Responsibilities of reporting entities

Notifiable entities are obliged to investigate all transactions and planned transactions that are suspected of being connected to money laundering or terrorist financing.

If, during the investigation of a transaction, or a proposed transaction, there is a suspicion that it is suspicious or unusual, the background and purpose of the transaction shall be examined to the extent possible. This includes, inter alia, that:

• obtain necessary information about the customer and the transactions planned

• check the reliability of the available data

• independently assess existing data and information

• to prepare a written report, which includes:

  • a list of available data and information

  • actions taken, including information gathering and execution of transactions;

  • the results of the examination, that is, whether to send a notification to the Office of Police Financial Analysis.

What to report?

If there is suspicion of money laundering or terrorist financing, the transaction shall be reported to the Financial Intelligence Unit according to Article 21(1) of Act No. 140/2018.

This refers to the lowest level of suspicion, i.e. that any suspicion, regardless of its level, qualifies for suspicion. Suspicion exists that funds may be attributable to criminal conduct, regardless of whether the suspicion is later proved to have been justified.

Reporting entities, their employees and managers shall report to the Financial Intelligence Unit in a timely manner of suspicious transactions and funds that are suspected of being attributable to criminal conduct.

Transactions where there is knowledge or suspicion that they are the result of criminal conduct shall be avoided until a notification has been sent to the Financial Intelligence Unit and guidance has been received from the office and has been followed. The report shall, if appropriate, state the period within which reporting entities are obliged to carry out the transactions.

If the transaction cannot be prevented or its suspension could prevent investigations against those who have an interest in the transaction, the Financial Intelligence Unit shall be notified of the transaction as soon as it has been carried out.

Reporting entities, managers, employees and others working for them are obliged to ensure that a customer or a third party is not informed that a report will be or has been sent to the Financial Intelligence Unit pursuant to Article 21 or that an analysis based on such a report is initiated or may be initiated.

Examples of suspicious and unusual transactions

• The customer does not prove his identity in an adequate manner.

• The customer does not disclose the purpose of the proposed transaction.

• A customer gives unreliable information, e.g. in relation to other information available and the size of the transaction.

• In the case of large amounts where payments are made in cash and large deposits or withdrawals in cash.

• If a transaction is expected to be conducted for the benefit of a third party and the customer refuses to provide information about the third party.

• Transactions that do not appear to have a financial or legitimate purpose.

• The transaction is unusual, large or complex, depending on the customer's usual activities.

• A customer withdraws from a transaction when they begin to obtain information about their purpose, the origin of funds or other information.

• Customer refuses to answer questions due to due diligence.

• The address of the customer is unknown or many people use the same address, since there is no activity or receiver.

• A customer pays off a loan in a very short period of time without proper explanation, for example, with cash.

• A loan is made by a third party, for example, a loan that has been defaulted and even paid out in cash.

• The use of the customer's account is not in accordance with the information provided when the account was established, for example regarding overseas turnover and transfers.

• A customer uses the same documents many times to explain the source of capital, e.g. a will.

• The customer is connected to a high-risk state or region.

• The activities or ownership of legal entities are complex or unusual in relation to what might be considered normal.

Where to report

Reports to the Financial Intelligence Unit should be received through goAML.

The Financial Intelligence Unit uses the system to receive notifications from reporting entities.