STATE OF QATAR ANTI-MONEY LAUNDERING ACT

 Law No. (4) of Year 2010

on

Anti-Money Laundering and Combating the Financing of Terrorism

  We, Tamim Bin Hamad Bin Khalifa Al Thani, Deputy Emir of the State of Qatar,

After having reviewed the Amended Provisional Constitution; and

Law No. (28) of 2002 on Anti-Money Laundering as amended by Decree Law No. (21) of 2003; and

Law No. (40) of 2002 Customs Law; and

 Law No. (3) of 2004 relating to Combating Terrorism; and

 Law No. (11) of 2004 the Penal Code and its amending laws; and

 Law No. (23) of 2004 the Criminal Procedures Law as amended by law no (24) of 2009; and

 The decree law submitted by the Council of Ministers; and

After having consulted the Advisory Council,

Have decreed the following:

 Article (1)

This Law promulgating the Anti-Money Laundering and Combating the Financing of Terrorism Law, and the Law enclosed with it shall be implemented.

 Article (2)

The Law No. (28) of 2002 shall be cancelled.

 Article (3)

All competent authorities, each within its own jurisdiction, shall implement this law. This law shall be published in the Official Gazette.

 Tamim Bin Hamad Al Thani

Deputy Emir of the State of Qatar

 Issued at the Emiri Diwan on 2/4/1431 HG

Corresponding to 18/03/2010 AD.

 

The Anti-Money Laundering

and Combating the Financing of Terrorism law

 Section (1) – Definitions

Article (1)

On application of this law, the following terms and expressions shall have the following meaning, accordingly with concepts known in the banking business, save where the context otherwise requires:

 

Competent Authority: Every administrative or law enforcement authority concerned with combating money laundering and terrorist financing, including the Unit and any supervisory authority.
Supervisory Authority A competent authority responsible for licensing or supervising financial institutions, DNFBPs and non profit organisations or for ensuring their compliance with requirements to combat money laundering and terrorist financing.  
The Committee: The National Anti-Money Laundering and Combating the Financing of Terrorism Committee.
The Unit: The Financial Information Unit
Predicate offence: One of the asset-generating offenses stipulated under Article (2), paragraph (1) of this law.
Instrumentalities: Everything used or intended to be used, in any manner, in whole or in part, for committing one or more crimes stipulated in Articles (2), (4) of this law.

 

Proceeds of crime: Any funds derived or obtained, directly or indirectly, from one of the crimes stipulated in Article (2/1), or converted or transformed in whole or in part, into other properties or investment yields.
Funds: Assets or properties of every kind, whether corporeal or incorporeal, movable or immovable, tangible or intangible, and all the rights attached thereto, and all documents or instruments, of every form, including electronic or digital copies evidencing any of the above, whether existing inside or outside of the State.

They include but are not limited to national currency, foreign currency, commercial notes, bank credits, travelers’ cheques, money orders, shares, securities, bonds, drafts, letters of credit, any interest, dividends or other income on or value accruing from or generated by such assets. 

 

Money Laundering: Any of the following acts:

 

1) The conversion or transfer of funds, by any person who knows, should have known or suspects that such funds are the proceeds of crime, for the purpose of concealing or disguising the illicit origin of such funds or of assisting any person who is involved in the commission of the predicate offence to evade the legal consequences of his actions.

2) The concealment or disguise of the true nature, source, location, disposition, movement or ownership of or rights with respect to funds by any person who knows, should have known or suspects that such funds are the proceeds of crime.

3) The possession, acquisition, or use of funds by any person who knows, should have known or suspects that such funds are the proceeds of crime.

 

Terrorist Act 1) An act which constitutes an offence as per the following treaties: Convention for the Suppression of Unlawful Seizure of Aircraft (1970), Convention for the Suppression of Unlawful Acts against the Safety of Civil Aviation (1971), Convention on the Prevention and Punishment of Crimes against Internationally Protected Persons, including Diplomatic Agents (1973), International Convention against the Taking of Hostages (1979), Convention on the Physical Protection of Nuclear Material (1980), Protocol for the Suppression of Unlawful Acts of Violence at Airports Serving International Civil Aviation, supplementary to the Convention for the Suppression of Unlawful Acts against the Safety of Civil Aviation (1988), Convention for the Suppression of Unlawful Acts against the Safety of Maritime Navigation (1988), Protocol for the Suppression of Unlawful Acts against the Safety of Fixed Platforms located on the Continental Shelf (1988), and the International Convention for the Suppression of Terrorist Bombings (1997).

2) any other act intended to cause death or serious bodily injury to civilians, or to any other person not taking an active part in the hostilities in a situation of armed conflict, when the purpose of such act, by its nature or context, is to intimidate a population, or to compel a Government or an international organisation to do or to abstain from doing any act.

 

Terrorist any natural person who commits any of the following acts:

1) Commits, or attempts to commit, terrorist acts, wilfully, by any means, either directly or indirectly.

2) Participates as an accomplice in terrorist acts.

3) Organizes or directs others to commit terrorist acts.

4) Contributes to the commission of terrorist acts with a group of persons acting with a common purpose where the contribution is made intentionally and with the aim of furthering the terrorist act or with the knowledge of the intention of the group to commit a terrorist act.

 

Terrorist Organization any group of terrorists that commits any of the following:

1) Commits, or attempts to commit, terrorist acts, wilfully, by any means, directly or indirectly.

2) Acts as an accomplice in the execution of  terrorist acts.

3) Organises or directs others to commit terrorist acts.

4) Contributes to the commission of terrorist acts with a group of persons acting with a common purpose where the contribution is made intentionally and with the aim of furthering the terrorist act or with the knowledge of the intention of the group to commit a terrorist act.

Terrorist Financing An act committed by any person who, in any manner, directly or indirectly, and willingly, provides or collects funds, or attempts to do so, in order to use them or knowing that these funds will be used in whole or in part for the execution of a terrorist act, or by a terrorist or terrorist organisation.
Freezing Prohibiting the transfer, conversion, disposition, movement, or transport of funds on the basis of, and for the duration of the validity of, a decision of a judicial or other competent authority.
Seizing Prohibiting the transfer, conversion, disposition,  movement, or transport of funds on the basis of, and for the duration of the validity of, a decision of a competent judicial authority.
Confiscation the permanent deprivation of funds based on a court judgment.
Financial Institution: Any person or entity who conducts as a business one

or more of the following activities or operations for or on behalf of a customer:

 

(1) Accepting deposits and other repayable funds such  

     as private banking services.

(2) Lending.

(3) Financial leasing.

(4) Transferring money or things of value.

(5) issuing or managing means of payment, such as   

     credit and debit cards, cheques, traveller’s

     cheques, money orders, banker’s drafts and   

     electronic money.

(6) Financial guarantees and commitments.

(7) Trading in money market instruments, such as

     cheques, bills, certificates of deposit and derivatives,

     foreign exchange, exchange instruments, interest

     rate, index instruments, transferable securities, and

     commodity futures trading.

(8) Participating in securities issues and providing

     financial services related to securities issues.

(9) Undertaking individual or collective portfolio

      management.

(10) Safekeeping or administering cash or liquid

       securities on behalf of other persons.

(11) Investing, administering or managing funds or

        money on behalf of other persons.

(12) underwriting or placing life insurance and other

        investment-related insurance, whether as insurer or

        insurance contract intermediary.

(13) Money or currency changing.

(14) any other activity or operation prescribed by resolution issued by the Prime Minister upon the proposal of the Committee.

Designated Non-Financial Businesses and Professions (DNFBPs): (1) Real estate agents, if they act in transactions for clients in relation to buying or selling of real estate, or both. 

(2) dealers in precious metals or stones, if they engage with their customers in cash transactions equal to a minimum of 55,000 Rials.

(3) lawyers, notaries, other independent legal professionals, or accountants, whether sole practitioners, partners or employed specialists in  specialist firms, if they prepare, execute, or conduct transactions for clients in relation to any of the following activities:

(a) buying or selling real estate.

(b) managing client money, securities or other assets.

(c) managing bank, savings or securities accounts.

(d) organising contributions for the creation, operation or management of companies or other entities.

(e) creating, operating or managing legal persons or legal arrangements.

(f) buying or selling business entities.

(4) Trust and Company Service Providers, if they prepare, or conducts transactions for clients on a commercial basis in relation to any of  the following activities:

a) acting as a formation agent of legal persons.

b) acting as, or arranging for another person to act as, a director or secretary of a company, a partner of a partnership, or a similar position in relation to other legal persons.

c) providing a registered office, a business address, or a correspondence address or an administrative address, for one of the companies, partnerships or any other legal person or legal arrangement.

d) acting as, or arranging for another person to act as, a trustee of an express trust.

e) acting as, or arranging for another person to act as, a nominee shareholder for another person.

 (5) any other business or profession prescribed and regulated by a resolution issued by the Prime Minister upon the proposal of the Committee.

 

Non-profit organisation Any organisation or association which collects, or disposes of funds for charitable, religious, cultural, educational, social, or fraternal purposes, or to do any other kind of charitable activities.
Legal arrangements Express trusts or any similar legal arrangements.
Bearer negotiable instruments : Monetary instruments in bearer form such as travellers cheques; negotiable instruments, including cheques, promissory notes, and money orders that are either in bearer form, endorsed without restriction, made out to a fictitious payee, or otherwise in such form that title thereto passes upon delivery; incomplete instruments including cheques, promissory notes and money orders signed, but with the payee’s name omitted.
Beneficial Owner: The natural person who owns, or exercises effective control, over the client, or the person on whose behalf, the transaction is conducted, or the person who exercises effective control over a legal person, or legal arrangement.
Politically exposed persons: persons who are or have been entrusted with prominent public functions in a foreign country or territory, as well as members of such persons’ family or those closely associated with those persons.  
Shell Bank a bank that has no physical presence in the country or    territory in which it is incorporated and licensed and is not affiliated with a regulated financial services        group that is subject to effective consolidated supervision.

“Physical presence” in a country or territory is a presence involving meaningful decision-making and effective management and not merely the presence of a local agent or low level staff.

 

Correspondent Banking the provision of banking services by a bank (the “correspondent”) to another bank (the “respondent”). 
Business Relationship Any relationship of a commercial aspect, including the relationship between a non-profit organisation and the persons from or to whom it receives or provides funds.
Customer: Any person dealing with DNFBPs and non-profit organisation, including the person from or to whom non-profit organisations receive or provide funds. 
Law Enforcement Authority: Judicial Officers, stipulated under article (27) of the above-mentioned Criminal Procedures Code.
Legal Person: Body corporate, foundation, partnership, corporation or association, or any similar body that can establish a permanent business relationship with a financial institution or own property. 

 

 

Section (2) Money laundering and the Financing of Terrorism

 

Article (2)

It shall be prohibited to launder any funds generated from:

(1)  All felonies.

(2)  Crimes covered under the International Conventions, signed and authenticated by the State.

 (3)  Swindling, illicit trafficking in narcotic drugs and psychotropic substances,  fraud, forgery, extortion, robbery, theft, trafficking in stolen and other goods, counterfeiting and piracy of products, smuggling, sexual exploitation, environmental crime, tax evasion, sale and trade in archaeological movables, market manipulation and insider dealing.

It is prohibited to participate through association, aiding, abetting, facilitating, counselling in, cooperation, contribution, or conspiring to commit, or attempt to commit any of the forms of the Money Laundering offence mentioned in this law.

Predicate offences also include offences committed outside the State if they constitute offences as per the law of the State where they were committed and constitute an offence as per the law of the State.

A conviction with the predicate offence is not a condition to prove the illicit source of crime proceeds.

The Money Laundering crime is considered as an independent crime from the predicate offence. The punishment of the person who committed the predicate offence does not prevent his punishment on the Money Laundering crime.

 Article (3)

Anyone who intentionally commits one of the following acts is considered to have committed an offence associated with Money Laundering or Financing Terrorism:

 (1)     a financial institution which enters into, or continues, a correspondent banking relationship with a shell bank.

(2)      a financial institution which enters into, or continues, a correspondent banking relationship with a financial institution in a foreign country, unless the financial institution has satisfied itself that the foreign financial institution does not permit its accounts to be used by shell banks.

(3) fails to maintain adequate, accurate and updated information on the beneficial ownership and organisational structure of legal persons and legal arrangements as required pursuant to this law;

(4)      fails, as required by this law to take the following measures:

(a)      to identify a customer or verify the customer’s identity.

(b)      to make enquiries in relation to a customer or collect relevant information.

(c)      to identify the beneficial owners of a customer or verify their identity.

(d)      to exercise ongoing due diligence with respect to business relationships, to examine transactions carried out under a business relationship, or to ensure that documents, data or information collected under customer due diligence measures are kept up to date and relevant.

(e)      to take measures to address specific risks of money laundering or terrorist financing.

(f)       to have risk management systems.

(g)      to meet a requirement in relation to a correspondent banking relationship or wire transfers.

(h)      to pay the attention required to a transaction, pattern of transactions or business relationships.

(i)       to develop or implement programs for the prevention of money laundering and terrorist financing.

(5) fails to maintain the records, in violation to the provisions of this law or withholds, destroys or removes such records.

(6) fails to provide or fails to provide access to information or records in a timely fashion when so requested by the competent authorities or supervisory authorities in violation to the provisions of this law.

(7) fails to submit a report to the Unit as required pursuant to this law.

(8) opens or facilitates the opening of an account for an unidentified customer, in violation to the provisions of this law.

Article (4)

It is prohibited to commit any Financing of Terrorism act.

It is prohibited to participate through association, aiding, abetting, facilitating, counselling in, cooperation, contribution, or conspiring to commit, attempt to commit any of the forms of the Terrorism Financing offence mentioned in this law.

The offence is considered as committed irrespective of any occurrence of a terrorist act or whether the funds have actually been used to commit such act as required pursuant to this law.

Article (5)

A person commits a money laundering or terrorist financing crime if this person received information related to a money laundering or terrorist financing crime, and did not take the specified legal measures to inform the competent authorities of such crime.

 Section (3) Disclosure before customs

Article (6)

Any traveler, upon entering or leaving the State must, upon the request of a customs officer, make a disclosure regarding being in possession of any currency, bearer negotiable instruments, or precious metals or stones, upon the request of the customs officer.

The customs authorities may request further information from the traveller regarding the origin of the currency, bearer negotiable instruments, or precious metals or stones or their intended use. In this case, he must provide this information.

This information, including a true certified copy of the declaration form, shall be sent to the Unit who shall enter the information in its database. 

Article (7)

The customs authorities may take necessary action, to retain his identification data or seize the currency, bearer negotiable instruments, precious metals or stones in his possession in order to ascertain whether evidence of money laundering or terrorist financing may be found where there is a suspicion of money laundering or terrorist financing or where there is a false disclosure or failure to disclose the required information.                                               

The customs authorities may refer matters to the Public Prosecution and may also request the Public Prosecution to apply cautionary measures with regard to suspected money laundering or financing of terrorism crimes, in accordance with the provision of article (126) of the above-mentioned Criminal Procedures Code.

Article (8)

The customs officers are required to keep confidential the information obtained within the scope of their duties, even after the cessation of those duties. Such information may only be used for the purposes provided for in accordance with this law.

Article (9)

The customs authorities may cooperate with related authorities both nationally and internationally with regard to the matters listed in this section and to the information related to the discovering an unusual movement of precious metals or stones through customs departments.

The customs authorities may issue resolutions, instructions or guidelines for implementing the provisions of this section.

Section (4) National Anti-Money Laundering and Combating the Financing of  Terrorism Committee

Article (10)

A committee named “The National Anti-Money Laundering and Combating the Financing of Terrorism Committee” shall be formed at the Qatar Central Bank, under the presidency of Qatar Central Bank Deputy Governor, and the membership of the following persons:

  1. Two representatives of the Ministry of Interior, one of them to be chosen among the directors of the ministry’s competent departments and to be appointed Vice-Chairman of the Committee.
  2. Head of the Unit
  3. Two representatives of the Ministry of Economy & Finance, one of them to be chosen from the General Directorate of Customs
  4. Representative of the Ministry of Business & Trade
  5. Representative of the Ministry of ٍSocial affairs
  6. Representative of the Ministry of Justice
  7. Representative of the State Security Bureau
  8. Representative of the Qatar Central Bank
  9. Representative of the Public Prosecution
  10. Representative of the Qatar Financial Markets Authority
  11. Representative of the Qatar Financial Centre Regulatory Authority
  12. Representative of the General Secretariat of the Council of Ministers.

 Each body shall nominate its own representative, provided that their grade shall not be lower than head of department or an equivalent grade. The Chairman, the vice-chairman and the members shall be appointed by a resolution issued by the Prime Minister who may also appoint other representatives from other bodies, upon the proposal of the Committee.

The Committee shall have a secretary, and a number of Qatar Central Bank employees to accomplish secretarial tasks, and whose names to be mandated, functions and remunerations to be prescribed by a resolution by the QCB governor.

Article (11)

The Committee has the following functions:

  1. Set the national anti-money laundering and combating the financing of terrorism strategy for the State.
  2. Facilitate coordination among the Ministries and authorities on the Committee.
  3. Follow the international developments in the anti-money laundering and combating terrorist financing field and issue recommendations to the relevant government authorities regarding the improvement of the regulatory instructions and controls issued by supervisory authorities in the State and suggest legislative amendments in line with those developments.
  4. Monitor the implementation by competent authorities of the anti-money laundering and combating terrorist financing legal and institutional framework.
  5. Coordinate and host national training programs in anti-money laundering and combating terrorist financing. 
  6. Take part in anti-money laundering and combating terrorist financing international meetings and conferences.
  7. Coordinate with the National Counter Terrorist Committee, formed under the Council of Minister Resolution No. 7 of 2007, with regard to all that is related to international, regional and bilateral terrorist financing conventions and treaties and with regard to develop proper mechanisms for enforcement of the United Nations resolutions related to combating terrorist financing.
  8. Coordinate with the National Committee for Integrity and Transparency issued by Emiri decree no (84) of 2007, with regard to the committee’s activities.
  9. Prepare and submit an annual report to the Prime Minister regarding the activities and efforts deployed by the Committee and the national, regional and international developments in the anti-money laundering and combating terrorist financing field and the Committee’s proposals to strengthen control systems and regulations inside the State. 

 Article (12)

The Committee shall be convened by its Chairman whenever needed. The meetings shall be held at non-official working hours, however meetings may be held at official working hours, if necessarily required.

The meetings shall not be considered sound without the presence of the chairman or the vice-chairman. The Committee issues its recommendations by majority of votes present. In case of tie vote, the Chairman shall cast the deciding vote. The vice-chairman will deputize for the chairman in his absence.

The committee shall put in place its work system, including the rules required for the exercise of its functions.

The Committee may select workgroups among its members or other members, or delegate any of its members to address specific tasks falling under its competences. It may also have recourse to experts selected from among the government’s employees or any other experts to assist the Committee in performing its duties.

 Section (5) Financial Information Unit and Reporting Requirements

Article (13)

The Financial Information Unit (Unit) shall be an independent unit, with a legal personality and an independent budget affiliated to the State’s public budget. It will be located in the city of Doha.

The Head of the Unit shall be appointed by a resolution issued by the Governor of the Qatar Central Bank, upon the proposal of the Committee.

Sufficient number of qualified and trained employees shall be appointed to join the Unit in addition to an adequate number of experts and specialized individuals in the implementation of the provisions of this law.

Article (14)

The Unit shall serve as a central, national agency responsible for receiving, requesting, analyzing and disseminating information concerning suspected proceeds of crime, potential money laundering or potential terrorist financing operations, as provided for by this law.

The Unit shall have a database of all available financial data and information and the Unit may disseminate data and information to judicial and law enforcement authorities for investigation or action when there are grounds to suspect money laundering or terrorist financing operations.

Article (15)

The Unit has the authority to obtain from any entity or person subject to the reporting obligation in this law, any information it deems useful for the accomplishment of its functions. The information requested shall be provided within the time limits set and the form specified by the Unit, taking into consideration the professional liabilities limits stipulated under law no (23) of 2006 regulating the legal profession.

The Unit may request, directly or indirectly, in relation to any report it has received, any additional information it deems useful for the accomplishment of its functions from competent authorities, supervisory authorities, and enforcement authorities.

Whenever the Unit determines that a financial institution, non-profit organisation, or DNFBP is not complying or has not complied with the obligations set out in this law, it may apprise the relevant supervisory authority accordingly.

Article (16)

The Unit may, spontaneously or on request, share information with any foreign counterpart agency that performs similar functions and is subject to similar confidentiality obligations, regardless of the nature of the agency, subject to reciprocity or pursuant to the provisions of international or bilateral treaties.

The information provided shall be used only for the purposes of combating predicate offenses, money laundering, and terrorist financing and shall be disclosed to another party only with the consent of the Unit.

 Article (17)

The staff of the Unit is required to keep confidential any information obtained within the scope of their duties, even after the cessation of those duties within the Unit. Such information may only be used for the purposes provided for in accordance with this law.

Article (18)

The financial institutions, DNFBPs and non-profit organisations and their personnel, shall report promptly to The Unit any suspicious financial transactions or any attempts to perform such transactions, regardless of the amount of the transaction, when they suspect or have reasonable grounds to suspect that these transactions include funds that are proceeds of a criminal activity or are linked or related to, or to be used for terrorist acts or by terrorist organisations or those who finance terrorism.

Lawyers, notaries, other independent legal professionals have no obligation to report information they receive from or obtain on a client, in the course of determining the legal position for their client or performing their task of defending or representing that client in, or concerning judicial proceeding, including advice on instituting or commencing proceedings, whether such information is received or obtained before, during or after such proceedings.

 Article (19)

The Unit, in coordination with the supervisory authorities, shall issue directives and guidelines to assist financial institutions, non-profit organisations and DNFBPs on implementing and complying with their respective anti-money laundering and combating terrorist financing requirements and with regard to filing of suspicious transaction reports. 

Article (20)

The Unit shall report to the Public Prosecution the findings of its examination and analysis when there are reasonable grounds to suspect money laundering or terrorist financing.

The Unit may request the Public Prosecution to apply preventive measures with regard to suspected proceeds of crime, potential money laundering, or potential terrorist financing in accordance with the provision of article (126) of the above-mentioned Criminal Procedures Code.

Article (21)

The Unit shall prepare an annual report describing its activities in the anti money laundering and combating terrorist financing field and providing an overall analysis and evaluation of the reports received and of money laundering and terrorist financing trends. The annual report shall be submitted to the Council of Ministers after being reviewed by the Committee. 

Section (6) Preventive Measures:

Article (22)

Adequate, accurate and current information on the beneficial ownership and organisational structure of legal persons incorporated or otherwise established in the State shall be maintained by the competent commercial register authorities.

Competent authorities and supervisory authorities shall have access to this information.

Article (23)

(1) Financial institutions, non-profit organisations and DNFBPs shall identify their customers whether permanent or occasional, and whether natural or legal persons or legal arrangements, verify their identities using reliable, independent source documents, data or information, when establishing business relationships, during a domestic or international transfer of funds; when doubts exist about the veracity or adequacy of previously obtained customer identification documents, data or information; when there is a suspicion of money laundering or terrorist financing; when carrying out occasional transactions, with a value equal to or above 55 000 Rials, or an equivalent amount in a foreign currency, or a lesser amount as set out by the supervisory authorities, whether conducted as a single transaction or several transactions that appear to be linked. If the amount of the transaction is unknown at the time of the operation, the identification shall be done as soon as the amount becomes known or the threshold is reached.

 Financial institutions and DNFBPs shall enquire about the anticipated purpose and the nature of the business relationship and collect all relevant information.

They shall also identify the beneficial owner of the customer and take all reasonable measures to verify his identity using reliable, independent source documents, data or information such that they are satisfied that they know who the beneficial owner is. For legal persons and arrangements, these measures must include taking reasonable additional measures to understand the beneficial owner thereof as well as the ownership and organisational structure thereof.

Article (24)

For the purposes of the previous article, identification of natural persons and verification of their identity shall include the full name, as well as national identification number for Qatari citizens and residents and the passport number for arrivers.

Identification of legal persons shall include obtaining and verifying information concerning the corporate name, registered office business address, proof of incorporation or similar evidence of their legal status, legal form, the names of executives, and articles of association, as well as verifying that the person purporting to act on behalf of the customer is so authorised, and to identify and verify the identity of that person.

Identification of legal arrangements that are express trusts shall include identifying and verifying the identities of the trustees, the settlers, and major beneficiaries.

Article (25)

Supervisory authorities may prescribe by regulation the circumstances in which the verification of identity can be completed at a later stage provided:

(1)      this is necessary in order not to interrupt the normal conduct of business.

(2)      there is little risk of money laundering or terrorist financing and these risks are effectively managed.

(3)      this is completed as soon as practicable after contact is first established with the customer. 

Article (26)

Financial institutions, and DNFBPs shall put in place the following measures:

1- Exercise ongoing due diligence with respect to each business relationship with a customer and scrutinise the transactions carried out under the business relationship in order to ensure that they are consistent with their knowledge of their customer, his business and risk profile and, where required, the source of his income and wealth. A particular care shall be given to due diligence measures related to higher risk customers, transactions, and business relationships.

 2- Ensure that documents, data and information collected under the customer due diligence processes are kept up to date and relevant by undertaking reviews of existing records, particularly for higher risk categories of customers and business relationships.

3- Take specific and adequate measures to address the risks of money laundering and terrorist financing, in the event they conduct business relationships or execute transactions with a customer that is not physically present for purposes of identification.

4- Put in place appropriate risk management systems to determine if a customer or a beneficial owner is or is not a politically exposed person, and, if so:

a- obtain approval from senior management before establishing a business relationship with the customer.

b- take all reasonable measures to identify the source of wealth and funds and identify the beneficial owner.

c- provide enhanced and ongoing monitoring of the business relationship.

Article (27)

With respect to cross-border correspondent banking relationships, financial institutions shall:

1- identify and verify the identification of respondent institutions.

2- collect information on the nature of the respondent institution’s business.

3- based on available information, evaluate the respondent institution’s reputation and the nature of supervision to which it is subject.

4- obtain approval from senior management before establishing a correspondent banking relationship.

5- assess the controls implemented by the respondent institution with respect to anti-money laundering and combating terrorist financing, and ensure that they are appropriate and effective.

6- in the case of a correspondent payable through account, ensure that the respondent institution has verified its customer’s identity, has implemented mechanisms for ongoing monitoring with respect to its customers, and is capable of providing relevant identifying information on request.

Article (28)

If financial institutions, and DNFBPs cannot fulfil their obligation of due diligence described in articles (23) through (27) of this law, they shall not establish or maintain the business relationship.

Where appropriate, they shall make a report to the Unit in accordance with this law.

Article (29)

Financial institutions, and DNFBPs, each in its own competency, shall fulfil the obligations described in articles (23) through (27) of this law, with regard to every customer with whom they have a business relationship or a cross-border correspondent banking relationship which was already existing on the commencement day of this law, during a period not exceeding six months starting the commencement day.

 Article (30)

Financial institutions whose activities include domestic and external wire transfers of a value exceeding (4000) Rials, or an equivalent value in other currencies, shall obtain and verify the following information about the originators of the transfers:

(1)      full name.

(2)      account number or, if there is no account number, a unique reference number.

(3)      address, national identity number, customer identification number, or date and place of birth.

The information shall be included in the message or payment form accompanying the transfer. 

Supervisory authorities may issue directives with measures to be taken with regard to some forms of wire transfers, including for transactions executed as batch transfers and domestic transfers and credit or debit card transactions.

Institutions referred to in paragraph (1) of this article, upon receipt of wire transfers that do not contain the complete originator information, they shall take measures to obtain and verify the missing information from the ordering institution or the beneficiary. Should they not obtain the missing information they shall refuse acceptance of the transfer and report it to the Unit. 

Article (31)

In case of non-suspicion of money laundering or terrorist financing and based on an assessment of the risks represented by customer, product, business relationship or transactions, supervisory authorities may prescribe by regulation, the simplification of customer due diligence obligations established in this law with regard to the identification and verification of the identity of the customer or the beneficial owner.

Article (32)

In case of non-suspicion of money laundering or terrorist financing, supervisory authorities may, by regulation, authorise financial institutions to rely on measures conducted by others for the customer as required by this section.

In all cases, financial institutions remain responsible for the proper conduct of prescribed measures as required by this section and ongoing monitoring for their customers.

Article (33)

Financial institutions and DNFBPs shall pay special attention to the following matters:

1- Verification of the background and purpose in regard to all complex, unusual large transactions and all unusual patterns of transactions, which have no apparent economic or visible lawful purpose.

2- Verification of the background and purpose in regard to business relationships and transactions with persons, including legal persons and legal arrangements, subject to legal systems that are subject to legal systems that do not apply or that do not sufficiently apply the relevant international standards to combat money laundering and terrorist financing.

3- Have policies and procedures in place to address risks arising from products and transactions that favour anonymity.

 Financial institutions and DNFBPs shall set forth in writing the specific information regarding transactions as referred to in paragraphs (1) and (2) of this article and the identity of all parties involved. They shall maintain it as specified in this law and shall be made available if requested by the Unit, the supervisory authorities or other competent authorities.

Article (34)

Financial institutions and DNFBPs shall maintain records of the following information:

(1) copies of documents verifying the identities of customers, beneficial owners, obtained in accordance with the provisions in this section, account files and business correspondence for a minimum of five years after the business relationship has ended or longer if requested by the competent authority in specific cases.

(2) information obtained in accordance with the provisions in this section, to enable the reconstruction of transactions, attempted or executed by customers and the written reports established in accordance with the provisions of this law for a minimum of five years following the attempt or execution of the transaction or longer if requested by the competent authority in specific cases.

Financial institutions and DNFBPs shall ensure that the records and underlying information are readily available to the Unit and other competent authorities. 

Article (35)

Financial institutions and DNFBPs shall develop and implement programs for the prevention of money laundering and terrorist financing. Such programs shall include the following:

(1) internal policies, procedures, systems and controls, including sound implementation of program management arrangements, and appropriate employee screening procedures to ensure that they are appointed accordingly with the highest standards.

(2) ongoing training for officers and employees to assist them in recognizing transactions and activities that may be linked to money laundering and terrorist financing and instruct them in the procedures to be followed in such cases.

(3) internal audit arrangements to check compliance with and effectiveness of the measures taken to apply this law. 

Article (36)

Financial institutions and DNFBPs shall designate an officer at the level of department leadership to be responsible for overseeing implementation of this law within the institution.

Article (37)

The relevant supervisory authorities may by regulation determine the type and extent of measures to be taken by financial institutions, NPOs and DNFBPs, having regard, for the requirements of this section. 

Article (38)

Financial institutions shall require their foreign majority owned subsidiaries and branches to implement the requirements of this section except to the extent that local applicable laws and regulations prevent this. If the laws of the country where the majority owned subsidiary or branch is situated prevent compliance with these obligations, the financial institution shall so advise its supervisory authority.  

Article (39)

Under no circumstance shall financial institutions, NPOs and DNFBPs, and their personnel disclose to their customer or a third party that information was provided to the Unit or that a report concerning suspected money laundering or terrorist financing will be, is being or has been submitted to the Unit or that a money laundering or terrorist financing investigation is being or has been carried out.

This shall not preclude disclosures or communications regarding suspicious money laundering or terrorist financing between and among their directors, officers and employees, legal departments and appropriate competent authorities, while performing their duties. 

Article (40)

Except in the case of professional obligations stated in law no (23) of 2006 regulating the legal profession, professional secrecy or requirements shall not be invoked as a ground not to provide information or documents, when requested, in accordance with the provisions of this law. 

Section (7) Supervisory Authorities

Article (41)

A supervisory authority may issue or make regulations, instructions, rules, guidelines, recommendations or other instruments, for the implementation of the provisions of this law and for the purpose of anti-money laundering and combating terrorist financing.

Article (42)

The supervisory authorities shall supervise compliance by financial institutions, NPOs and DNFBPs with the requirements in this law. They shall:

(1) adopt the necessary measures to establish fit and proper criteria for owning, controlling, or participating, directly or indirectly, in the directorship, management or operation of financial institutions.

(2) regulate and supervise financial institutions, NPOs and DNFBPs for compliance with the obligations set out in this law, including through on-site examinations, and the request of documents, information, or records.

(3) cooperate and share information with competent authorities, and provide assistance in evidence collection, prosecutions or proceedings relating to predicate offences, money laundering, and terrorist financing.

(4) develop in cooperation with the Unit, standards applicable to the reporting of suspicious transactions that shall take into account pertinent national and international standards.

(5) ensure that financial institutions and their foreign branches and majority owned subsidiaries adopt and enforce measures consistent with this law except to the extent that local laws and regulations prevent this.

(6) report promptly to the Unit any information concerning suspicious transactions or information that could be related to money laundering or terrorist financing.

(7) provide prompt and effective cooperation to counterpart agencies performing similar functions in other States, including exchange of information.

(8) maintain statistics concerning measures adopted and sanctions imposed in the context of enforcing this law.

Article (43)

No one may operate as a DNFBP without prior registration by the relevant supervisory authority, taking into consideration legal regulations specific to each business and profession. 

Article (44)

A supervisory authority, in case of a violation of the obligations established under this law by a financial institution, NPO, or DNFBP it supervises, made intentionally or by gross negligence, is evidenced, may impose one or more of the following measures and sanctions:

(1) ordering regular reports on the measures it is taking.

(2) order to comply with specific instructions.

(3) written warnings.

(4) replacing or restricting the powers of managers, board members, or controlling owners, including the appointing of ad hoc administrator.

(5) barring individuals from employment within a business, profession or activity , either permanently or for a provisional period.

(6) imposing supervision, suspending license, restricting or withdrawing any other form of permission and prohibiting the continuation of a business, profession or activity.

(7) financial penalty in an amount no greater than 10 million Rials.

(8) any other measures.

The supervisory authority shall inform the Unit as to the measures and sanctions imposed.

 Section (8) Investigation procedures and Provisional Measures

Article (45)

Investigation in money laundering offences may be carried out independently from predicate offences.

Article (46)

The Public Prosecutor, or the authorised general attorney, may issue an order to the financial institutions, DNFBPs, or NPOs to disclose or provide any information or data on any accounts, deposits, trusts, funds or other transactions that may assist in revealing the facts of any possible money laundering or terrorist financing crime, or any related predicate offense.

Article (47)

The Public Prosecutor, or authorised general attorneys, may issue an order to seize all types of letters, printed materials, mail boxes, and telegrams and to control all communication means and record any activities taking place in public or private places if this assists in revealing the facts of any possible money laundering or terrorist financing crime, or any related predicate offense.

In all cases, the seizure order or the recording order shall be grounded on sound reasons and it shall not exceed ninety days. This term may only be extended by an order issued by the competent court. 

Article (48)

Without prejudice to the authority of the Public Prosecutor set out in this law, in cases where there is a concern about the disposal of money laundering proceeds held at Financial Institutions, or where there is suspicion that funds, balances or accounts are being used in terrorist financing, the Governor of the Central Bank, may order the freezing of the suspected funds, balances or accounts for a period not exceeding ten business days.   The public prosecutor shall be notified of such an order within three business days of its issuance, otherwise it shall be treated as void ab initio. The public prosecutor may cancel the freezing order or renew it for a period not exceeding three months.

The freezing order may not be renewed beyond the three months limit referred to except by order of the competent court at the request of the public prosecutor and the renewal shall be for a similar period or periods until a final judgment is passed in the criminal case.

In all cases, every party concerned may lodge a grievance against the freezing order or the renewal thereof before the competent court within 30 days from the date of his knowledge thereof, and the court ruling thereon shall be final.  

Article (49)

Without prejudice to the rights of third parties acting in good faith, the Public Prosecutor may, on his own initiative, impose temporary measures including freezing or seizing, intended to preserve the availability of funds, instrumentalities used in or instrumentalities intended for use in the commission of a predicate offence, a money laundering offence, or a terrorist financing offence, or any properties of corresponding value.

 Such measures may be lifted at any time by the competent court at the request of the Public Prosecutor, or at the request of the suspects or persons claiming rights to these properties. 

Article (50)

The Public Prosecutor shall issue the necessary orders in regard to freezing the funds of terrorists, those who finance terrorism and terrorist organisations, designated by the United Nations Security Council acting pursuant to Chapter VII of the United Nations Charter, or designated by a resolution by the Terrorist Financing Committee, formed under the council of Ministers resolution no (7) of 2007, pursuant to UN resolution (1373) of 2001 or successor resolutions,.

Such decision shall define the terms, conditions and time limits applicable to the freezing, and shall be published in the official gazette. The financial institutions, designated non-financial businesses and professions, or any other person holding such funds shall immediately freeze them and report that to the Unit or any competent authority of the freezing..

Article (51)

Frozen funds shall remain the property of persons which had interest therein, when the freezing was signed. The financial institution may continue the management thereof.

Seized funds shall remain the property of persons which had interest therein, when the seizure was signed, provided that they are managed by the competent judicial authority.

Section (9) International cooperation

Part one – General rules

Article (52)

The competent authorities shall provide cooperation to the counterpart competent authorities of other States for purposes of extradition and mutual legal assistance in connection with criminal investigations and proceedings related to money laundering and terrorist financing, accordingly with the rules set by the above-mentioned criminal proceedings law, bilateral or multilateral treaties, that Qatar is part thereof, or the reciprocity principle, in such a way that does not contradict the  basic principles of the Qatar legal system.

The request of criminal extradition shall only be executed, pursuant to this law, provided that the laws of the requesting State and the laws of the State of Qatar sanction the crime, subject of the extradition or a similar crime. Dual criminality shall be deemed fulfilled irrespective of whether the laws of the requesting State places the offence within the same category of offence or denominate the offence by the same terminology as in the State, provided the conduct underlying the offence for which assistance is sought is a criminal offence under the laws of the States concerned.

Article (53)

The Public Prosecutor has the responsibility and power to receive mutual legal assistance or extradition requests sent by competent foreign authorities with respect to money laundering and terrorist financing, and it shall either execute them or transmit them to the competent authorities for execution as soon as possible.

In urgent cases, such requests may be sent through the International Criminal Police Organisation (ICPO/Interpol) or directly by the competent foreign authorities to the judicial authorities of the State. In such cases the authority receiving the request shall notify the Public Prosecutor.

Requests and answers shall be transmitted either by post or by other more rapid means of transmission that provides a written or materially equivalent record under conditions allowing the State to establish authenticity.

In all cases, requests and their annexes shall be accompanied by a translation into Arabic.

Article (54)

Legal assistance or extradition requests shall specify:

1) the identity of the authority requesting the measure.

2) the name and function of the authority conducting the investigation, or prosecution.

3) the requested authority.

4) the purpose of the request and any relevant contextual remarks.

5) the facts in support of the request.

6) any known details that may facilitate identification of the person concerned, in particular name, marital status, nationality, address, location and occupation.

7) any information necessary for identifying and tracing the persons, instrumentalities, funds or properties in question.

8) the text of the statutory provision establishing the offence or, where applicable, a statement of the law applicable to the offence and an indication of the penalty that can be imposed for the offence.

9) a description of the assistance required and details of any specific procedures that the requesting State wishes to be applied.

In addition, requests shall include the following particulars in certain specific cases:

1) in the case of requests for provisional measures: a description of the measures sought.

2) in the case of requests for the issuance of a confiscation order: a statement of the relevant facts and arguments to enable the judicial authorities to order the confiscation under the law.

3) in the case of requests for the enforcement of orders relating to provisional measures or confiscations:

a) a certified copy of the order, and a statement of the grounds for issuing the order if they are not indicated in the order itself.

b) a document certifying that the order is enforceable and not subject to ordinary means of appeal.

c) an indication of the extent to which the order is to be enforced and the amount for which recovery is to be sought of the value of properties.

d) where necessary and if possible, any information concerning third-party rights of claim on the instrumentalities, proceeds, properties or other things in question.

e) In the case of requests for extradition, the original or a certified copy of the judgment or any other document setting out the conviction of the person accused and the sentence imposed, the fact that the sentence is enforceable and the extent to which the sentence remains to be served.

 Article (55)

The Public Prosecutor or the competent authority handling the matter may, either on their own initiative or at the request of the Public Prosecutor, request additional information from the competent foreign authority if it appears necessary to execute or facilitate the execution of the request.

 Article (56)

Where a request requires to be kept confidential, such requirement shall be observed. If that is not possible, the requesting authorities shall be promptly informed thereof.

 Article (57)

The Public Prosecutor may delay the referral of the request to the competent authorities responsible for the execution of the request if the measure or order sought is likely to substantially interfere with an ongoing investigation or proceeding. It shall immediately so advise the requesting authority. 

Part two

Mutual legal assistance

Article (58)

Upon application by a foreign State, requests for mutual legal assistance in connection with money laundering or terrorist financing shall be executed in accordance with the principles set out in this section. Mutual legal assistance may include in particular:

1) taking evidence or statements from persons.

2) assisting in making detained persons, voluntary witnesses or others available to the judicial authorities of the requesting State in order to give evidence or assist in investigations.

3)effecting service of judicial documents.

4) executing searches and seizures.

5)examining objects and sites.

6) providing information, evidentiary items and expert evaluations.

7) providing originals or certified copies of relevant documents and records, including government, bank, financial, corporate or business records.

8) identifying or tracing the proceeds of crime, funds or property or instrumentalities or other things for evidentiary or confiscation purposes.

9) confiscation of assets.

10) executing freezing and other provisional measures.

11) any other form of mutual legal assistance not contrary to the domestic laws of the State.

 Article (59) Refusal to execute requests

A request for mutual legal assistance may be refused only if:

1) it was not made by a competent authority according to the legislation of the requesting State, if it was not transmitted in accordance with applicable laws or its contents are in substantial non-conformity with Article (54) of this law.

2) its execution is likely to prejudice the law and order, sovereignty, security, public order or essential interests of the State.

3) the offence to which it relates is the subject of criminal proceedings or has already been the subject of a final judgment in the territory of the State.

4) there are substantial grounds for believing that the measure or order being sought is directed at the person in question solely on account of that person’s race, religion, nationality, ethnic origin, political opinions, gender or status.

5) If the offence referred to in the request is not provided for under the legislation of the State or does not have features in common with an offence provided for under the legislation of the State; however, assistance shall be granted if it does not entail coercive measures.

6) If the measures requested cannot be ordered or executed by reason of the statute of limitations applicable to money laundering or terrorist financing under the legislation of the State or the law of the requesting State. 

7) If the order whose execution is being requested is not enforceable under the law.

8) If the decision rendered in the requesting State was issued under conditions that did not afford sufficient protections with respect to the rights of the defendant.

Article (60)

No request for mutual legal assistance shall be refused on the basis of unduly restrictive conditions, and of secrecy or confidentiality provisions binding financial institutions, or on the sole ground that the offence involves fiscal matters.

A decision of a court in relation to a request for mutual legal assistance may be subject to appeal, in accordance with prescribed rules.

In case of refusal to execute the request, the Public Prosecutor or the competent authority of the State shall promptly inform the foreign competent authority of the grounds for refusal.

Article (61)

Investigative measures shall be undertaken in conformity with the procedural rules of the State unless the competent foreign authority has requested specific procedures not contrary to such rules.

A public official authorised by the competent foreign authority may attend the execution of the measures.

Article (62)

Provisional measures shall be undertaken in accordance with the above-mentioned Criminal Procedure Code. If the request is worded in general terms, the most appropriate measures provided by law shall be used.

Should the above-mentioned Criminal Procedure Code not provide for the measures requested, the competent authority may substitute those measures provided for in the law whose effects correspond most closely to the requested measures.

The provisions relating to the lifting of provisional measures as laid down in this law shall be applicable. Before lifting the provisional measures, the requesting country should be informed thereof. 

Article (63)

In the case of a request for mutual legal assistance seeking a confiscation order, the competent authorities shall recognize and enforce the confiscation order made by a court of the requesting State or submit the request to the Public Prosecution for the purpose of obtaining a confiscation order and, if such order is granted, enforce it.

The confiscation order shall apply to the funds referred to in confiscation provisions of this law, and situated in the territory of the State.

Where the competent authorities recognize and enforce a confiscation order, it shall be bound by the findings of facts on which the order is based. 

Article (64)

The State shall have power of disposal of properties confiscated on its territory at the request of foreign authorities unless provided otherwise under an agreement concluded with the requesting State, without prejudice to the rights of their bona fide owner.

Article (65)

The competent authorities of the State may enter into bilateral or multilateral agreements or arrangements, in relation to matters that are the subject of investigations or proceedings in one or more States, to set up joint investigative teams and conduct joint investigations.

In the absence of such agreements or arrangements joint investigations may be undertaken on a case by case basis.

Part three

Extraditions

Article (66)

 Money laundering and financing of terrorism shall be extraditable offences.

For the purposes of this law, money laundering and financing of terrorism shall not be regarded as political offences, or offences connected with a political offence, or offences inspired by political motives.

 Article (67)

Extradition shall not be granted:

1) If there are substantial grounds to believe that the request for extradition has been made for the purpose of prosecuting or punishing a person on account of that person’s sex, race, religion, nationality, ethnic origin or political opinions or that compliance with the request would cause prejudice to that person’s position for any one of these reasons.

2) If a final judgment has been rendered in the State in respect of the offence for which extradition is requested.

3) If the person whose extradition is requested has, under the legislation of either country, become immune from prosecution or punishment for any reason, including statute of limitations or amnesty.

4) If there are substantial grounds to conclude the person whose extradition is requested has been or would be subjected to torture or cruel, inhuman or degrading treatment or if that person has not received or would not receive the minimum guarantees in criminal proceedings, pursuant to international standards in that regard.

5) the person whose extradition is requested is a Qatari citizen.

Extradition shall not be refused on the sole ground that the offence is considered to entail fiscal matters. 

Article (68)

Extradition may be refused if:

1) a prosecution in respect of the offence for which extradition is requested is pending in the State against the person whose extradition is requested.

2) the offence for which extradition is requested has been committed outside the territory of either country and the legislation of the State does not provide for jurisdiction over offences committed outside its territory for the offence which gave rise to the request.

3) the person whose extradition is requested has been sentenced for the conduct which gives rise to the request or would be liable to be tried or sentenced in the requesting State by an irregular or fundamentally unfair extraordinary or ad hoc court or tribunal.

4) The State, while also taking into account the nature of the offence and the interests of the requesting State, considers that, in the circumstances of the case, the extradition of the person in question would be incompatible with humanitarian considerations in view of the age, health or other personal circumstances of that person.

5) the extradition is requested pursuant to a final judgment rendered in the absence of the convicted person who, for reasons beyond his control, has not had sufficient notice of the trial or the opportunity to arrange for his defence and he has not had or will not have the opportunity to have the case retried in his presence.

6) The State has assumed jurisdiction over the offence. 

Article (69)

If extradition is refused on either of the grounds stated in this law, the case shall be referred to the competent authorities in order that criminal proceedings may be instituted against the person concerned in respect of the offence which gave rise to the request.

Article (70)

With regard to money laundering and terrorist financing, the State may assist in extradition after receipt of a request for provisional arrest by the requesting State, provided that the person whose extradition is requested explicitly consents before a competent authority.

 Section (10)

Sanctions

Article (71)

The money laundering crime does not fall within the provisions of Article 85 of the above-mentioned Penal Code

Article (72)

Without prejudice to a more severe punishment prescribed under any other law:

1- an individual shall be sentenced to imprisonment for a term not exceeding ten years and a fine not exceeding 2.000.000 Rials if he commits, or attempts to commit one of terrorist financing offences stipulated in Article (4) of this law.

2- An individual shall be sentenced to imprisonment for a term not exceeding seven years and by a fine not exceeding 2.000.000 Rials if he commits, or attempts to commit one of money laundering offences stipulated in Article (2) of this law.

3- An individual shall be sentenced to imprisonment for a term not exceeding three years and by a fine not exceeding 500,000 Rials if he violates the provisions of Articles (3), (5), and (39) of this law.

The sanctions stipulated under the previous paragraphs shall be doubled if the criminal was assisted in the commitment of his crime by another person or more or by an organised criminal gang, or through a terrorist organisation; or if the crime was committed as part of other criminal acts; or if it is associated with other criminal activities; or if the criminal committed the crime by abusing his authority or powers in a financial institution, NPO or DNFBP, or by abusing the facilities offered by his job position or his professional or social activity; or if the criminal has taken part in the predicate offence from which the funds of the money laundering crime derive, whether as committer or partner, or for the intention to harm the investigation of the money laundering and terrorist financing crime.

In addition to the sanctions mentioned in the above two paragraphs, the perpetrator of a crime may be barred from employment within a business, profession or activity, which contributed in presenting the opportunity to commit a crime provided for in this article, either permanently or for a provisional period.

Article (73)

Without prejudice to a more severe punishment prescribed under any other law, an individual shall be sentenced to imprisonment for a term not exceeding three years and a fine not exceeding 500,000  Rials if he breaches the provisions of Article (6), paragraphs (1) and (2), and article (17) of this law.

Article (74)

Without prejudice to a more severe punishment prescribed under any other law, an individual shall be sentenced to imprisonment for a term not exceeding one year and a fine not exceeding 100,000 Rials if he breaches the provision of Article (8) of this law.

Article (75)

Without prejudice to a more severe punishment prescribed under any other law, a legal person, on whose behalf or for whose benefit money laundering or financing of terrorism has been committed by any natural person, acting either individually or as part of an organ of the legal person, who has a leading position within it, based on a power of representation of the legal person, an authority to take decisions on behalf of the legal person, or an authority to exercise control within the legal person, acting in such capacity, shall be punished by a fine of whichever is the greater of not less than 5 million Rials or the total value of the instrumentalities,  and proceeds of the crime irrespective of the conviction of those individuals as perpetrators of or accomplices to the offence.

The above does not prevent the punishment of the natural person, perpetrator of the crime with the corresponding sanction prescribed by the law.

A legal person may additionally be barred permanently or for a provisional period from directly or indirectly carrying on certain business activities, placed under court supervision; ordered to close permanently or for a provisional period their premises which were used for the commission of the offence; wound up; or ordered to publicize the judgment.

Article (76)

Without prejudice to a more severe punishment prescribed under any other law, every financial institution, or DNFBP shall be punished by a fine not exceeding 1.000.000 Rials, if it violates the provision of article (50) of this law.

Article (77)

In the event of a conviction for a predicate offence, the money laundering or the financing of terrorism, or an attempt to commit such an offence, without prejudice to the rights of bona fide parties, an order shall be issued by the court for the confiscation of:

1) funds constituting the proceeds of crime, including properties intermingled with such proceeds or derived from or exchanged for such proceeds, or properties the value of which corresponds to that of such proceeds.

2) funds forming the object of the offence.

3) funds constituting income and other benefits obtained from such funds or properties, or proceeds of crime.

4) the instrumentalities of the crime.

5) funds referred to in this article that has been transferred to any party, unless the court finds that the owner acquired it by paying a fair price or in return for the provision of services corresponding to their value or on any other legitimate grounds, and that he was unaware of its illicit origin.

If, in cases where an offence is established by the provisions of this law, the perpetrator thereof cannot be convicted because he is unknown, or he died, the Public Prosecution may nevertheless transmit the file to the competent court to order the confiscation of the seized funds if sufficient evidence is adduced that they constitute proceeds of crime.

In all cases, the confiscation order shall specify the funds concerned and contain the necessary details to identify and locate it.

Article (78)

Without prejudice to the rights of bona fide third parties, a contract, arrangement, or any other legal instrument, shall become null and void if its parties or any party becomes aware or believes that the purpose of the contract is to avoid confiscation of the instrumentalities, returns or proceeds related to either a money laundering or a financing of terrorism offence.

Article (79)

Unless otherwise provided for in this law, confiscated funds shall accrue to the State Treasury. Such funds shall remain encumbered, up to their value, by any rights lawfully established in favour of third parties acting in good faith.

Article (80)

The office for seizure and confiscation affiliated to the Public Prosecutor shall be responsible for identifying and tracing funds that may be subject to seizure and confiscation. It shall collect and maintain all data associated with its mission in accordance with the law. It shall also manage seized assets.

Article (81)

The office for seizure and confiscation shall be responsible for the administration or management of seized assets in accordance with the feasible means available to it, with a view to returning or confiscating such assets in a condition reasonably comparable to their condition at the time of the seizure. The Public Prosecutor may authorise the sale of funds or properties likely to incur significant depreciation as the result of management or for which the cost of preservation is unreasonably disproportional to its value. In such case, the value of the sale shall remain subject to the seizure.

The office for seizure and confiscation shall manage the sums of money seized unless they were already entrusted to a financial institution or private manager or were seized or blocked there.

Article (82)

Every person, who reports, in good faith, any suspicious transaction covered under the provisions of this law or submits any information or data on suspicious transactions are exempted from criminal or civil liability for breach of professional secrecy requirements.

No criminal action for money laundering or the financing of terrorism shall be brought against financial institutions, designated non-financial businesses and professions, NPOs or their personnel in connection with the execution of a suspicious transaction where reports of suspicions were made in good faith in accordance with this law.

Article (83)

A perpetrator of money laundering or terrorist financing crime shall be exempted from the punishments of imprisonment and fine payment stipulated under this law if he notifies the competent authorities of any information related to the crime and involved persons, before they become aware of the crime.

If the notification takes place after the competent authorities have become aware of the crime and the involved persons and after the instrumentalities, and proceeds have been confiscated and the remaining criminals have been detained, the court may issue a judgment suspending the imposition of the punishment.

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