Article 9. Due diligence in establishing correspondent relations with foreign financial organizations of the Law on Countering the Legalization (Laundering) of Proceeds from Crime, Financing of Terrorism and Financing the Proliferation of Weapons of Mass Destruction

Home / RLA / Article 9. Due diligence in establishing correspondent relations with foreign financial organizations of the Law on Countering the Legalization (Laundering) of Proceeds from Crime, Financing of Terrorism and Financing the Proliferation of Weapons of Mass Destruction

Article 9. Due diligence in establishing correspondent relations with foreign financial organizations of the Law on Countering the Legalization (Laundering) of Proceeds from Crime, Financing of Terrorism and Financing the Proliferation of Weapons of Mass Destruction

The financial monitoring entities specified in subparagraph 1) of paragraph 1 of Article 3 of this Law, in addition to the measures provided for in paragraph 3 of Article 5 of this Law, when establishing correspondent relations with foreign financial organizations, are additionally required to:

1) on the basis of publicly available information, collect and document information about the reputation and nature of the activities of the respondent foreign financial institution, including conducting an investigation against it and applying sanctions to it for violating the legislation of the State of its registration on countering the legalization (laundering) of proceeds from crime, financing terrorism and financing the proliferation of weapons mass destruction;

2) document information on internal control measures taken by the respondent foreign financial institution in accordance with the legislation of the country of its registration to counteract the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction, as well as evaluate the effectiveness of the internal control measures taken;

2-1) receive confirmation that the respondent foreign financial institution has conducted a proper audit of the client with direct access to the correspondent bank's accounts, and that it has the ability to provide the necessary information on proper verification of the client at the request of the correspondent bank;

3) not to establish or maintain correspondent relations with shell banks;

4) make sure that the respondent's foreign financial institution refuses to use its accounts by shell banks;

5) obtain the permission of the head of the organization to establish new correspondent relations.

The presence of a correspondent relationship with shell banks in a foreign financial institution is determined on the basis of information provided by the respondent foreign financial institution and/or received by the financial monitoring entity from other sources.

The Law of the Republic of Kazakhstan dated August 28, 2009 No. 191-IV.

This Law defines the legal basis for countering the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction, the legal relations of financial monitoring entities, the authorized body and other state bodies of the Republic of Kazakhstan in the field of countering the legalization (laundering) of proceeds from crime and the financing of terrorism, as well as the mechanisms for implementing targeted financial sanctions, related to the prevention and prevention of terrorism and the financing of terrorism, and the prevention, prevention and cessation of the proliferation of weapons of mass destruction and their financing.

President

Republic of Kazakhstan

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