Federal Law N 115-FZ of August 7, 2001 on Combating Legalisation (Laundering) of Proceeds from Crime and Financing of Terrorism

FEDERAL LAW
NO. 115-FZ OF AUGUST 7, 2001 (otherwise named in English) ON COUNTERING THE LEGALISATION OF ILLEGAL EARNINGS (MONEY LAUNDERING) AND THE
FINANCING OF TERRORISM
(with the Amendments and Additions of July 25, October 30, 2002, July 28, 2004, November 16, 2005,
July 27, 2006, April 12, July 19, 24, November 28, 2007, July 17, 2009)
Adopted by the State Duma on July 13, 2001
Approved by the Federation Council on July 20, 2001

Chapter I. General Provisions

Article 1. Goals of the present Federal law

The present Federal law shall be aimed at the protection of the rights and legal interests of citizens, society and state by means of creation of the legal mechanism of taking actions against legalisation (laundering) of proceeds from crime and financing of terrorism.

Article 2. Sphere of application of the present Federal law

The present Federal law shall regulate relationships of citizens of Russia, foreign citizens and persons without citizenship, organisations performing operations with monetary funds or other assets, as well as state authorities performing control on the territory of Russia over performance of operations with monetary funds or other assets, for purposes of prevention, revelation and curbing of actions connected with legalisation (laundering) of proceeds from crime, and financing of terrorism. In accordance with international agreements of Russia this Federal law shall be applied to persons and legal entities performing operations with monetary funds or other assets outside the territory of Russia.

Article 3. Basic concepts used in this Federal law

The following basic concepts shall be used for purposes of this Federal law: Proceeds from crime – monetary funds or other assets obtained as a result of a crime; legalisation (laundering) of proceeds from crime – making ownership, use or disposition of monetary funds or other assets obtained as a result of a crime legal, except for crimes provided by articles 193, 194, 198, 199, 199.1 and 199.2 of the Criminal Code of Russia; financing of terrorism – providing or collecting funds or rendering financial services knowing that they are aimed at financing of arrangement, preparation and commission of at least one of the crimes stipulated by articles 205, 205.1, 205.2, 206, 208, 211, 277, 278, 279 and 360 of the Criminal Code of Russia, or at supporting an organised group, illegal armed formation, or criminal association (criminal organisation) established or being established for committing at least one of the mentioned crimes; operations with monetary funds or other assets – operations of persons and legal entities with monetary funds or other assets regardless of the form and way of performance thereof, directed to establishing, changing or termination of legal rights and liabilities connected therewith; authorised body – federal executive authority taking actions against legalisation (laundering) of proceeds from crime, and financing of terrorism in accordance with this Federal law; obligatory control – combination of measures taken by the authorised body for control over operations with monetary funds or other assets on the basis of the information provided thereto by organisations performing these operations, as well as for verification of this information in accordance with the legislation of Russia; internal control – activity of organisations performing operations with monetary funds or other assets for revealing operations to be put under obligatory control and other operations with monetary funds or other assets, connected with legalisation (laundering) of proceeds from crime, and financing of terrorism.

Chapter II. Prevention of legalisation (laundering) of proceeds from crime and financing of terrorism

Article 4. Measures taken against legalisation (laundering) of proceeds from crime and financing of terrorism

Measures taken against legalisation (laundering) of proceeds from crime and financing of terrorism shall include: Obligatory procedures of internal control; Obligatory control; Banning on informing clients and other persons on measures taken against legalisation (laundering) of proceeds from crime and financing of terrorism; Other measures taken in accordance with the federal laws.

Article 5. Organisations performing operations with monetary funds or other assets

For purposes of this federal law the following shall be related to organisations performing operations with monetary funds or other assets: Credit institutions; Professional participants of the security market; Insurance organisations and leasing companies; Organisations of federal post communication; Pawn shops; Organisations involved in purchase, buy-sell of precious metals and precious stones, jewellery made out of them and scratched items; Organisations arranging totalisators and bookmaker offices as well as organising and carrying out lotteries, totalisators (mutual bets) and other risk-based games, including in electronic form; organisations managing investment funds or non-governmental pension funds; organisations rendering intermediary services when performing operations of sale and purchase of real estate; non-credit organisations accepting cash funds from physical persons in cases provided for by the legislation on banks and banking activity; commercial organisations concluding financial contracts on cession of money rights as financial agents.

Article 6. Operations with monetary funds or other assets due to obligatory control

1            Operations with monetary funds or other assets shall be subject to obligatory control, if the amount at which it is performed equals or exceeds 600000 roubles or hard currency sum equivalent to 600.000 roubles, and by its character this operation is one of the following operations.

1)           cash operations with monetary funds: withdrawal from an account or placement in an account of a legal entity of cash funds in the events which are not provided by the character of its economic activity; purchase or sale of cash foreign currency by a natural person; acquisition by a person of securities for cash; getting by a person of a bearer’s check cashed, issued by a non-resident; change of notes of one denomination for notes of other denomination: contributing by a person of cash funds in the authorised capital of an organisation;

2)           placement or remittance of monetary funds into an account, provision or getting of a credit (loan), operations with securities, if at least one of the sides is a person or a legal entity having registration, place of residence or location in the state (on the territory), which does not participate in the international cooperation in the sphere of combating money laundering and financing of terrorism, or one of the sides is a person which is an owner of an account in the bank registered in such state (or the territory). The list of these states (territories) shall be determined in the procedure set by the Government on the basis of lists approved by international organisations combating money laundering and financing of terrorism, and shall be subject to publication;

3)           operations on bank accounts (deposits): placement of monetary funds in deposits (on deposits) with execution of documents certifying a bearer’s deposit; opening of a deposit in favour of the third parties with placement therein of cash funds; remittance of monetary funds abroad onto an account (deposit) opened for an anonymous owner and incoming of monetary funds from abroad from an account (deposit) opened for an anonymous owner; placement of monetary funds into an account (deposit) or withdrawal from an account (deposit) of a legal entity whose term of activity does not exceed three months from the date of its registration, or placement of monetary funds into an account (deposit) or withdrawal from an account (deposit) of a legal entity in case no operations have been performed on this account (deposit) since the date of opening thereof;

4)           other operations with movable property: placement of precious metals, precious stones, jewellery made out of them and scratched items or other valuables into pawn shop; payment of an insurance indemnity to a person or receiving from him of an insurance premium for life insurance or other types of accumulation insurance and pension allowance; obtaining or providing property under contract of financial leasing; remittance of monetary funds performed by non-credit institutions by client’s order; purchase, buy-sell of precious metals and precious stones, jewellery items made of them and scratched items; receiving monetary funds as payment for participation in a lottery, totalisator (mutual bet) and other risk-based games, including in electronic form, and payment of monetary funds as the prize received from participation in these games; granting by the legal persons that are not credit organisations, of interest-free loans to natural persons and (or) to other legal persons, as well as reception of such loan.

1.1.         Operations with real estate is subject to the obligatory control if the amount of it is equal to or exceeds 3000000 roubles or is equal to or exceeds the amount in a foreign currency equivalent to 3000000 roubles.

  1. Operation with monetary funds or other assets is subject to obligatory control when at least one of the sides is an entity or a person on which there are data received in procedure set by the present Federal law about their involvement in extremist activity or terrorism, or a legal entity directly or indirectly owned or under control of such organisations or persons, or a person or entity acting in the name or by order of such entity or person. The procedure of determining and disseminating the list of such entities and persons to organisations performing operations with monetary funds or other assets, is set by the Government. An entity or a person is to be included into the mentioned list on following basis: A Russian Federation court decision entered into legal force on liquidation or prohibition of activity of organisation in connection with its involvement in extremist activity or terrorism; A Russian Federation court sentence entered into legal force on declaring a person guilty in committing a terrorist crime; A decision of the Prosecutor General or a subordinate to him prosecutor on suspending activity of an organisation in connection with their claim to the court to draw the organisation to liability for terrorist activity; Order by an investigator for initiating a criminal case concerning a person having committed a terrorist crime; Lists of entities and persons connected to terrorist organisations or terrorists set by international organisations fighting against terrorism or by authorised by them bodies and accepted by Russia; Accepted by Russia in accordance with international agreements of Russia and federal laws sentences (decisions) of courts and other competent authorities of foreign states on organisations or persons performing terrorist activity; Inclusion of an organisation in accordance with Federal law No. 35-FZ dated March 6, 2006 “On combating terrorism” into the federal list of organisations, including foreign and international organisations, recognised by the courts of Russia as terrorist organisations.
  2. In case an operation with funds or other property is carried out in foreign currency, its equivalent sum in Russian roubles is set by the exchange rate of the Central Bank valid on the day that this operation was conducted.
  3. Reports on operations with monetary funds or other assets due to obligatory control are submitted directly to the authorised agency by institutions performing operations with monetary funds or other assets.

Article 7. Rights and responsibilities of organisations performing operations with monetary funds and other assets

  1. Organisations performing operations with monetary funds and other assets are obliged to:

1)           identify the person serviced by the organisation performing operations with monetary funds or other assets (client), excluding cases established by items 1.1. and 1.2. of the present article, and establish the following data: regarding natural persons – a surname, a name, and also a patronymic (if other does not follow from the law or national custom), citizenship, data of the document certifying the person, the data of a migration card, the document confirming the right of the foreign citizen or the person without citizenship on stay (residing) in Russia, the address of residence (registration) or a place of stay, taxpayer’s identification number (at its presence); regarding legal persons – the name, taxpayer’s identification number or a code of the foreign organisation, state registration number, a place of the state registration and the address of location;

2)           undertake reasonable and accessible in the specific circumstances measures for establishment and identification of beneficiaries, except in cases established by items 1.1.and 1.2 of the present article;

3)           regularly update the information on clients, beneficiaries;

4)           to fix in documents and submit to the authorised body the following information on operations with monetary funds or other assets which are subject to obligatory control, not later than the working day following the date of performance of the operation: the type of operation and grounds for performance thereof; the date of performance of the operation with monetary funds or other assets, as well as the amount at which it was performed; information necessary for identification of the person who performs operations with monetary funds or other assets (data of the passport or another identification card), the data of a migration card, the data of the document confirming the right of the foreign citizen or the person without citizenship on stay (residing) in Russia, taxpayer’s identification number (if it exists), the address of his residence or a place of stay; the name, taxpayer’s identification number, state registration number, place of state registration and the address of the location of the legal entity, which performs the operation with monetary funds or other assets; information necessary for identification of a person or legal entity by whose order and on whose behalf an operation with monetary funds or other assets is performed, the data of a migration card, the data of the document confirming the right of the foreign citizen or the person without citizenship on stay (residing) in Russia, taxpayer’s identification number (if it exists), residential address or address of the place of location correspondingly of the person or legal entity; the information necessary for identification of the representative of the natural or legal person, the attorney, the agent, the commission agent, the trustee performing operation with monetary funds or other assets, on behalf of or in interest of or at expense of other person by virtue of the power based on proxy, the contract, the law or the certificate of the authorised state body or institution of local self-management, the data of a migration card, the data of the document confirming the right of the foreign citizen or the person without citizenship on stay (residing) in Russia, taxpayer’s identification number (at its presence), the address of a residence of the representative of the natural or legal person; the information necessary for identification of the addressee on operation with monetary funds or other assets and his representative, including the data of a migration card and the document confirming the right of the foreign citizen or the person without citizenship on stay (residing) in Russia, taxpayer’s identification number (at its presence), the address of a residence or a site of the addressee and his representative if it is stipulated by rules of performance of corresponding operation;

5)           to submit to the authorised body, upon its written requests, information stated in sub item 4 of this clause both with respect to operations which are subject to obligatory control and operations stated in sub item 3 of this article. The procedure of submission by the authorised body of the above mentioned requests shall be determined by the Government as agreed with the Bank of Russia. The authorised body shall not have the right to ask for documents and information on operations performed before the enforcement of this Federal law, except the documents and information which shall be submitted on the basis of the appropriate international agreement of Russia.

1.1.         Identification of the client – natural person, verification and identification of the beneficiary are not performed when organisations performing operations with funds or other assets carry out operations for accepting from clients – natural persons of the following payments if they do not exceed 30000 roubles or an amount in foreign currency equivalent to 30000 roubles:

1)           related to settlements with budgets of all levels of the budget system of Russia (including federal, regional and local taxes and duties, as well as fines those provided for by the legislation of Russia on taxes and duties);

2)           related to payment for services rendered by budget institutions being under management of federal executive bodies, executive bodies of the constituent entities of Russia and bodies of local self-management;

3)           related to payment for flats, communal services, payment for safeguarding flats and instalment of safeguarding signalisation, as well as payment for communications services;

4)           related to payment of contributions by members of orchid, garden, summer houses’ non-commercial associations of citizens, garage-construction cooperatives. Payments for paid auto placements;

5)           related to payments of alimony.

1.2.         At carrying out by a natural person of an operation on buying or selling cash foreign currency for the amount not exceeding 15000 roubles or not exceeding the amount in foreign currency equivalent to 15000 roubles, the identification of the client – natural person, verification and identification of beneficiary are not performed except the case when an officer of the organisation performing operations with monetary funds or other assets has suspicion that this operation is carried out with the aim of legalisation (laundering) of proceeds from crime or financing of terrorism.

1.3          Organisations carrying out operations with monetary funds or other assets, in addition to the measures stipulated by item 1 of the present Article shall be obliged to:

1)           adopt reasonable and possible in the circumstances measures on identification, among physical persons serviced or when establishing business relations, of foreign public persons;

2)           establish business relations with foreign public persons only upon written approval of the head of the organisation carrying out operations with monetary funds or other assets, or his deputy;

3)           take reasonable and possible in the circumstances measures to establish the source of the monetary funds or other assets of foreign public persons;

4)           update on the permanent basis the information the organisation carrying out operations with monetary funds or other assets has, on the foreign public persons serviced by them;

5)           pay higher attention to the operations with monetary funds or other assets performed by foreign public persons, their spouses, close relatives (direct relatives (parents and children, grandparents and grandchildren), full blood and half-blood (having common father or mother) brothers and sisters, the adopters and the adopted) or on behalf of those persons.

  1. In order to prevent legalisation (laundering) of proceeds from crime and financing of terrorism, organisations performing operations with monetary funds or other assets must develop rules of internal control and programmes of its performance, appoint officials responsible for the observance of these rules and realisation of these programmes, as well as take other internal organisational measures for the indicated purposes. Rules of internal control of an organisation performing operations with monetary funds or other assets must include the procedure for fixing of the necessary information in documents, procedure for provision of confidentiality of information, qualification requirements to preparation and training of the staff, as well as criteria of revealing and signs of unusual deals with the account of specific features of the activity of this organisation. In accordance with the rules of internal control, organisation performing operations with monetary funds or other assets must fix in documents the information obtained as a result of application of these rules and realisation of the programmes of internal control, and preserve its confidential character. The following shall be the grounds for fixing the necessary information in documents: Intricate or unusual character of a deal which does not have evident economic sense or evident legal purpose; Incompliance of the deal with the goals of the organisation, established by founding documents of this organisation; Repeated performance of operations or deals whose character makes us suppose that the purpose for their performance is evasion of procedures of the obligatory control, provided by this Federal law; Other circumstances, which give reasons to suppose that deals are performed for purposes of legalisation (laundering) of proceeds from crime, or financing of terrorism. Internal control rules are developed with consideration of recommendations adopted by the Government, and for credit institutions – by the Bank of Russia as agreed with the authorised body, and are approved according to the procedure set by the Government. Qualifying requirements for special officials responsible for observance of rules of the internal control and programmes of its implementation, as well as requirements for education and training of the staff, for identification of clients, beneficiaries shall be determined according to the procedure established by the Government, for the credit organisations – by the Bank of Russia as agreed with the authorised body. The requirements for identification can differ depending on a degree (level) of risk of performance by the client of operations with the purpose of legalisation (laundering) of proceeds from crime or financing of terrorism.
  2. If employees of an organisation performing operations with monetary funds or other assets have got any suspicions resulting from realisation of the internal control programmes, stated in clause 2 of this article, that some operations are performed for purposes of legalisation (laundering) of proceeds from crime and financing of terrorism, this organisation not later than working day following the day on which such operations are detected must forward to the authorised body information on these operations regardless to whether they refer to operations provided by article 6 of this Federal law or not.

3.1.         Cashless settlements and money transfers without opening an account carried out on the territory of Russia and from Russia abroad, except those mentioned in item 11 of the present Article, shall be accompanied at all stages of carrying them out with originator information and the number of his account where the account exists through indication of that information in the settlement document or otherwise. The information on the originator – physical person shall include a name, family name, patronymic (if otherwise does not follow from law or national custom), as well as taxpayer identification number (if any) or the address (registration address) or place of living, or date and place of birth. The information on the originator – legal entity shall include the name, taxpayer identification code or foreign organisation code. The organisation carrying out operations with monetary funds or other assets shall refuse to conduct the money transfer in case of absence of information mentioned in paragraphs one-three of the present item.

  1. Documents containing information stated in this article, and data necessary for identification of the personality, shall be kept not less than 5 years. The specified term is calculated from the date of the termination of relations with the client.
  2. The credit institutions are prohibited to: open accounts (deposits) for anonymous owners, i.e. without supply by the person or legal entity opening the account (deposit) of the documents necessary for identification thereof. Open accounts (deposits) for natural persons without personal presence of the person opening the account (deposit), or his representative; establish and maintain relations with the banks that do not have permanent control body on the territory of the states where they are registered.

5.1.         Credit institutions are obliged to undertake measures directed on prevention of establishment of relations with foreign banks-respondents with regard of which there is information, that their accounts are used by the banks which do not have permanent control body on the territory of the states where they are registered.

5.2.         Credit institutions are authorised to refuse to conclude the contract of the bank account (deposit) with natural or legal person in the following cases: absence in the location of the legal person of its permanent control body, other body or person which have the right to act on behalf of the legal person without the proxy; a person or legal entity fails to submit documents certifying the data indicated in the present Article or if invalid documents are presented; there are data on the natural or legal person concerning participation in terrorist activity, received in accordance with the present Federal law.

  1. Employees of organisations providing the appropriate information to the authorised body shall not have the right to inform clients of these organisations or other persons thereabout.
  2. The procedure for submission of information to the authorised body shall be established by the Government, and with respect to credit institutions – by the Bank of Russia as agreed with the authorised body.
  3. Submitting to the authorised authority of reports and documents by personnel of institutions performing operations with monetary funds or other assets concerning operations and for the purposes and in the procedure set by the present Federal law shall not constitute a breach of office, banking, tax, commercial secrecy and communication secrecy (in the meaning of post remittance of monetary funds).
  4. Control over execution by persons and legal entities of this Federal law in the part of registration, storage and presenting of information on operations which are subject to the obligatory control as well as over organisation of internal control shall be performed by the appropriate supervisory agencies in accordance with their competence and in accordance with the procedure established by the legislation of Russia, as well as the authorised body in the event of absence of supervisory agencies in the sphere of activity of certain organisations performing operations with monetary funds or other assets. In case supervisory bodies do not exist in the sphere of certain organisations handling operations with monetary funds or other assets, such organisations are subject to registration in the authorised agency in the procedure established by the Government.
  5. Organisations handling operations with monetary funds or other assets, have to adjourn such operations excluding operations on incoming monetary funds to the account of a person or entity, for two working days as of the date a client orders the operation to be completed, and not later than the working day after the stopping of the operation the information on an operation shall be sent to the authorised agency in case if at least one of the sides is an entity or a person on which there are data on their participation in terrorist activity, received in accordance with item 2 of article 6 of the present Federal law, or a legal entity is directly or indirectly owned or under control of such organisations or persons, or a person or entity acting in the name or by order of such entities or persons. In case the Resolution of the authorised agency on the operation adjournment for the additional term on the basis of Part 3, Article 8 of this Federal law does not arrive, the organisation handles operations with monetary funds or other assets upon the client’s order unless other decision constraining operation completion is taken in accordance with the Russian Federation legislation.
  6. Organisation handling operations with monetary funds or other assets are liable to reject a clients order for operation completion excluding operations in incoming monetary funds at the account of a person or entity, if respective documents are not submitted required for information registration in pursue to provisions of this Federal law.
  7. Adjourning of operations in accordance with item 10 and refusal to perform an operation in accordance with item 11 of this article are not basis for civil-legal liability of organisations performing operations with monetary funds or other assets for breaking conditions of respective agreements.
  8. The credit institutions are obliged to fix in documents and submit to the authorised body information on cases of refusal, on the basis specified in the present Article, to conclude the contract of the bank account (deposit) with natural or legal person, refusal to perform operations, within the period not later than the working day following the day of carrying out the specified actions, according to the procedure established by the Bank of Russia as agreed with the Government.

Article 7.1. Rights and responsibilities of other persons

  1. Requirements regarding identification of clients, establishment of the internal control rules, fixation and keeping of the information established by sub item 1 of item 1, items 2 and 4 of Article 7 of the present Federal law, cover lawyers, notaries and the persons carrying out business activity in the sphere of providing legal or accounting services, in cases when they prepare or carry out in the name of or on behalf of the client, the following operations with monetary funds or other assets: operations with real estate; management of client’s monetary funds, securities or other assets; management of bank, savings or securities accounts; organisation of contributions for the creation, operation or management of companies; creation, operation or management of legal persons, as well as buying and selling of companies.
  2. When the lawyer, the notary, the person carrying out business activity in the sphere of providing legal or accounting services, have any reasons to believe that operations or financial operations specified in item 1 of present Article, are performed or can be performed with the purpose of legalisation (laundering) of proceeds from crime or financing of terrorism, they are obliged to notify the authorised body. The lawyer and the notary have the right to submit such information both independently and through corresponding lawyer’s and notary’s chambers if such chambers have concluded agreements on cooperation with the authorised body.
  3. The procedure of submission by lawyers, notaries, the persons carrying out business activity in the sphere of providing legal or accounting services, of information on operations or the financial operations specified in item 2 of present Article, shall be established by the Government.
  4. The lawyer and lawyer’s chamber, the notary and notary’s chamber, the persons carrying out business activity in the sphere of providing legal or accounting services, have no right to disclose the fact of submission to the authorised body of the information specified in item 2 of present Article.
  5. The provisions of item 2 of present Article do not apply to the information subject to the requirements of the legislation of Russia for lawyer’s secrecy.

Chapter III. Organisation of activities against legalisation (laundering) of proceeds from crime and financing of terrorism

Article 8. Authorised body

The authorised body established by the President of Russia is a federal executive authority whose tasks, functions and competence in the sphere of combating legalisation (laundering) of proceeds from crime and financing of terrorism are set in accordance with this Federal law. In case there are sufficient grounds demonstrating that an operation or deal are connected with legalisation (laundering) of proceeds from crime, or financing of terrorism, the authorised body shall forward the appropriate information and materials to law enforcement bodies in accordance with their competence. An authorised agency issues an order on adjourning the operations with monetary funds or other assets up to 5 days period as indicated in Item 2 Article 6 of this Federal law, in case information submitted in accordance with Item 10, Article 7 of this Federal law, by the results of preliminary checks is regarded as substantiated. In execution of this Federal law employees of the authorised body shall provide safety of the information, which became known to them, connected with the activity of the authorised body and representing official, bank, tax, commercial secrets and communication secrecy (in part of remittance of monetary funds), and shall bear responsibility for disclosure of this information, established by the legislation of Russia. Damage inflicted on persons or legal entities by illegal actions of the authorised body or its employees in connection with the performance of their functions shall be subject to compensation for the account of federal budgetary funds in accordance with the legislation of Russia.

Article 9. Presentation of information and documents

State authorities of Russia, state authorities of constituent entities of Russia and local self-management bodies shall supply to the authorised body information and documents necessary for performance of its functions (except information on citizens’ private life) in accordance with the procedure established by the Government. The Bank of Russia shall supply to the authorised body information and documents necessary for performance of its functions in accordance with the procedure coordinated by the Bank of Russia. Provision of information and documents at the request of the authorised body by state authorities of Russia, state authorities of constituent entities of Russia, local self-management bodies and the Bank of Russia for purposes and in accordance with the procedure provided by this Federal law shall not be violation of official, bank, tax, commercial secrets and communication secrecy (in part of remittance of monetary funds). Provisions of this article do not apply to the information and documents which according to articles 6, 7 of the present Federal law can not be requested by the authorised agency from organisations performing operations with monetary funds or other assets or must be presented by these organisations directly to the authorised agency. Federal executive bodies, within their competence and according to the procedure agreed by them with corresponding supervisory bodies, submit to the organisations performing operations with monetary funds or other assets, the information contained in the uniform state register of legal persons, the summary state register of accredited on territory of Russia branches of the foreign companies, as well as the information on the lost, void passports, on passports of died natural persons, on the lost passport forms.

Chapter IV. International cooperation in the sphere of struggle with legalisation (laundering) of proceeds from crime and financing of terrorism

Article 10. Information exchange and legal assistance

State authorities of Russia performing activities connected with prevention of legalisation (laundering) of proceeds from crime and financing of terrorism, in accordance with international agreements of Russia, shall have cooperation with competent bodies of foreign states at the stages of information collection, preliminary investigation, litigation and execution of verdicts. The authorised body and other state authorities of Russia performing activities connected with prevention of legalisation (laundering) of proceeds from crime and financing of terrorism, shall submit the appropriate information to competent bodies of foreign states at their requests or by their own initiative in accordance with the procedure and on the grounds provided by international agreements of Russia. Transfer of information connected with revelation, withdrawal and confiscation of proceeds from crime to competent bodies of a foreign state shall be made, if it does not inflict damage on interests of national security of Russia, and can allow the competent bodies of this foreign state to commence investigation or state an inquiry. Information connected with revelation, withdrawal and confiscation of proceeds from crime shall be provided at the request of a competent body of a foreign state, provided it will not be used without preliminary consent of the appropriate state authorities of Russia which have provided it for purposes that are not stated in the inquiry. State authorities of Russia shall forward to competent bodies of foreign states inquiries on provision of the necessary information and give answers to requests made by these competent bodies in accordance with the procedure provided by the international agreements of Russia. State authorities of Russia performing activities connected with prevention of legalisation (laundering) of proceeds from crime and financing of terrorism, who forwarded a request shall provide confidentiality of the supplied information and use it only for purposes stated in the request. In accordance with international agreements of Russia and federal laws, state authorities of Russia performing activities connected with prevention of legalisation (laundering) of proceeds from crime and financing of terrorism shall execute within their competence requests of competent bodies of foreign states on confiscation of proceeds from crime and financing of terrorism and on initiation of certain proceedings on revelation of proceeds from crime and financing of terrorism, imposition of arrest on property, on withdrawal of property, perform examinations, question the suspects, the accused, witnesses, victims and other persons, searches, withdrawals, transfer material evidence, impose arrest on property, hand over and dispatch documents. Costs connected with execution of the above requests shall be compensated in accordance with the international agreements of Russia.

Article 11. Recognition of the sentence (decision) of the court of a foreign state

In accordance with international agreements of Russia and federal laws, the Russian Federation recognises sentence (decision) made by courts of foreign states, which came into effect, with respect to persons having proceeds from crime. In accordance with international agreements of Russia, the Russian Federation recognises and executes sentence (decision) made by courts of foreign states, which came into effect, on confiscation of incomes drawn by criminal way, or property which is equal thereto, located on the territory of Russia. Confiscated incomes drawn by criminal way or property, which is equal thereto, may be transferred completely or partially to the foreign state whose court made the decision on confiscation on the basis of a specific international agreement.

Article 12. Delivery and transit transportation

Decision on the delivery to the foreign state of persons who committed crimes connected with legalisation (laundering) of proceeds from crime and financing of terrorism shall be made on the basis of obligations of Russia resulting from the international agreement of Russia. The same procedure shall be true for the decision on transit transportation of the above persons on the territory of Russia. If Russia does not have an appropriate agreement with the foreign state which asks for the delivery, these persons may be delivered for crimes connected with legalisation (laundering) of proceeds from crime and financing of terrorism subject to observance of the principle of reciprocity.

Chapter V. Conclusions

Article 13. Responsibility for infringement of this Federal law

Infringement by organisations performing operations with monetary funds or other assets and acting with the authority of a licence of requirements provided by articles 6 and 7 of this Federal law, except clause 3 of article 7 of this Federal law, may lead to withdrawal (annulment) of the licence in accordance with the procedure provided by the legislation of Russia. Persons guilty of infringement of this Federal law shall bear administrative, civil and criminal responsibility in accordance with the legislation of Russia.

Article 14. Public prosecutor’s supervision

The General Prosecutor of Russia and public prosecutors subordinate shall perform supervision over execution of this Federal law thereto.

Article 15. Protesting against actions of the authorised body and its officials

An interested person shall have the right to apply to court for protection of his violated or contested rights and legal interests in accordance with the established procedure.

Article 16. Enforcement of this Federal law

This federal law shall come into effect from 1 February 2002.

Article 17. Bringing normative legal acts in line with this Federal law

Normative legal acts of the President of Russia and Government, laws and other normative legal acts of constituent entities of Russia shall be brought in line with this Federal law before its enforcement.

 

The President of the Russian Federation
V. Putin

Moscow, Kremlin
7 August 2001
No. 115-FZ