Mutual Evaluation of Serbia

Anti-money laundering and counter-terrorist financing measures in Serbia – Mutual Evaluation Report – June 2016

Mutual evaluation report by the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism MONEYVAL 1

Anti-money laundering and counter-terrorist financing (AML/CTF) measures in Serbia Mutual Evaluation

Ratings June 2016 www.fatf-gafi.org/publications/mutualevaluations/documents/mer-serbia-2016.html

http://www.fatf-gafi.org/publications/mutualevaluations/documents/mer-cuba-2015.html











Mutual evaluation report by the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism MONEYVAL

Ratings – Effectiveness (1/3)

2

Extent to which Serbia has achieved this objective

1 ML and TF risks are understood and, where appropriate, actions co-ordinated domestically to combat ML and TF

Moderate

2 International co-operation delivers appropriate information, financial intelligence, and evidence, and facilitates action against criminals and their assets

Moderate

3 Supervisors appropriately supervise, monitor and regulate financial institutions and designated non-financial businesses and professions (DNFBPs) for compliance with AML/CFT requirements commensurate with their risks.

Moderate

4 Financial institutions and DNFBPs adequately apply AML/CFT preventive measures commensurate with their risks, and report suspicious transactions.

Moderate

Immediate outcome of an effective system to combat money laundering (ML) and terrorist financing (TF)




3


5 Legal persons and arrangements are prevented from misuse for money laundering or terrorist financing, and information on their beneficial ownership is available to competent authorities without impediments.

Moderate

6 Financial intelligence and all other relevant information are appropriately used by competent authorities for money laundering and terrorist financing investigations.

Moderate

7 Money laundering offences and activities are investigated and offenders are prosecuted and subject to effective, proportionate and dissuasive sanctions.

Low

8 Proceeds and instrumentalities of crime are confiscated. Moderate





4


9 Terrorist financing offences and activities are investigated and persons who finance terrorism are prosecuted and subject to effective, proportionate and dissuasive sanctions.

Moderate

10 Terrorists, terrorist organisations and terrorist financiers are prevented from raising, moving and using funds, and from abusing the non-profit sector.

Low

11 Persons and entities involved in the proliferation of weapons of mass destruction are prevented from raising, moving and using funds, consistent with the relevant United Nations Security Council Resolutions.

Low




Ratings – Effectiveness

5

0 0

8

3

HighSubstantialModerateLow



Ratings – technical compliance (1/5)

10-Jun-16 6

AML/CFT POLICIES AND COORDINATION1. Assessing risks & applying a risk-based approach P P P P Partially compliant2. National cooperation and coordination La La La La Largely compliant

MONEY LAUNDERING AND CONFISCATION3. Money laundering offence La La La La Largely compliant4. Confiscation and provisional measures La La La La Largely compliant

TERRORIST FINANCING AND FINANCING OF PROLIFERATION5. Terrorist financing offence La La La La Largely compliant6. Targeted financial sanctions related to terrorism & terrorist financing P P P P Partially compliant7. Targeted financial sanctions related to proliferation N N N N Non compliant8. Non-profit organisations P P P P Partially compliant




10-Jun-16 7

PREVENTIVE MEASURES9. Financial institution secrecy laws La La La La Largely compliant

Customer due diligence and record keeping10. Customer due diligence P P P P Partially compliant11. Record keeping La La La La Largely compliant

Additional measures for specific customers and activities12. Politically exposed persons P P P P Partially compliant13. Correspondent banking P P P P Partially compliant14. Money or value transfer services La La La La Largely compliant15. New technologies La La La La Largely compliant16. Wire transfers P P P P Partially compliant




10-Jun-16 8

PREVENTIVE MEASURES (continued)Reliance, Controls and Financial Groups

17. Reliance on third parties CCCC Compliant18. Internal controls and foreign branches and subsidiaries P P P P Partially compliant19. Higher-risk countries P P P P Partially compliant

Reporting of suspicious transactions20. Reporting of suspicious transactions CCCC Compliant21. Tipping-off and confidentiality CCCC Compliant

Designated non-financial Businesses and Professions (DNFBPs)22. DNFBPs: Customer due diligence P P P P Partially compliant23. DNFBPs: Other measures P P P P Partially compliant




10-Jun-16 9

TRANSPARENCY AND BENEFICIAL OWNERSHIP OF LEGAL PERSONS AND ARRANGEMENTS24. Transparency and beneficial ownership of legal persons La La La La Largely compliant25. Transparency and beneficial ownership of legal arrangements P P P P Partially compliant

POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES AND OTHER INSTITUTIONAL MEARegulation and Supervision

26. Regulation and supervision of financial institutions P P P P Partially compliant27. Powers of supervisors La La La La Largely compliant28. Regulation and supervision of DNFBPs P P P P Partially compliant

Operational and Law Enforcement29. Financial intelligence units La La La La Largely compliant30. Responsibilities of law enforcement and investigative authorities La La La La Largely compliant31. Powers of law enforcement and investigative authorities La La La La Largely compliant32. Cash couriers La La La La Largely compliant




10-Jun-16 10

POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES AND OTHER INSTITUTIONAL MEASURES (continued)

General Requirements 33. Statistics La La La La Largely compliant34. Guidance and feedback La La La La Largely compliant

Sanctions35. Sanctions P P P P Partially compliant

INTERNATIONAL COOPERATION36. International instruments La La La La Largely compliant37. Mutual legal assistance La La La La Largely compliant38. Mutual legal assistance: freezing and confiscation La La La La Largely compliant39. Extradition La La La La Largely compliant40. Other forms of international cooperation P P P P Partially compliant



Ratings – technical compliance

11

3

20

16

1

Compliant

Largely compliant

Partially compliant

Non compliant

Government & Nonprofit

Mutual Evaluation of Serbia