, exchange offices and companies and designated professions may apply simplified due diligence measures that are not commensurate with the low risk factors resulting from a risk assessment, after meeting the requirements of Article (8) above, andprovided that there is no suspicion of money laundering or terrorist financing or that there are no special cases in which the risk is high.
Article (10) Enhanced Due Diligence
In addition to the requirements of Article (8), financial institutions, exchange offices and companies and designated professions shall apply enhanced customer identification due diligence procedures and operations carried out or intended to be carried out in order to obtain additional information from the customer, when classified as high risk, provided that it is not less than the following procedures:
1. Get additional information from the customer.
2. Refer to any publicly available information or databases on the internet.
3. Obtaining the approval of senior management in opening the account for the customer.
4. Take reasonable measures to determine the source of wealth and funds of clients and beneficial beneficiaries.
5. Request supporting documents for the operations intended to be carried out or executed.
6. Obtain information about immediate family members or partners who have the authority to conduct operations through the account.
7. Review sources (such as lists of available names) to determine whether the client is a political risk person.
8. Obtain information directly from the client regarding the likelihood of becoming a risky political person.
Article (11) Application of Due Diligence Procedures for Certain Specific Occupations and Professions
Traders in metals and stones and other traders in precious and valuable commodities shall apply the requirements stipulated in Article (8) when receiving cash payments exceeding the limit determined by a decision of the Central Monetary and Payments Office, or when they suspect money laundering or terrorist financing, as well as real estate agents and brokers when participating in transactions related to the sale and purchase of real estate.
Article (12) Failure to apply due diligence procedures
In the event that the financial institution, exchange offices and companies, or the designated professions are unable to complete the procedures for identifying and verifying the identity of the customeras set forth in Article (8), they shall not open the account, start any commercial relationship with the customer, carry out any operations for his account, or terminate the commercial relationship. It should also consider sending a suspicion report to the Directorate regarding the client.
Article (13) Reliance on Third Parties for Identity Verification
First: Financial institutions, exchange offices and companies and designated professions may rely on third parties who are financial institutions or non-financial institutions and designated professions to apply the measures stipulated in paragraph “Sixth” of Article (8), provided that they ascertain the following elements:
1- Immediately obtain from those financial institutions, exchange offices and companies and designated professions the necessary information related to customer identification.
2- Take adequate steps to ensure that financial or non-financial institutions and designated professions will provide copies of identification and other relevant documents without delay, upon request.
3- Reassure financial institutions or exchange offices and companies and designated professions that such financial institutions or exchange offices and companies and designated professions are subject to control and supervision and have appropriate procedures for customer identification and record keeping requirements.
4- In the event that there are financial institutions or exchange offices and companies and specific professions that are used in another country, the financial institutions or exchange offices and companies and designated professions must consider the available information about the level of risk therein, to determine the appropriateness of using an institution or entity belonging to these countries.
5- In all cases, the primary responsibility for the application of these procedures remains with the financial institutions or exchange offices and companies and specific professions accredited by the third party.
Second: In the event that the financial institutions, exchange offices and companies and the specific professions used in the application of customer identification and verification procedures are part of the same financial group, the conditions in item (first) of this Article may be considered to have been met if the following are available:
1- EFG implements identification and verification procedures as well as internal systems and systems for keeping documents and records in accordance with the provisions of this Law.
2- The application of the procedures referred to in paragraph (1) of item (first) above shall be subject to control by a supervisory authority at the Group level.
3- Any high risks that may arise from the presence of financial institutions or bureaux des exchanges and specific professions engaged in another country have been appropriately mitigated by the Group’s AML/CFT policy.
Article (14) Political Persons Representing Risks
First: Financial institutions, exchange offices and companies, and designated professions shall adopt appropriate risk management systems, to determine whether the customer or beneficial owner is a political person representing local and foreign risks, and if so, do the following:
1- Obtain the approval of the Board of Directors, before establishing the business relationship with the client, or to continue it for existing customers.
2- take all reasonable measures to determine the source of the Client’s wealth and funds,
3- Apply enhanced due diligence procedures in accordance with Article (10).
Second: Financial institutions, exchange offices and companies, and designated professions shall apply the same procedures mentioned in the preceding paragraph to family members of persons with ex officio risks and parties with close relations with them.
Third: Financial institutions, exchange offices and companies and designated professions shall apply the same procedures mentioned in paragraphs (first) and (second) for a period of not less than three years from the date of leaving the political person representing the risks of his position.
Article (15) Correspondent Banking Relations
In addition to the due diligence measures provided for in Article 8 of this Law, financial institutions shall take the following measures when establishing cross-border correspondent banking relationships:
1. Collect sufficient information about the institution that has been informed of the nature of its operation and assess, through the information made public, the reputation it enjoys and the type of control carried out on it, including whether it or any of its board members or owners of a controlling stake have been investigated for money laundering or terrorist financing crimes or any sanctions or administrative measures.
2. Collect information on the nature of the activities of the financial institution with which a correspondent banking relationship is established.
3. Obtain senior management approval before establishing a correspondent banking relationship.
4. . Evaluate the controls applied by the institution that corresponds to the anti-money laundering and terrorist financing institution;
5. In the case of correspondence payment accounts, ensure that the financial institution has verified the identity of its customers who have the right to directly use these accounts, implemented continuous monitoring mechanisms in their regard, and is able to provide identifying information upon request.
Article (16) Information related to wire transfers
First: In addition to the due diligence procedures subject to Article (8) of this Law, financial institutions shall , when making local or foreign wire transfers, at the request of their customers, obtain from them the following information:
1- The name of the transfer command.
2- The account number of the person ordering the transfer when this account is used to perform the transaction.
3- Beneficiary name.
4- The beneficiary’s account number when this account is used to carry out the transaction, the bank’s name, address, and telephone number.
5- Reason for conversion.
Second: When receiving incoming remittances or acting as intermediaries in a payment chain, the financial institution shall take the necessary measures to identify remittances that do not contain complete information about the applicant and beneficiary of the transfer, and shall complete and verify the missing information with the institution executing the transfer or the beneficiary. If the missing information cannot be obtained, the financial institution should take risk-based policies and procedures to identify cases in which the transfer is accepted, suspended or rejected.
Article (17) Submission of Communications
First: Financial institutions, exchange offices and companies and designated professions shall inform theDirectorate without delay and within a maximum period of fifteen days of any transaction or any attempt to conduct the transaction, regardless of its value, if they suspect or have reasonable grounds to believe that such transactions are carried out with funds derived from a crime or linked to laundering operations, and if the suspicion is related to the financing of terrorism, the Directorate must be informed within a maximum period of five working days.
Second: Lawyers and other legal professionals and independent accountants may not perform the reporting duty provided for in the preceding paragraph if information related to the suspicious transaction has been obtained in the circumstances in which they are subject to professional secrecy, provided that the authorities supervising these professions determine the issues that would fall within the framework of legal professional privilege or professional secrecy, and the mechanism necessary to inform the Directorate of transactions suspected of involving money laundering or terrorist financing.
Third: No criminal or civil action or disciplinary or administrative action may be instituted against financial institutions, financial institutions and designated professions, their directors or employees, in case of violation of any prohibition on reporting information imposed by contract or law in the event that they in good faith submit a report or any other information to theDirectorate.
Article (18) Failure to alert customers
First: Financial institutions, exchange offices and companies, designated professions, their managers, employees and other employees are prohibited from alerting the customer or disclosing to him and others any reports or information submitted to theDirectorate, or related to suspicion or investigation of money laundering or terrorist financing cases, with the exception of disclosure or communication between managers of financial institutions, exchange offices and companies and designated professions.And its employees and other employees, lawyers and competent authorities.
Second, the attempt by lawyers and other independent legal professionals and accountants, who act as independent legal professionals, to discourage the client from engaging in illegal activity does not amount to a warning.
Article (19) Record Keeping
First: Financial institutions, exchange offices and companies, and designated professions shall keep records related to the following information, and ensure that the records and information they contain are readily available for the Directorate to view:
1. Documents obtained in accordance with the provisions of this Law, which prove the identities of customers and beneficial beneficiaries, and account files, including but not limited to: account opening documents, signature forms, account statements, internal communications that have been decided to be kept by the compliance officer, the register of agencies, correspondence and the results of any analysis carried out, and any other records and data determined by the regulatory authorities; It is held for at least five years after the termination of the business relationship or after the date of the transaction for incidental operations.
2. Transaction records that allow the transactions that customers have attempted or have made to be reconstructed to allow them to be presented as evidence when conducting investigations in related cases, and which are kept for at least five years after the transaction is attempted or actually executed.
Second: The Supreme Anti-Money Laundering and Terrorism Financing Committee may request that these documents, records, information or reports be kept for a longer period in the cases it specifies.
Article (20) Submission of Information
Financial institutions, exchange offices and companies, and designated professions shall submit information and documents tothe supervisory authorities supervising them, each in their respective regards, upon request, and professional secrecy may not be pleaded for non-compliance with this obligation.
Article (21) Internal Anti-Money Laundering and Combating the Financing of Terrorism Programs
Financial institutions , exchange offices and companies and designated professions shall prepare , develop and implement programmes to combat money-laundering and the financing of terrorism, provided that such programmes include the following elements:
1. Appropriate policies, standards and internal controls to ensure the application of high standards of combating money laundering and terrorist financing, their application to existing and new customers, informing employees of them, training them on them, ensuring that they are approved and applied by the Board of Directors, the General Manager, the owner or whoever is authorized in financial institutions, exchange offices and companies and specific professions, and developing these policies and internal controls whenever necessary or substantial amendments have occurred in the approved international standards.
2. Appropriate policies, standards and internal controls to ensure high standards are applied when hiring people.
3. Continuous training for employees and workers to qualify them in the field of combating money laundering and terrorist financing .
4. Internal audit arrangements to review compliance with the measures taken to implement this Law and their effectiveness.
5. Establish systems of control, compliance and due diligence procedures, record keeping, detection of unusual and suspicious transactions, and reporting obligation.
6. If financial institutions , bureaux d’exchange companies and designated professions are affiliated with a financial group, they must establish a group-wide anti-money laundering and combating the financing of terrorism regime to be applied by all its subsidiaries and subsidiaries, which includes the following:
A. Policies and procedures for the exchange of information related to identification and risk management of money laundering and terrorist financing.
B. Allow branches and subsidiaries to submit customer information, accounts and operations for the Group’s compliance, auditing, AML/CFT functions to meet relevant requirements.
C. Establish adequate safeguards to maintain the confidentiality of information exchanged and how it is used.
Article (22) Establishment of an administrative arrangement for compliance
Financial institutions, exchange offices and companies and designated professions shall establish an appropriate administrative arrangement at the management level to ensure compliance with the requirements of this Law in accordance with the following:
1. Establishing a compliance unit at the level of the head office and branches that will be responsible for anti-money laundering and terrorist financing procedures, reporting and communication with the Directorate, while individual institutions do so directly by the owner of the institution or his authorized representative.
2. Appoint a competent and honest compliance officer at the head office and branch levels.
3. Enable compliance officers to view customer identity data and other information obtained from due diligence procedures, transaction logs and other relevant information.
4. Establish an independent internal audit function to test compliance with these policies, procedures and controls, including compliance testing through examination samples.
5. Develop a training program for employees that includes familiarization with international laws, regulations, instructions and conventions related to combating money laundering and terrorist financing, in particular customer due diligence requirements, reporting suspicious transactions, and information related to methods and techniques in the field of combating money laundering and terrorist financing.
Article (23) Branches and Subsidiaries Abroad
Financial institutions that have branches or subsidiaries abroad in which the majority of shares are owned shall ensure that such branches and companies comply with the requirements set forth in this Law, in cases where similar measures applied in the host country of the subsidiary or branch are less stringent and do not conflict with the laws and regulations in force in that State. It shall inform the Supervisory Authority and take additional precautionary measures in the event that it is unable to implement appropriate measures to combat money laundering and terrorist financing in light of the laws and regulations in force in the host State.
Article (24) Controls for dealing with bearer shares
First, financial institutions shall require any natural or legal person who is a client of them or carries out operations on their behalf to provide them with complete and accurate information about whether they have issued or held bearer shares, and the financial institution shallrequest such person to provide the following:
A- With regard to a natural person who owns bearer shares:
1. A detailed list of all shares owned by this person.
2. Official document proving his/her identity (original or certified copy of passport, ID card or driver’s license)
3. Reasonable supporting evidence proving their ownership of shares.
B- With respect to a legal person who owns bearer shares issued by another company:
1. A detailed list of all shares owned by this legal person.
2. Official document evidencing the identity of such legal person (for a national legal person: an official document certified by the Commercial Register; for a foreign legal person: a document certified by the relevant foreign commercial register or an equivalent document, such as a certificate of registration with a good rating;
3. Reasonable supporting evidence proving that the legal person owns the bearer shares .
C- In respect of the legal person that issued bearer shares: a detailed list of all bearer shareholders, including the addresses of the holders and the required identification documents.
Second: Every financial institution shall request any natural or legal person to provide it with information under the preceding paragraph and update such information at least once a year and whenever any change occurs that makes the previously provided information inaccurate.
Third: Financial institutions are prohibited from having a client or conducting any business with any natural or legal person holding or issuing bearer shares before providing the information required under paragraphs (first) and (second) above.
Chapter Four: Supreme Committee for Combating Money Laundering and Terrorism Financing
Article (25) Establishment and Composition of the Committee
First: Under the provisions of this Law, a committee called the “Supreme Committee for Combating Money Laundering and Financing of Terrorism” shall be established at the Central Monetary and Payments Office, with legal personality and independent financial liability.
Second: The Committee shall consist of:
A- Co-Chairperson of the Central Monetary and Payments Office (Chairman)
B- Director of the Anti-Money Laundering and Terrorism Financing Directorate (Member and Deputy)
C- A representative of the following entities, delegates from the bodies to which they are affiliated shall be nominated, so that none of them shall be less than the deputy of an authority or director of a department:
D- Social Justice Council
E- Finance Authority
F- Interior Authority
G- Social Affairs and Labor Authority
H- Industry and Commerce Authority
I- Communications Commission
J- General Administration of Customs
Third: The Committee may add other members by a decision of a majority of its entire members.
Fourth: A decision shall be issued to form the committee and determine the remuneration of its members by a decision of the General Council.
Fifth: The Committee may seek the assistance of experts and technicians it deems appropriate.
Article (26) Competences of the Committee
The Committee shall have the following competencies:
1. Develop and develop a strategy to combat money laundering and terrorist financing crimes in coordination with the competent authorities, and follow up on its implementation.
2. Ensure the existence of effective mechanisms for local cooperation and coordination between the competent authorities with regard to the development, development and implementation of policies and activities to combat money laundering, terrorist financing and the financing of the proliferation of weapons of mass destruction.
3. Assess the risks of money laundering and terrorist financing at the level of the Autonomous Administration of North and East Syria.
4. Study and follow up on national, regional and international developments in the field of combating money laundering, terrorist financing and the financing of the proliferation of weapons of mass destruction, and propose legislative amendments in line with these developments.
5. Provide recommendations on the development of regulatory instructions and controls issued by the regulatory authorities.
6. Evaluate the effectiveness of the anti-money laundering and combating the financing of terrorism system and monitor the implementation by the competent authorities of the policies and decisions taken by the Committee.
7. Coordinate with the relevant authorities in international, regional and bilateral conventions related to combating money laundering and terrorist financing, and propose the necessary mechanisms to put the provisions of these agreements into effect.
8. Prepare an annual report, including a presentation of the Committee’s activities, local,regional and international developments in the field of combating money laundering and terrorist financing , and its proposals on activating control and regulation systems within the areas of the Autonomous Administration.
9. Coordination with the competent authorities in developing community and institutional awareness programs, and qualifying and training cadres working in the field of combating money laundering, terrorist financing and financing the proliferation of weapons of mass destruction.
10. Coordinate with the competent authorities to develop public policies and collect statistics in the field of combating money laundering, predicate crimes and terrorist financing.
11. Representing the Autonomous Administration in international forums and conferences related to combating money laundering and terrorist financing.
12. Coordinate local cooperation and exchange of information between the competent authorities to contribute to the recovery of crime proceeds.
13. Identify countries that are considered high risk and the measures to be taken towards them, and the regulatory authorities shall verify the compliance of financial institutions, exchange offices and companies and designated professions with the application of these measures.
14. Any other functions issued by a resolution of the General Council.
Article (27) Rules of Procedure of the Supreme Committee
The Monetary and Payments Office shall draw up an internal regulation, which shall include the procedures governing the mechanism of work of the Supreme Committee, the rules necessary for the exercise of its powers, the term of office, the mechanisms for changing its members, and the duration of their mandate, provided that they are approved by the Supreme Committee.
Chapter Five: Regulatory Authorities
Article (28) Functions of Regulatory Authorities
The regulatory authorities shall undertake the regulation, control and supervision of financial institutions, exchange offices and companies and designated professions, each in accordance with its competences and powers and the entity subject to its supervision, in accordance with the requirements prescribed under the provisions of this Law and any relevant executive regulations, decisions, publications and instructions. In particular, they shall:
1. Issue decisions, publications and supervisory instructions in the field of combating money laundering and terrorist financing in coordination with the Central Monetary and Payments Office, and in accordance with the provisions of this law.
2. Adopt the necessary measures to establish adequate and appropriate standards to prevent criminals and their accomplices from holding large or controlling interests in financial institutions subject to their supervision or becoming real beneficiaries thereof and preventing them from becoming members of the Board of Directors or assuming a function of the Board of Directors. The same measures must be adopted for bureaux de change and specific professions.
3. Regulate, monitor and supervise the compliance of financial institutions, bureaux de change, designated professions, and non-profit organizations and associations subject to their supervision with anti-money laundering and combating the financing of terrorism measures, by applying a risk-based approach, including assessing and understanding the risks of the audited entities in terms of money laundering, terrorist financing, sector risks, and taking into account the local risks of the audited entities.
4. The authorities supervising the specific professions, organizations and non-profit associations may conduct field inspection or office control on these bodies to access any documents, information or records necessary to carry out their tasks.
5. Review the risks of financial institutions, exchange offices and companies, and specific professions subject to their supervision periodically, as well as in the event of significant changes in the management or operations of any of these institutions and entities.
6. Cooperating with other competent authorities, providing assistance in evidence-gathering procedures, judicial investigations, or filing lawsuits related to money laundering, terrorist financing and related crimes, and exchanging information with them.
7. Cooperating with the Directorate in preparing the standards to be observed in reporting suspicious transactions, in accordance with the relevant international standards.
8. Ensure that the financial institutions subject to its supervision, and their branches at home and abroad, adopt and implement measures consistent with the provisions of this Law and any relevant executive regulations, decisions, publications and instructions issued by the Supervisory Authority. This applies to companies or branches of financial institutions abroad in cases where similar measures applied in the host State of the company or branch are less stringent and do not conflict with the laws and regulations in force in that State. They shall oblige the financial institutions subject to their supervision to notify them and to take additional precautionary measures in the event that they are unable to implement appropriate measures to combat money-laundering and the financing of terrorism in the light of the laws and regulations in force in the host State, as well as to take any supervisory measures in respect of the financial institution in the event that they fail to perform their duties in this regard, such as the closure of the company or branch concerned in the host State.
9. Immediately inform the Directorate of any information relating to suspicious operations, money laundering or the financing of terrorism.
10. Maintain statistics on the facts relating to money laundering or terrorist financing, and the procedures and measures taken in their regard, in implementation of the provisions of this Law.
11. Determine the type and extent of the necessary measures to be taken by financial institutions, bureaux d’exchange companies and designated professions subject to their supervision in accordance with Article (7) of this Law to counter the risks of money laundering and terrorist financing.
Article (29): Measures and Sanctions Taken by Regulatory Authorities
The supervisory authorities, each in accordance with its competences and powers and the entity subject to its supervision, shall, in the event that a financial institution, office, exchange company or specific profession fails to comply with the requirements of the obligations stipulated in this Law and any relevant executive regulations, decisions, publications and instructions, deliberately or negligently, impose one or more of the following measures and penalties:
• Order the submission of regular periodic reports to address the particular violation.
• Written warning.
• Suspending the board of directors or directors, or restricting their powers, including appointing interim management.
• Prevent individuals from obtaining a job in the business sector or profession.
• Preventing the perpetrator of the violation from working in the relevant sector for a period determined by the regulatory authorities.
• Dismissing or requesting a change of members of the Board of Directors and members of the executive or supervisory management
• Temporary suspension or restriction of activity, work or profession.
• Withdrawal of the license, the permit to practice the activity, or the prohibition of continuing to practice the work, profession or activity.
• Imposing a fine of not less thanthree thousand US dollars and not more than ten thousand US dollars for each violation. The supervisory authority shall inform the Directorate of the measures and sanctions it takes in this regard.
• Lay the foundations of the regulatory practices governing KYC programs and the application of their procedures.
• Follow up on the compliance of financial institutions, exchange offices and companies and designated professions with the requirements of dealing with political persons representing risks: and develop appropriate systems to manage the risks associated with them.
• Identify financial institutions, exchange offices and companies and specific professions that have not established these regulations and oblige them to take rapid steps to comply with them and intensify their follow-up in this regard.
• Pay more attention and care to ensure the application of financial institutions, exchange offices and companies and specific professions through field visits carried out.
Article (30) Executive Procedures
The regulatory authorities, each in accordance with its competence and powers and the body subject to its supervision, shall issue decisions, publications and instructions regulating the measures to be taken by financial institutions, exchange offices and companies and the specific professions subject to their supervision, to assist them in putting into practice the requirements stipulated in this Law.
Chapter Six: Directorate of Anti-Money Laundering and Terrorism Financing
Article (31) Establishment and Composition of the Directorate
First: The Central Monetary and Payments Office shall establish a directorate called the “Directorate of Anti-Money Laundering and Terrorist Financing”.
Second: This Directorate shall act as the main centre for receiving suspicious transaction reports and any other information related to money-laundering, related predicate offences and the financing of terrorism, analysing them and transmitting the results of such analyses to the competent authorities.
Third: The work system of the Directorate shall be issuedby a decision of the Central Monetary and Payments Office.
Article (32) Functions of the Directorate
The Directorate shall exercise the following functions:
1. Provide recommendations regarding license applications received from the Licensing Directorate to verify that the names in question are not listed on its database or any list of local and international sanctions lists.
2. The Directorate may exchange data and information, automatically or upon request, with any counterpart foreign unit, in accordance with the principle of reciprocity.
3. Ensure that financial institutions have appropriate anti-money laundering and combating the financing of terrorism regimes.
4. Prepare a comprehensive inspection plan in the field of combating money laundering and terrorist financing, taking into account the risks of money laundering and terrorist financing, to ensure that financial institutions, exchange offices and companies comply with the procedures and controls of combating money laundering and terrorist financing.
5. Field visits to verify the compliance of financial institutions and exchange offices and companies with the anti-money laundering and terrorist financing procedures stipulated in this Law and the Executive Instructions.
6. Communicate with financial institutions and exchange offices and companies regarding field and office inspections on them, and in terms of providing them with corrective measures to be taken to address deficiencies and gaps, and follow up on the implementation of the financial institutions and exchange offices and companies that have been inspected of the action plan to address their gaps and weaknesses.
7. Prepare instructions for anti-money laundering and terrorist financing operations and present them to the Central Monetary and Payments Office.
8. Organizing training courses for employees of financial institutions, exchange offices and companies, and in any competent authority or authority in the field of combating money laundering and terrorist financing.
9. Receive and archive money laundering and terrorist financing risk assessment reports prepared annually by financial institutions, exchange offices and companies.
10. Submit a report on the results of the field inspection to the Vice Presidency for Control and Regulation at the Central Monetary and Payments Office, including the proposed recommendations to be taken against institutions that do not comply with the instructions and procedures.
11. Develop forms for reports of operations suspected of involving money laundering or terrorist financing or representing the proceeds of predicate crimes, including all data that assist the Directorate in carrying out information collection, analysis and registration in the database.
12. Issue the necessary instructions to indicate the procedures to be observed when submitting the report and the form in which it is submitted, and prepare the reporting form.
13. Receiving and analyzing reports received from financial institutions, exchange offices and companies, designated professions, requests for assistance, and automatic disclosures received from regulatory and supervisory authorities, local authorities, and financial information collection units in other countries, on operations suspected of being related to crimes of money laundering, terrorist financing or any of the predicate crimes related to them, and referring the result of the analysis of the reports to the concerned authorities for disposal when necessary.
14. Inform the Public Prosecution of the results of the analysis of reports, when it has serious indications of the existence of suspicion of money laundering, terrorist financing or any of the predicate crimes related thereto, provided that the necessary information and evidence thereon include, and notify the relevant authorities thereof when necessary.
15. Request from the following additional information relating to communications received when they consider them useful to carry out their function or upon a request received from financial information units in other countries:
Control and supervision bodies.
Any other bodies.
16. Receive notifications of freezing of funds and property from financial institutions, exchange offices and companies and designated professions of persons and entities listed in the United Nations lists and inform the competent authorities thereof.
17. Receiving disclosure forms from the Customs Department on the transfer of money, precious metals and negotiable financial instruments across borders and crossings that exceed the permissible limit in accordance with the instructions and decisions in force, analyzing them andkeeping them in the directorate’s database to take the necessary action in this regard.
18. A proposal to the co-chairmanship of the Central Monetary and Payments Office to address the Public Prosecution to freeze or seize funds and property (temporarily for a period of six months, extendable for one year, or permanently at the discretion of the Directorate) belonging to names suspected of involvement in money laundering or terrorist financing.
19. A proposal to the Co-Presidency of the Central Monetary and Payments Office torequest financial institutions, exchange offices and companies and the specific professions concerned to suspend the execution of the financial transaction or operations for a period not exceeding seven working days in case of fear of smuggling the proceeds or damaging the course of the analysis.
20. Exchange information with financial information units in other countries when they comply with confidentiality rules, subject to reciprocity, use such information for purposesrelated to combating money laundering or terrorist financing, and subject to obtaining the consent of the partiesproviding such information.
21. Addressing the Supreme Committee for Combating Money Laundering and Terrorist Financing and the concerned control and supervision bodies for any violation of the provisions of the law by financial institutions, exchange offices and companies, and specific professions that are subject to the provisions of the Anti-Money Launderingand Terrorism Financing Law.
22. Publish annual reports on its activities, including, in particular, statistical data and analytical studies in the field of combating money-laundering and terrorist financing.
23. To conclude memorandums of understanding, with the authorization of the Board of Directors at the Monetary and Payments Office, with financial information units or local or international bodies exercising similar functions, subject to similar obligations of confidentiality and to this end, to join local, regional and international organizations to facilitate their tasks and work in accordance with the law.
24. Participate in international and regional seminars, workshops, conferences and meetings related to its competence.
25. Implementation of Security Council resolutions regarding targeted financial sanctions received through the Department of Foreign Relations
26. Any other functions or competencies stipulated in the Anti-Money Launderingand Combating the Financing of Terrorism Law.
Article (33): Access to information by the Directorate
1. The Directorate may obtain any information it deems necessary in the accomplishment of its tasks, whether owned by financial institutions, exchange offices and companies, designated professions or non-profit organizations, through the supervisory authorities supervising these bodies, each within its competence.
2. The Directorate shall have the authority to obtain any additional information it deems necessary for the performance of its functions from any entity or person subject to the reporting duty under Article (17) and the required information shall be provided within the period specified by the Directorate, and in the manner it designates.
3. The Directorate may request any financial, administrative, tax or criminal information from the competent authorities and other bodies it deems necessary to accomplish its tasks. These bodies and agencies shall submit the required information within the period specified by the Directorate and in the form specified by it.
4. Whenit is proved to the Directorate that any of the financial institutions, exchange offices and companies and the specified professions have not complied with the provisions of this Law, itshall inform the competent supervisory authority accordingly.
Article (34) Use of Information by the Directorate
The data and information provided to the Directorate may only be used for the purposes of combating money laundering, terrorist financing, and related crimes, and may not be disclosed to any other party or used for investigation or prosecution purposes without the approval of the Financial Information Unit providing the information.
Article (35) Immunity and confidentiality of information
First: The director of the directorate, its employees and all those who work for it shall maintain the confidentiality of any information they obtain within the scope of their work, and not to use it for purposes other than those stipulated in this law. This obligation remains in place, even if the work of these persons in the Directorate is terminated.
Second: No criminal case may be filed or any investigation procedure taken in crimes attributed to the directorate’s employees in connection with the duties of their functions except with the permission of the Board of Directors of the Central Monetary and Payments Office.
Chapter Seven: Declaration of Cash and Negotiable Instruments before Customs
Article (36) Declaration before Customs
First: Any person entering or leaving the territory of the Autonomous Administration of North and East Syria who is in possession of currencies or negotiable instruments for the bearer thereof or arranges to transport them inside or outside the Autonomous Administration of North and East Syria through a person, postal service, shipping service or by any other means equivalent to or exceeding the limit determined by the instructions issued by the competent authorities under the laws in force, shall disclose to the Customs Department.About the value of those bearer negotiable currencies or instruments.
Second: The customs administration may request information from carriers on the origin of such currency or negotiable bearer instruments and the purposes of their use.
Third: This information, including the declaration form, is transmitted to the directorate, which inserts this information in its database.
Article (37) Confidentiality of the information subject to the declaration
Customs officers are obliged to maintain the confidentiality of the information they obtain within the scope of their work, even after the end of their employment. This information may only be used for the purposes provided for in this Law.
Article (38) Cooperation of the General Administration of Customs
The General Administration of Customs shall cooperate with the competent authorities, at the local and international levels, on the matters listed in this Chapter, as well as information relating to the discovery of an unusual movement of money through customscrossings.
Chapter VIII: Penalties
Article (39) General Provisions on Penalties
Without prejudice to any more severe penalty provided for in another law, offences under this law shall be punished by the penalties provided for in the following articles of this chapter. The accomplice in any of these offences shall be punished by the penalty of the perpetrator and in all cases shall be sentenced to the confiscation of the seized property and means, as well as the attempt thereof shall be punishable by the penalty of a completed crime.
Article (40) Penalty for Money Laundering
The crime of money laundering provided for in Article (2) of this Law shall be punished by imprisonment for a period not exceeding seven years and a fine of not less than twenty thousand (20,000) US dollars and not exceeding (40,000) forty thousand US dollars.
Article (41) Punishment for Financing Terrorism and Financing of Proliferation of Weapons
The offence of financing terrorism and financing the proliferation of weapons provided for in Articles 3 and 4 of this Law shall be punishable by imprisonment for a period not exceeding ten years and a fine twice the value of movable and immovable property.
Article (42) Penalties for Money Laundering Offences
First: Any person who commits any of the following acts intentionally or by gross negligence shall be deemed to have committed a money-laundering offence and shall be punished by a fine of not less than 15,000 and not more than 20,000 or imprisonment for a period not exceeding three years, or by either of these two penalties:
1. Establishment of a financial institution, office or exchange company in the Autonomous Administration of North and East Syria;
2. Enter into or continue a business relationship with:
• A fictitious financial institution, office or exchange company.
• Correspondent financial institutions in a foreign country that allow their accounts to be used by shell institutions.
3. Failure to maintain sufficient, accurate and up-to-date information about the beneficial owners and the control structure of legal persons as required by Articles 8, 10 and 13.
4. Failure to take customer due diligence and risk management measures required under Articles 7, 8 and 11
5. Failure to take the measures related to correspondent banks required under Article (14)
6. failure to keep, refuse to hand over, destroy or remove the records required under Articles 8 and 18;
7. Failure to implement the internal control programs required under Article 21.
8. Failure to provide information or records or to ensure access to them at the appropriate speed when requested by the judicial, regulatory, law enforcement authorities, the Directorate or other competent authorities under Articles 20 , 33 and 53.
9. Failure to apply the measures required under Article 12.
Second: The penalties provided for in this Article shall not preclude the possibility of the relevant authorities taking fines or administrative measures against the perpetrators of the acts stipulated in the first paragraph.
Article (43) Increased penalties
The penalties provided for in the preceding articles shall be doubled:
1. If the offender commits the crime, through an organized criminal group, or through a terrorist organization.
2. If the offender commits the offence by taking advantage of his power or influence, through a financial institution or a non-profit organization, or engaging in a business of financial institutions, exchange offices and companies and specific professions, or taking advantage of the facilities granted to him by his job or social or professional activity.
3. In case of repetition.
Article (44) Ancillary Penalty
The court may permanently or temporarily prevent a person convicted of one of the crimes stipulated in this Law from engaging in any work, profession or activity that he has exploited to commit the crime.
Article (45) Penalty for Non-Recognition
Whoever violates the provisions of Article (36), submits a false declaration of currency or negotiable instruments to the bearer, or deliberately or grossly negligently conceals facts that should be admitted, shall be punished by imprisonment for a term not exceeding one year and a fine of not less than half the value of the property subject of the crime and not exceeding its value, or by either of these two penalties.
Article (46) Penalty for Disclosure of Information
Anyone who violates the duty to maintain the confidentiality of information stipulated in Articles 18, 35 and 37 of this Law shall be punished by imprisonment for a period not exceeding six months and a fine of not less than US$15,000 and not more than US$20,000, or one of these two penalties.
Article (47) Criminal Liability of a Legal Person
A legal person shall be liable for the crimes stipulated in this Law if they are committed in its name, for its account or by one of its members of its board of directors, managers, representatives, employees or affiliates.
Article (48) Penalty of a legal person
First: Any legal person who commits the crime of money laundering or terrorist financing shall be punished by a fine equivalent to the value of the funds subject of the crime, and not less than (25,000) US dollars.
Second: Any legal person who commits any of the other crimes stipulated in this law shall be punished by the penalty of the fine stipulated therein, with its limits doubled.
Third: The court may order the convicted legal person to be prevented from continuing to carry out its activities, in whole or in part, permanently or temporarily. It may also order his receival, or the liquidation of his business. In all cases, the court shall order the publication of the conviction.
Fourth: The punishment of a legal person shall not preclude the prosecution of a natural person for the crime and punishing him with the penalty prescribed for it in this law.
Article (49) Practicing an Activity Without a License
Any person practicing the business of a financial institution, office, exchange company, and a specific profession mentioned in Article (1) of the Law, without prior restriction with the competent supervisory authority, shall be punished by imprisonment for a period of one year and a fine of not less than twenty thousand (20,000) US dollars.
Article (50) Permissibility of Disclosure of Professional or Banking Secrets
First: A person who reports, in good faith, any suspicious transactions in accordance with the provisions of this Law, or provides any information or data thereon, even if it violates the requirements of maintaining professional secrecy or banking secrecy, shall not be held civilly, criminally or administratively liable.
Second: The same provision shall apply to managers, officials and workers in financial institutions, or in exchange offices and companies and designated professions if they submit in good faith reports of suspicious operations, in accordance with the provisions of this Law.
Article (51) Exemption from Punishment or Suspension of Execution
Without prejudice to Article (58), the Court may:
1. Exempting or mitigating the penalties of imprisonment and fines provided for in this Law if the perpetrator of the crime of money laundering or the financing ofterrorism shall be exempted from or mitigated thereof, if he informs the competent authorities of the crime and other persons involved in it, before the competent authorities become aware of it.
2. Order a stay of execution of the penalty if the notification takes place after the competent authorities become aware of the crime and the persons participating in it, and the notification leads to assistance in arresting the remaining offenders, or seizing the means and proceeds of the crime.
Chapter IX: Precautionary and confiscation measures
Article (52) Access to data and information
The Public Prosecution or whoever it delegates may order access to or obtain any information or data related to accounts, deposits, or any funds or other transactions with financial institutions,exchange offices and companies, non-profit organizations, or designated professions in a manner that helps to uncover the facts related to one of the crimes stipulated in this Law.
Article (53) Control of Letters and Publications and Monitoring and Recording of Communications
First: The Public Prosecution or whoever it delegates may order the seizure of all types of letters, printed materials, mailboxes and telegrams, monitor all means of communication, and record any activities practiced in public or private places, if this procedure helps in uncovering the facts related to any of the crimes stipulated in this law.
Second: The seizure, monitoring or registration order must be reasoned for a period notexceeding ninety days. This period may be extended by order of the competent court.
Article (54) Freezing of funds and suspension of transactions by the Office
First: The Central Monetary and Payments Office may request financial institutions, exchange offices and companies and the specific professions concerned to suspend the implementation of the financial transaction or operations for a period not exceeding seven working days in case of fear of smuggling the proceeds or damaging the course of the analysis, based on a proposal from the Directorate.
Second: The Central Monetary and Payments Office may propose to the Public Prosecution the temporary freezing or seizureof funds and property for a period of six months, extendable for one year or on a renewable basis, belonging to names suspected of involvement in money laundering or terrorist financing.
Article (55) Freezing and seizure of funds by the Public Prosecution
First: The Public Prosecution or whoever it delegates may issue an order to take precautionary measures to freeze or seize funds suspected of being related to money laundering, predicate crimes, or the financing of terrorism and any property of a similar value, withoutprejudice to the rights of bona fide third parties. If the funds are held by a financial institution and exchange offices and companies, the Central Monetary and Payments Office shall notify the seizure order. The parties concerned may appeal to the court within thirty days from the date of execution of the order, and the court’s decision in this regard shall be final.
Article (56) Seizure by Customs Administration
First: In the event of suspicion of money laundering, predicate crime or terrorist financing, or in the absence of a false declaration or declaration as stipulated in Article (45), the Customs Department shall seize the currencies and negotiable instruments of the bearer for a period not exceeding (45) days and inform the Directorate thereof immediately.
Second: The Public Prosecution may extend the detention period for a similar period at the request of the Central Monetary and Payments Office.
Article (57) Management and Sale of Confiscated and Seized Property
First: The Confiscations Division at the Finance Authority shall have the functions of managing seized and confiscated funds, collecting and preserving all data related to such funds and the measures taken in their regard.
Second: With the permission of thecompetent court, it is permissible to sell funds whose value may decrease as a result of management or whose preservation cost is large and not reasonably proportionate to their value, in which case the seizure of the value of the sale remains.
Article (58) Confiscation
First: Without prejudice to the rights of bona fide third parties, if the accused is convicted of a predicate offence, money-laundering or terrorist financing offence, the court shall, in addition to the original penalties, order the confiscation of the following:
1. The proceeds of the crime, and the money or property that is mixed with, derived from or exchanged.
2. Funds that are the subject of the crime or the means of its commission.
Second: The court shall order the confiscation of the equivalent of the value of the funds stipulated in the preceding paragraph, if the funds to be confiscated cannot be accessed, or if they are disposed of to bona fide third parties for a consideration commensurate with their value, or if the funds cannot be confiscated for any reason.
Third: If it is proven that the crime was committed without a conviction of the offender, either due to the death of the offender, the expiry of the criminal case, or for any reason, the Public Prosecution shall refer the papers to the competent court to issue a confiscation order, and the court shall issue its order to confiscate the funds, if it has sufficient evidence that they are among the funds to be confiscated and stipulated in the first paragraph of this article.
Article (59) Invalidity of Acts Received from the Place of Confiscation
Without prejudice to the rights of bona fide third parties, the Court shall have the right to annul any contract, agreement or disposal established to be intended to prevent the confiscation of the property provided for in the preceding Article.
Article (60) Devolution of confiscated Property to the Public Treasury
Funds confiscated under the provisions of this Law shall be transferred to the General Treasury of the Autonomous Administration.
Chapter Ten: Targeted Financial Penalties
Article (61) Implementation of Targeted Financial Penalties
First: The Central Monetary and Payments Office shall be the competent authority to implement the Security Council resolutions received through the Department of Foreign Relations.
Second: The Office shall issue a local list that includes the names of those involved in terrorist financing crimes, and the Office shall be responsible for nameing:
a. Persons, groups and entities with respect to whom there are reasonable grounds to suspect or believe that they have committed, attempted to commit, participate in or facilitate the commission of a terrorist act, or are persons acting on behalf of or at the direction of a designated person;
b. Any entity with reasonable grounds to suspect or believe that it is owned or controlled, directly or indirectly, by any person, group or entity mentioned in paragraph (a) above.
Third: The Central Monetary and Payments Office may consider nomination applications received from any source, including, but not limited to, applications received from regulatory authorities or from other countries.
Fourth: The Central Monetary and Payments Office may collect and request any information from any competent authority or other authority to determine whether any person, group or entity should be named on the local list;
Fifth: The Central Monetary and Payments Office shall inform all financial institutions, exchange offices and companies and professions specified in their decision to name the person, group or entity without delay.
Sixth: Any person shall freeze all funds and economic resources belonging to any of the following entities, whether wholly owned by them or in association with any other party, whether in their possession or control, directly or indirectly, without delay or prior notice:
a. Any person, group or entity designated by the Office under clause II or acting on its behalf or under its management or owned by or controlled, directly or indirectly.
b. Any person, group or entity designated by the United Nations Sanctions Committee or acting on its behalf or under its direction or was owned by or controlled, directly or indirectly.
Seventh: Any person must inform the Monetary and Payments Office of the adoption of the freezing measure within three days from the date of its adoption.
Eighth: All persons shall not allow any funds, other assets, economic or financial resources or other related services, directly or indirectly, to benefit from any of the following persons except with the approval of the Central Monetary and Payments Office, or if notified otherwise in accordance with the resolutions of the United Nations Security Council and the regulations issued under item X below:
a. Who is provided for in paragraph VI) (a) (f) b(above).
b. What is owned or controlled, directly or indirectly, by any person provided for in paragraph VI) (a) and (b) above.
c. A person who works for the benefit of, on behalf of, or on instructions from any person provided for in paragraph VI (a) and (b) above.
Ninth: Any person who, in good faith, freezes in accordance with the provisions of paragraph VI or applies the provisions of paragraph VII above, shall not be liable civilly, criminally or administratively.
Tenth: The Monetary and Payments Office shall issue a regulation to implement the provisions of this Article, and this regulation shall provide, but not limited to, the review of the designation, exceptions to the obligation to freeze, notification of the designation and the monitoring of compliance.
Article (62) Penalty for non-compliance with the provisions related to the application of Security Council resolutions and international sanctions.
First: Any person who deliberately or as a result of gross negligence violates the provisions of paragraphs six and eight of the preceding Article and Article (5), shall be punished by a fine of not less than (40,000) US dollars and not exceeding (60,000) US dollars or imprisonment for a period not exceeding five years, or both penalties.
Second: Any person who deliberately or as a result of gross negligence refrains from complying with the provisions of paragraph VII of the preceding Article shall be punished by a fine of not less than 25,000 US dollars and not more than 50,000 US dollars.
Third: The application of the preceding two paragraphs shall not preclude the application of the provisions of Article (29) of this Law to financial institutions, exchange offices and companies and designated professions when they violate the provisions of the Regulations issued under the tenth paragraph of the preceding Article.
Chapter Eleven: Editing Accounts
Article (63) Editing Accounts and Lifting Attachments
First: If the Public Prosecution issues a decision to close the case or prevent the trial of names suspected of money-laundering and terrorist financing crimes, and decides to free the accounts of those concerned and lift the seizures of their funds and properties, the Central Monetary and Payments Office shall be notified of these procedures to circulate them to financial institutions, exchange offices and companies and designated professions.
Second: In the event of a final and final court decision acquitting the names involved in money-laundering and terrorist financing crimes, the Central Monetary and Payments Office shall be notified, through the Public Prosecution, of the decisions to edit the accounts of those concerned and to lift the seizures of their funds and property, in order to circulate them to financial institutions, exchange offices and companies and designated professions.
Chapter XII: Final Provisions
Article (64) Issuing Executive Instructions for this Law
The Central Monetary and Payments Office shall issue the necessary executive instructions to implement the provisions of this Law.
Article 65
This law shall be effective from the date of its issuance by the General Council.
