Workshop on processing of personal data in the context of ... · Workshop on processing of personal data in the context of combating money laundering and the financing of terrorism

JHA 52181 1/3

Workshop on processing of personal

data in the context of combating money laundering and the financing of

terrorism

JHA 52181

organised in co-operation with

Directorate for Personal Data Protection

Venue :

Hotel Arka ***** Bitpazarska 90/02

Skopje, 18 - 19 April 2013

For more information on TAIEX assistance and to download

presentations of

this event, please go to : http://ec.europa.eu/enlargement/taiex.

http://ec.europa.eu/enlargement/taiex

JHA 52181 2/3

Thursday 18 April 2013

Chair: Marjana Popovska 9:00 – 9:30 Arrival and registration of participants 9:30 – 10:00 Welcome and opening

Dimitar Gjeorgjievski Director

Directorate for Personal Data Protection

Elvis Ali Task Manager EU Delegation

10:00 – 10:45 Processing of personal data in the context of combating money

laundering and the financing of terrorism - experiences and methods.

Marjana Popovska Inspector

Directorate for Personal Data Protection 10:45 – 11:00 Discussion 11:00- 11:30 Coffee break 11:30 – 12:15 Practical implementation of the AML Directive in the national legislation

Desislava Borisova Chief Legal Adviser

Legal Proceedings and Supervision Commission for Personal Data Protection

Bulgaria

12:15- 12:45 Discussion 12:45 – 14:00 Lunch 14:00 – 14:45 Processing personal data in the context of combating money laundering

José López Calvo Deputy Director of Data Inspection

Spanish Data Protection Agency

14:45 – 15:15 Coffee break

15:15 – 16:00 Experience of the specific nature of processing personal data in the

context of combating money laundering and the financing of terrorism

Lt Colonel Dr. Anselmo del Moral Torres Head of postgraduate & international studies

Guardia Civil University Centre Ministry of Interior

16:00 -16:45 Discussion and conclusions of the first day

JHA 52181 3/3

16:45 – end of day 1

Friday 19 April 2013

Chair: Marjana Popovska

9:00 – 9:30 Arrival and registration of participants 9:30 – 9:45 Discussion of any open questions from day 1 9:45 – 10:30 Categories of personal data that can be processed and supervision of

the way the personal data are processed

Desislava Borisova Chief Legal Adviser

Legal Proceedings and Supervision Commission for Personal Data Protection

Bulgaria

10:30 – 10:45 Discussion 10:45 – 11:15 Coffee break 11:15 – 12:00 Personal data management in serious crimes cases in France –

proceedings and requirements in France

Jean-François Feray Head of Judicial Applications Division

Ministry of interior – gendarmerie nationale

12:00 – 12:45 Discussion and conclusion of the workshop

This meeting is being organised by the

Technical Assistance Information Exchange Instrument

of the European Commission

CHAR 03/149 , B - 1049 Brussels

Telephone: +32-2-296 73 07 , Fax: +32-2-296 76 94

Web site http://ec.europa.eu/enlargement/taiex

http://ec.europa.eu/enlargement/taiex

Workshop on processing of personal data in the context of combating money laundering

and the financing of terrorism - Skopje, 18-19 April 2013

Desislava Borisova

Chief Legal Adviser

Practical implementation of the AML

Directive in the national legislation



BRIEF HISTORY OF THE EUROPEAN UNION

ANTI-MONEY LAUNDERING AND FINANCING

OF TERRORISM DIRECTIVES

Council Directive of 10 June 1991 on the prevention of the use of the financial system for the purpose of money laundering (91/308/EEC)

Directive 2001/97/EC of the European Parliament and of the Council of the European Union of 4 December 2001

Directive 2005/60/EC of the European Parliament and of the Council on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing

Proposal for a Directive Directive of the European Parliament and of the Council on the use of the financial system for the purpose of money laundering, including terrorist financing



IMPLEMENTATION OF THE AML DIRECTIVE

IN THE NATIONAL LEGISLATIONS

- The role of the Financial Action Task

Force (FATF)

FATF 40 Recommendations and the 9

Special Recommendations on Terrorist

Financing

The Risk-based appoach

Methodology for assessing technical

compliance with the FATF

Recommendations and the Effectiveness

of AML/CFT systems



ASSESSMENT PROCESS

OF THE LEVEL OF IMPLEMENTATION

the nature and extent of the money laundering

and terrorist financing risks ;

the circumstances of the country (the makeup of

its economy and its financial sector);

structural elements which underpin the

AML/CFT system;

other contextual factors which could influence the

way AML/CFT measures are implemented and

how effective they are



Assessing risk and risk-based approach

National cooperation and coordination

Financial supervision



Sanctions

International Cooperation

Draft legislation



TECHNICAL COMPLIANCE

ASSESSING RISKS AND APPLYING A

RISK-BASED APPROACH

NATIONAL CO-OPERATION AND CO-

ORDINATION

MONEY LAUNDERING OFFENCE

TERRORIST FINANCING OFFENCE

CONFISCATION AND PROVISIONAL

MEASURES

TARGETED FINANCIAL SANCTIONS

RELATED TO TERRORISM AND

TERRORIST FINANCING AND

PROLIFERATION



RECOMMENDATIONS

NON-PROFIT ORGANISATIONS (NPOS)

FINANCIAL INSTITUTION SECRECY

LAWS

CUSTOMER DUE DILIGENCE

RECORD KEEPING

POLITICALLY EXPOSED PERSONS (PEPS)

CORRESPONDENT BANKING

MONEY OR VALUE TRANSFER SERVICES

(MVTS)

NEW TECHNOLOGIES, etc



REPORT ON THE IMPLEMENTATION OF

AML DIRECTIVE IN THE MEMBER STATES

Main obligations of the Member States:

Applying the risk assessment tool

Criminalisation of money laundering and

terrorist financing

Regular, enhanced and simplified customer

due diligence

New standards to apply to politically exposed

persons

Adequate measures concerning the beneficial

ownership



Obligation to report to the Financial Inteligence

Units

Measures to facilitate the information exchange

between the Financial Intelligence Units

Group compliance

Requirement to monitor and take measures to

ensure compliance

Ensuring the role of self-regulatory bodies

Administrative Sanctions for Non Compliance with

the Directive



Personal data

protection

Study of the FIUs

Commission Staff

Working Paper

Opinion of the Art.29 Working

Party



ANTI-MONEY LAUNDERING DIRECTIVE

IN BULGARIA

Law for the measures against

money-laundering

Law for measures against financing

terrorism

Penal code

Act on deprivation in favour of the

state of illegally acquired property



COMPETENT AUTHORITY

State Agency for National Security

- independent amdinistrative entity

-own budget

- responsible for the national security

Financial Intelligence Directorate

responsible for the collection,

storage, investigation and disclosure

of financial intelligence information



Legislative measures agains money-

laundering:

Obvious identification of clients, legal entities

Collection of information

Monitoring of the activities

Suspicious transactions



OBLIGATED PERSONS

-

Notification of every payment

15 000 eur

Implementation of internal rules

High Level of Protection of the

nformation



PENAL CODE

Art. 253 Who carries out a financial operation or a transaction with a property, or hides the origin, location, movement or actual rights on a property about which he knows or suspects that they have been acquired through a crime or another socially dangerous act, shall be punished for money laundering by imprisonment of one to six years and a fine of three thousand to five thousand leva.



THIRD ASSESSMENT REPORT OF MONEYVAL ON

THE IMPLEMENTATION OF THE AML DIRECTIVE

IN BULGARIA.

Aim of the report

Risk assessment tool

Recommendations

Overview

•



Partially compliant on:

-Cross border declaration and

disclosure

-Wire transfer rules

- Non –profit organisations

- Suspicious transaction reporting

- Statistics

- Attention to higher risk countries





Desislava Borisova



Promote good business, governance, and risk management among financial institutions

Help maintain the integrity of the financial system and enable development

efforts in emerging markets;

Reduce the incidence of fraud and other financial crime

Protect the reputation of the financial organization against the detrimental effect of association with criminals



A person or entity who maintains an account with a financial institution

or on whose behalf an account is maintained (i.e., beneficial owners);

Beneficiaries of transactions conducted by professional intermediaries(e.g., agents, accountants, lawyers); and

A person or entity connected with a financial transaction who can pose a significant risk to the bank.

Principle “Know you customer”



Rules and procedures to ensure

that financial institutions

maintain adequate knowledge

about their customers and their

customers’ financial activities



Profiling

Identification

Rules and Procedures



• Name and legal form of customer’s

organization;

• Address;

• Names of the directors;

• Principal owners or beneficiaries;

• Provisions regulating the power to bind the

organization;

• Agent(s) acting on behalf of organization;

and

• Account number (if applicable)



Politically Exposed Persons

Cross-Border Correspondent

Banking Relationships

Non Face-to-Face Customers

High Risk Businesses



The Main Policy Tension:

Privacy Versus Efficiency -

efficient information

exchange

Confidentiality Principle -

protection against abuse of

financial information

privacy



Specialty principle – limitation

of the use

Independence and

Accountability

Information and Feedback

Personal Data Protection



Transparency Legitimate purpose Proportionality

Supervisory authority and the public register of processing operations

Transfer of personal data



Opinion 14/2011 on data potection issues

related to the pprevention of money

laundering and terrorist financing

-clear legal basis for the measures,

proportionate

- Principles and obligation to be dealt in a

balanced and in a positive way

- Clear, effective protection in compliance

with the data protection principles



New Anti-Money

Laundering Directive

Data Protection

Reform



Inconsistent rules with the

international AML standards

Different implementation in

the Member States

Not adequate to the new

Money Laundering and Terrorist

Financing Risk



Clear data retention approach

Implementing the impact assessment

Better right of access to information

Simplified and enhanced customer due duligence risks

Betterapplication of the data protection principles



Documents

Workshop on processing of personal data in the context of ... · Workshop on processing of personal data in the context of combating money laundering and the financing of terrorism