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ANNEXES Anne 1: List of abbreviations Anne 2: Details of all bodies met during the on-site mission - Ministries, other government authorities or bodies, private sector representatives and others. Anne 3: Copies of key laws, regulations and other measures Anne 4: List of all laws, regulations and other material received Anne 5: Overview of Financial Institutions Sectors Anne 6: Overview of Non-Financial Businesses and Professions Sectors Anne 7: Overview of the types of Legal Persons and Arrangements Anne 8: Ministry of Finance Institutional Framework for Combatting ML/FT Anne 9: Ministry of Justice and Police Institutional Framework for Combatting ML/FT Anne 10: Ministry of Foreign Affairs Institutional Framework for Combatting ML/FT Anne 11: List of Terrorist Acts under Sections 147a and 147b of the Penal Code Anne 12: Financial institutions (Reporting FIs) and Businesses and professions (Reporting BPs) that have reporting obligations under the MLA Anne 13: Customs and Ecise Directorate Institutional Framework for Combatting ML/FT Anne 14: Overview of the Registers in Norway Description and Access Anne 15: Comparison of the rules governing etradition within the Nordic countries and etradition to and from countries outside the Nordic countries Anne 16: Overview of the Registers in Norway Description and Access 2 (Anne)
$QQH[ /,672)$%%5(9,$7,216 ABBREVIATION AA AC/AML Project FULL NAME Auditors Act Anti-corruption and Money Laundering project Action Plan 2000 Norwegian Government s Action Plan for Combating Economic Crime 2000 Action Plan 2004 Norwegian Government s Action Plan for Combating Economic Crime 2004 AEAA AML ANSC C CBA CDD CFT Authorisation of Eternal Accountants Act Anti-money laundering Association of Norwegian Stockbrokers Companies Compliant Commercial Banks Act Customer due diligence Counter-terrorist financing Circular 9/2004 FSA Circular 9/2004 of 15 April 2004 CLA COE Corruption Convention Control Committee Control Committee Regulations CPA CRA CRR Customs Directorate DKK DNFBP DnR DPP EA ECHR EEA EEA Agreement Egmont Principles for Information Echange EU EU Etradition Convention EUR FATF FIA FIU FNH FSA FS Act Courts of Law Act Council of Europe Criminal Law Convention on Corruption Control Committee for Measures to Combat Money Laundering Regulation on the Control Committee for Measures to Combat Money Laundering Criminal Procedure Act Currency Register Act Currency Register Regulations Directorate of Customs and Ecise Danish Kroner Designated non-financial businesses and professions Norwegian Institute of Public Auditors Director General of Public Prosecutions (DPP) Etradition Act European Court of Human Rights European Economic Area European Economic Area Agreement Egmont Principles for Information Echange Between Financial Intelligence Units for Money Laundering Cases European Union European Convention on Etradition Euros Financial Action Task Force Financial Institutions Act Financial intelligence unit Norwegian Financial Services Association Financial Supervisory Authority (Kredittilsynet) Financial Services Act 3 (Anne)
FT GBP HSH IA ISA IORP IOPS IT KRIPOS LC Financing of terrorism / terrorist financing British pounds Federation of Norwegian Commercial and Service Enterprises Insurance Act International Standards on Auditing and related services EU Directive 2003/41/EC of 3 June 2003 on the activities and supervision of institutions for occupational retirement provision International Pension Supervisors Group Information technology National Criminal Investigation Service Largely compliant LLR Loose-leaf Regulation No.1156 of 16 December 1992 ML MLA MLA Prep. Works MLR MLU MOU MVT service NA NARF NBA NC NCCTs NCIS NEA NHO NIPA NMFA NOK OECD Bribery Convention Money laundering Money Laundering Act Preparatory Works of the Money Laundering Act Money Laundering Regulations Money Laundering Unit (the Norwegian FIU) Memorandum/memoranda of understanding Money or value transfer service (i.e. money remitter / alternative remittance service) Not applicable Norges Autoriserte Regnskapsføreres Forening Norwegian Bar Association Non-compliant Non-cooperative Countries and Territories National Criminal Investigation Service Nordic Etradition Act Confederation of Norwegian Business and Industry Norwegian Institute of Public Auditors Norwegian Mutual Fund Association Norwegian Kroner OECD Convention on Combating Bribery of Foreign Public Officials ØKOKRIM National Authority for Investigation and Prosecution of Economic and Environmental Crime PAA Public Administration Act Palermo Convention United Nations Convention against Transnational Organised Crime (2000) PC PCode PCCC PEP Police Academy Police Directorate Population Register Prosecution Authority PST Partially compliant Penal Code Police Computer Crime Centre Politically eposed person National Police Academy National Police Directorate Norwegian Population and Employer Register Government body responsible for conducting criminal prosecutions (headed by the Director General of Public Prosecutions) Norwegian Police Security Service 4 (Anne)
PUM REAA REBA Reg.1102 Reporting BP or Reporting Business or Profession Reporting FI or Reporting Financial Institution RFA ROK Personal Collection with Receipt Real Estate Agency Act Real Estate Business Act Regulation no.1102 of 30 November 1998 concerning echange of information with supervisory authorities from countries within and outside the EEA area All non-financial businesses or professions that are obligated to comply with the Money Laundering Act and Regulations All financial institutions that are obligated to comply with the Money Laundering Act and Regulations Regulations for Advocates Advisory Council for Combating Organised Crime Royal Decree Royal Decree of 22 December 1999 (later amended on 19 January 2001 and 18 January 2002) SBA Savings Banks Act SEK Swedish kroner SFA Securities Funds Act SR Special Recommendations S/RES/ United Nations Security Council Resolution SSB Statistics Norway STA Securities Trading Act STR Suspicious transaction report Strasbourg Convention Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime 1990 Supervisory Council Supervisory Council for Legal Practice Ta Bulletin Ta Directorate Bulletin of 5 November 2003 Ta Directorate Directorate of Taes Terrorist Financing Convention United Nations Convention for the Suppression of the Financing of Terrorism (1999) UN UN Corruption Convention UNCTC UNSC USD Vienna Convention United Nations United Nations Convention Against Corruption United Nations Counter Terrorism Committee United Nations Security Council United States Dollars United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances 1988 5 (Anne)
$QQH[ '(7$,/62)$//%2',(60(7'85,1*7+(216,7(0,66,21 I. MINISTRIES 1. Ministry of Finance ƒ Control Committee for Measures to Combat Money Laundering (Control Committee) ƒ Directorate of Customs and Ecise (Customs Directorate) ƒ Directorate of Taes (Ta Directorate) 2. Ministry of Foreign Affairs 3. Ministry of Justice & Police ƒ Advisory Council for Combating Organised Crime (ROK) ƒ Anti-Corruption and Money Laundering Project (AC/AML Project) ƒ Civil Department ƒ EMØK ƒ Legal Department II. OPERATIONAL AND LAW ENFORCEMENTAGENCIES 1. CATCH project 2. Money Laundering Unit (MLU) 3. National Authority for Investigation and Prosecution of Economic and Environmental Crime (ØKOKRIM) 4. National Criminal Investigation Service (KRIPOS) 5. National Police Academy (Police Academy) 6. National Police Directorate (Police Directorate) 7. Oslo Police District 8. Ta Crime Unit (Oslo) III. PROSECUTORIAL AUTHORITIES 1. Director General of Public Prosecutions (Prosecution Authority) IV. INTELLIGENCE SERVICES 1. Police Security Service (PST) V. FINANCIAL INSTITUTIONS 1. Supervisory bodies ƒ Financial Supervisory Authority (Kredittilsynet) (FSA) 2. Professional associations ƒ Association of Norwegian Stockbroker Companies ƒ Financial Services Association ƒ Norwegian Savings Banks Association 3. Norges Bank (Central Bank of Norway) 6 (Anne)
VI. REPRESENTATIVES FROM THE FINANCIAL INSTITUTIONS SECTOR 1. Banks 2. Insurance companies 3. Money/value transfer service providers 4. Securities sector participants VII. DESIGNATED NON-FINANCIAL BUSINESSES AND PROFESSIONS 1. Supervisory bodies ƒ Financial Supervisory Authority (Kredittilsynet) (FSA) 2. Self-regulatory organisations ƒ Disciplinary Committee of the Norwegian Bar Association ƒ Norges Autoriserte Regnskapsføreres Forening (NARF) ƒ Norwegian Bar Association (NBA) ƒ Norwegian Confederation for Business and Industry (NHO) ƒ Norwegian Goldsmith Association ƒ Norwegian Institute of Public Accountants (DnR) ƒ Real Estate Agents Association ƒ Supervisory Council for Legal Practice (Supervisory Council) VIII. REPRESENTATIVES FROM THE DESIGNATED NON-FINANCIAL BUSINESSES AND PROFESSIONS SECTOR 1. Accountants and auditors 2. Dealers in precious metals and stones 3. Lawyers 4. Real estate agents IX. OTHER 1. Central Co-ordinating Register for Legal Entities (Central Co-ordinating Register) 2. Oslo Børs (Norwegian Stock Echange) 7 (Anne)
$QQH[ &23,(62).(</$:65(*8/$7,216$1'27+(50($685(6 1. Money Laundering Act (MLA): Act of 20 June 2003 No.41 on measures to combat the laundering of proceeds of crime 2. Money Laundering Regulations (MLR): Regulations on measures to combat the laundering of proceeds of crime 3. Circular 9/2004 of the Financial Supervisory Authority (Circular 9/2004): Kredittilsynet Circular 9/2004 of 15 April 2004 4. Section 317 of the Penal Code (criminalisation of money laundering) 5. Sections 147a and 147b of the Penal Code (criminalisation of terrorist financing) 8 (Anne)
Money Laundering Act Act of 20 June 2003 No 41 on measures to combat the laundering of proceeds of crime Translation updated July 2004. This translation is for information purposes only. Legal authenticity remains with the official Norwegian version as published in Norsk Lovtidend. Section 1. Purpose of the Act The purpose of the Act is to prevent and combat the laundering of the proceeds of crime. Section 2. Definitions For the purposes of this Act, the following definitions shall apply: 1 entity with a reporting obligation: such person or undertaking as is referred to in section 4, 2 transaction: any transfer, intermediation, echange or placement of assets. Section 3. Geographical scope This Act applies to entities with a reporting obligation who are established in Norway, including branches of foreign undertakings. The King may issue regulations prescribing that this Act shall wholly or partly apply to Svalbard and Jan Mayen, and lay down special regulations concerning measures to combat the laundering of criminal proceeds and financing of terrorism in these areas. Section 4. Scope of Application The Act applies to the following undertakings and legal persons: 1 financial institutions, 2 Norges Bank (Central Bank of Norway), 3 e-money institutions, 4 persons and undertakings operating activities consisting of transfer of money or financial claims, 5 investment firms, 6 management companies for securities funds, 7 insurance companies, 8 pension funds, 9 postal operators in connection with provision of postal services, 10 securities registers, 11 other undertakings whose main activity is subject to items 2 to 12 and 14 of anne I to Directive 2000/12/EC relating to the taking up and pursuit of the business of credit institutions, including the provision of loans, stockbroking, payment transmission, financial leasing, advisory services and other services associated with financial transactions and letting of safe deposit boes. The Act also applies to the following legal and natural persons in the eercise of their professions: 1 state authorised and registered public auditors, 2 authorised eternal accountants, 3 real estate agents and housing associations that act as real estate agents, 4 insurance brokers, 5 project brokers, 6 currency brokers, 7 lawyers and other persons who provide independent legal assistance on a professional or regular basis when they assist or act on behalf of clients in planning or carrying out financial transactions or such transactions concerning real property or movable property as are referred to in item 8; 8 dealers in objects, including auctioneering firms, commission agents and the like, in connection with cash transactions of NOK 40 000 or more or a corresponding amount in foreign currency. This shall only apply to transactions involving payment cards when so provided in regulations laid down by the Ministry; 9 persons and undertakings that, in return for remuneration, offer services corresponding to those referred to in items 1 to 8. This Act also applies to persons and undertakings who perform services on behalf of or for entities with a reporting obligation. When a lawyer acts as manager of a bankrupt s estate, the provisions laid down in sections 7, 8, 11, 16 and17 shall apply. 9 (Anne)
The King may in regulations lay down provisions concerning the application of this Act to gaming activities, debt collection agencies and regulated markets. Section 5. Identity verification Entities with a reporting obligation shall on establishment of a customer relationship request the customer to show valid proof of identity. This obligation also applies to employees of entities with a reporting obligation. Written proof of identity shall always be regarded as valid proof of identity. As regards transactions involving NOK 100 000 or more concerning customers with whom the persons or undertakings obliged to report have no previously established customer relationship, proof of identity shall be requested as referred to in the first paragraph. The above threshold shall be assessed collectively in respect of transactions carried out in several operations that appear to be associated with each other. If the transaction amount is not known when the transaction is carried out, identity verification shall be performed as soon as entity with a reporting obligation becomes aware of the amount and that it eceeds the threshold. The entity with a reporting obligation shall in all cases request proof of identity as referred to in the first paragraph if he or she suspects that the transaction is associated with the proceeds of crime or with offences covered by section 147a or section 147b of the Penal Code. Identity verification shall be effected by personal appearance of the customer at the office of the entity with a reporting obligation. If personal appearance constitutes a major inconvenience for the customer or is not practicable, an eception may be made from this requirement provided that satisfactory identity verification can nevertheless take place. The Ministry may in regulations lay down further rules concerning the carrying out of identity verification, what is regarded as valid proof of identity and eceptions from the obligation to request proof of identity and to perform identity verification. Section 6. Data registration Entities with a reporting obligation shall record the following data concerning customers: 1 full name or name of company, 2 personal identity number, organisation number, D-number 1 or, if the customer has no such number, another unique identity code, 3 permanent address, 4 reference to proof of identity supporting the identity of verification, and 5 any other data required pursuant to regulations issued by the Ministry. Entities with a reporting obligation shall ensure that data so recorded is stored in a satisfactory manner. By means of an account number or in another manner, a unique connection shall be registered between the customer relationship and the data. If the entity with a reporting obligation knows or may have reason to believe that the customer is acting on behalf of another person or that another person owns the asset that is the subject of the transaction, the entity with a reporting obligation shall obtain such data as are referred to in the first and third paragraph concerning the person on whose behalf business is transacted, and record such data. Section 7. Obligation to eamine and report If an entity with a reporting obligation suspects that a transaction is associated with the proceeds of crime or with offences covered by section 147a or section 147b of the Penal Code, further eaminations shall be made in order to confirm or disprove the suspicion. This obligation also applies to employees of entities with a reporting obligation. If the eaminations fail to disprove the suspicion, the entity with a reporting obligation shall on its own initiative submit data concerning the transaction in question and the matters that have given rise to suspicion to the National Authority for Investigation and Prosecution of Economic and Environmental Crime in Norway (ØKOKRIM). The entity with a reporting 1 A five-digit D-number is assigned to foreign nationals who do not hold a Norwegian personal identity number who wish to register with the Brønnøysund Register Centre. 10 (Anne)
obligation and its employees shall, if so required, provide ØKOKRIM with all essential data concerning the transaction and the suspicion. Customers or third parties shall not be informed that data has been provided to ØKOKRIM. Section 8. Data retention, etc. The entity with a reporting obligation shall retain a copy of the necessary documents used in connection with proof of identity as referred to in section 5 and data recorded as referred to in section 6 for five years after termination of the customer relationship or after the transaction is carried out. The entity with a reporting obligation shall retain documents in connection with such transactions as are referred to in section 7, first paragraph, for five years after the transaction is carried out. Documents and other data retained pursuant to the first and second paragraph by the entity with a reporting obligation shall be destroyed within one year after epiry of the retention period. The Ministry may by regulations lay down further rules concerning which documents shall be retained and the means of retention. Section 9. Suspicious transactions The entity with a reporting obligation shall not carry out transactions entailing an obligation to eamine before ØKOKRIM has been notified. In special cases, ØKOKRIM may order that such a transaction shall not be carried out. The transaction may nevertheless be carried out before notifying ØKOKRIM if it is not possible to refrain from carrying it out or if omission to carry out the transaction would impede the investigation. In such a case, ØKOKRIM shall be notified immediately after the transaction has been carried out. Section 10. ØKOKRIM s obligation to destroy data Data received by ØKOKRIM pursuant to the provisions of section 7 shall be destroyed no later than 5 years after such information was recorded unless new information has been recorded or an investigation or legal proceedings instituted against the registered person within this period. If ØKOKRIM s investigations show that a criminal act has not been committed, the information shall be destroyed as soon as possible. The Ministry may provide further rules concerning ØKOKRIM s procedures, including destruction of data. Section 11. Duty of secrecy Information provided to ØKOKRIM in good faith pursuant to section 7 does not constitute a breach of the duty of secrecy and does not provide a basis for compensation or penalties. Such entities with a reporting obligation as are referred to in section 4, first paragraph (1) may notwithstanding the duty of secrecy echange necessary customer data when this is regarded as a necessary step in eaminations of suspicions that a transaction is associated with the proceeds of crime or with offences covered by section 147a or section 147b of the Penal Code. ØKOKRIM may provide information that it receives pursuant to the provisions of section 7 to public authorities other than the police that are engaged in tasks associated with the prevention of offences covered by section 147a or section 147b of the Penal Code. Section 12. Eceptions from lawyers obligation to report, etc. Lawyers and others who provide legal assistance on a professional or regular basis are not obliged to report concerning matters with which they have become acquainted in the course of their work on determining a client s legal position or concerning matters with which they have become acquainted prior to, during and subsequent to legal proceedings when such matters are directly associated with a legal dispute. This shall apply correspondingly to auditors and other advisers with a reporting obligation when such persons assist a lawyer or other person who provides legal assistance on a professional or regular basis. 11 (Anne)
Section 13. Control and communication procedures Entities with a reporting obligation shall establish satisfactory internal control and communication procedures that ensure fulfilment of the obligations incumbent on entities with a reporting obligation pursuant to this Act and provisions laid down pursuant thereto. Control and communication procedures shall be in writing and shall be established at the highest management level of the entity with a reporting obligation. A person in the management shall be assigned special responsibility for following up the procedures. Training programmes and follow up shall be implemented for employees and other persons who perform tasks in fulfilment of obligations pursuant to the Act. Section 14. Control Committee for Measures to Combat Money Laundering The Control Committee for Measures to Combat Money Laundering (the Control Committee) shall supervise: 1 ØKOKRIM s handling of information received pursuant to section 7, 2 ØKOKRIM s orders and authorisations pursuant to section 9, and 3 that ØKOKRIM complies with the obligation to destroy data pursuant to section 10. The Control Committee shall consist of at least three members who shall be appointed by the King. In addition, one or more deputies shall be appointed. The chairman of the board shall satisfy the requirements applicable to Supreme Court judges. The Control Committee s members shall treat as confidential information to which they gain access in the eercise of their duties. ØKOKRIM shall provide the Control Committee with the information, documents, etc. that the Control Committee finds necessary for its supervision. When so required by the Control Committee, ØKOKRIM s officials are obliged to give evidence to the Control Committee without regard to the duty of secrecy. The Ministry may by regulations lay down further rules concerning the responsibilities and procedures of the Control Committee. Section 15. Electronic monitoring systems Such persons or undertakings obliged to report as are referred to in section 4, first paragraph (1) shall establish electronic surveillance systems. The Ministry may in regulations provide further rules concerning electronic monitoring systems. Section 16. Penalties Entities with a reporting obligation that wilfully contravene or are accessory to any contravention of this Act or regulations laid down pursuant thereto shall be liable to fines. In the case of particularly aggravating circumstances, imprisonment for a term not eceeding one year may be imposed. Section 17. Orders and coercive measures Supervisory bodies may order an entity with a reporting obligation to put an end to matters that contravene this Act or provisions laid down pursuant thereto. Supervisory bodies may set a time limit for such matters to be brought into conformity with the order. A person who fails to comply with an order pursuant to the first paragraph may be ordered to pay a coercive fine by the supervisory bodies. The coercive fine may be imposed in the form of a single payment fine or a recurrent fine. Such a fine may be enforced by eecution proceedings. The Ministry may in regulations provide further rules concerning the imposition of coercive fines including the amount of such fines. Section 18. Regulations The Ministry may by regulations lay down: 1 rules concerning supplementation and implementation of the provisions of this Act, 2 eceptions from one or more of the provisions of this Act in respect of certain entities with a reporting obligation, 3 rules concerning which data concerning a remitter shall accompany a transaction in the payment chain, 4 special rules concerning notification of transactions with or for persons or undertakings associated with countries or areas that have not implemented satisfactory measures to combat the laundering of proceeds of crime or financing of terrorism, 5 prohibition or restrictions as regards the right of the entity with a reporting obligation to establish business relations with or conduct transactions with persons or undertakings associated with countries or areas that have not implemented 12 (Anne)
satisfactory measures to combat the laundering of proceeds of crime or financing of terrorism. Section 19. Entry into force and transitional provisions The Act shall enter into force on the date decided by the King. The King may issue transitional provisions. Section 20. Amendments to other Acts From the commencement of this Act, the following amendments shall take effect in other Acts: 1. In the Act of 10 June 1988 No. 40 on Financing Activity and Financial Institutions, section 2-1, second paragraph, section 2-17, section 2-17a and the second sentence of the first paragraph of section 5-1 shall be repealed. 2. In the Act of 24 May 1985 No. 28 on Norges Bank and the Monetary System, the second sentence of the second paragraph of section 12 shall read: Nor shall the duty of confidentiality pursuant to the previous paragraph apply to ØKOKRIM in respect of the provision of information pursuant to section 7 of the Act on measures to combat the laundering of proceeds of crime, etc. (Money Laundering Act). In the Act of 7 December 1956 No. 1 on the Supervision of Credit Institutions, Insurance Companies and Securities Trading etc. (Financial Supervision Act) section 6, second paragraph, shall read: When Kredittilsynet (The Financial Supervisory Authority of Norway) in the course of its work suspects the eistence of circumstances involving the proceeds of a criminal act or matters contrary to section 147a or section 147b of the Penal Code, information to this effect shall be forwarded to the National Authority for Investigation and Prosecution of Economic and Environmental Crime, ØKOKRIM. 13 (Anne)
Money Laundering Regulations Regulations on measures to combat the laundering of proceeds of crime Laid down by the Ministry of finance on 10 December 2003 in pursuance of the Act on measures to combat the laundering of proceeds of crime etc., (No. 41 of 20 June 2003, Money Laundering Act) sections 5, 6, 8, 10, 15, 18 and 19. Cf. EEA Agreement anne IX no. 14 (Directive 2000/12/EC) and no. 23 (Directive 91/308/EEC as amended by Directive 2001/97/EC). Translated July 2004 by Government Authorised Translator Mr. Peter Thomas. This translation is for information purposes only. Legal authenticity remains with the official Norwegian version as published in Norsk Lovtidend. Chapter 1. Introductory provisions Section 1 Scope of application These regulations apply to entities with a reporting obligation as listed in the Act on measures to combat the laundering of proceeds of crime etc., (Money Laundering Act, No. 41 of 20 June 2003) section 4. Chapter 2. Customer relationships, requirements on identity documents, identity verification etc. Section 2 Establishment of customer relationships A "customer relationship" as mentioned in the Money Laundering Act section 5 (identity verification) is considered to be established once the customer is able to utilise the services of an entity with a reporting obligation, for eample in connection with the opening of an account or the issue of a payment card. State authorised and registered auditors are considered to have established a customer relationship once they have accepted an assignment, including counselling and other non-audit services, or sent an auditor s declaration to the Register of Business Enterprises, cf. the Business Enterprises Register Act section 4-4. Authorised eternal accountants are considered to have established a customer relationship once they have entered into a written agreement on an assignment with a principal or an assignment requiring a written agreement, cf. the Eternal Accountants Act section 3. Real estate agents who carry on real estate agency are considered to have established a customer relationship with a principal once they have accepted an assignment to sell or purchase property. In the case of an assignment to sell a property the estate agent shall in addition require the buyer to produce valid proof of identity prior to settlement. The first and second sentence apply equally to cooperative housing associations and lawyers who carry on estate agency when the assignment refers to estate agency. Lawyers and others who provide independent legal assistance on a professional or regular basis are considered to have established a customer relationship once they have accepted an assignment as mentioned in the Money Laundering Act section 4 second paragraph no. 7. Section 3 Special provisions on dealers in valuable objects Entities with a reporting obligation under the Money Laundering Act section 4 second paragraph no. 8 shall request proof of identity in accordance with the Money Laundering Act section 5 and shall record data in accordance with the Money Laundering Act section 6: 1. in connection with cash transactions of NOK 40 000 or more or a corresponding amount in foreign currency where it is suspected that a transaction involves the proceeds of crime or circumstances covered by the Penal Code section 147a or section 147b, and 2. in connection with all cash transactions of NOK 100 000 or more or a corresponding amount in foreign currency. Where transactions comprise a series of operations that appear to be related with each other, the threshold amount shall be computed on a collective basis. Section 4 Requirement on identity documents etc (natural persons) Written proof of identity as mentioned in the Money Laundering Act section 5 first paragraph third sentence shall be produced in the original or as a confirmed copy. For natural persons, identity documents shall contain their full name, signature, photograph 14 (Anne)
and personal identity number (or D-number 2 ). Identity documents shall be issued by a public authority or other body whose control routines for the issue of documents are satisfactory, and whose documents are generally accepted as having a satisfactory level of security. If a Norwegian personal identity number or D-number has not been allocated, satisfactory identity documents shall be produced containing the customer s full name and date of birth, place of birth, se and nationality. If the entity with a reporting obligation is aware that the customer has dual nationality, this shall be registered as additional information. Proof of identity as mentioned in the first paragraph shall be produced by the person(s) authorised to operate the account or safe custody facility, or authorised to have the transaction carried out. Section 5 Cases where the customer is unable to produce identity documents Where the customer is unable to produce identity documents as mentioned in section 4, the entity with a reporting obligation may establish a customer relationship or carry out the requested transaction provided the said entity is certain of the customer s identity, has reason to believe that the customer does not possess identity documents, and it is unreasonable in view of the customer s age or state of health to require him/her to obtain identity documents. The entity with a reporting obligation shall in such case obtain and register data as mentioned in the Money Laundering Act section 6 by other means. This provision does not apply to persons who undertake large transactions on a regular basis. Section 6 Requirement on identity documents etc (legal persons) Legal persons registered in the Register of Business Enterprises shall produce a certificate of registration that does not date back more than three months. Legal persons registered in the Central Coordinating Register for Legal Entities but not in the Register of Business Enterprises shall produce a transcript from the Central Coordinating Register for Legal Entities containing all registered data on the entity as mentioned in the Act on the Central Coordinating Register for Legal Entities section 5 and section 6 second paragraph that does not date back more than three months. A legal person who is not registered in the Central Coordinating Register for Legal Entities but is registered in another public register shall produce documentary evidence of similar, uniquely identifying characteristics, details of the legal person s name (firm), the address of its place of business or head office and, if applicable, its foreign organisation number, and shall also state which public register, within or outside Norway, can verify the information given. If it is clear or probable that the legal person is not registered in a public register, proof of identity shall be requested in accordance the Money Laundering Act section 5 and data shall be recorded for a natural person on behalf of the legal person in accordance with the Money Laundering Act section 6. Section 7 Eceptions from the obligation to request proof of identity The obligation to request a proof of identity pursuant to the Money Laundering Act section 5 and the obligation to record data pursuant to the Money Laundering Act section 6 does not apply: a) if the customer is a financial institution, cf. the Financial Institutions Act section 1-4, investment firm, or management company for securities funds or such foreign undertaking subject to equivalent legislation as satisfies the identification obligations set out in Council Directive of 4 December 2001 on prevention of the use of the financial system for the purpose of money laundering (2001/97/EC), and is in addition subject to a supervisory regime of EEA standard. b) to the writing of insurance policies where the premium is to be paid by debiting an account opened in the customer's name with a credit institution as mentioned in the Financial Institutions Act section 1-5, subsection 3, provided the credit institution: (1) is subject to these regulations or equivalent legislation in conformity with Council Directive of 4 December 2001 on prevention of the use of the financial system for the purpose of money laundering (2001/97/EC), or (2) has by other means satisfied itself, and recorded evidence, of the identity of the customer. c) to the writing of life insurance policies by an institution authorised to write life assurance, and other insurance undertakings in conformity with the Council Directive 2002/83/EC of 5 November 2002 concerning life assurance (the 2 A five-digit D-number is assigned to foreign nationals who do not hold a Norwegian personal identity number who wish to register with the Brønnøysund Register Centre. 15 (Anne)
Consolidated Life Directive), where the annual premium does not eceed NOK 8,000, or where a single premium is to be paid not eceeding NOK 20,000. If the periodic premium amount to be paid in any given year is increased so as to eceed the NOK 8,000 threshold, production of identity documents as mentioned in section 2-1 shall nonetheless be requested. d) to the writing of pension insurance policies by an institution authorised to write life assurance, and other insurance undertakings in conformity with the Council Directive 2002/83/EC of 5 November 2002 concerning life assurance (the Consolidated Life Directive), where the policy is taken out by virtue of a contract of employment or the insured s occupation, provided that such policies do not contain a surrender clause and may not be used as collateral for a loan. e) to the writing of non-life insurance policies, including travel insurance policies, as well as credit insurance policies, by undertakings authorised to carry on such insurance business. The ministry may, pursuant to the Money Laundering Act section 4 first paragraph no. 3 (e-money institutions), ecept entities with a reporting obligation from the Money Laundering Act section 5 by individual decision. Section 8 Verification of identity etc. Entities with a reporting obligation shall check customers identity documents. Entities with a reporting obligation shall satisfy themselves of customers identity, including verifying by satisfactory means that the photograph and signature appearing in the identity document match the appearance and signature of the customer or of the individual appearing at the premises of the said entity in person on behalf of the customer. An entity with a reporting obligation may, pursuant to the Money Laundering Act section 4 first and second paragraph, enter into a written agreement with another entity with a reporting obligation regarding verification of identity that entities with a reporting obligation are obliged to perform under the first paragraph above. In such cases the primary entity with a reporting obligation is responsible for ensuring that identity verification is carried out in due and proper manner in accordance with law and regulations and for establishing proper routines in accordance with section 10 fourth paragraph and section 16. Branches in Norway of foreign institutions listed in the Money Laundering Act section 4 may, when establishing customer relationships with customers under the provisions of section 2, rely on confirmation from the institution s head office that the customer s true identity has been verified. If an entity with a reporting obligation has reason to believe that data contained in the identity documents are not correct, the data shall be verified. Details of the basis for, and the nature of, the verification made shall be retained together with data as mentioned in the Money Laundering Act sections 5 and 6. The entity with a reporting obligation that establishes the customer relationship or carries out the transaction shall retain the data contained in the identity documents as well as details of the institution that was responsible for identity verification in the particular case in accordance with the provisions of section 15. Section 9 Absence of, or inadequate, proof of identity refusing the customer If identity documents containing data as mentioned in section 4 are not produced, or there is reason to believe that the identity documents are not correct and verification as mentioned in section 8 does not disprove such suspicion or cannot be carried out, the entity with a reporting obligation shall refuse to establish a customer relationship or to carry out the transaction. If there is suspicion as mentioned in section 10, first paragraph, the rules of section 10 to section 11 shall apply. The same applies if the customer s identity is in doubt. Chapter 3. Investigation and reporting of suspicious transactions etc. Section 10 Investigation of suspicious transactions Eamples of circumstances that may trigger the obligation to make investigations pursuant to the Money Laundering Act section 7 are that the transaction appears to lack a legitimate purpose, is unusually large or comple, is unusual in relation to the customer s habitual business or personal transactions, involves a transfer to or from a customer in a country or area lacking satisfactory measures against money laundering or terrorist financing, or is otherwise of an anomalous nature. Neither the customer nor any third party shall be made aware that investigations as mentioned above are being carried out. Entities with a reporting obligation shall make a written or electronic record of the results of such investigations. 16 (Anne)
Entities with a reporting obligation shall establish proper internal control and communication routines that ensure that the obligation to make investigations is complied with. Internal reporting procedures shall be established whereby an employee who becomes suspicious of circumstances as mentioned in the first paragraph is required to report to his superiors and to a specially designated officer or unit within the entity. The officer or unit so designated shall report directly to a specially nominated senior manager who shall ensure that control and communication routines are established and that these routines are observed in the event of suspicious transactions. Reports made within an undertaking which do not result in reports being submitted to the National Authority for Investigation and Prosecution of Economic and Environmental Crime in Norway (ØKOKRIM) shall be available in the undertaking in traceable form for at least five years after the report was received by the officer or unit responsible for anti-money laundering processes. Section 11 Submission of data to ØKOKRIM Responsibility for submitting to ØKOKRIM data as mentioned in the Money Laundering Act section 7 second paragraph rests with the senior manager assigned special responsibility under the Money Laundering Act section 13 third sentence. Data submitted in accordance with the Money Laundering Act section 7 second paragraph shall as far as possible contain a description of the basis for the suspicion, including data concerning suspects; third parties, if any; account data, if any; and data on movements on the account, data on the nature and size of the transaction and whether the transaction has actually been carried out as well as to whom the funds are to be transferred and the origin of the funds. Relevant documents supplementing such data should be attached or forwarded. Data shall be submitted using a standardised form prescribed or approved by ØKOKRIM. Submission may be by post, telefa or in machine-readable form (electronic medium). Data transferred electronically via a transmission medium beyond the physical control of the data controller shall be coded or secured by other means when confidentiality is essential. Section 12 Electronic monitoring systems Financial institutions shall by the end of 2004 establish electronic monitoring systems for the purpose of identifying transactions suspected of being related to the proceeds of crime or to circumstances coming under the Penal Code section 147a or section 147b. The obligation to investigate pursuant to the Money Laundering Act section 7 applies equally in the event of such suspicion. Kredittilsynet may make eceptions from the first paragraph by individual decision. Section 13 Special reporting of transactions associated with countries or areas which have not implemented satisfactory anti-money laundering measures etc. The Ministry of Finance may in response to a decision by the Financial Action Task Force on Money Laundering (FATF) impose a special, systematic obligation to report to ØKOKRIM transactions with or on behalf of persons or undertakings associated with countries or areas which have not implemented satisfactory measures against the laundering of proceeds of crime or circumstances covered by the Penal Code section 147a or section 147b. Section 14 Prohibition of or restrictions on the right of entities with a reporting obligation to establish customer relationships with or undertake transactions to or from countries which have not implemented satisfactory anti-money laundering measures etc. The Ministry of Finance may in response to a decision by the Financial Action Task Force on Money Laundering (FATF) impose a special prohibition of or restrictions on the right of entities with a reporting obligation to establish customer relationships with or carry out transactions with persons or undertakings associated with countries or areas which have not implemented satisfactory measures against the laundering of proceeds of crime or circumstances covered by the Penal Code section 147a or section 147b. Chapter 4. Retention and deletion of data, training etc. Section 15 Requirement as to retention and deletion of data etc. Entities with a reporting obligation shall retain data as mentioned in sections 4, 6 and 8 for five years after years after termination of the customer relationship or after the transaction is carried out. The first paragraph shall not prevent other provisions of law or regulations from establishing longer periods for data retention. 17 (Anne)
Documents and data retained by entities with a reporting obligation pursuant to the first paragraph shall be deleted within one year of the epiry of the retention obligation. Data as mentioned in section 4 and section 6 shall be retained in the form of copies of presented identity documents. Each copy shall be endorsed with "certified true copy" and the signature of the person who carried out the verification of identity. Entities with a reporting obligation shall retain data by such means as ensure that the documents do not lose their value as evidence. Where retention is not paper-based, entities with a reporting obligation shall ensure that retention takes place in accordance with regulations no. 1156 of 16 December 1992 section 5-3 and section 5-4. Entities with a reporting obligation shall ensure that documents are secured so as to protect them against unauthorised access. Act No. 31 of 14 April 2000 relating to the Processing of Personal Data (Personal Data Act) with appurtenant regulations applies to the retention of personal data by entities with a reporting obligation. Section 16 Training of employees etc., of entities with a reporting obligation The obligations pursuant to the Money Laundering Act section 13 also include measures such as training, maintenance and upgrading of epertise, including participation in special training programmes in which employees and other persons who perform tasks in fulfilment of the regulations learn to recognise transactions which may be related to the laundering of proceeds of crime and to circumstances covered by the Penal Code section 147a and section 147b, and receive instruction in handling such cases. Chapter 5. ØKOKRIM's administrative procedures Section 17 ØKOKRIM's administrative procedures ØKOKRIM shall draw up guidelines for its internal administrative procedures to ensure satisfactory routines for receiving information from entities with a reporting obligation listed in the Money Laundering Act section 4, to prevent unauthorised access to such information and to keep entities with a reporting obligation informed of the progress made in the investigation of reported cases. Chapter 6. Concluding provisions Section 18 Entry into force These regulations come into force on 1 January 2004. 18 (Anne)
Circular 9/2004 Financial Supervisory Authority (Kredittilsynet) (FSA) Circular 9/2004 of 15 April 2004 Translated July 2004 by Government Authorised Translator Mr. Peter Thomas. This translation is for information purposes only. Legal authenticity remains with the official Norwegian version as published in Norsk Lovtidend. Guide to new anti-money laundering legislation Introduction A new Money Laundering Act and associated regulations went into force on 1 January 2004. The new legislation widens the range of persons and undertakings with a reporting obligation (also called reporting entities in this guide) to include state authorised and registered auditors, authorised eternal accountants, real estate agents and co-operative housing associations that provide real estate agency services, along with securities registers (the Central Securities Depository). Under the new money laundering legislation all entities with a reporting obligation are obliged to request proof of identity when a customer relationship is established, to investigate any transaction that appears suspicious and to report the transaction to ØKOKRIM 3 if investigation fails to disprove the suspicion. In order to verify his/her identity, a customer must appear in person at the premises of the undertaking that is entering into the agreement with the customer, or (in the case of outsourcing) at the premises of another undertaking with a reporting obligation. The new rules also require banks and finance companies to establish electronic monitoring systems by the end of 2004. The rules continue, update and further develop eisting anti-money laundering measures and implement the European Union's Second Money Laundering Directive of 2001, see below. This circular circulates information on the anti-money laundering legislation to entities with a reporting obligation that fall within Kredittilsynet's supervisory and administrative ambit. The scope of the legislation s application to reporting entities is detailed under the discussion of section 2 of the regulations below. The new money laundering legislation also encompasses lawyers and dealers in valuable objects. These groups can approach ØKOKRIM, professional associations (for eample The Norwegian Bar Association) and relevant supervisory agencies for further guidance. The Ministry of Justice is responsible for the legislation on the legal profession. In Chapter 1 Kredittilsynet provides a general review of the new legislation on measures to combat money laundering and terrorist financing. This is followed in Chapter 2 by a closer look at individual sections of the new Money Laundering Regulations. Particular emphasis is given to describing and eplaining the relationship between the Money Laundering Act and the Money Laundering Regulations. The new money laundering legislation comprises the Act on measures to combat the laundering of proceeds of crime (No. 41 of 20 June 2003, Money Laundering Act), see anne 1, and Regulations on measures to combat the laundering of proceeds of crime etc., (No. 1487 of 10 December 2003, Money Laundering Regulations), see anne 2. The new legislation supersedes sections 2-1, 2-17 and 2-17a of the Act on Financing Activity and Financial Institutions (No. 40 of 10 June 1988) and Regulations on Customer Identification and Measures to Combat Money Laundering (No. 118 of 7 February 1994). This circular supersedes Kredittilsynet's circular no. 13/1999. Other superseded circulars on money laundering are: 28/1994, 29/1995, 31/1995, 8/1996, 31/1996, 4/1997, 5/1997 and 28/1998. The circular is designed to make the money laundering legislation more accessible and to clear up a number of practical issues. However, it is not ehaustive and does not address all aspects of the money laundering legislation. 3 The National Authority for Investigation and Prosecution of Economic and Environmental Crime. 19 (Anne)
Table of contents Chapter 1: General review of the new Money Laundering Act and associated regulations 1.1 Main content of the money laundering legislation 1.2 Why institute rules on measures to combat the laundering of criminal proceeds and terrorist financing? 1.3 International rules, standards and recommendations in the anti-money laundering field 1.4 Measures to combat terrorist acts and terrorist financing 1.5 Who should read this circular? 1.6 Penal and administrative sanctions Chapter 2: Review of individual sections of the new Money Laundering Regulations 2.1 Section 1 Scope of application 2.2 Section 2 Establishment of customer relationships 2.3 Section 4 Requirements on identity documents etc (physical persons) 2.4 Section 5 Cases where the customer is unable to produce identity documents 2.5 Section 6 Requirements on identity documents etc (legal persons) 2.6 Section 7 Eceptions from the obligation to request proof of identity 2.6.1 Eceptions from the identity verification requirement in respect of certain insurance contracts 2.7 Section 8 Verification of identity etc 2.7.1 Situations that call for identity verification 2.7.2 Implementation of identity verification 2.7.2.1 Eceptions where appearing in person would cause the customer major inconvenience 2.7.2.2 Eceptions where personal appearance at the primary undertaking is not practicable 2.7.2.3 Further details on the outsourcing of identity verification 2.7.2.4 Outsourcing in the securities field 2.7.2.5 Outsourcing of identity verification to Norway Post s branch network 2.7.2.6 Practical eamples of implementation of identity verification 2.8 Recapitulation identity verification 2.9 Section 9 Absence of, or inadequate, proof of identity refusing the customer 2.10 Section 10 Investigation of suspicious transactions 2.11 Section 11 Submission of data to ØKOKRIM 2.12 Section 12 Electronic monitoring systems 2.13 Section 13 Special reporting of transactions associated with countries or areas which have not implemented satisfactory anti-money laundering measures etc. 2.14 Section 14 Prohibition of or restrictions on the right of reporting entities to establish customer relationships with or undertake transactions to or from countries which have not implemented satisfactory anti-money laundering measures etc. 2.15 Section 15 Requirement as to retention and deletion of data etc. 2.16 Section 16 Training of employees etc., of reporting entities 20 (Anne)