Circular 08-2018: Lists Issued by the CNBCTF

SMV
Superintendency of the Securities Market
Panama, April 4, 2018
Circular No. SMV-08-2018

To:
Compliance Officers
City:

Respected Sirs:

Subject: Lists Issued by the CNBCTF

On March 27, 2018, the National Commission against Money Laundering, Terrorism Financing, and Financing of the Proliferation of Weapons of Mass Destruction (hereinafter the "Commission") issued Resolutions No. 01-018 and 02-018.

These Resolutions are issued in compliance with paragraph 1 of Article 8 of Law 23 of 2015, which assigns to the Commission the function of approving national risk strategies for the crimes of money laundering, terrorism financing, and financing of the proliferation of weapons of mass destruction, with the purpose of mitigating national risks.

That Resolution 01-018 refers to the content of paragraph 2 of Article 41 of Law 23 of 2015, which establishes that it is necessary to apply enhanced due diligence measures to business relationships or transactions with natural or legal persons and financial institutions from countries that, according to the Financial Action Task Force (FATF), do not apply sufficient measures to prevent the crimes of money laundering, terrorism financing, and financing of the proliferation of weapons of mass destruction.

That the Commission's website has published the lists issued by the United States of America, Canada, and the United Kingdom, as indicated in Annex 1 of Resolution 01-018, and which forms an integral part thereof, for the knowledge and reference of supervisory bodies and financial and non-financial obligated subjects.

That Resolution No. 02-018, by which the publication of the list of politically exposed persons of the Bolivarian Republic of Venezuela is ordered, a decision taken on August 8, 2017, as part of the Lima Declaration, with the purpose of following up and expressing considerations regarding the political, social, and humanitarian crisis of the Bolivarian Republic of Venezuela; as well as the proper identification of politically exposed persons from this country, and therefore considered high-risk persons in matters of prevention of money laundering, terrorism financing, and financing of the proliferation of weapons of mass destruction.

50th Street, P.H. Global Plaza Building, 8th Floor. Tel.: (507) 501-1700 Fax: (507) 501-1709 www.supervalores.gob.pa P.O. Box 0832-2281 WTC Panama, Republic of Panama

SMV Circular No. SMV-08-2018
Superintendency of the Securities Market

Since these measures are dictated by the Commission and are of strict compliance by the financial obligated subjects supervised by this Superintendency, they must apply and take the measures necessary to comply with what is established in both resolutions, which we attach for your better reference, knowledge, and application.

Sincerely,

~~Superintendent
~
/drt

50th Street, P.H. Global Plaza Building, 8th Floor. Tel.: (507) 501-1700 Fax: (507) 501-1709 www.supervalores.gob.pa P.O. Box 0832-2281 WTC Panama, Republic of Panama

No. 28493-A Official Digital Gazette. Wednesday, March 28, 2018 REPUBLIC OF PANAMA NATIONAL COMMISSION AGAINST MONEY LAUNDERING, FINANCING OF TERRORISM AND FINANCING OF PROLIFERATION OF WEAPONS OF MASS DESTRUCTION

Resolution No. 01-018
March 27, 2018

By which the publication of the list of high-risk persons in matters of Money Laundering, Terrorism Financing and Financing of the Proliferation of Weapons of Mass Destruction is ordered.

The National Commission against Money Laundering, Terrorism Financing and Financing of the Proliferation of Weapons of Mass Destruction in the exercise of its legal powers,

CONSIDERING:

That Panama is part of the Financial Action Task Force for Latin America (GAFILAT), which in turn is part of the Financial Action Task Force (FATF) and fulfills the functions of a Member State of the United Nations Organization (UN), complying with International Law norms according to article 4 of the Political Constitution of the Republic:

That Law 23 of April 27, 2015, in its article 5, creates the National Commission against Money Laundering, Terrorism Financing and Financing of the Proliferation of Weapons of Mass Destruction (hereinafter the Commission), as an integral part of the national coordination system to prevent money laundering, terrorism financing and financing of the proliferation of weapons of mass destruction:

That paragraph 1 of article 8 of the aforementioned law, provides within the functions of the Commission, to approve the national risk strategies for the crimes of money laundering, terrorism financing and financing of the proliferation of weapons of mass destruction, in order to take the necessary measures to mitigate national risks;

That according to the aforementioned Law 23 of 2015, the Commission has the faculty to establish policies for the prevention of the crimes of money laundering, terrorism financing and financing of the proliferation of weapons of mass destruction;

That paragraph 2 of article 41 of Law 23 of 2015 establishes that the Special Examination requires enhanced customer due diligence measures for business relationships or transactions with natural and legal persons and financial institutions, from countries that according to the Financial Action Task Force do not apply sufficient measures to prevent the crimes of money laundering, terrorism financing and financing of the proliferation of weapons of mass destruction;

That the United Nations Security Council, through Resolution 2133 (2014) reaffirms also the decision it adopted in Resolution 1373 (2001) that all States prohibit their nationals or any person and entity that is in their territory from making available any funds, financial resources or economic or financial services or related services of another kind, directly or indirectly, to persons who commit or attempt to commit acts of terrorism or facilitate their commission or participate in them, to entities owned or under the direct or indirect control of those persons, and

No. 28493-A Official Digital Gazette. Wednesday, March 28, 2018

That some FATF member countries have established lists of persons considered high-risk and the National Risk Assessment determines high-risk sectors for the commission of crimes of money laundering, terrorism financing and financing of the proliferation of weapons of mass destruction, sufficient reasons to take pertinent measures to mitigate the identified risks:

That in the session of March 8, 2018, the Commission approved the publication of various lists, all related to high-risk persons in matters of Money Laundering, Terrorism Financing and Financing of the Proliferation of Weapons of Mass Destruction;

That for the purpose of facilitating the enhanced due diligence by financial and non-financial obligated subjects, as well as the execution of legal powers by supervisory bodies,

RESOLVES:

FIRST: Comply within the national territory with the contents of the lists issued by the United Nations Security Council, in accordance with what is established in United Nations Security Council Resolutions, numbers S/RES/1267, S/RES/1988, S/RES/1373, S/RES/1718, S/RES/1737 and all successors, or other resolutions that are issued on this matter, in order to prevent the use of their products and services for the commission of acts of terrorism, their financing, as well as the financing of the proliferation of weapons of mass destruction, through financial and non-financial obligated subjects.

SECOND: Compile and publish the list of persons convicted in the national territory for money laundering, terrorism financing and financing of the proliferation of weapons of mass destruction.

THIRD: Publish on the Commission's website, the lists issued by the following countries: United States of America, Canada and United Kingdom, as indicated in Annex 1 of this Resolution and which forms an integral part thereof, for the knowledge and reference of supervisory bodies and obligated subjects, both financial and non-financial, at the time of applying due diligence measures to clients,

FOURTH: Authorize the Technical Secretariat of the National Commission against Money Laundering, Terrorism Financing and Financing of the Proliferation of Weapons of Mass Destruction, to keep updated the lists detailed in this Resolution.

FIFTH: This resolution is valid from the day following its promulgation.

LEGAL BASIS: Political Constitution of the Republic of Panama, Law 23 of April 27, 2015 and Executive Decree No. 363 of August 13, 2015.

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No. 28493-A Official Digital Gazette. Wednesday, March 28, 2018

Resolution No. 01-018
March 27, 2018

Panama, on the 27 days of the month of March two thousand

PUBLISH AND COMPLY,

Raúl A. Gasteazoro L.
Secretary
MINISTRY OF ECONOMY AND FINANCES
GENERAL SECRETARIAT

THIS IS A TRUE COPY OF ITS ORIGINAL

Panama, [Date] of [Month] of 2018,

THE UNDERSECRETARY

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No. 28493-A Official Digital Gazette. Wednesday, March 28, 2018

REPUBLIC OF PANAMA
NATIONAL COMMISSION AGAINST MONEY LAUNDERING,
FINANCING OF TERRORISM AND FINANCING OF THE
PROLIFERATION OF WEAPONS OF MASS DESTRUCTION

Resolution No. 02-018
March 8, 2018

By which the publication of the list of politically exposed persons of the Bolivarian Republic of Venezuela is ordered

The National Commission against Money Laundering, Terrorism Financing and Financing of the Proliferation of Weapons of Mass Destruction in the exercise of its legal powers,

CONSIDERING:

That article 5 of Law 23 of April 27, 2015, creates the National Commission against Money Laundering, Terrorism Financing and Financing of the Proliferation of Weapons of Mass Destruction (hereinafter the Commission), as an integral part of the national coordination system to prevent money laundering, terrorism financing and financing of the proliferation of weapons of mass destruction;

That paragraph 18 of article 1 of Law 23 of 2015 defines politically exposed persons as those nationals or foreigners who perform high-level prominent public functions or with command and jurisdiction in a State, as (but not limited to) heads of State or government, high-profile politicians, high-ranking government, judicial or military officials, high executives of state-owned companies or corporations, public officials who hold elected offices, among others who exercise decision-making in public entities; persons who perform or have been entrusted with important functions by an international organization, such as members of senior management, i.e., directors, deputy directors and members of the board of directors or equivalent functions;

That paragraph 2 of article 41 of Law 23 of 2015 establishes that the Special Examination requires enhanced customer due diligence measures for business relationships or transactions with natural and legal persons and financial institutions, from countries that according to the Financial Action Task Force do not apply sufficient measures for the crimes of money laundering, terrorism financing and financing of the proliferation of weapons of mass destruction;

That Panama is part of the Financial Action Task Force for Latin America (GAFILAT), which in turn is part of the Financial Action Task Force (FATF) and fulfills the functions of a Member State of the United Nations Organization (UN), complying with International Law norms according to article 4 of the Political Constitution of the Republic:

That the Republic of Panama, on August 8, 2017, participated in the international meeting of the Lima Group, a multilateral instance where American countries issued the Lima Declaration with the objective of following up and expressing considerations regarding the political, social and humanitarian crisis of the Bolivarian Republic of Venezuela, as well as the proper identification of politically exposed persons from this country;

No. 28493-A Official Digital Gazette. Wednesday, March 28, 2018

Resolution No. 02-018
March 8, 2018

in attention to article 8 of Law 23 of 2015 the Commission through Resolution No. 01-018 of March 27, 2018 resolved the publication of the list of high-risk persons in matters of Money Laundering, Terrorism Financing and Financing of the Proliferation of Weapons of Mass Destruction;

That from the content of these lists derives the existence of politically exposed persons nationals of the Bolivarian Republic of Venezuela;

That for the purpose of facilitating the enhanced due diligence by financial and non-financial obligated subjects, as well as the execution of legal powers by supervisory bodies, the Commission, in the session of March 8, 2018, considers necessary the publication of the politically exposed persons of the Bolivarian Republic of Venezuela;

Therefore the Commission in the exercise of its legal powers,

RESOLVES:

FIRST: Publish on the Commission's website the list of the names of Venezuelan natural or legal persons or final beneficiaries who are or could be directly or indirectly politically exposed according to the lists generated by the Commission, initially taking as reference the lists adopted by the Commission through Resolution No. 01 of March 27, 2018 but without limiting the use of other pertinent international lists. The initial list is attached to this resolution as Annex A and will be updated in the future.

SECOND: Establish and recommend to financial obligated subjects and non-financial obligated subjects to adopt enhanced, reinforced due diligence policies and procedures or any other due diligence measure that is proportional to the identified risk for any fact, transaction or operation, that has been carried out, including attempts to carry out operations, in which it is suspected that they could be related to transactions involving natural or legal persons, or final beneficiaries Venezuelan who are or could be directly or indirectly politically exposed.

THIRD: Determine if there are persons of other nationalities who could act as intermediaries, directly or indirectly, for some politically exposed person(s) in the Bolivarian Republic of Venezuela; to such effects obligated subjects must report to the Financial Analysis Unit at the earliest possible time any fact, transaction or operation, that has been carried out, including attempts to carry out operations, in which it is suspected that they could be related to persons identified or to whom this Resolution is applicable. Such reports are required according to article 54 of Law 23 of April 27, 2015.

FOURTH: Authorize the Technical Secretariat of the National Commission against Money Laundering, Terrorism Financing and Financing of the Proliferation of Weapons of Mass Destruction, to keep updated the lists detailed in this Resolution and to publish the same on the Commission's website

FIFTH: This resolution is valid from the day following its promulgation.

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No. 28493-A Official Digital Gazette. Wednesday, March 28, 2018

Given in the city of Panama, on the 8 days of the month of March of two thousand eighteen (2018).

PUBLISH AND COMPLY,

Raúl A. Gasteazoro L.
Secretary
MINISTRY OF ECONOMY AND FINANCES
GENERAL SECRETARIAT

THIS IS A TRUE COPY OF ITS ORIGINAL

Panama, [Date] of [Month] of 2018,

THE UNDERSECRETARY

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