On the ratification of the Treaty of the Member States of the Commonwealth of Independent States on Countering the Legalization (Laundering) of Criminal Proceeds and the Financing of Terrorism

Home / RLA / On the ratification of the Treaty of the Member States of the Commonwealth of Independent States on Countering the Legalization (Laundering) of Criminal Proceeds and the Financing of Terrorism

Law of the Republic of Kazakhstan dated March 29, 2011 No. 422-IV

To ratify the Treaty of the Member States of the Commonwealth of Independent States on Countering the Legalization (Laundering) of Criminal Proceeds and the Financing of Terrorism, signed on October 5, 2007 in Dushanbe.

President  Of the Republic of Kazakhstan N. Nazarbayev

TREATY of the Member States of the Commonwealth of Independent States on Countering the Legalization (Laundering) of Criminal Proceeds and the Financing of Terrorism

(Entered into force on July 9, 2014 - Bulletin of International Treaties of the Republic of Kazakhstan 2014, No. 5, art. 41)

The Member States of the Commonwealth of Independent States, hereinafter referred to as the Parties, recognizing that the fight against organized crime, corruption, terrorism, and other grave and especially grave crimes requires the use of modern and effective forms, methods, and means, considering that one of such methods is to deprive criminals of the proceeds of criminal activity and other means used to commit crimes, guided by generally recognized principles and norms of international law, in order to improve the legal framework for countering the legalization (laundering) of criminal proceeds and the financing of terrorism and cooperation in this area

We have agreed on the following:

Section I. General provisions

Article 1

In accordance with this Agreement, international obligations and national legislation, the Parties shall cooperate, coordinate their activities, and combine the efforts of government agencies, public and other associations and organizations, as well as citizens, in order to counter the legalization (laundering) of criminal proceeds and the financing of terrorism.

Article 2

For the purposes of this Agreement, the following basic concepts are used: a) criminal proceeds - funds and/or other property obtained as a result of committing a crime; b) funds (property) - assets of any kind, movable or immovable, regardless of the method of their acquisition, as well as legal documents or acts confirming the right to such assets or participation in them; c) financing of terrorism - the provision or collection of funds or the provision of financial services with the knowledge that they are intended to finance the organization, preparation or commission of at least one of the crimes of a terrorist nature, or to provide an organized group, an illegal armed formation, a criminal community (criminal organization) created or being created to commit at least one of such crimes; d) legalization (laundering) of criminal proceeds - actions aimed at legitimizing the possession, use or disposal of criminal proceeds; e) the main crime is a criminally punishable act, as a result of which criminal proceeds were obtained, for legalization (laundering) which are criminalized by the legislation of the Parties; f) transactions with monetary funds or other property - actions of individuals and/or legal entities with monetary funds or other property, regardless of the form and method of their implementation, aimed at establishing, changing or terminating related civil rights and obligations; g) suspicious transactions - transactions with monetary funds or other property, in particular which are suspected of being committed for the purpose of legalizing (laundering) criminal proceeds and financing terrorism; h) confiscation - the gratuitous seizure of property on the basis of a court decision; i) competent authorities - state bodies of the Parties exercising powers to implement this Agreement within their competence established by law; j) authorized body - the competent body of a Party that, in accordance with its legislation, receives and analyzes reports on transactions subject to mandatory control and suspicious transactions, as well as transmits information to law enforcement agencies regarding possible cases of money laundering and terrorist financing.

Article 3

1. In order to implement this Agreement, cooperation between the Parties includes the following main areas and forms: harmonization of legislation; provision of legal assistance, including the delivery of documents, seizure of criminal proceeds and funds for financing terrorism, confiscation; exchange of information; conducting operational search activities; consultations; exchange of representatives. 2. This Agreement does not prevent the Parties from defining and developing other mutually acceptable areas and forms of cooperation. 3. Cooperation between the Parties under this Agreement is carried out on the basis of orders for the provision of legal assistance (hereinafter referred to as the order) and requests for assistance (hereinafter referred to as the request).

Article 4

1. Each Party, in accordance with national legislation, determines a list of competent authorities with an indication of the authorized body therein and sends it to the depositary simultaneously with providing information on the implementation of domestic procedures necessary for the entry into force of this Treaty. The Parties shall notify the depositary within one month of the change in their competent and authorized bodies. 2. The Depositary, based on notifications received from the Parties, forms a list of competent authorities, sends it to all parties to the Agreement, and also informs about all changes to this list based on notifications received from the Parties. 3. The competent authorities of the Parties on the issues provided for in this Agreement shall interact with each other directly within the limits of their powers determined by the legislation of these Parties.

Article 5

Documents sent in accordance with this Agreement and considered as official documents in the territory of one Party shall enjoy the legal force of official documents in the territories of other Parties and do not require legalization, unless this contradicts the legislation of the Parties that received them.

Article 6

The costs associated with the execution of the request (order) are borne by the Party in whose territory they originated, unless a different procedure is agreed in each specific case.

Section II. Formation of the regulatory legal framework

Article 7

The Parties shall take the necessary measures to harmonize national legislation, taking into account the norms of international law in the field of countering the legalization (laundering) of criminal proceeds and the financing of terrorism.

Article 8

1. The Parties shall adopt regulatory legal acts allowing their competent authorities to identify, search for criminal proceeds and funds for financing terrorism, prevent and suppress transactions and transactions with such proceeds and funds, their transfer or other disposal. 2. Each Party shall adopt regulatory legal acts granting its competent authorities the right to request information necessary to take measures to counteract the legalization (laundering) of criminal proceeds and the financing of terrorism.

Article 9

1. The Parties shall adopt regulatory legal acts obliging organizations engaged in transactions with monetary funds or other property to take measures to counteract the legalization (laundering) of criminal proceeds and the financing of terrorism, which should include, in particular: a) identification of clients and beneficiaries; b) documenting information about clients and beneficiaries, as well as transactions with cash or other property; c) storage of documents containing information on transactions with funds and/or other property and beneficiaries thereof for at least five years, and information about clients for at least five years from the date of termination of relations with the client; d) suspension of transactions with funds or other property in cases and in accordance with the procedure provided for the legislation of the Party; e) submission to the authorized body of information on transactions with monetary funds or other property, the signs of which are determined in accordance with paragraph 2 of this Article.; f) prohibition on informing clients and other persons about the measures taken to counteract the legalization (laundering) of criminal proceeds and the financing of terrorism; g) refusal to conclude a bank account (deposit) agreement and refusal to conduct an operation in the presence of circumstances determined by the legislation of the Parties. 2. The Parties shall adopt regulatory legal acts defining the signs of a transaction with monetary funds or other property, information about which must be submitted to the authorized body. 3. The Parties shall identify state bodies that monitor the implementation by organizations engaged in transactions with funds or other property of the measures specified in paragraph 1 of this article, and empower these bodies to issue rules binding on controlled organizations to counter the legalization (laundering) of criminal proceeds and the financing of terrorism. 4. The Parties shall adopt regulatory legal acts that establish the responsibility of organizations engaged in transactions with monetary funds or other property for evading or concealing information, as well as other non-fulfillment of obligations provided for in paragraph 1 of this article.

Article 10

Each Party shall adopt regulatory legal acts, according to which banking and/or commercial secrets are not an obstacle to obtaining information by state bodies determined by its legislation that is necessary to take measures to counter the legalization (laundering) of criminal proceeds and the financing of terrorism.

Article 11

The Parties shall adopt regulatory legal acts to ensure the confiscation of criminal proceeds, including property obtained as a result of the legalization (laundering) of criminal proceeds, as well as funds for the financing of terrorism.

Article 12

The Parties, subject to compliance with the basic principles of their legal system, shall take legislative and other measures necessary to criminalize the following acts: a) conversion of property, as well as any transactions with it, if it is known that such property is proceeds of crime, carried out for the purpose of concealing or concealing the criminal source of this property or in order to assist any person involved in the commission of the main crime so that he can evade responsibility for his actions; b) concealment or concealment of the true nature, source, location, method of disposal, transfer of property or rights to it, or its accessories, if it is known that such property represents proceeds of crime; c) acquisition, possession or use of property, if it is known that such property represents proceeds of crime; d) complicity in the commission of any of the crimes recognized as such in accordance with this article, as well as an attempt to commit such a crime or preparation for the commission of such a crime; e) financing of terrorism.

Section III. Information exchange, execution of requests (orders)

Article 13

1. The competent authorities, upon request (instruction) or on their own initiative, provide each other with information (documents, materials, other data) on countering the legalization (laundering) of criminal proceeds and the financing of terrorism. 2. The transfer of information is carried out if it does not harm the national security of the transmitting Party and does not contradict its legislation. 3. The information specified in paragraph 1 of this Article is provided on condition that it will not be used for purposes other than those for which it is transmitted, without the prior consent of the Party that transmitted it. 4. The exchange of information between the authorized bodies is carried out in accordance with Article 23 of this Treaty.

Article 14

The competent authorities shall not disclose the fact of the request (instruction) and its contents, unless otherwise agreed by the competent authorities of the requesting Party, ensure the confidentiality of the information provided by the requested Party and use it only to the extent necessary to carry out investigations, judicial proceedings or to carry out the procedures provided for by the request (instruction).

Article 15

1. Requests (orders) are executed in accordance with this Agreement, other international treaties and the legislation of the requested Party. At the request of the competent authority of the requesting Party, the legislation of that Party may be applied in the execution of the request (instruction), unless otherwise established by the legislation of the requested Party or the international obligations of that Party. 2. The competent authorities execute requests for operational search measures in order to establish the location of criminal proceeds and persons suspected of involvement in their legalization (laundering) and financing of terrorism. 3. The procedure for sending and executing orders for the provision of legal assistance is determined by international treaties to which the Parties are Parties.

Article 16

1. The competent authorities of the requested Party may postpone the execution of the request or, by agreement with the competent authorities of the requesting Party, partially execute the request or on conditions deemed necessary by them, if the execution of the request may prejudice the conduct of operational search activities, pre-trial proceedings or judicial proceedings conducted by the competent authorities of the requested Party. 2. The competent authorities of the requested Party may refuse to execute the request if it contradicts its national interests or legislation and international obligations, as well as if the request does not comply with the provisions of this Treaty.

Article 17

1. The request shall be drawn up and submitted in writing. In this case, technical means of communication may be used, followed by immediate written confirmation. 2. The request shall be signed by the head of the competent authority of the requesting Party or his deputy and stamped, unless the competent authorities agree otherwise. 3. The request shall be executed as soon as possible, but not later than 30 days from the date of its receipt, unless otherwise agreed by the Parties.

Article 18

The request specifies: a) the name of the competent authorities of the requesting and requested Parties; b) the subject and basis of the request; c) the substance of the case (crime) in which operational search measures are being carried out, except in cases when it comes to the delivery of official documents; d) the texts of relevant regulatory legal acts, as well as a statement that The requested or any other measure leading to similar results may be taken in the territory of the requesting Party in accordance with its legislation.; e) if necessary and as far as possible: information about the individual (surname, first name, patronymic, information about the place of birth and citizenship, address of residence and place of stay, details of the identity document of the individual; official name and address of the location of the legal entity, its state registration number and place of registration); information about the property or income that is the subject of the request (their location, connections with the relevant person or persons and the crime, as well as any available information about the rights of others to this property or income); a specific procedure that, at the request of the requesting Party, it would be desirable to follow.

Article 19

The order for the execution of the court decision on confiscation contains, inter alia: a) a certified copy of the confiscation order issued by the court of the requesting Party and information on the part to which it must be executed; b) documents confirming the possibility of third parties claiming rights to property subject to confiscation.

Article 20

If the information specified in the request (instruction) is not sufficient for its execution, the requested Party may request additional information by setting a deadline for its provision.

Article 21

In the case of multiple requests sent by several Parties in accordance with this Agreement and affecting the same circumstances, the requested Party independently determines which of the requests is subject to priority execution, having previously consulted with the requesting Parties, if necessary.

Article 22

1. The requested Party shall inform the requesting Party: a) on the actions taken upon request and their results; b) on the refusal, postponement and conditions for the execution of the request (part of it), indicating their reason; c) on those provisions of national legislation that will automatically require the cancellation of security measures upon request. 2. The requesting Party shall promptly inform the requested Party of the circumstances significantly affecting the execution of the request.

Article 23

1. Authorized bodies exchange information among themselves at the stages of collecting, processing and analyzing information at their disposal about suspicious transactions and the activities of individuals and/or legal entities involved in these transactions. 2. Information exchange is carried out on the initiative or at the request of one of the authorized bodies. The request for information must contain a brief justification. 3. The information received may be transferred to a third party, disclosed to a third party, and used for investigative or judicial purposes only with the prior written consent of the authorized body that provided it. At the same time, the specified information is used only in cases related to the legalization (laundering) of criminal proceeds and the financing of terrorism, unless otherwise determined by the authorized body that transmitted it. 4. Information received in accordance with this article is confidential, and it is subject to the protection regime provided for by the legislation of the receiving Party in relation to such information from national sources.

Section IV. Confiscation

Article 24

Each Party, on behalf of the other Party, shall take all possible measures to ensure the confiscation of criminal proceeds and/or funds for the financing of terrorism.

Article 25

The requested Party shall inform the requesting Party in advance of the possible cancellation of the security measure carried out in accordance with this Agreement.

Article 26

1. A Party that has received an order to execute a court decision on the confiscation of criminal proceeds and/or funds for financing terrorism located on its territory shall carry out confiscation in accordance with national legislation and international treaties to which the requesting and requested Parties are parties. 2. If, on the basis of the same decision, a Party requests confiscation from several Parties, it shall notify each of these Parties accordingly. 3. The requesting Party shall promptly inform the requested Party of the circumstances in connection with which the decision on confiscation is fully or partially invalid.

Article 27

The Parties may conclude agreements with each other or, in each specific case, agree on the division of property received by one Party as a result of the execution of an order for the execution of a court decision on confiscation, or funds from the sale of confiscated property.

Section V. Final provisions

Article 28

The provisions of this Agreement do not affect the rights and obligations of the Parties arising from other international treaties to which they are parties.

Article 29

In order to develop the provisions of this Agreement, the competent authorities may conclude interdepartmental agreements among themselves.

Article 30

The Parties shall use Russian as a working language when carrying out cooperation under this Agreement.

Article 31

1. This Treaty shall enter into force on the date of deposit with the depositary of the third notification on the completion by the signatories of the internal procedures necessary for its entry into force. 2. For the Parties who have completed the internal procedures later, this Agreement shall enter into force from the date of delivery of the relevant documents to the depositary.

Article 32

This Treaty is open for accession by other States sharing its provisions by sending a notification of such accession to the depositary. For the acceding State, this Treaty shall enter into force on the date of receipt by the depositary of the relevant notification, subject to paragraph 1 of article 31 of this Treaty.

Article 33

The Parties may, by mutual agreement, make amendments and additions to this Agreement, formalized by a protocol that enters into force in accordance with the procedure provided for in Article 31 of this Agreement, unless the Parties agree otherwise.

Article 34

Disputes between the Parties related to the application or interpretation of this Agreement are resolved through consultations and negotiations between the Parties concerned.

Article 35

1. Each Party may withdraw from this Agreement by sending a written notification to the depositary at least six months before the expected withdrawal date. 2. By the time of withdrawal, the relevant Party must fulfill all material, financial and other obligations arising from participation in this Agreement.

Done in Dushanbe on October 5, 2007, in one original copy in the Russian language. The original copy is kept in the Executive Committee of the Commonwealth of Independent States, which will send a certified copy to each signatory State.

For the Republic of Azerbaijan For the Republic of Moldova

For the Republic of Armenia For the Russian Federation

For the Republic of Belarus For the Republic of Tajikistan

For Georgia For Turkmenistan

For the Republic of Kazakhstan For the Republic of Uzbekistan

For the Kyrgyz Republic For Ukraine

I hereby certify that the attached text is an authentic copy of the Treaty of the member States of the Commonwealth of Independent States on Countering the Legalization (Laundering) of Criminal Proceeds and the Financing of Terrorism, adopted at the meeting of the Council of Heads of State of the Commonwealth of Independent States, which was held on October 5, 2007 in the city of Dushanbe. The original copy of the above-mentioned Agreement is kept in the Executive Committee of the Commonwealth of Independent States.

First Deputy Chairman  The Executive Committee -  Executive Secretary of the CIS V. The barker

President

Republic of Kazakhstan

Constitution Law Code Standard Decree Order Decision Resolution Lawyer Almaty Lawyer Legal service Legal advice Civil Criminal Administrative cases Disputes Defense Arbitration Law Company Kazakhstan Law Firm Court Cases