Avalehe pilt
Financial Intelligence Unit's advisory guidelines
05/20/2019

 

Countries of high risk

According to the provisions of subsection 14 (5) of the Money Laundering and Terrorist Financing Prevention Act, in their economic or professional activities an obligated person shall pay special attention to business relations and transactions if the place of residence or seat of the customer or the person participating in transaction or the person using the professional service or the seat of the provider of the payment service of the beneficiary is in a third country or in a territory where sufficient measures for preventing money laundering and terrorist financing have not been taken, or if the country or territory is not engaged in international cooperation for prevention of money laundering and terrorist financing, or if it is a low tax rate territory. If such transactions lack an obvious economical or visible legal purpose, then the background and purpose of such transactions must be investigated as far as possible and the investigation results must be recorded in writing, so that even with a slightest doubt a notice will be sent to the Financial Intelligence Unit (FIU).

According to the provisions of subsection 29 (11) of the Money Laundering and Terrorist Financing Prevention Act, the financial institutions shall ensure that, upon implementation of rules of procedure and internal control rules in the subsidiaries where they have a majority holding and in their branches and representative located in a third country, requirements at least equivalent to those provided for in the Money Laundering and Terrorist Financing Prevention Act are established,  if their seat or place of business is located in a third country which does not implement sufficient measures for prevention of money laundering and terrorist financing or does not participate in international cooperation for prevention of money laundering and terrorist financing, or if the country is a low tax rate territory.

You may find information about the countries of high risk here: http://www.fatf-gafi.org/countries/#high-risk