Contents
Law on Anti-Money Laundering and Counter-Financing of Terrorism
Article 3: Financing of terrorism
Article 4: Anti-money laundering
Article 5:Counter-financing of terrorism
Article 6: Actions of money laundering
Article 9: Policies on AML/CFT
Article 10: Principles of AML/CFT
Article 12: Obligations in AML/CFT
Article 13: Scope of the law enforcement
Article 14: International co-operation
Chapter 1: Activities of AML/CFT
Article 15: Activities of anti-money laundering
Article 16: Activities of counter-financing of terrorism
Article 17: Reporting entities
Article 18: Rights and Obligations of reporting entities
Article 19: Establish AML/CFT Programme
Article 20: Implementation of risk assessment and risk based approach
Article 21: Know Your Customer measures
Article 22: Customer Due Diligence measure
Article 23: Collection of detailed data on customers
Article 24: Data Collection on customers’ transactions
Article 25: Dealings with PEPs
Article 26: Dealings with corresponding banks
Article 27: Data collection on wire transfer
Article 28: Data record-keeping
Article 29: Postpone the transactions
Article 31: Suspicious transaction report
Chapter 3: Obligations on declaring cash, valuable goods and bearer negotiable instruments
Article 33: Declaration of cash, valuable goods and bearer negotiable instruments at border
Article 34: Examination by customs officers at border crossings
Chapter 4: Activities of legal persons or organisations and non-profit organizations
Article 35: Activities of legal persons or organisations
Article 36: Activities of non-profit organisations
Article 37: Transparency of legal persons, organisations and non-profit organisations
Chapter 5: Provisional Measures
Article 38: Use of provisional measures
Article 39: Freeze without advance warning
Article 40: Seizure, Freeze of funds or properties of terrorists
Article 41: Confiscation of funds or properties
Part III: International Co-operation in AML/CFT
Article 42: Principle of international co-operation
Article 43: Content of international co-operation
Article 44: Mutual Legal Assistance
Article 45: Content of the request for Mutual Legal Assistance
Article 46: Request for additional information
Article 47: Requirement of confidentialityArticle
Article 48: Delays in notification
Article 50: General prohibitions
Article 51: Prohibitions for staff and competent authorities
Article 52: Prohibitions for reporting entities
Part V: Management Body and Inspection of the Campaign of AML/CFT
Article 53: Management body of AML/CFT
Article 54: Rights and Duties of NCC
Article 55: Anti-Money Laundering Office
Article 57: Inspection body for AML/CFT
Article 58: Content of the inspection
Article 59: Forms of Inspection
Part VI: Policy on good performance and measures against violators
Article 60: Policies on good performance
Article 61: Measures against violators
Article 62: Re-education Measures
Article 63: Disciplinary Measures
Article 65: Measures against Reporting Entities
Article 66: Criminal measures for the offence of Money Laundering
Article 67: Criminal measures for the offence of financing terrorism
Article 68: Criminal measures for the offence of insider trading and market manipulation Offences
Article 70: Criminal measures for the offence of extortion
Article 71: Criminal measures for the offence of environmental crime
LAO PEOPLE’S DEMOCRATIC REPUBLIC
PEACE INDEPENDENCE DEMOCRACY UNITY PROSPERITY
President | No. 012/PO |
Vientiane Capital, dated 04.02.2015 |
DECREE
of the
PRESIDENT
of the
Lao People’s Democratic Republic
On the Promulgation of the Law on Anti-Money Laundering and
Counter-Financing of Terrorism
___________________________
The President of the Lao People’s Democratic Republic
Decrees that:
Article 1.The Law on Anti-Money Laundering and Counter-Financing of Terrorism is hereby promulgated.
Article 2.This decree is effective from the date it is signed.
President of the Lao People’s Democratic Republic
[Seal and Signature]
Choummaly XAYASONE
LAO PEOPLE’S DEMOCRATIC REPUBLIC
PEACE INDEPENDENCE DEMOCRACY UNITY PROSPERITY
-------------------------------------------
National Assembly | No. 08/NA |
RESOLUTION
Of the
National Assembly
Of the
Lao People’s Democratic Republic
On theApproval of the
Law on Anti-Money Laundering and Counter-Financing of Terrorism
________________
Pursuant to Article 53, point 2 of the Constitution and Article 3, point 1 of the Law on National Assembly of the Lao People’s Democratic Republic in relation to the rights and duties of the National Assembly.
After the 4th Ordinary Session of the VII National Assembly Legislature, wide studies and considerations were undertaken and agreement was reached on the content of the Law on Anti- Money Laundering and Counter-Financing of Terrorism in the agenda of the afternoon session of 21 July 2014;
The Meeting resolved that:
Article 1. The Law on Anti-Money Laundering and Counter-Financing of Terrorism is approved by majority votes.
Article 2. This Resolution is effective from the date it is signed.
Vientiane Capital, dated 21 July 2014
President of the National Assembly
[Seal and Signature]
Pany YATHOTOU
Lao People’s Democratic Republic
Peace Independence Democracy Unity Prosperity
---------------------------------------
National Assembly | No. 50/NA |
Vientiane Capital, dated 21 July 2014 |
Unofficial Translation
Anti-Money Laundering and Counter-Financing of Terrorism
Part I
General Provision
This law sets principles, regulations and measures relating to the managing, monitoring, inspecting the campaign of anti-money laundering and counter-financing of terrorism (herein after called “AML/CFT”) to make it efficient aimed at combating, preventing, curbing and eliminating these offences. Making the economic and financial system strong and sound, creating peace and order in society, integrating it regionally and internationally, and contributing to national socio- economic development.
Money laundering is the transformation, utilisation, displacement, exchange, acquisition, possession, transfer of true ownership of funds or other properties of an natural person, legal person or organisation that knows, knew or suspects that the properties are derived from the predicate offences to conceal or disguise their characteristics, origin, and location. This is aimed at legalising the funds or properties.
Article 3: Financing of terrorism
The financing of terrorism is an intentional act, both direct and indirect, of an natural person, legal persons or organisations that attempt to give, collect, acquire funds or properties, legally or illegally, wholly or partially, to supply funds to terrorism, terrorist or linked to a specific terrorism act whether the funds or properties are used in the actions or not.
Article 4: Anti-money laundering
The combat and interception of money laundering is an act of natural persons, legal persons and organisations that are directly tasked to finding, combating, preventing, curbing, and eliminating money laundering as defined in article 2 of this law. It is an offence that endangers national security, causes damages to the national socio-economic basis.
Article 5:Counter-financing of terrorism
The counter-financing of terrorism is an act of natural persons, legal persons and organisations whose direct tasks are to find, combat, intercept, curb, and eliminate financing of terrorism as defined in article 3 of this law. It is an offence that endangers the economic system and affects the national political regime.
Article 6: Actions of money laundering
Actions of money laundering are as follows:
In addition to the above, money laundering is demonstrated as follows:
In addition to criminal cases against violators who launder money, there must criminal cases brought against the original violator, as well.
Acts of terrorism are actions of natural persons, groups of people, organisations or terrorist organisation within or outside of the territory of the Lao PDR with funds provided to the act of terrorism as follow:
The terms used in this law have the following meaning:
Article 9: Policies on AML/CFT
The state supports, encourages natural persons, legal persons or organisations of all sectors to participate in the combat, prevention, curbing and elimination of money laundering and financing of terrorism.
The state pays attention to the dissemination and training of the general public to be aware of the effects of money laundering and financing of terrorism, which damage national security, social peace and orderliness, and the national, regional and international economic systems.
The state supports and encourages the campaign of AML/CFT by supplying budget, personnel, means/vehicles and modern techniques and equipment to relevant competent authorities for their effective performance.
Article 10: Principles of AML/CFT
The campaign of AML/CFT shall observe the following main principles:
The staff and authorities working on AML/CFT including those participating in the work such as informants, information gatherers, witnesses, experts and their families, will be protected in accordance with laws against revenge, threats against life, health, freedom and damage to their dignity, reputation or private properties.
Article 12: Obligations in AML/CFT
Natural persons, legal entities and organisations are obliged to render co-operation and participate in the combat and interception of money laundering and financing of terrorism.
Article 13: Scope of the law enforcement
This law applies to natural persons, legal persons and organisations, both local and foreign, running business operations inside and outside of the territory of Lao PDR involved in money laundering and financing of terrorism.
Article 14: International co-operation
The state encourages the relations and co-operation with foreign countries, regions and international community in AML/CFT through exchange of lessons, information, seminars, upgrade of technical knowledge and capacity building, technical assistance, and implementation of international agreements and treaties, which the Lao PDR is party to.
Campaign of AML/CFT
Chapter 1
Activities of AML/CFT
Article 15: Activities of anti-money laundering
The activities of anti-money laundering are the activities of reporting entities and relevant parties to combating, preventing, curbing, and eliminating of behaviour of legalising illicit funds and properties.
The details of the said activities are defined in separate regulation.
Article 16: Activities of counter-financing of terrorism
The activities of counter-financing of terrorism are the activities of reporting entities and relevant parties to combating, preventing, curbing, and eliminating behaviour of terrorism financing.
The details of the said activities are defined in separate regulation.
Reporting entities
Article 17: Reporting entities
Reporting entities are legal persons and organisations which have the obligation to report information or suspicious activities of being money laundering and financing of terrorism to the Anti-Money Laundering Intelligence Office (herein after called “AMLIO”).
Reporting entities which consists of financial institutions and DNFBPs as defined in subparagraph 7 and 8 of article 8.
Article 18: Rights and Obligations of reporting entities
The reporting entities have the following rights and obligations:
Establish AML/CFT Programme
Implementation of risk assessment and risk based approach ;
Implement Know Your Customer measures;
Customer Due Diligence measures;
Gather detailed information on customers;
Gather information about customers’ transactions;
Dealings with PEPs;
Dealings with corresponding banks;
Collect data on wire transfer;
Data recordkeeping;
Postponement of transactions;
Reporting;
Suspicious transaction report;
Confidentiality.
Overseas branches and companies in the group of the reporting entities are obliged to fulfill articles19 to 32 of this law.
In case the laws of the country where the branches and group companies are situated do not allow the application of these obligations, the reporting entities shall notify the supervisory agency which are under its management.
Article 19: Establish AML/CFT Programme
The reporting entities must establish and implement AML/CFT programmes as follows:
The reporting entities must appoint officials at executive level or qualified senior official with experience in AML/CFT to take charge of data collection and reporting and the work stipulated in paragraph 1 of this article, who will also serve as a co-ordinator with the AMLIO.
Article 20: Implementation of risk assessment and risk based approach
The reporting entities shall implement risk assessment and risk based approach of money laundering and financing of terrorism by determining, assessing, monitoring and mitigating the risks.
The mechanism of implementation of risk assessment risk based approach is defined in a separate regulation.
Article 21: Know Your Customer measures
The reporting entities must know about customers by requesting them to show their identification papers such ID card, household registration book, passport, enterprise registration licence or other official papers that can justify the customers’ identity or their representatives. Their information will be recorded, their papers duplicated and kept carefully.
The mechanism of Know Your Customer is defined in a separate regulation.
Article 22: Customer Due Diligence measures
The reporting entities must apply CDD measures to customers for the following cases:
In addition, the reporting entities must pay continual attention to customers to ensure the data and information provided in the past is still true presently and ensure that the customers’ business operations accord with the business operation records including efforts to learn about the source of funds or properties, if necessary.
The reporting entities must pay special attention to business relations or transactions with natural persons, legal persons or organisations in the country where the law on AML/CFT is not available. Or if available, the enforcement of the law is not strict yet.
The mechanism for the implementation of Customer Due Diligence measures is defined in a separate regulation.
Article 23: Collection of detailed data on customers
The reporting entities must collect, verify and confirm the data on customers who are natural persons such as names and surnames, date of birth, nationality, address and occupation of customers.
For customers who are legal entities, the reporting entities must collect, verify and confirm the data on name and address of companies, the identity paper of the director, information on stakeholders, operations and size of the business.
In case it is incapable of gathering detailed data on customers as defined in paragraphs one and two of this article, the reporting entities must cease service or business relations with that customer and must consider it is suspected and report it to the AMLIO as defined in article 30 and 31 of this Law.
Article 24: Data Collection on customers’ transactions
The reporting entities must collect data on aims and objectives of customers in using the service or establishing business relations with their institutes.
The reporting entities must try to find if the customers’ business ties are for their own behalf or for others. This is to find the real beneficial owner such as fund or property owners as well as funds used in the establishment of the enterprise.
Article 25: Dealings with PEPs
The reporting entities must have an appropriate system of risk management to find if customers or beneficiaries are PEPs.
In addition to articles 19 to 32 of this Law, the reporting entities shall also observe as follows:
Article 26: Dealings with corresponding banks
Financial institutions which maintain business ties or other similar ties with a corresponding bank shall act as follows:
If corresponding banks have business ties or transactions with anonymous banks or companies in the group, the reporting entities shall not establish or continue business ties with the corresponding banks or companies within the group.
Article 27: Data collection on wire transfer
In each service of wire transfer, the financial institution must gather and check the information about name and surname, address, account number, and purpose of the transferor’s transfer.
In case of acting as the medium of the transfer, the financial institution must ensure that the information about the transfer or and details about the transfer are collected correctly and completely before further delivery to the beneficiary.
In case the financial institution receives the transferred money with no information or missing information on the transferor, it has to check and find the missing information from the transferring institute or the beneficiary. If it is not provided, the financial institution receiving the transfer shall refuse the payment to the beneficiary and transfer the money back to the transferring financial institution and report the case to the AMLIO in due time.
The management of domestic and foreign transfer is defined in a separate regulation.
Article 28: Data record-keeping
The reporting entities shall carefully keep information on customers, documents on business ties and transactions of customers for further supply to the AMLIO and other related organisations.
In keeping the information, it is advised to do as follows:
Article 29: Postpone the transactions
When it is suspected that the customers’ transactions are activities of money laundering or financing of terrorism, the reporting entities must postpone the transactions for three working days and then report the cases to the AMLIO for consideration.
The reporting entities must report to the AMLIO in case the customer request to do the following transactions:
The Bank of the Lao PDR is responsible for setting the value of cash transactions, money transfer which are required for reporting, and issuing legislations on reporting.
Article 31: Suspicious transaction report
In the case of suspicion or act of customer leading to suspicion that a transaction may be from predicate offence, related and connected to money laundering and financing of terrorism, reporting entities shall report the transaction to AMLIO within three days. This includes attempts to process the transaction successfully or unsuccessfully, with no limit of transaction amount.
The executives and staff of the reporting entities shall keep secret the reporting of the transactions suspected of being acts of money laundering or financing of terrorism, or information reported to the AMLIO.
Maintaining customers’ confidentiality by the reporting entities as defined in their statute or agreement shall comply with this law.
The executives’ officers and staff of the reporting entities will not be taken disciplinary or criminal actions against for disclosing customers’ secrets, if the reporting or the provision of information is done with sincerity, in compliance with this law, and will not face any legal ramifications.
Obligations on declaring cash, valuable goods and bearer negotiable instruments
Article 33: Declaration of cash, valuable goods and bearer negotiable instruments at border
crossings Natural persons who take cash, valuable materials goods and bearer negotiable instruments in and out of the Lao PDR, whose value exceeds the limit fixed by the Bank of the Lao PDR at each period, need to declare them to customs officers at border checkpoints. Customs officers will be further reported to the AMLIO.
Article 34: Examination by customs officers at border crossings
Customs authorities at border checkpoints are responsible for checking the correct declaration of cash, valuable goods and bearer negotiable instruments of natural persons entering/exiting of the Lao PDR in accordance with the Law.
In case the customs authorities on the cross border detect or suspect that there is non- declaration or underreporting of cash, valuable goods and bearer negotiable instruments related money laundering and financing of terrorism, they will be seized or sequestrated immediately and reported to the AMLIO along with being investigated and interrogated to determine their source.
In case if there is incorrect declaration, in accurate amount, non-declaration or false declaration related to cash, valuable goods and bearer negotiable instruments on the cross border will be fined in accordance with the relevant regulations.
Activities of legal persons or organisations and non-profit organizations
Article 35: Activities of legal persons or organisations
Legal persons or organisations set up and operating business in the Lao PDR shall strictly apply this law and related regulations to ensure that their activities will not serve as a tool of money laundering and as a source of financing of terrorism.
Article 36: Activities of non-profit organisations
Non-profit organisations set up and operating in the Lao PDR shall strictly apply this law and related regulations and be monitored, and inspected on a regular basis to avoid being used as a tool of money laundering and as a source of financing of terrorism.
Article 37: Transparency of legal persons, organisations and non-profit organisations
Legal persons, organisations and non-profit organisations must operate within the scope of their rights and duties especially on supplying data on ownership, real beneficiaries, and data on their internal management while ensuring transparency, clarity, completeness and accuracy in each period.
Relevant authorities which grant licences to legal entities, organisations and non-profit organisations shall gather those pieces of information as stipulated in article 28 of this law.
Investigation agencies, supervisory agencies of the reporting entities, the AMLIO, and other relevant authorities can have access to the information at any time.
Provisional Measures
Article 38: Use of provisional measures
Competent authorities are eligible to take provisional measures to seize or freeze funds or properties in case they detect, find or suspect that money is being laundered or financing terrorism.
Taking provisional measures must be in conformity with the laws of the Lao PDR. In the meantime, it must ensure the rights and benefits of the third person and shall not affect regular operation of the financial and monetary system. But this must be reported to the People’s Prosecutor General within twenty-four hours.
The procedures of the implementation of provisional measures are defined in a separate regulation.
Article 39: Freeze without advance warning
Competent authorities have right to freeze funds or properties related financing of terrorism without advance warning to the beneficiary of the funds or properties to prevent transfer or further delivery to terrorist.
Article 40: Seizure, Freeze of funds or properties of terrorists
The funds or properties of persons and entities including terrorists, groups of terrorism financiers and international terrorist organisations stipulated in resolutions S/RES/1267 (1999), S/RES/1373 (2001) and its successors of the UN Security Council shall be seized and freeze without delay.
The procedures of the implementation of seizure, freeze of funds or properties of terrorists must follow specific legislation.
Article 41: Confiscation of funds or properties
In case there is enough evidence for the funds or properties to be involved in predicate offences, money laundering, financing of terrorism and each offence, the court shall pass a decision for the confiscation of funds or properties as follows:
The court decision ordering the confiscation must point out the nature, quantity, value and other necessary details of the funds or properties.
International Co-operation in AML/CFT
Article 42: Principle of international co-operation
International co-operation in AML/CFT between organisations of the Lao PDR and foreign organisations shall follow the principle of respect for independence, sovereignty and territorial integrity, non-interference in each other’s domestic affairs, mutual benefit, conformity with international agreements and treaties which the Lao PDR is party to.
Article 43: Content of international co-operation
International co-operation in AML/CFT shall do as follows:
Article 44: Mutual Legal Assistance
Mutual Legal Assistances aimed at the requests, co-operate for investigation, seizure and freeze funds or properties of the accused, defendant, offenders, use of other measures of Law, extradition, request for additional information and evidence related to offences.
The mechanism and procedures of Mutual Legal Assistance follows the related laws of the Lao PDR.
Article 45: Content of the request for Mutual Legal Assistance
Request for Mutual Legal Assistance shall include the following items:
In addition, Mutual Legal Assistance must observe the content of each case as follows:
In the case of a request for the enforcement of an order relating to seize or freeze the following:
In the case of requests for extradition, if the natural person has been convicted of an offence, the original or a certified copy of the judgment or any other document setting out the conviction and the sentence imposed, the fact that the sentence is enforceable and the extent to which the sentence remains to be served, can be provided according to the request.
Article 46: Request for additional information
The People’s Prosecutor General or competent authorities may request for additional information from the requesting state if necessary, in facilitation of actions according to the request for Mutual Legal Assistance.
Article 47: Requirement of confidentiality
The Competent authority of the Lao PDR must ensure the confidentiality of requests from the related states.
Article 48: Delays in notification
In case there will be delays or difficulties in taking provisional measures or investigation of actions in response to the requests for mutual legal assistance, there will be a need to notify the cause or give advice to competent authorities.
The competent authority of the Lao PDR may refuse the requests defined in articles 43 and 44 of this Law, if such request is not consistent with article 42 of this Law.
Prohibitions
Article 50: General prohibitions
Natural persons, legal persons and organisations related to the AML/CFT are prohibited from the following behaviours:
Article 51: Prohibitions for staff and competent authorities
Related staff and competent authorities are prohibited related to AML/CFT from the following behaviours:
Article 52: Prohibitions for reporting entities
Reporting entities are prohibited related to AML/CFT from the following behaviours:
Management Body and Inspection of the Campaign of AML/CFT
Chapter1
Management
Article 53: Management body of AML/CFT
The Government is to manage the AML/CFT activities centrally and unanimously in the nation, by assigning the National Coordination Committee (herein after called “NCC”) which is directly responsible for managing, monitoring, inspecting on the basis of co-ordination with other concerned authorities and related local administrations.
The Management body of AML/CFT is the NCC that has the role of chief of staff for the Government in implementation of this law and international standards relating to this work and attaining achievement.
The NCC on AML/CFT which is non-permanent body consists of: Chairman, Deputy Chairman and a number of members who will be appointed or removed by the Prime Minister.
Deputy Prime Minister is the Chairman of NCC on AML/CFT, Governor of Bank of Lao PDR is the first deputy chairman and act as standing member of the committee, Deputy Minister of Ministry of Public Security is the second deputy chairman and other members with equivalent- ranking of Deputy Minister from relevant ministries and Deputy Head of related organizations.
The organizational structure, activities and budget of the NCC for AML/CFT is set out in specific regulations.
Article 54: Rights and Duties of NCC
The NCC for AML/CFT has the following rights and duties:
Article 55: Anti-Money Laundering Office
The AMLIO is one organisation in the organisational structure of the Bank of Lao PDR and has the operational independence concerning his activities.
The AMLIO has main roles and tasks in data collection, analysis, dissemination, co- ordination with related parties both domestically and internationally for the combat and prevent of money laundering and terrorism financing.
The AMLIO uses the budget of the Bank of the Lao PDR.
Organisational structure and activities of the AMLIO are defined in separate regulation.
The NCC for AML/CFT operates according to the meeting regime. The meetings of the NCC for AML/CFT consist of ordinary meeting and extraordinary meeting.
Ordinary meeting is held every three months with of more than half of the quorum of members.
Extraordinary meeting may be held as needed upon convocation of the Chairman of NCC or upon proposal of more than half of members.
The meetings of the NCC for AML/CFT can agree on issues by the majority of the members attending the meetings. In case the votes are equal, the vote of the Chairman of the National Committee for AML/CFT will be decisive.
Inspection
Article 57: Inspection body for AML/CFT
The Inspection body for AML/CFT include:
Article 58: Content of the inspection
The campaign of AML/CFT will be inspected on the following accounts:
Article 59: Forms of Inspection
The inspection of activities in the areas of combating and prevention of money laundering and financing of terrorism has the content as follow:
Regular inspection is any inspection carried out in accordance to regular plans within certain time periods.
Inspection with advance notification is any unplanned inspection carried out when it is deem necessary and it is carried out with advance notification given to the person to be inspected.
Ad hoc inspection is any inspection carried out urgently without providing advance notice.
The operation of activities in combating and preventing money laundering and financing of terrorism arrived out by the inspection authorities shall be in line with the laws and regulations in strict manners.
Policy on good performance and measures against violators
Article 60: Policies on good performance
Any natural person, legal person or organisation producing notable results in the performance of this law primarily in the areas of cooperation or supply information on behaviours or activities suspected of being money laundering and financing of terrorism shall receive commendation and benefits derived from other policies in accordance with legal regulations.
Article 61: Measures against violators
Any natural person, legal person or organization violating a statute of this law shall undergo re-education measures, discipline, fines or criminal sanctions in accordance with the severity of the violation and shall make compensation for damages incurred.
Article 62:Re-education Measures
Any person, legal person or organisation violating a statute of this law that have incurred minor damages principally a delayed submission of a suspicious transaction report, not taking adequate care in regards to the confidentiality of a suspicious transaction report shall undergo re-education measures.
Article 63: Disciplinary Measures
Any staff personnel, officials committing an infringement of this law that is not a criminal offence and has incurred minor damages but are not sincere in making report, avoiding their duties, shall undergo disciplinary measures according to the severity of the case.
A natural person, legal person or any organization, which violates the prohibition as specified in article 50, 51 and 52 of this law in each case which not will be an criminal offence will be fined according to the light or heavy punishment.
The penalty in each case is specified in the separate regulation.
Article 65: Measures against Reporting Entities
Reporting Entities shall be subject to the following measures:
1 There is a violation or lack of implementation of its rights and obligations as article 18 of this law will be:
1.1 Such person shall be warned in writing and take action to comply with the rights and obligations;
1.2 Shall be fined as specified in the separate regulation.
2 There is violated the prohibition as specified in article 50 and 52 of this law will be:
2.1 Administrators shall be suspended or removed;
2.2 Withdrawing of business licenses or business registration certificates;
2.3 Shall be subject to legal proceedings of criminal and shell be fined with 100,000,000 up to 2,000,000,000 kip.
Article 66: Criminal measures for the offence of Money Laundering
Any natural person who commits a money laundering offence:
In the case of organized group or habitual offender, offenders will be punished by detention from ten to twelve years and shall be fined with 700,000,000 Kip up to 900,000,000 Kip and the properties will be confiscated.
The act of preparation and attempting to commit offence shall also be penalized.
Article 67: Criminal measures for the offence of financing terrorism
Any natural person who commits the offence of financing of terrorism:
In the case of organized group or habitual offender, offenders will be punished by detention from twelve to twenty years and will be fined with 800,000,000 Kip up to 1,000,000,000 Kip and the properties will be confiscated.
The act of preparation and attempting to commit offence shall also be penalized.
Article 68: Criminal measures for the offence of insider trading and market manipulation Offences
Any natural person who commits insider trading and market manipulation offences will be subject to imprisonment of six month to three years and shall be fined with 300,000,000 Kip up to 500,000,000 Kip and the properties will be confiscated.
In the case of organized group or habitual offender or cause serious damages, offenders will be punished by detention five to seven years and will be fined with 500,000,000 Kip up to 700,000,000 Kip and the properties will be confiscated.
The act of preparation and attempting to commit offence shall also be penalized.
Article 69: Criminal measures for the offence of participation in an organized criminal group and racketeering
Any natural person who commits an offence by participation in an organized criminal group and racketeering will be punished to imprisonment of three to six years and will be fined of 30,000,000 Kip up to 60,000,000 Kip and the properties will be confiscated.
The act of preparation and attempting to commit offence shall also be penalized.
Article 70: Criminal measures for the offence of extortion
Any natural person who commits the offence of extortion will be punished to imprisonment of two to five years and will be fined with 20,000,000 Kip up to 50,000,000 Kip and the properties will be confiscated.
The act of attempting to commit crime shall also be penalized.
Article 71: Criminal measures for the offence of environmental crime
Any natural person who commits the offence of environmental crime will be punished according to the severity of the case as defined in Penal Law and other law that defined criminal penalties.
Final provisions
This law shall be implemented by the Government of the Lao People’s Democratic Republic.
This law shall come into force upon the date of promulgation by the President of the Lao People’s Democratic Republic and after 15 days of notification of an official gazette.
Any regulations, provision conflicting with this law are hereby cancelled.
President of the National Assembly
[Seal and Signature]
Pany YATHOTOU
Name | Description | Status |
---|---|---|
Requirement to combat money laundering and financing of terrorism | Individuals, legal entities and organisations must provide information and cooperate in combatting money laundering and financing of terrorism | Active |
Appointment of senior level officials to be responsible for key activities relating to AML/CFT | The reporting entities must appoint officials at executive level or qualified senior official with experience in AML/CFT to take charge of data collection and reporting and the AML/CFT Programme | Active |
Collection of detailed data on customers that are legal entities by reporting entities | For customers who are legal entities, the reporting entities must collect, verify and confirm the data on name and address of companies, the identity paper of the director, information on stakeholders, operations and size of the business. | Active |
Collection of detailed data on customers that are natural persons by reporting entities | Reporting entities must collect, verify and confirm the data on customers who are natural persons such as names and surnames, date of birth, nationality, address and occupation of customers. | Active |
Confidentiality | Executives and staff of the reporting entities shall keep secret the reporting of the transactions suspected of being acts of money laundering or financing of terrorism, or information reported to the Anti Money Laundering Intelligence Office. | Active |
Customer Due Diligence measures | Reporting entities must apply the following Customer Due Diligence measures to customers for the following cases: To provide services or establishing business relations with new customers; Carrying out occasional transactions, one time or several times that leads to suspicion; Transactions which are complex, of high value, and shows irregular character; Transactions suspected of money laundering or financing of terrorism; Data/information about customers is not complete or suspected to be incorrect | Active |
Data Collection on customers’ transactions | Reporting entities must collect data on aims and objectives of customers in using the service or establishing business relations with their institutes. | Active |
Data record-keeping | Reporting entities must keep information on customers, documents on business ties and transactions of customers by: duplicating the certificates of customers and beneficiaries from the transactions and keeping them for at least ten years after the end of the business ties with the customers; | Active |
Dealings with corresponding banks | Financial institutions which maintain business ties or other similar ties with a corresponding bank must: Review the legal person status of the corresponding bank they are doing business with; Gather data on the nature of business operation of the corresponding bank; Assess the creditability, management and audit of the corresponding bank based on the data provided for the public; Assess the implementation of the campaign of AML/CFT of the corresponding bank; and Observe the law relating to the business relations with corresponding banks. | Active |
Dealings with Politically Exposed Persons (PEPs) | Reporting entities must have an appropriate system of risk management to find if customers or beneficiaries are Politically Exposed Persons (PEPs) | Active |
Declaration of cash, valuable goods and bearer negotiable instruments at border crossings | Natural persons who take cash, valuable materials goods and bearer negotiable instruments in and out of the Lao PDR, whose value exceeds the limit fixed by the Bank of the Lao PDR at each period, must declare them to customs officers at border checkpoints. | Active |
Establishment of AML/CFT Programme by Reporting Entities | Reporting entities must establish and implement AML/CFT programmes which will include: Policies and procedures, follow-up and control, procedures for the recruitment of qualified staff; Training plans, and on-going training for staff; Internal control on the implementation of this Law and other related laws and regulations; and Assessment of the campaign of AML/CFT | Active |
Implementation of risk assessment and risk based approach | Reporting entities shall implement risk assessment and risk based approach of money laundering and financing of terrorism by determining, assessing, monitoring and mitigating the risks. | Active |
Obligation to ask for identification | Reporting entities must know about customers by requesting them to show their identification papers such ID card, household registration book, passport, enterprise registration licence or other official papers that can justify the customers’ identity or their representatives | Active |
Obligations regarding Anti-Money Laundering and Countering of the financing of terrorism | Natural persons, legal entities and organisations must cooperate and participate in the combat and interception of money laundering and financing of terrorism. | Active |
Postponing transactions | When it is suspected that the customers’ transactions are activities of money laundering or financing of terrorism, the reporting entities must postpone the transactions for three working days and then report the cases to the Anti-Money Laundering Intelligence Office for consideration. | Active |
Prohibition on bribing staff and competent authorities | Natural persons, legal persons and organisations are prohibited from bribing staff and competent authorities | Active |
Prohibition on concealing, disusing, threatening, impeding and obstructing the functions of competent authorities | Natural persons, legal persons and organisations are prohibited from concealing, disusing, threatening, impeding and obstructing the functions of competent authorities | Active |
Prohibition on engaging in money laundering and the financing of terrorism | Natural persons, legal persons and organisations are prohibited from being involved in money laundering or financing of terrorism | Active |
Prohibition on falsifying documentation or official seals | Natural persons, legal persons and organisations are prohibited from falsifying documentation or official seals | Active |