UNMIK/PR/1118
PRISTINA - On behalf of the SRSG, the Acting Head of Mission and DSRSG, Pillar I, Jean-Christian Cady, today promulgated a regulation on deterrence of money laundering in Kosovo and providing additional tools to combat it.
The regulation will deter money laundering by enhancing transparency in financial transactions by making certain tasks obligatory for banks, financial institutions and other bodies.
On signing Regulation No. 2004/2, ‘On the deterrence of money laundering and related criminal offences’, Mr. Cady said that this regulation is “a major step forward and a powerful tool that we have to fight money laundering and by implication penetration of the economy by organised crime”. The regulation will enter into force on 1 March 2004.
The regulation will establish a proper framework for the deterrence of money laundering and related criminal activity in Kosovo. It has provisions for criminal offences and will enhance law enforcement capacities, particularly in information gathering and analysis.
Among the regulatory measures, it mandates a variety of persons and institutions, such as banks, financial institutions, NGOs, political parties, attorneys and so on, to report suspicious acts or financial transactions. Banks, financial institutions, attorneys and others must also take certain steps to identify their clients. In addition, large cash transactions (generally over euro 10,000) must be reported and in some circumstances, are not allowed.
A significant clause in the Regulation is the establishment of the Financial Information Centre to receive and analyse the required reports, to ensure compliance, and to cooperate with its foreign counterparts and law enforcement agencies in tracing illicit money outside and inside of Kosovo. The Financial Information Centre is expected to become operational under Police and Justice Pillar by 1 May 2004.
By the same date, it will become obligatory for banks and financial institutions to verify the identity of all clients before opening an account, taking stocks, bonds or other securities into safe custody, granting safe deposit facilities and so on. They would also be obliged to report any suspicious transactions.
By 1 July 2004, NGOs, political parties and registered candidates, attorneys, certified accountants and licensed auditors and other business organisations, will also be bound by certain obligations related to financial transactions. Further any transfer of immovable property will require a declaration in a specified format, signed by the transferor and transferee. This too will enter into force on 1 July.
The regulation was prepared after wide ranging discussions with the EU, OSCE, USAID, the US Departments of Treasury and Justice and various NGOs. The Office of Legal Affairs at the UN headquarters reviewed it.
It is based on and in compliance with the relevant UN Model Laws and Conventions, the European Union and Council of Europe Directives as well as G8 best practices. Once fully implemented, it will meet one of the benchmarks of the Standards for Kosovo.