Only the Estonian version is official

MONEY LAUNDERING AND TERRORIST FINANCING PREVENTION ACT

[Passed 19 December 2007 (RT[1] I 2008, 3, 21), entered into force 28 January 2008.
Amended and supplemented by the following Acts (passed, published, entered into force):
4.06.2008 (RT I 2008, 27, 177) 10.07.2008
6.05.2009 (RT I 2009, 27, 164) 8.06.2009
26.11.2009 (RT I 2009, 61, 401) 26.12.2009
26.11.2009 (RT I 2009, 62, 405) 1.01.2010
17.12.2009 (RT I 2010, 2, 3) 22.01.2010
22.04.2010 (RT I 2010, 22, 108) 1.01.2011 shall enter into force on the date provided for in the Decision of the Council of the European Communities on the abrogation of the derogation of the Republic of Estonia on grounds prescribed in Article 140 (2) of the Treaty on the Functioning of the European Union, Council Decision of 13.07.2010 No. 10889/10 ECOFIN 360 UEM 209/10 (OJ L 197, 28.07.2010, pp 24-26)
12.05.2010 (RT I 2010, 26, 129) 5.10.2010]

Chapter 1
General Provisions

Division 1
Scope of application and purpose of Act

§ 1. Purpose of Act

The purpose of this Act is to prevent the use of the financial system and economic space of the Republic of Estonia for money laundering and terrorist financing.

§ 2. Scope of application of Act

(1)  This Act regulates:
1)  application of due diligence measures by persons with a notification obligation for preventing money laundering and terrorist financing;
2)  supervision over persons with a notification obligation upon implementation of Act;
3)  bases of activities of the Financial Intelligence Unit;
4)  liability of persons with a notification obligation upon non-compliance with the requirements of Act.

(2)  The provisions of the Administrative Procedure Act apply to administrative proceedings prescribed in this Act, taking account of the specifications provided for in this Act.

§ 3. Application of Act

(1)  This Act applies to the economic and professional activities of the following persons:
1)  credit institutions;
2)  financial institutions;
3)  organisers of gambling or lotteries;
4)  persons who carry out or act as intermediaries in transactions with real estate;
5)  traders for the purposes of the Trading Act, if they are paid a sum exceeding 15,000 euros or a sum of equal value in another currency in cash, irrespective of whether the financial obligation is fulfilled with one payment in the transaction or with multiple connected payments, unless otherwise provided by law;
[RT I 2010, 22, 108 - entered into force 01.01.2011]
6)  owners of pawn shops;
7)  auditors and providers of accounting services;
8)  providers of consulting services in the field of accounting or taxation;
9)  providers of services relating to trusts and companies.

(2)  This Act applies to notaries, advocates, bailiffs, trustees in bankruptcy, interim trustees in bankruptcy and other persons who provide legal services if they act in the name or on behalf of their client in any financial or real estate transaction. This Act also applies to persons specified above if they assist the client in planning or performing transactions, or engage in professional activities or provide a professional service, which involve:
1)  purchasing or selling shares of an immovable, enterprise or company;
[RT I 2009, 61, 401 - entered into force 26.12.2009]
2)  management of the client's money, securities or other assets;
3)  the opening or administration of bank accounts or securities accounts;
4)  the acquisition of funds necessary for the foundation, operation or management of companies;
5)  the foundation, operation or management of a trust, company or another similar entity.
[RT I 2009, 27, 164 - entered into force 08.06.2009]

(3)  This Act regards cash within the meaning of Regulation (EC) No 1998/2008 of the European Parliament and of the Council on controls of cash entering or leaving the Community (OJ L 309, 25.11.2005, pp 9-12). The provisions regarding cash shall also apply if a financial obligation is fulfilled by means of precious metals, which are taken into account as bars or using other units.

Division 2
Definitions

§ 4. Money laundering

(1)  Money laundering is:
1)  the concealment or maintenance of confidentiality of the true nature, origin, location, manner of disposal, relocation, right of ownership of assets deriving from crime or of assets acquired in the place thereof, as well as of other rights relating to such assets;
2)  the conversion, transfer, acquisition, possession or use of assets deriving from crime or of assets acquired in the place thereof, the purpose of which is the concealment or maintenance of confidentiality of the illicit origin of the assets, or assisting a person who has participated in a criminal activity in order to enable such a person to avoid the legal consequences of his or her actions.

(2)  If a criminal activity, which results in the acquirement of assets used in money laundering, takes place on the territory of another state, then this shall also be deemed to be money laundering.

§ 5. Terrorist financing

Terrorist financing is the financing of an act of terrorism within the meaning of § 237³ of the Penal Code.

§ 6. Credit and financial institutions

(1)  For the purposes of this Act, a credit institution is:
1)  a credit institution within the meaning of the Credit Institutions Act
2)  a branch of a foreign credit institution which is entered in the commercial register in Estonia.

(2)  For the purposes of this Act, a financial institution is:
1)  a provider of currency exchange services;
2)  a provider of paying services within the meaning of the Paying Institutions and E-money Institutions Act;
3)  an electronic money institution within the meaning of the Paying Institutions and E-money Institutions Act;
4)  a provider of services relating to alternative means of payment;
5)  an insurer engaged in life assurance within the meaning of the Insurance Activities Act (hereinafter insurer);
6)  an insurance broker engaged in mediation of life assurance within the meaning of the Insurance Activities Act (hereinafter insurance broker);
7)  an investment fund founded as management company and public limited company within the meaning of the Investment Funds Act;
8)  an investment firm within the meaning of the Securities Market Act;
9)  a savings and loan association within the meaning of the Savings and Loan Associations Act;
10)  another financial institution within the meaning of the Credit Institutions Act;
11)  a branch of a foreign financial institution, which provides a service specified in clauses 1-10 and which is entered in the commercial register in Estonia.
[RT I 2010, 2, 3 - entered into force 22.01.2010]

(3)  For the purposes of this Act, a currency exchange service is the exchange of one current currency for another current currency by an undertaking in economic or professional activities.

(4)  A provider of services relating to alternative means of payment is a person who, in the course of the economic or professional activities of the provider of services and via a communications, transmission or clearing system, purchases, sells or mediates resources of monetary value, by means of which it is possible to fulfil financial obligations or which can be exchanged for current currency, but who is not a person specified in subsection 1 or a financial institution within the meaning of the Credit Institutions Act.

§ 7. Provider of services relating to trusts and companies

A provider of services relating to trusts and companies is a natural or legal person, whose principal economic or professional activities lie in the provision of at least one of the following services to a third person:
1)  founding a company or another legal person;
2)  acting as the manager or as a member of management board in a company, as a shareholder in a general partnership or in such a position in another legal person, as well making arrangement for enabling another person to occupy the specified position;
3)  enabling the use of address of seat or administrative address, including address as a part of contact details, or use of address for the purpose of receiving postal items and the provision of other services relating to the aforementioned to a company or another legal person, civil law partnership or another similar contractual legal entity;
4)  operating as the representative of a civil law partnership or a similar contractual legal entity or appointing another person for that position;
5)  acting as the representative of a shareholder or making arrangements for enabling another person to act as the representative of a shareholder, except in case of such companies, whose securities are accepted for trading at regulated securities market and to whom apply the disclosure requirements that are in compliance with the European Community legislation or international standards of equal value.

§ 8. Actual beneficiary

(1)  An actual beneficiary is a natural person, who exercises, exploiting his or her influence, control over a transaction, operation or another person, and in the interest, for the benefit, or on account of whom the transaction or operation is carried out.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

(1¹) An actual beneficiary is also a natural person, who permanently holds shares, voting rights in a company, or exercises final control over the management of a company in at least one of the following manners:
1)  by holding more than 25 per cent of shares or voting rights through direct or indirect holding or control, including in the form of bearer shares;
2)  by controlling the management of a legal person in another manner.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

(2)  An actual beneficiary is also such a legal person, who is, to a previously determined extent of at least 25 per cent, a beneficiary with regard to the assets of a legal person, civil law partnership or another similar contractual legal entity engaged in the administration or distribution of assets, or who significantly controls the assets of the legal person, civil law partnership or another similar contractual legal entity to an extent of at least 25 per cent.

(3)  An actual beneficiary is also a natural person, who is, to an extent previously not determined, a beneficiary with regard to the assets of a legal person, civil law partnership or another similar contractual legal entity engaged in the administration or distribution of assets, and in whose interests primarily the legal person, civil law partnership or another similar contractual legal entity was founded or is operating.

(4)  Clause (1) 1 shall not apply to companies, whose securities are accepted for trading at regulated securities market.

§ 9. Assets

For the purposes of this Act, assets are objects of any kind, as well as documents certifying the right of ownership of such objects or other rights relating to the objects, including electronic documents, and gains derived from such objects.

§ 10. Person with a notification obligation

An person with a notification obligation is a person specified in subsection 3 (1) or (2).

§ 11. Business relations

(1)  A business relations for the purposes of this Act is a relationship of an person with a notification obligation, which:
1)  is created upon entering into a long-term contract in economic of professional activities;
2)  is not based on an a long-term contract, but in the case of which particular duration can be reasonably expected at the time of establishing contact, and in the course of which an person with a notification obligation repeatedly conducts individual transactions within the framework of economic or professional activities.

(2)  For the purposes of this Act, a client is a person who is in a business relations with an person with a notification obligation.

Chapter 2
Identification

Division 1
Due diligence measures

§ 12. Obligation to implement due diligence measures

(1)  Persons with a notification obligation shall, in their economic or professional activities, pay special attention to the operations of persons participating in transactions or professional activities, of persons using professional activities, or of clients, and circumstances, which refer to money laundering or terrorist financing or which are probable to be related to mille money laundering or terrorist financing, including complex, high-value and unusual transactions without reasonable economic purpose.
[RT I 2009, 27, 164 - entered into force 8.06.2009]

(2)  Persons with a notification obligation shall implement due diligence measures at least:
1)  upon establishing business relations;
2)  upon randomly carrying out or acting as intermediaries in transactions involving a sum exceeding 15,000 euros or a sum of equal value in another currency in cash, irrespective of whether the financial obligation is fulfilled with one payment in the transaction or with multiple connected payments, unless otherwise provided by law;
[RT I 2010, 22, 108 - entered into force 01.01.2011]
3)  upon suspicion of money laundering or terrorist financing, irrespective of any derogations, exceptions or thresholds provided for in this Act;
4)  upon suspicion of insufficiency or falseness of any documents or data collected earlier during identification of a person and verification of presented information or updating the corresponding data.

§ 13. Due diligence measures

(1)  Persons with a notification obligation shall implement the following due diligence measures in its economic or professional activities in order to perform its obligation provided for in § 12 of this Act:
1)  identifying the person of a client or a party of a transaction on the basis of the documents and data presented by such person or party and verifying the presented information on the basis of information procured from a reliable and independent source;
2)  identifying and verifying the person and right of representation of a representative of a natural or a legal person;
3)  identifying the actual beneficiary, including collecting information about ownership and control structure of a legal person, a trust, a civil law partnership or other similar contractual legal entity on the basis of information provided in the course of pre-contractual negotiations or other information procured from a reliable and independent source;
4)  collecting information about the purpose and nature of the business relations and transactions;
5)  constantly monitoring the business relations, including monitoring transactions carried out during the business relations, regularly verifying the data used for identifying a person, updating the corresponding documents, data and information and, if necessary, identifying the source and origin of the means used in the transaction.

(2)  Credit and financial institutions shall implement in representative offices, branches and subsidiaries where they have majority holding, located in a third country, such due diligence measures and data collection and preservation requirements which are at least equivalent to those provided for in this Act. If the legislation of the third country does not allow for implementing equivalent measures, then the credit institution or the financial institution shall promptly notify the competent supervisory authority and shall implement additional measures for avoiding risks of money laundering or terrorist financing.

§ 14. General procedure for implementing due diligence measures

(1)  Persons with a notification obligation shall implement the due diligence measures specified in clauses 13 (1) 1)-4) of this Act each time before establishing business relations or carrying out a transaction, unless otherwise provided in this Act.

(2)  If the total value of apparently linked transactions is not known, then the party in the transaction shall be identified and the presented information shall be verified as soon as it becomes known that the value of the transactions exceeds the threshold specified in clause 12 (2) 2) of this Act.

(3)  Persons with a notification obligation shall implement all due diligence measures specified in subsection 13 (1) of this Act, but shall be able to choose the suitable extent of implementing the due diligence measures on the basis of the nature of the business relations or transactions or the risk level of the party in the transaction or professional action or the person or client using the professional service.
[RT I 2009, 27, 164 - entered into force 8.06.2009]

(4)  Persons with a notification obligation shall have the right to base the implementation of the due diligence measures specified in clauses 13 (1) 1)-3) of this Act on information received in a form allowing reproduction in writing from a credit institution entered into the Estonian commercial register or from a foreign credit institution or a branch thereof registered or having a seat in a contracting state of the European Economic Area or in a third country where requirements equivalent to those specified in this Act are in force.

(5)  Persons with a notification obligation shall, in their economic or professional activities, pay special attention to business relations and transactions if the place of residence or seat of the client or the party in transaction or the person using the professional service or the location of the beneficiary or the provider of the paying service is in a third country or in a territory not implementing sufficient measures for preventing money laundering and terrorist financing or if that country or territory is not engaged in international co-operation for prevention of money laundering and terrorist financing or is a low tax rate territory.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

§ 15. Specifics of implementing due diligence measures for credit and financial institutions

(1)  Upon a person opening an account or using for the first time any other service in a credit institution or a financial institution, whereas such person does not have business relations with the credit institution or the financial institution, the person participating in the transaction or using the service shall be identified in the presence of the person or a representative thereof.

(2)  Credit and financial institutions shall be prohibited from providing services that can be used without identifying the person participating in the transaction or without verifying the presented information. Credit and financial institutions shall be obliged to open and keep accounts in the name of the owners of the accounts.

(3)  Credit institutions and financial institution shall be prohibited from signing agreements or making decisions regarding opening an anonymous account or savings book. Any transaction violating this prohibition shall be null and void.

(4)  As an exception, credit and financial institutions may, upon request of the person participating in the transaction, open an account before fully implementing the due diligence measures, on the prerequisite that the account is debited after the implementing of the due diligence measures specified in clauses 13 (1) 1)-4) of this Act and that the first payment related to the transaction is made via an account that belongs to the same person and is opened in a credit institution located in a contracting state of the European Economic Area or in a country implementing requirements equivalent to the requirements specified in this Act.

(4¹)  Credit institutions may open an account in the name of a company being established pursuant to the procedure provided for in clause 67 (4) 1 of the Commercial Code, on the basis of personal data automatically verified by the registrar via a computer network or via an authorised notary pursuant to subsection 520 (4) of the Commercial Code, on the prerequisite that a share capital payment is made to the account from an account opened in a credit institution active in a contracting state of the European Economic Area or in a branch of a foreign credit institution opened in a contracting state, and that the account is not debited before the company is entered into the Estonian commercial register and is not debited before the implementation of the due diligence measures specified in clause 13 (1) 1)-4) of this Act pursuant to the procedure provided for in subsection (1) of this section. Representatives of the company shall allow the credit institution to implement the due diligence measures pursuant to the procedure provided for in subsection (1) of this section and shall sign a settlement contract regarding the account not later than in six months after the opening of the account.
[RT I 2008, 27, 177 - entered into force 10.07.2008]

(5)  Insurers and insurance intermediaries may identify the beneficiary of a life insurance contract after establishing business relations but not later than upon making a payout or upon starting to exercise the beneficiary's rights resulting from the life insurance contract.

(6)  Providers of currency exchange services are required, when providing a currency exchange service, to identify and verify all persons who wish to exchange, by a single transaction or related transactions, an amount exceeding 6,400 euros or an equivalent amount in another currency.
[RT I 2010, 22, 108 - entered into force 01.01.2011]

(7)  Providers of cash transfer services are required, when providing or acting as an intermediary for a cash transfer service, to identify all persons who send or receive funds through them.

(8)  Providers of services for alternative means of payment are required to:
1)  upon establishing business relations and carrying out transactions, identify each client in the presence of the client if the total value of transactions of the client in a given calendar month exceeds 1,000 euros or an equivalent amount in another currency;
[RT I 2010, 22, 108 - entered into force 01.01.2011]
2)  upon acting as an intermediary in a transaction between several clients, identify each person participating in a transaction and verify the presented information.

§ 16. Specifics of implementing due diligence measures for other persons with a notification obligation

(1)  Organisers of gambling are required to identify and verify the data specified in subsection 23 (3) of this Act regarding all persons who pay or receive, by a single transaction or by related transactions, an amount exceeding 2,000 euros or an equivalent amount in another currency.
[RT I 2010, 22, 108 - entered into force 01.01.2011]

(2)  The identification of persons and implementation of other due diligence measures by notaries shall be based on the provisions of the Notarisation Act and the Notaries Act, together with the specifics provided by this Act.

(3)  Notaries, bailiffs, trustees in bankruptcy, auditors, advocates and other persons who provide legal services may identify the client, the person participating in a transaction and the actual beneficiary and verify the presented information during the establishing of business relations or carrying out the transaction, if this is necessary for avoiding an interruption of the usual course of the professional activities and if the risk of money laundering or terrorist financing is low.

(4)  In cases provided for in subsection (3), the implementation of due diligence measures shall be finished as soon as possible after the initial contact and before carrying bout binding actions.

§ 17. Simplified procedure for implementing due diligence measures

(1)  Persons with a notification obligation may implement the due diligence measures specified in subsection 13 (1) of this Act pursuant to a simplified procedure if the risk of money laundering or terrorist financing is low and if the prerequisites provided for in § 18 of this Act are fulfilled, and may determine the suitable extent of the measures on the basis of the nature of the business relations or the transaction or on the basis of the risk level of the person participating in the official activity or using the official service or the risk level of the client.
[RT I 2009, 27, 164 - entered into force 8.06.2009]

(2)  The simplified procedure for implementing due diligence measures shall not be used if there is suspicion of money laundering or terrorist financing.

(3)  Persons with a notification obligation are required to collect sufficient information for determining whether the transaction carried out in the economic or professional activity and the person participating in the transaction or in the official activity, the person using the official service or the client conforms to the prerequisites specified in subsections 18 (1)-(4) of this Act.
[RT I 2009, 27, 164 - entered into force 8.06.2009]

§ 18. Prerequisites for a simplified procedure for implementing due diligence measures

(1)  Persons with a notification obligation may use a simplified procedure for implementing due diligence measures, if the transaction carried out in the economic or professional activity or the person participating in the official activity, the person using the official service or the client is one of the following:
[RT I 2009, 27, 164 - entered into force 8.06.2009]
1)  a legal person under public law, established in Estonia;
2)  a governmental institution or other institution carrying out public duties, located in Estonia or in a contracting state of the European Economic Area;
3)  an institution of the European Community;
4)  a company located in a contracting state of the European Economic Area or in a third country, subject to requirements equivalent to the requirements specified in this Act, the securities emitted by which are traded on a regulated securities market in one or several contracting states of the European Economic Area;
5)  a credit institution or a financial institution, or a credit institution or a financial institution located in a contracting state of the European Economic Area or in a third country, subject to requirements equivalent to the requirements specified in this Act and valid in its location country and subject to state supervision over the following of such requirements.

(2)  Persons with a notification obligation may use the simplified procedure for implementing due diligence measures regarding actual beneficiaries of official accounts opened by a notary or a bailiff of a contracting state of the European Economic Area or a third country, if the corresponding due diligence measures for preventing money laundering and terrorist financing and also state supervision are implemented regarding the official account and if the notary or the bailiff possesses and preserves information about the identity of the actual beneficiary.

(3)  Insurers and insurance intermediaries may use the simplified procedure for implementing due diligence measures, if:
1)  a life insurance contract is signed which has no annual insurance premium exceeding 1,000 euros and no maximum single insurance payment exceeding 2,500 euros;
RT I 2010, 22, 108 - entered into force 01.01.2011]
2)  a pension insurance contract is signed which does not specify the right of withdrawing or cancelling and which cannot be used as a loan security;
3)  a transaction is carried out within the framework of a scheme allowing superannuated pension or other similar pension benefits for employees, which specifies deducting the insurance payments from the salary and where the conditions of the pension scheme do not allow for transferring the rights of the participant of the scheme.

(4)  Persons with a notification obligation may use the simplified procedure for implementing due diligence measures regarding a transaction of all of the following conditions are fulfilled:
1)  a written long-term contract has been signed with the client;
2)  a payment is made via the account of the person participating in a transaction or the client, if the account has been opened in a credit institution entered into the Estonian commercial register or a foreign credit institution or branch thereof established or active in a contracting state of the European Economic Area or in a country where requirements equivalent to those specified in this Act are in force;
3)  the person with a notification obligation has implemented prior internal rules of procedure prescribing that the total annual value of fulfilling monetary obligations resulting from transaction of this type will not exceed 15,000 euros;
[RT I 2010, 22, 108 - entered into force 01.01.2011]
4)  the person with a notification obligation registers at least the data specified in clauses 23 (2) 1)-4) of this Act regarding the client.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

(5)  The Minister of Finance shall, by a regulation, specify the criteria for low risk of money laundering or terrorist financing regarding certain persons or transactions, allowing the use of the simplified procedure for implementing due diligence measures.

§ 19. Reinforced procedure for implementing due diligence measures

(1)  Persons with a notification obligation shall use the reinforced procedure for implementing due diligence measures, if the nature of the situation entails a high risk of money laundering or terrorist financing.

(2)  Persons with a notification obligation are required to implement the reinforced due diligence measures specified in subsection (3), if:
1)  the person participating in the transaction carried out in an economic or professional activity or participating in the official activity or the person using the official service or the client has been identified and the presented information has been verified without the presence of the person or the client;
[RT I 2009, 27, 164 - entered into force 8.06.2009]
2)  upon identifying the person or client or upon verifying the presented information, a suspicion arises about the accuracy of the presented data or about the integrity of the documents or about the identity of the actual beneficiary or actual beneficiaries;
3)  the person participating in the transaction carried out in an economic or professional activity or participating in the official activity or the person using the official service or the client is a person specified in subsection 21 (1) of this Act.
[RT I 2009, 27, 164- entered into force 8.06.2009]

(3)  In cases provided for in subsections (1) and (2) of this section, persons with a notification obligation are required to implement at least one of the following reinforced due diligence measures in addition to the due diligence measures specified in clauses 13 (1) 1)-4) of this Act:
[RT I 2009, 61, 401 - entered into force 26.12.2009]
1)  identifying the person and verifying the presented information on the basis of additional documents, data or information procured from a reliable and independent source or from a credit institution entered into the Estonian commercial register or a foreign credit institution or branch thereof registered or active in a contracting state of the European Economic Area or in a country where requirements equivalent to those specified in this Act are in force, if that credit institution has identified the person in the presence of the person;
2)  implementing additional measures for verifying the integrity of the presented documents and the accuracy of the data stated therein, including requiring the documents to be notarised or officially certified or requiring a confirmation of the accuracy of the data by the credit institution specified in clause 1) having issued the documents;
3)  making the first payment related to the transaction via an account opened in the name of the person participating in the transaction or in the name of the client in a credit institution registered or active in a contracting state of the European Economic Area or in a country where requirements equivalent to those specified in this Act are in force.

(4)  In cases provided for in subsections (1) and (2) of this section, persons with a notification obligation are required to implement with higher than usual frequency the due diligence measures specified in clause 13 (1) 5) of this Act.

(5)  The person with a notification obligation shall be responsible for proper implementing of the due diligence measures.

§ 20. Person having a state background

(1)  Person having a state background is a natural person carrying out or having carried out significant duties of public authority, also family members and close colleagues of such person. Person having a state background shall not be deemed a person who, as of the date of carrying out the transaction, has not carried out any significant duties of public authority for at least one year, nor family members and close colleagues of such person.

(2)  A person carrying out significant duties of public authority in the meaning of this Act is:
1)  a head of state, a head of government, a minister, a deputy minister or an assistant minister;
2)  a member of the parliament;
3)  a judge of a supreme court, constitutional court or other similar higher instance court, judgements of which can be appealed on in exceptional cases only;
4)  a member of the council of a state control authority or the council of a central bank;
5)  an ambassador, a charge d'affaires or a flag officer of the defence forces;
6)  a member of the management body, supervisory body or administrative body of a state enterprise.

(3)  The positions specified in clauses (2) 1)-5) include the positions in the European Union and in other international organisations.

(4)  A family member of a person carrying out significant duties of public authority is:
1)  his or her spouse;
2)  his or her cohabitee equivalent to a spouse under the law of the country of residence of the person or a person having a common household with him or her for at least one year as of the date of signing the transaction;
3)  his or her children and their spouses or partners in the meaning of clause 2);
4)  his or her parent.

(5)  A close colleague of a person carrying out significant duties of public authority is:
1)  a natural person having close business relations with the person carrying out significant duties of public authority or together with whom the person carrying out significant duties of public authority is a joint actual beneficiary in a legal person or a contractual legal entity;
2)  a person who, as an actual beneficiary, has complete ownership of a legal person or a contractual legal entity that is known to have been established for the benefit of the person carrying out significant duties of public authority.

§ 21. Transactions with persons having a state background from another member state and from a third country

(1)  Persons with a notification obligation shall implement the reinforced due diligence measures stated in § 19 of this Act upon establishing business relations and carrying out transactions with persons having a state background from a contracting state of the European Economic Area or a third country, with his or her family members or with his or her close colleagues and upon providing official services to these persons.
[RT I 2009, 27, 164 - entered into force 8.06.2009]

(2)  In cases provided for in subsection (1), persons with a notification obligation shall also implement the following requirements:
1)  suitable risk-based internal procedures shall be implemented upon establishing business relations and carrying out transactions;
2)  decisions for establishing business relations shall be made by the board of management of the person with a notification obligation or by person or persons authorised thereby;
3)  corresponding measures shall be implemented for determining the origins of the money and other property used upon establishing business relations and carrying out transactions;
4)  the due diligence measures specified in clause 13 (1) 5 of this Act shall be implemented continuously.

§ 22. Correspondent relations of credit and financial institutions

(1)  Credit and financial institutions shall use the reinforced procedure for implementing due diligence measures upon establishing correspondent relations with a credit institution or a financial institution of a third country and during the term of validity of the corresponding contract, including regular assessments of the credit institution of a third country regarding the following:
1)  nature of its economic activities, reliability, reputation and efficiency of the supervision that it is subject to, on the basis of the publicly available information;
2) control systems for prevention of money laundering and terrorist financing.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

(2)  The contract on the basis of which the correspondent account is opened or the code of conduct of the credit institution are required to prescribe a prohibition of opening a correspondent account for a credit institution conforming to the conditions specified in clause (3) 1), and to prescribe also the obligations of the parties:
1)  upon implementing due diligence measures for prevention of money laundering and terrorist financing, including regarding a client having access to an account with extended usage rights or to other similar account;
2)  upon presenting the data collected in the course of identifying the client and verifying the presented information, as a reply to a query;
3)  upon preserving the data and upon implementing the notification obligation and other measures for prevention of money laundering and terrorist financing.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

(2¹)  Prior consent of the board of management of the credit institution or financial institution or the person authorised thereby is required for opening a correspondent account for a credit institution or a financial institution of a third country, or for opening a correspondent account for a credit institution or a financial institution or signing the corresponding contract in a third country.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

(3)  Credit and financial institutions shall be prohibited from opening and owning a correspondent account in a credit institution conforming to at least one of the following conditions:
1)  the actual place of management or activities of the credit institution is located outside its location country and the credit institution is not a part of a consolidated group of corporation of credit or financial institutions subject to sufficient supervision;
2)  an account for a credit institution conforming to the conditions specified in clause 1) has been opened in the credit institution;
3)  an assessment of the reliability of the credit institution's managers and measures for prevention of money laundering and terrorist financing results in shortcomings being discovered according to the international standards or on the basis of the circumstances used as a basis for the assessment specified in this section.

(4)  An agreement for opening a correspondent account in a credit institution conforming to the conditions specified in clauses (3) 1) and 2), violating the prohibition, shall be null and void.

(5)  The provisions of subsections (3) and (4) shall also apply to correspondent relations with institutions and enterprises whose main and consistent activity is carrying out transactions similar to transactions specified in subsection 6 (1) of the Credit Institutions Act.

Division 2
Collection and Preservation of Data

§ 23. Documents and data which are basis for identification of a natural person

(1)  Persons with a notification obligation shall identify and verify the identity of a natural person on the basis of a document specified in subsection 2 (2) of the Identity Documents Act, a valid travel document issued in a foreign country or a driver's license conforming to the conditions specified in subsection 4 (1) of the Identity Documents Act. A representative of the person participating in a transaction is required to present a document proving his or her right of representation, formalised in a prescribed way, in addition to an identity document.

(2)  A photocopy shall be made of the page of the identity document presented for identification which contains the personal data and a photograph. Additionally, the person with a notification obligation shall register the following personal data upon identifying the persons specified in subsection (1) and verifying the presented information:
1)  name of the person and name of the representative;
2)  personal identification code or in case of lack thereof, date and place of birth;
3)  name and number, date of issue and name of the issuing authority of the document used for identification and verification of the person or representative;
4)  name, date of issue and name of the issuing authority of the document used for identification and verification of the right of representation.

(3)  Persons with a notification obligation shall register the residential address and the profession or area of activities of the person specified in subsection (1), on the basis of the information received from the person. If the person participating in the transaction carried out in an economic or professional activity or the client is a natural person of a contracting state of the European Economic Area or a third country, then the person with a notification obligation shall also register information about whether the person carries out or has carried out significant duties of public authority or is a close colleague or family member of a person carrying out significant duties of public authority.

(4)  Upon request of the person with a notification obligation, the person participating in the transaction carried out in an economic or professional activity or in the official activity, the person using the official service or the client is required to present the corresponding information and documents necessary for implementing the due diligence measures specified in subsection 13 (1) of this Act.
[RT I 2009, 27, 164 - entered into force 8.06.2009]

(5)  Upon request of the person with a notification obligation, a representative of a foreign legal person is required to present a document proving his or her powers of authorisation, whereas this document shall be notarially certified or certified in a manner recognised as equivalent to notarial certification and shall be legalised or certified with a certificate substituting for legalisation (apostille), unless otherwise provided in an international contract.

(6)  If the data or documents specified in subsections (1) and (3) of this section are not available, other notarially certified or notarially or officially authenticated documents shall be used for identification.

(7)  Upon request of the person with a notification obligation, the person participating in the transaction carried out in an economic or professional activity or in the official activity, the person using the official service or the client is required to confirm with his or her signature the accuracy of the information and documents presented for implementing the due diligence measures.
[RT I 2009, 27, 164 - entered into force 8.06.2009]

§ 24. Documents and data which are basis for identification of a legal person

(1)  Persons with a notification obligation shall identify the legal person and its passive legal capacity and shall verify the received information. A legal person registered in Estonia or a branch of a foreign company registered in Estonia shall be identified on the basis of an extract from the corresponding register card, and a foreign legal person shall be identified on the basis of an extract from the corresponding register or a copy of its certificate of registration, or an equivalent document issued by a competent institution or authority not earlier than six months before presenting the document.

(2)  The document submitted in order to enable identification shall set out at least the following data:
1)  the name or business name, seat and address of the legal person;
2)  the registration code or registration number;
3)  date of issue and the name of the authority having issued the document.

(3)  Persons with a notification obligation shall register the following data on the basis of the documents specified in subsection (1) or, if the corresponding data is not contained in these documents, then on the basis of the information received from the representative of the legal person participating in the transaction:
1)  the names of the head or the members of the management board or other body substituting for a management board, and their authority in representing the legal person;
2)  area of activities of the legal person;
3)  numbers of communication means;
4)  data of the actual beneficiaries of the legal person.

(4)  If the person with a notification obligation has information about the possibility that the person participating in a transaction carried out in an economic or professional activity or the client may be related to a person having a state background of a contracting state of the European Economic Area or of a third country, then the circumstances specified in subsection 23 (3) shall be registered in addition to the data specified in subsection (3), on the basis of the information received from the representative of the legal person.

(5)  Presenting an extract from the register card shall not be obligatory if the person with a notification obligation has access to the data in the commercial register, the non-profit associations and foundations register or the corresponding foreign registers through a computer network.

(6)  If the data or documents specified in subsections (1) and (3) of this section are not available, then other notarially certified or notarially or officially authenticated documents shall be used for identification.

§ 25. Registration of transaction data

(1)  Persons with a notification obligation shall register the date or range of dates of carrying out the transaction and the description of the content of the transaction upon identifying the person and verifying the presented information.

(2)  Credit and financial institutions shall additionally register the following data about the transaction:
1)  upon the opening of an account: the type of account, account number, currency and significant details of the securities or other property;
2)  upon the deposit of property: the deposit number, the market price of the property on the day of deposit or, if it is not possible to determine the market price of the specified property, an exact description of the property;
3)  upon the renting and use of a safe deposit box: the number of the safe deposit box;
4)  upon the making of a payment relating to shares, debt instruments or other securities: the type of the securities, the monetary value of the transaction, the currency and the account number;
5)  upon entry into an insurance contract: the number of the account from which the first premium amount is debited;
6)  upon the making of a payment on the basis of an insurance contract: the number of the account to which the payment is credited;
7)  upon the transfer of money: data which is obligatory to be forwarded pursuant to regulation No. 1781/2006 of the European Parliament and Council on information about the payer to be forwarded in case of transfer of money (OJ L 345, 8.12.2006, pp 1-9);
8)  upon the providing of a service of alternative payment means: the name, the personal identification code or in case of lack thereof the date and place of birth of the payer and the recipient, or a unique identification allowing the payer to be determined;
9)  in the case of other transactions: the amount of the transaction, the currency and the account number.

§ 26. Preservation of data

(1)  Persons with a notification obligation are required to preserve the originals or copies of the documents specified in §§ 23 and 24 of this Act, used as a basis for identifying persons and verifying presented information and the documents used as a basis for establishing business relations at least five years after the end of the business relations.

(2)  Persons with a notification obligation are required to preserve the documents prepared regarding the transaction on any information media and the documents and data used as a basis for the notification obligation specified in subsections 32 (1) and (2) of this Act at least five years after carrying out the transaction or after complying with the notification obligation.

(3)  Persons with a notification obligation are required to preserve the documents and data specified in subsections (1) and (2) of this Act in a manner allowing comprehensive and immediate replying to any queries of the Financial Intelligence Unit or to any queries of other investigative bodies or courts conforming to the valid legislation.

(4)  If an person with a notification obligation makes a query for the purposes of identifying a person to a database belonging into the state information system, use of which is obligatory for that person with a notification obligation pursuant to the valid legislation, then the obligation provided for in subsections (1) and (3) of this section shall be deemed complied with if the information about making the electronic query to the corresponding register is reproducible for five years after the end of the business relations.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

Division 3
Managing risks related to money laundering and terrorist financing

§ 27. Refusal to carry out a transaction and ending business relations

(1)  Persons with a notification obligation are prohibited from establishing business relations or carrying out a transaction specified in clause 12 (2) 2 of this Act, if the person participating in the transaction or official activity, the person using the official service or the client, regardless of the corresponding request, does not present the corresponding data and documents required for implementing the due diligence measures specified in clauses 13 (1) 1)-4) of this Act or if the presented documents provide the person with a notification obligation grounds for a suspicion of money laundering or terrorist financing.
[RT I 2009, 27, 164 - entered into force 8.06.2009]

(1¹)  Credit institutions are prohibited from signing a contract, if the owner of the account specified in subsection 15 (41) of this Act, regardless of the corresponding request, does not present the corresponding data and documents required for implementing the due diligence measures specified in clauses 13 (1) 1)-4) of this Act or if the presented documents provide the person with a notification obligation grounds for a suspicion of money laundering or terrorist financing.
[RT I 2008, 27, 177 - entered into force 10.07.2008]

(2)  Persons with a notification obligation shall have the right to refuse to carry out a transaction, if the person participating in the transaction or official activity, the person using the official service or the client, regardless of the corresponding request, does not present the corresponding data and documents required for identifying the circumstances specified in clauses 13 (1) 1)-4) of this Act specified in clauses 13 (1) 1)-4) of this Act or the data and documents proving the legality of the source of the property used as an object of the transaction or if the presented data and documents provide the person with a notification obligation grounds for a suspicion of money laundering or terrorist financing.
[RT I 2009, 27, 164- entered into force 8.06.2009]

(3)  If the person participating in a transaction carried out in an economic or professional activity or the client, regardless of the corresponding request, does not present the corresponding data and documents required for complying with the obligation specified in clauses 13 (1) 1)-4) of this Act, then it shall be deemed a significant violation of the contract and the person with a notification obligation shall be required to withdraw from the long-term contract used as a basis for the business relations unilaterally and promptly without implementing an advanced notice.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

(4)  Upon ending business relations pursuant to subsection (3) of this section, credit and financial institutions may transfer the client's property only to an account opened in a credit institution entered into the Estonian commercial register or in a foreign credit institution or in a branch thereof registered or active in a contracting state of the European Economic Area or in a country where requirements equivalent to those specified in this Act are in force. The provisions of subsection 720 (6) of the Law of Obligations Act shall not apply to the provisions of this subsection.

(4¹)  Any agreement violating the prohibition provided for in subsection (11) of this section shall be null and void. The provisions of the first sentence of subsection (4) of this section shall apply to the account of a company being established, unless otherwise provided in a precept of the Financial Intelligence Unit issued pursuant to subsection 40 (1) of this Act.
[RT I 2008, 27, 177 - entered into force 10.07.2008]

(5)  The provisions of subsections (1)-(3) of this section shall not apply to notaries, advocates, bailiffs, trustees in bankruptcy and other persons who provide legal services, nor to persons providing services in the area of audits and accounting or taxation when evaluating the client's legal position or representing the client in a court proceeding or challenge proceeding, or to legal disputes in any other type of proceeding, including consultations provided regarding the initiation or avoidance of a proceeding.

(6)  Persons with a notification obligation shall register and preserve the following pursuant to the procedure provided for in § 26 of this Act:
1)  information about the circumstances of the person with a notification obligation refusing to establish business relations or carry out a transaction;
2)  circumstances of abandoning the establishing of business relations or the carrying out of a transaction upon initiative of the person participating in the transaction or official activity, the person using the official service or the client, if the abandoning is related to the person with a notification obligation implementing due diligence measures;
3)  circumstances of ending business relations in cases provided for in subsection (3) of this section;
4)  information used as a basis for the notification obligation provided for in § 32 of this Act.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

§ 28. Transfer of activities related to economic and professional activities of persons with a notification obligation

(1)  If the person with a notification obligation has transferred its activities to a third party for better compliance with the obligations related to its economic or professional activities, then the third person shall be deemed to have knowledge of all the requirements resulting from this Act. The person with a notification obligation having transferred its activities shall bear liability for any violations of these requirements.

(2)  Transfer of activities shall be permitted only if:
1)  it does not damage the justified interests of the person with a notification obligation or the person participating in a transaction;
2)  it does not hinder the activities of the person with a notification obligation nor the compliance with the obligations provided for in this Act;
3)  it does not hinder the conducting of state supervision over the person with a notification obligation;
4)  the third party taking over the activities has the necessary knowledge and skills and the ability to comply with the requirements specified in this Act;
5)  the person with a notification obligation has the right and possibility of verifying the compliance of the third party with the requirements specified in this Act;
6)  it is ensured that the documents and data collected for compliance with the requirements specified in this Act are preserved pursuant to the procedure provided for in this Act and in legislation based upon it.

(3)  Persons with a notification obligation shall promptly notify the competent supervisory authority about transferring their activities.

§ 29. Internal security measures

(1)  Persons with a notification obligation are required to establish written code of conduct for implementing the due diligence measures specified in this Act, including assessing and managing risks of money laundering and terrorist financing, collecting and preserving data, complying with the notification obligation and informing the management, and also internal audit rules for verifying the compliance with these code of conduct.

(1¹)  Persons with a notification obligation are required to pay special attention to implementing of code of conduct and internal audit rules in the subsidiaries with majority holding, branches and representative offices of the person with a notification obligation, if the seat of place of activities thereof 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 co-operation for prevention of money laundering and terrorist financing or is a low tax rate territory. Persons with a notification obligation shall ensure that the code of conduct and internal audit rules implemented in the subsidiaries with majority holding, branches and representative offices of the person with a notification obligation located in a third country prescribe requirements at least equivalent to those prescribed in this Act.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

(2)  Management board of the legal person being an person with a notification obligation, head of a branch being an person with a notification obligation, or in case of lack thereof the person with a notification obligation is required to ensure regular training regarding compliance with the requirements prescribed in this Act for the employees whose duties include establishing business relations or carrying out transactions. The training must provide information about modern methods of committing money laundering and terrorist financing and about risks related thereto, among other matters.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

(3)  Board of management of a credit institution or a financial institution and head of a branch of a foreign credit institution or financial institution registered in Estonia shall appoint a person to act as the contact person for the Financial Intelligence Unit (hereinafter contact person).

(4)  Persons with a notification obligation who are not credit or financial institutions may assign a contact person for complying with obligations related to prevention of money laundering and terrorist financing. If a contact person has not been assigned, then the board of management of the legal person, head of the branch of a foreign company registered in Estonian commercial register or a self-employed person shall act as a contact person.

(5)  An employee or a structural unit may act as a contact person. If a structural unit is acting as a contact person, then the head of the corresponding structural unit shall be responsible for performing the relevant tasks. The person with a notification obligation shall notify the competent supervisory authority about assigning a contact person.

§ 30. Requirements for code of conduct

(1)  The code of conduct established by the person with a notification obligation shall correspond to the type, extent and level of complexity of the economic or professional activities of the person with a notification obligation and shall regulate the implementation of the due diligence measures at least in cases provided for in subsection 13 (1) of this Act.

(2)  Persons with a notification obligation are required to regularly verify the relevance of the established code of conduct and, if necessary, to establish new code of conduct.

(3)  Code of conduct shall:
1)  describe transactions with lower risk levels and prescribe requirements and procedures for carrying out such transactions;
2)  describe transactions with higher risk levels, including risks entailed in development of communication means, computer networks and other similar technologies, and prescribe requirements and procedures for carrying out and monitoring such transactions;
[RT I 2009, 61, 401 - entered into force 26.12.2009]
3)  prescribe rules implementing the due diligence measures specified in clause 13 (1) 5 of this Act;
4)  prescribe requirements and procedures for preserving documents and data specified in division 2 of this chapter;
5)  prescribe requirements and procedures for applying the provisions of subsection 27 (6) of this Act.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

(4)  Code of conduct shall provide instructions for successfully and quickly determining whether a person is:
1)  a person having a state background;
2)  a person having place of residence or seat in a country with insufficient measures for prevention of money laundering and terrorist financing;
3)  a person with prior suspicion of activities being related to money laundering or terrorist financing;
4)  a person subject to international sanctions;
5)  a person with whom a transaction is carried out via means of communication.

(5)  Code of conduct shall be introduced to all employees of the person with a notification obligation whose duties include establishing business relations or carrying out transactions.

(6)  Requirements for the code of conduct to be established by credit and financial institutions, for the internal audit rules to monitor compliance with the code of conduct and for the application of such documents shall be established by the Minister of Finance.

§ 31. Contact person

(1)  The organisational structure of credit and financial institutions shall be suitable for compliance with the requirements prescribed in this Act and shall ensure the direct subordination of the contact person to the board of management of the credit institution or the financial institution.

(2)  The board of management of a credit institution or a financial institution and head of branch of a foreign credit institution registered in the Estonian commercial register shall ensure that the contact person has the competence, means and access to the corresponding information in all structural units of the credit institution or financial institution, necessary for performing the duties prescribed in this Act.

(3)  The duties of a contact person are:
1)  to organise the collecting of information indicating unusual transactions or transactions with a suspicion of money laundering or terrorist financing becoming apparent in the activities of the person with a notification obligation, and to analyse this information;
2)  to forward information to the Financial Intelligence Unit in the event of a suspicion of money laundering or terrorist financing;
3)  to present periodic written reports about compliance with the code of conduct to the board of management of the credit institution or financial institution or to the head of the branch of the foreign credit institution or financial institution registered in the Estonian commercial register;
4)  to perform other duties related to the compliance of the credit institution or financial institution with the requirements prescribed in this Act.

(4)  Contact person shall have the right:
1)  to make suggestions to the board of management of the credit institution or financial institution or to the head of the branch of the foreign credit institution or financial institution registered in the Estonian commercial register for amending or supplementing the code of conduct containing requirements for prevention of money laundering and terrorist financing and suggestions for organising training specified in subsection 29 (2) of this Act;
2)  to demand that a structural unit of the person with a notification obligation eliminate within reasonable time the discovered shortcomings regarding compliance with the requirements for prevention of money laundering and terrorist financing.

Chapter 3
Conduct in Event of Suspicion of Money Laundering and Terrorist Financing

§ 32. Notification obligation in case of suspicion of money laundering and terrorist financing

(1)  If, upon carrying out an economic or professional activity or an official activity or providing an official service, an person with a notification obligation identifies an action or circumstances which indicate money laundering or terrorist financing or which provide suspicion or certain knowledge of money laundering or terrorist financing, the person with a notification obligation shall promptly notify the Financial Intelligence Unit thereof.
[RT I 2009, 27, 164 - entered into force 8.06.2009]

(2)  Provisions of subsection (1) of this section shall also apply in case of circumstances specified in clauses 27 (6) 1)-3) of this Act.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

(3)  Persons with a notification obligation, except credit institutions, shall promptly notify the Financial Intelligence Unit about each transaction where monetary obligation exceeding 32,000 euros or an equivalent amount in other currency is paid in cash, regardless of whether the transaction is carried out as a single payment or as several linked payments. Credit institutions shall promptly notify the Financial Intelligence Unit of each currency exchange transaction with a cash amount exceeding 32,000 euros, unless the credit institution has business relations with the person participating in the transaction.
[RT I 2010, 22, 108 - entered into force 01.01.2011]

(4)  The notification obligation provided for in subsection (1) or subsection (3) shall not apply to notaries and advocates when evaluating the client's legal position or representing the client in a court proceeding or challenge proceeding, or to legal disputes in any other type of proceeding, including consultations provided regarding the initiation or avoidance of a proceeding, regardless of whether the information is obtained prior to, in the course of or after the conclusion of the proceeding.

(5)  In cases provided for in subsection (1) of this section, persons with a notification obligation shall have the right to postpone the transaction or official activity or official service. If postponement of a transaction could cause significant damage, is impossible or could hinder the arresting of the possible person committing money laundering or terrorist financing, the transaction shall be carried out or the official service shall be provided and after that the Financial Intelligence Unit shall be notified.
[RT I 2009, 27, 164 - entered into force 8.06.2009]

§ 33. The form and place of notification

(1)  Information shall be forwarded to the financial intelligence unit of the contracting state of the European Economic Area in the territory of which the person with a notification obligation is located.

(2)  Notice shall be given orally, in writing or in a form allowing reproduction in writing. If the notice has been given orally, then it shall be repeated not later than on the next working day in writing or in a form allowing reproduction in writing.

(3)  The data used as a basis for identifying the person and for verifying the forwarded information and, if necessary, copies of the corresponding documents may be appended to the notice.

(4)  The format for notification to be forwarded to the Financial Intelligence Unit and instructions for the preparation thereof shall be established by a regulation of the Minister of Internal Affairs.

§ 34. Confidentiality requirement of the notifier

(1)  Persons with a notification obligation, structural units of an person with a notification obligation being a legal person, members of management bodies and employees are prohibited from informing the person, the actual beneficiary of the person and the representative of the person about any notification forwarded to the Financial Intelligence Unit regarding them and about any criminal proceedings initiated or precepts issued by the Financial Intelligence Unit pursuant to §§ 40 or 41 of this Act. Persons with a notification obligation are allowed to notify the person about restriction on the use of the person's account or other restrictions ordered by the Financial Intelligence Unit after the corresponding precept of the Financial Intelligence Unit has been complied with.

(2)  Provisions of subsection (1) of this section shall also apply to providing information to third parties, unless otherwise provided in this Act.

(3)  Persons with a notification obligation are allowed to provide information to third parties, if:
1)  the third party belongs to the same consolidated group or financial conglomerate as the person with a notification obligation specified in clause 3 (1) 1 or 2 of this Act and the seat of the entrepreneur is located in a contracting state of the European Economic Area or in a third country where requirements equivalent to those specified in this Act are in force and where state supervision is conducted over compliance with these requirements and where requirements equivalent to those valid in Estonia are implemented for ensuring the confidentiality of professional secrets and personal data;
2)  the third party is active as a notary, an advocate or an auditor in the same legal person as the person with a notification obligation or in the same structure as the person with a notification obligation having common owners, a common management system or a common internal audit system;
3)  information specified in subsection (1) concerns the same person and the same transaction that several persons with a notification obligation are connected to and the information is provided by a credit institution, a financial institution, a notary, an advocate or an auditor to a person active in the same economic of professional field located in a contracting state of the European Economic Area or in a third country where requirements equivalent to those specified in this Act are in force and where state supervision is conducted over compliance with these requirements and where requirements equivalent to those valid in Estonia are implemented for ensuring the confidentiality of professional secrets and personal data.

(4)  Information exchanged pursuant to subsection (3) may be used only for the purpose of prevention of money laundering and terrorist financing.

(5)  The prohibition specified in subsection (1) shall not apply on cases when a notary, an advocate or an auditor is trying to persuade a client to refrain from unlawful actions.

§ 35. Relief from liability

(1)  Persons with a notification obligation, employees and representatives thereof and persons acting on their behalf are not liable for damage which results from failure to carry out a transaction or from failure to carry out a transaction within the given term upon performing duties prescribed in this Act and which is caused to a person participating in the transaction carried out in an economic or professional activity in connection with informing the Financial Intelligence Unit in good faith about a suspicion of money laundering or terrorist financing, or for damage caused to a person participating in the transaction carried out in an economic or professional activity or a client in connection with withdrawing from a long-term contract pursuant to subsection 27 (3) of this Act.

(2)  The acts of persons with a notification obligation towards compliance with the notification obligation provided for in § 32 of this Act and towards forwarding corresponding information are not deemed to be breaches of the confidentiality requirement imposed on them by law or a contract and the liability prescribed by legislation or a contract for disclosing such information does not apply to such persons having complied with the notification obligation. Any agreement violating the provisions of this subsection is null and void.

(3)  Upon forwarding data and documents related to professional activities of a notary to the Financial Intelligence Unit on the basis of a precept issued by the Financial Intelligence Unit pursuant to subsection 41 (1) of this Act, the notary shall be relieved from the confidentiality requirement prescribed in § 3 of the Notaries Act.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

Chapter 4
Financial Intelligence Unit

§ 36. Financial Intelligence Unit

(1)  The Financial Intelligence Unit is an independent structural unit of the Police and Border Guard Administration.

(2)  The head of the Financial Intelligence Unit shall be appointed by the director general of the Police and Border Guard Administration on the proposal of the deputy director general of the Police and Border Guard Administration.

(3)  The Police and Border Guard Administration shall ensure sufficient means for the Financial Intelligence Unit to perform its functions prescribed in the legislation.
[RT I 2009, 62, 405 - entered into force 1.01.2010]

§ 37. Functions of Financial Intelligence Unit

(1)  The functions of the Financial Intelligence Unit are:
1)  to collect, register, process and analyse information received pursuant to §§ 32 and 33 of this Act. In the course of these activities, the significance of the information submitted to the Financial Intelligence Unit for the prevention, identification or investigation of money laundering, criminal offences related thereto and terrorist financing shall be assessed;
2)  inform the persons who submit information to the Financial Intelligence Unit of the use of the information submitted for the purposes specified in clause 1) of this section in order to improve the performance of the notification obligation;
3)  to conduct investigations into movement of criminal proceeds and to apply state enforcement pursuant to grounds and extent prescribed in the valid law;
4)  to supervise the activities of persons with a notification obligation in complying with this Act, unless otherwise provided by law;
5)  to notify the public about identification and prevention of money laundering and terrorist financing and to analyse the corresponding statistical data, preparing overviews and publishing these overviews at least once per year;
6)  to co-operate with persons with a notification obligation, investigative bodies and police authorities in the prevention of money laundering and terrorist financing;
7)  to conduct training of persons with a notification obligation, investigative bodies, prosecutors and judges in matters related to prevention of money laundering and terrorist financing;
8)  to organise foreign relations and the exchange of information pursuant to § 46 of this Act;
9)  to perform the duties prescribed in the International Sanctions Act;
[RT I 2010, 26, 129 - entered into force 5.10.2010]
10)  to conduct proceedings in matters of misdemeanours provided for in this Act.

§ 38. Administrative acts of the Financial Intelligence Unit

(1)  The Financial Intelligence Unit issues precepts and other administrative acts in order to perform the functions imposed on the Unit by law.

(2)  A precept issued on the basis of subsections 40 (1) and (3) and subsections 41 (1) and (4) of this Act shall not set out the factual basis for issue thereof. The facts on the basis of which a precept is issued shall be documented separately. The person whose transaction was suspended or the use of whose account was restricted by a precept has the right to examine the aforementioned materials. The Financial Intelligence Unit has the right to deny a request to examine a document if this would impede the prevention of money laundering or terrorist financing or hinder the truth from being ascertained in criminal proceedings.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

(3)  An administrative act of the Financial Intelligence Unit shall be signed by the head or deputy head of the Financial Intelligence Unit or by an official authorised by the head of the Financial Intelligence Unit. Upon signature by an authorised person, the number and date of the document granting the right of signature and the place where the document can be reviewed shall be indicated next to the signature.

(4)  In the event of failure to comply with an administrative act, the Financial Intelligence Unit may impose a penalty measure pursuant to the procedure provided for in the Substitutive Enforcement and Penalty Payment Act. The upper limit for a penalty payment for failure to comply with an administrative act is 1,300 euros for the first occasion and 6,000 euros for each subsequent occasion.
[RT I 2010, 22, 108 - entered into force 01.01.2011]

§ 39. Guidelines of the Financial Intelligence Unit

(1)  The Financial Intelligence Unit shall issue advisory guidelines to explain legislation regulating the prevention of money laundering and terrorist financing.

(2)  The Financial Intelligence Unit shall issue a guideline regarding characteristics of transactions suspicious of money laundering.

(3)  The Financial Intelligence Unit shall issue a guideline regarding characteristics of terrorist financing. This guideline shall be coordinated with the Security Police Board beforehand.

(4)  The guidelines of the Financial Intelligence Unit shall be published on the website of the Financial Intelligence Unit.

§ 40. Suspension of transaction, restriction of use of property, transfer of property into state ownership

(1)  In the event of suspicion of money laundering or terrorist financing, the Financial Intelligence Unit may issue a precept to suspend a transaction or to impose restrictions on the use of an account or of property being the object of the transaction, official activity or official service for up to 30 twenty-four hour periods as of receiving notification regarding a suspicion of money laundering or terrorist financing. In the event of justified suspicion of money laundering or terrorist financing, the Financial Intelligence Unit may issue a precept to impose restrictions on the use of property registered in the land register, ship register, Estonian Central Register of Securities, traffic register, construction register or other state register for up to 30 twenty-four hour periods in order to ensure its preservation.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

(2)  The transaction may be carried out or the restriction on using the account may be removed earlier only with the written permission of the Financial Intelligence Unit. During the time that restrictions on using an account are in force, the credit institution or financial institution shall not execute any orders issued for debiting the account.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

(3)  The Financial Intelligence Unit may, on the basis of a precept, seize property for 60 twenty-four hour periods in addition to the period prescribed in subsection (1) of this section, in order to ensure its preservation, if:
[RT I 2009, 61, 401 - entered into force 26.12.2009]

1)  during verification of the source of the property in the event that there is a suspicion of money laundering, the owner or possessor of the property fails to submit evidence certifying the legality of the source of the property to the Financial Intelligence Unit within 30 twenty-four hour periods as of the suspension of the transaction or as of the imposition of restrictions on the use of the account;
2)  there is suspicion of the property being used for terrorist financing.

(3¹)  The property subject to restrictions on use imposed by the Financial Intelligence Unit pursuant to the procedure provided for in this section shall not be attached or transferred in execution proceedings or bankruptcy proceedings.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

§ 40. Suspension of transaction, restriction of use of property, transfer of property into state ownership

(1)  In the event of suspicion of money laundering or terrorist financing, the Financial Intelligence Unit may issue a precept to suspend a transaction or to impose restrictions on the use of an account or of property being the object of the transaction, official activity or official service for up to 30 twenty-four hour periods as of receiving notification regarding a suspicion of money laundering or terrorist financing. In the event of justified suspicion of money laundering or terrorist financing, the Financial Intelligence Unit may issue a precept to impose restrictions on the use of property registered in the land register, ship register, Estonian Central Register of Securities, traffic register, construction register or other state register for up to 30 twenty-four hour periods in order to ensure its preservation.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

(2)  The transaction may be carried out or the restriction on using the account may be removed earlier only with the written permission of the Financial Intelligence Unit. During the time that restrictions on using an account are in force, the credit institution or financial institution shall not execute any orders issued for debiting the account.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

(3)  The Financial Intelligence Unit may, on the basis of a precept, seize property for 60 twenty-four hour periods in addition to the period prescribed in subsection (1) of this section, in order to ensure its preservation, if:
[RT I 2009, 61, 401 - entered into force 26.12.2009]
1)  during verification of the source of the property in the event that there is a suspicion of money laundering, the owner or possessor of the property fails to submit evidence certifying the legality of the source of the property to the Financial Intelligence Unit within 30 twenty-four hour periods as of the suspension of the transaction or as of the imposition of restrictions on the use of the account;
2)  there is suspicion of the property being used for terrorist financing.

(3¹)  The property subject to restrictions on use imposed by the Financial Intelligence Unit pursuant to the procedure provided for in this section shall not be attached or transferred in execution proceedings or bankruptcy proceedings.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

(4)  If the legality of the source of the property subject to suspicion of money laundering is verified before the term specified in subsection (3) of this section expires, the Financial Intelligence Unit is required to release the property from restrictions on use promptly. If criminal proceedings have been commenced in the matter, a decision shall be taken on the release of the property from restrictions on use pursuant to the procedure provided by the Acts regulating criminal procedure.

(5)  Restrictions on use of the property may be imposed for longer periods if criminal proceedings have been commenced in the matter.

(6)  The Financial Intelligence Unit and the investigation authority may restrict the use of the property until the establishing of the actual owner of the property, including at the end of criminal proceedings, if has not proven possible to establish the owner of the property and if the possessor of the property declares that the property does not belong to the possessor and relinquishes possession thereof.

(7)  The Prosecutor's Office or an investigation authority may apply to an administrative court for permission to transfer property to state ownership if, within a period of one year as of the use of the property being restricted, it has not proven possible to establish the owner of the property and if the possessor of the property declares that the property does not belong to the possessor and relinquishes possession thereof. In the event where possession of movable property or immovable property is relinquished, the property shall be sold pursuant to the procedure provided in the Acts regulating enforcement procedure and the state shall receive the amount received from the sale. The owner of the property has the right to reclaim an amount equivalent to the value of the property within a period of three years as of the date on which the property is transferred to state ownership.

§ 41. Requests for additional information

(1)  In order to perform the functions imposed on the Financial Intelligence Unit by law, the Financial Intelligence Unit has the right to receive information concerning circumstances, transactions and persons related to suspicions of money laundering and terrorist financing from the Financial Supervision Authority and other authorities of the state and local governments and, with a precept, from persons with a notification obligation.

(2)  The addressee of a precept is required to comply with the precept and to submit the requested information, including any information subject to banking secrecy or business secrets, during the term prescribed in the precept. The information shall be forwarded in writing or in a form allowing reproduction in writing.

(3)  In order to prevent money laundering, the Financial Intelligence Unit has the right to obtain, pursuant to the procedure provided by legislation, corresponding significant information, including information collected by surveillance, from any agency engaged in surveillance. If the Financial Intelligence Unit wishes to forward information collected by surveillance which was submitted by an agency engaged in surveillance to other agencies, the Financial Intelligence Unit shall obtain written consent from the agency which submitted the information.

(4)  In order to identify circumstances significant for preventing money laundering or terrorist financing, the Financial Intelligence Unit has the right to obtain, with a precept, the corresponding information, including accounting documents on any data media, from third parties whose connection with the transactions under investigation becomes evident in the course of the checks or analysis.

(5)  The provisions of this section shall not apply to advocates, except in cases where the notification submitted by the advocate to the Financial Intelligence Unit does not meet the established requirements, the required documents are not attached to the notice or the attached documents do not meet the requirements.

§ 42. Interbase cross-usage of data

In order to perform the functions imposed on the Financial Intelligence Unit by law, the Financial Intelligence Unit has the right to make inquiries to and to receive data from state and local government databases and databases maintained by persons in public law, pursuant to the procedure provided by law.

§ 43. Restrictions on use of information

(1)  Only officials of the Financial Intelligence Unit shall have access to and the right to process the information in the Financial Intelligence Unit database.

(2)  In order to prevent or identify money laundering or terrorist financing or criminal offences related thereto and in order to facilitate pre-trial investigation thereof, the Financial Intelligence Unit is required to forward significant information to the prosecutor, the investigation authority and the courts in connection with court proceedings.

(3)  Information registered in the Financial Intelligence Unit shall only be forwarded to a preliminary investigation authority, the prosecutor or a court in connection with a court proceeding on the basis of a written request of the preliminary investigation authority, the Prosecutor's Office or the court or on the initiative of the Financial Intelligence Unit if the information is significant for the prevention, establishment or investigation of money laundering, terrorist financing or a criminal offence related thereto.

(4)  The Financial Intelligence unit has the right to inform the Financial Supervision Authority of a violation of the requirements prescribed in this Act by a credit institution or a financial institution.

(5)  The Financial Intelligence Unit shall not forward the personal data of a person complying with the notification obligation or a member of the management body or an employee of a person with a notification obligation.

(6)  The procedure for the registration and processing of information collected by the Financial Intelligence Unit shall be established by a regulation of the Minister of Internal Affairs.

§ 44. Requirements for officials of the Financial Intelligence Unit

(1)  Appointed officials of the Financial Intelligence Unit shall have an impeccable reputation, the necessary experience, skills and education, and high morals.

(2)  Officials of the Financial Intelligence Unit are required to maintain the confidentiality of information made known to them in the course of their official duties, including information subject to banking secrecy, even after the performance of their official duties or the termination of a service relationship connected with the processing or use of the information.

§ 45. Co-operation between the Financial Intelligence Unit and the Security Police Board

(1)  The Financial Intelligence Unit and the Security Police Board shall co-operate in investigation of transactions subject to suspicion of terrorist financing, via mutual official aid and information exchange.

(2)  The director general of the Security Police Board shall appoint a contact person who shall have equal rights to an official of the Financial Intelligence Unit to receive information of all notices of suspected terrorist financing and, if necessary, to make suggestions for requesting additional information.

(3)  The provisions of clauses 37 (1) 1), 6) and 7), § 41, subsections 43 (1)-(5) and subsection 44 (2) of this Act shall apply to the contact person of the Security Police Board.

(4) The contact person of the Security Police Board has the right to conduct supervision prescribed in § 48 of this Act together with the Financial Intelligence Unit.

§ 46. International exchange of information

The Financial Intelligence Unit has the right to exchange information and sign co-operation agreements with foreign agencies which perform the functions of a financial intelligence unit.

Chapter 5
Supervision

§ 47. Supervisory authorities

(1)  The Financial Intelligence Unit shall monitor compliance with the requirements prescribed in this Act and in legislation based thereon by the persons with a notification obligation, unless otherwise provided in this section.

(2)  The Financial Supervision Authority shall monitor compliance with the requirements prescribed in this Act and in legislation based thereon by credit and financial institutions which are subject to supervision pursuant to the Financial Supervision Authority Act. The Financial Supervision Authority shall conduct supervision pursuant to the procedure prescribed in the Financial Supervision Authority Act.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

(3)  The board of management of the Estonian Bar Association (hereinafter Bar Association) shall monitor compliance with the requirements prescribed in this Act and in legislation based thereon by the members of the Bar Association, pursuant to the Bar Association Act, considering the provisions of this chapter.

(4)  The Ministry of Justice shall monitor compliance with the requirements prescribed in this Act and in legislation based thereon by notaries pursuant to the Notaries Act, considering the provisions of this chapter. The Ministry of Justice may delegate the conducting of supervision to the Chamber of Notaries.

(5)  The Financial Supervision Authority, the board of management of the Bar Association, the Ministry of Justice and the Chamber of Notaries shall co-operate with the Financial Intelligence Unit on the basis of the purposes of this Act.

§ 48. Rights of the supervision authority

(1)  The supervision authority has the right to inspect the location of the seat or activities of a person with a notification obligation. The supervision authority has the right to enter the buildings and rooms in possession by the person with a notification obligation, in the presence of a representative of the inspected person.

(2)  In the course of the on-site inspection, the supervision authority has the following rights:
1)  to study without limits all the necessary documents and data media, to make extracts, transcripts and copies thereof, to receive explanations from the person with a notification obligation regarding such documents and data media, and to monitor the work processes of the person with a notification obligation;
2)  to receive oral and written explanations from the inspected person with a notification obligation, from members of its management body and from its employees.

(3)  The supervision authority has the right to request, with a precept, the information necessary for inspection from a person with a notification obligation without conducting an on-site inspection.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

§ 49. Obligations of the supervision authority

(1)  If, upon conducting supervision, the Financial Supervision Authority, the board of management of the Bar Association, the Ministry of Justice or the Chamber of Notaries identifies a situation with characteristics indicating a justified suspicion of money laundering or terrorist financing, the Financial Supervision Authority, the board of management of the Bar Association, the Ministry of Justice or the Chamber of Notaries is required to promptly notify the Financial Intelligence Unit thereof pursuant to the procedure prescribed subsection 33 (4) of this Act.

(2)  The Financial Supervision Authority, the board of management of the Bar Association and the Ministry of Justice are required to present to the Financial Intelligence Unit not later than by 15 April the following information about the previous calendar year:
1)  the number of conducted supervision proceedings and the number of persons with a notification obligation included in supervision, grouped across types of persons with a notification obligation;
2)  the number of violations discovered in the course of supervision and the number of punished persons, and information about legal basis for the punishments, grouped across persons with a notification obligation.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

§ 50. Publishing inspection results

(1)  The supervision authority is required to prepare an act about the inspection results and to present this act to the inspected person not later than in one week after the date of inspection.

(2)  The inspection act shall include the following data:
1)  the name of the inspection activity;
2)  the position, given name and surname of the official who prepared the act;
3)  the place and date of preparing the act;
4)  the reference to the provision used as a basis for the inspection;
5)  the given name, surname and position of the representative of the possessor of the building or room or the representative of the inspected person present at the inspection;
6)  the given name, surname and position of other person present at the inspection;
7)  the time of starting and ending the inspection, and the conditions of the inspection;
8)  the course of the inspection and results thereof in necessary details.

(3)  The Inspection act shall be signed by the official who prepared the act. The supervision official shall retain the inspection act and the inspected person or its representative shall retain a copy thereof.

(4)  The inspected person has the right to present written explanations not later than in 30 days after receiving the inspection act.

§ 51. Data protection supervision

The Data Protection Inspectorate shall exercise supervision over the legality of the processing of information registered in the Financial Intelligence Unit.

Chapter 6
Registration in the Register of Economic Activities

§ 52. Registration obligation

(1)  The following persons (hereinafter in this Chapter service providers) are required to register themselves in the register of economic activities (hereinafter in this Chapter register) before commencing operations in the corresponding field:
1)  financial institutions not subject to supervision by the Financial Supervision Authority pursuant to § 2 of the Financial Supervision Authority Act;
2)  providers of trust and company services;
3)  providers of currency exchange services;
4)  [repealed - RT I 2010, 2, 3 - entered into force 22.01.2010]
5)  providers of alternative payment means services;
6)  providers of pawn shop services.

(1¹)  The obligation prescribed in clause (1) 1) of this section shall not apply to companies providing services specified in clauses 6 (1) 4) and 5) of the Credit Institutions Act.
[RT I 2010, 2, 3 - entered into force 22.01.2010]

(2)  The provisions of the Register of Economic Activities Act apply to the registration procedure together with the specifications arising from this Act.

§ 53. Registration application

(1)  Service providers shall submit an application for registration to the authorised processor of the register containing at least the following information:
1)  the name, register code, address and other contact details of the service provider;
2)  the area of activity;
3)  the address or addresses of the premises where the services are to be provided or the address of the website to be used for providing the services;
4)  the name and contact details of the person in charge of the services, indicated separately for each of the premises where the services are to be provided as specified in clause 3) of this subsection;
5)  the names, personal identification codes or in the absence thereof the dates and places of birth, and addresses of the places of residence of the members of the management body of the legal person being the service provider, if the service provider is not an entrepreneur registered in the commercial register;
6)  the name, personal identification code or in the absence thereof the date and place of birth, and address of the place of residence of the actual beneficiary of the legal person being the service provider;
7)  the date of submission of the application, and a signature; 8) the name, official title and contact details of the person who signed the application.

(2)  If the legal person being the service provider is not registered in the Estonian commercial register, then the application for registration shall also include the name, register code or personal identification code or in the absence thereof the date and place of birth, and address of the place of residence of the owner of the service provider.

§ 54. Registration

(1)  In addition to the provisions of the Register of Economic Activities Act, a prerequisite for registering the service provider is that the response to an enquiry submitted by the authorised processor of the register to the authorised processor of the Punishment Register reveals that no circumstances specified in § 55 of this Act excluding the registration exist regarding the applicant specified in clauses 53 (1) 1), 5) and 6) of this Act.

(2)  In addition to the information provided for in the Register of Economic Activities Act, the following shall be entered in the register:
1)  area of activity;
2)  the address or addresses of the premises where the services are to be provided or the address of the website to be used for providing the services;
3)  the name and contact details of the person in charge of the services, indicated separately for each of the premises where the services are to be provided;
4)  the names, personal identification codes or in the absence thereof the dates and places of birth, and addresses of the places of residence of the members of the management body of the legal person being the service provider;
5)  the name, personal identification code or in the absence thereof the date and place of birth, and address of the place of residence of the actual beneficiary of the legal person being the service provider.

(3)  Only the registered service provider, state institutions and other persons for the purpose of performing duties assigned to them with this Act or with legislation based thereon shall have the right to review the data specified in clauses (2) 4) and 5) of this section and to receive extracts thereof and to make queries via a data exchange system based on a computer network utilising data security measures agreed with the registrar.

§ 55. Refusal to register and suspension of registration
[RT I 2009, 61, 401 - entered into force 26.12.2009]

(1)  In addition to the grounds provided by the Register of Economic Activities Act, a decision to refuse to register may be made by the authorised processor of the register if a response to an enquiry submitted to the Punishment Register reveals that a person specified in clauses 53 (1) 1), 5) or 6) or subsection (2) of this Act has been punished for a criminal offence specified in §§ 237, 237¹, 237², 237³, 394, 395 or 396 of the Penal Code or other wilfully committed criminal offence and the term specified in subsection 25 (1) of the Punishment Register Act has not expired.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

(2)  In addition to the grounds provided by the Register of Economic Activities Act, a decision to suspend the registration may be made by the authorised processor of the register upon justified request from the Financial Intelligence Unit until determining the circumstances, but not more than for six months.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

§ 56. Deletion of registration

(1)  In addition to the grounds provided by the Register of Economic Activities Act, a registration is deleted after receipt of information that a response to an enquiry submitted to the Punishment Register reveals that a person specified in clauses 53 (1) 1), 5) or 6) or subsection (2) of this Act has been punished for a criminal offence specified in §§ 237, 237¹, 237², 237³, 394, 395 or 396 of the Penal Code or other wilfully committed criminal offence.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

(2)  In addition to the grounds provided by the Register of Economic Activities Act, the authorised processor of the register may delete a registration upon justified request from the Financial Intelligence Unit, if the service provider has significantly or repeatedly violated the obligations provided for in this Act.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

Chapter 7
Liability

§ 57. Failure to comply with identification requirement

(1)  Failure on the part of a person with a notification obligation or on the part of an employee thereof to comply with the obligation of identification and verification provided for in this Act is punishable by a fine of up to 300 fine units.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

(2)  The same act, if committed by a legal person, is punishable by a fine of up to 32,000 euros.
[RT I 2010, 22, 108 - entered into force 01.01.2011]

§ 57¹. Violation of requirements for collecting information

(1)  Violation of the requirements for collecting information about the purpose and nature of business relations or transactions on the part of a person with a notification obligation or on the part of an employee thereof is punishable by a fine of up to 300 fine units.

(2)  The act specified in subsection (1) of this section, if committed by a legal person, is punishable by a fine of up to 32,000 euros.
[RT I 2010, 22, 108 - entered into force 01.01.2011]

§ 57². Violation of requirements for using the reinforced procedure for implementing due diligence measures

(1)  Violation of requirements for using the reinforced procedure for implementing due diligence measures or failure to use the reinforced procedure for implementing due diligence measures, including violation of requirements for carrying out transactions with persons having a state background of a third country, on the part of a person with a notification obligation or on the part of an employee thereof is punishable by a fine of up to 200 fine units.

(2)  The act specified in subsection (1) of this section, if committed by a legal person, is punishable by a fine of up to 20,000 euros.
[RT I 2010, 22, 108 - entered into force 01.01.2011]

§ 57³. Opening an anonymous account or savings book

(1)  Making a decision of opening an anonymous account or savings book or signing a corresponding contract on the part of an employee of a credit or financial institution is punishable by a fine of up to 300 fine units.

(2)  The act specified in subsection (1) of this section, if committed by a legal person, is punishable by a fine of up to 32,000 eurot.
[RT I 2010, 22, 108 - entered into force 01.01.2011]

§ 58. Violation of requirement to register and preserve data

(1)  Violation of the requirement to register and preserve data provided for in this Act is punishable by a fine of up to 300 fine units.

(2)  The act specified in subsection (1) of this section, if committed by a legal person, is punishable by a fine of up to 32,000 euros.
[RT I 2010, 22, 108 - entered into force 01.01.2011]

§ 59. Failure to submit and late submission of mandatory information

Failure on the part of an employee of a person with a notification obligation to submit mandatory information provided for in this Act to the contact person or head of the person with a notification obligation, or wilful failure to submit such mandatory information on time, is punishable by a fine of up to 300 fine units.

§ 59¹. Violation of requirement to constantly monitor business relations

(1)  Violation of requirement to constantly monitor business relations as provided for in this Act on the part of a person with a notification obligation or on the part of an employee thereof is punishable by a fine of up to 200 fine units.

(2)  The act specified in subsection (1) of this section, if committed by a legal person, is punishable by a fine of up to 20,000 euros.
[RT I 2010, 22, 108 - entered into force 01.01.2011]

§ 60. Failure to report suspicion of money laundering or terrorist financing and submission of incorrect information

(1)  Failure on the part of the head, contact person or other employee of a person with a notification obligation to report a suspicion of money laundering or terrorist financing or a currency exchange transaction or other transaction of using cash for paying a monetary obligation in the amount of 32,000 euros or an equivalent amount in other currency or submission of incorrect information thereby to the Financial Intelligence Unit is punishable by a fine of up to 300 fine units or an arrest.

(2)  The act specified in subsection (1) of this section, if committed by a legal person, is punishable by a fine of up to 32,000 euros.
[RT I 2010, 22, 108 - entered into force 01.01.2011]

§ 61. Unlawful notification of information submitted to the Financial Intelligence Unit

(1)  Unlawful notification of a person or of the actual beneficiary of such a person by the head, contact person or other employee of a person with a notification obligation or by an employee of a supervision authority regarding notification or information submitted to the Financial Intelligence Unit concerning such a person or regarding a precept issued by the Financial Intelligence Unit concerning such a person or regarding criminal proceedings being initiated concerning such a person is punishable by a fine of up to 300 fine units or an arrest.

(2)  The act specified in subsection (1) of this section, if committed by a legal person, is punishable by a fine of up to 32,000 euros.
[RT I 2010, 22, 108 - entered into force 01.01.2011]

§ 62. Failure to apply internal security measures

(1)  Failure on the part of the head of a person with a notification obligation to implement due diligence measures, to evaluate and manage risks of money laundering and terrorist financing, to collect and preserve information and to establish a code of conduct for complying with the notification obligation, and also failure on the part of the head of a credit or financial institution to appoint a contact person is punishable by a fine of up to 300 fine units.

(2)  The act specified in subsection (1) of this section, if committed by a legal person, is punishable by a fine of up to 32,000 euros.
[RT I 2010, 22, 108 - entered into force 01.01.2011]

§ 62¹. Violation of requirements for correspondent banking

(1)  Violation of requirements for establishing correspondent relations with a credit or financial institution of a third country as provided for in this Act, on the part of an employee of a credit or financial institution is punishable by a fine of up to 200 fine units.

(2)  The act specified in subsection (1) of this section, if committed by a legal person, is punishable by a fine of up to 20,000 euros.
[RT I 2010, 22, 108 - entered into force 01.01.2011]

§ 63. Violation of obligations of provider of paying service

(1)  Failure to determine or verify information related to the payer, and also failure to forward such information, and violation of other obligations of a provider of paying service pursuant to regulation No. 1781/2006 of the European Parliament and Council on information about the payer to be forwarded in case of transfer of money, on the part of the head or an employee of a credit institution or a provider of paying service, on the part of the head or an employee of a paying agent, or on the part of a natural person as a paying agent is punishable by a fine of up to 300 fine units.
[RT I 2009, 61, 401 - entered into force 26.12.2009]

(2)  The act specified in subsection (1) of this section, if committed by a legal person, is punishable by a fine of up to 32,000 euros.
[RT I 2010, 22, 108 - entered into force 01.01.2011]

§ 64. Violation of registration obligation

Violation of the obligation to submit an application for the amendment of registration information established for financial institutions not subject to supervision by the Financial Supervision Authority, providers of trust and company services, providers of currency exchange services, providers of paying services, providers of alternative payment means services and providers of pawn shop services, or the obligation to give notification of the termination of activities established for service providers of currency exchange services is punishable by a fine of up to 300 fine units.

§ 65. Proceedings

(1)  The provisions of the General Part of the Penal Code apply to the misdemeanours provided for in §§ 57-64 of this Act.

(2)  Extra-judicial proceedings concerning the misdemeanours provided for in §§ 57-64 of this Act shall be conducted by police authorities and the Financial Supervision Authority.
[RT I 2009, 62, 405 - entered into force 1.01.2010]

Chapter 8
Implementing Provisions

§ 66. Entry into force of the registration obligation of providers of pawn shop services, providers of trust and company services and financial institutions

Chapter 6 of this Act shall enter into force on 15 June 2008 regarding providers of pawn shop services, providers of trust and company services and financial institutions not subject to supervision by the Financial Supervision Authority pursuant to § 2 of the Financial Supervision Authority Act.

§ 67. [Omitted from this text]

§§ 68-72 [Omitted from this text]

[1] RT = Riigi Teataja = State Gazette