Law No. (20) of 2019 on the Promulgation of Anti-Money Laundering and Terrorism Financing Law

Law No. (20) of 2019 on the Promulgation of Anti-Money Laundering and Terrorism Financing Law

We, Tamim bin Hamad Al Thani,
Amir of the State of Qatar,

Having reviewed the Constitution,
and Law No. (4) of 1978 concerning the Supervision, Testing, and Assaying of Precious Metals,
as amended by Law No. (12) of 1990,
and Law No. (8) of 1996 concerning Waqf, as amended,
and Law No. (10) of 2002 concerning the Public Prosecution, as amended,
and the Law on Marakib (Marine/Shipping) promulgated by Law No. (40) of 2002,
and Law No. (3) of 2004 concerning the Combating of Terrorism, as amended by Royal Decree-Law No. (11) of 2017,
and the Penal Code promulgated by Law No. (11) of 2004, as amended,
and Law No. (12) of 2004 concerning Private Associations and Institutions,
as amended,
and the Criminal Procedure Law promulgated by Law No. (23) of 2004, as amended by Law No. (24) of 2009,
and Law No. (30) of 2004 concerning the Regulation of the Accounting Supervision Profession,
and Royal Decree-Law No. (21) of 2006 concerning Public Benefit Private Institutions, as amended,
and the Advocacy Law promulgated by Law No. (23) of 2006, as amended,
and the Anti-Money Laundering and Terrorism Financing Law promulgated by Law No. (4) of 2010,
and Law No. (8) of 2012 concerning the Qatar Financial Markets Authority, as amended by Royal Decree-Law No. (32) of 2018,
and the Qatar Central Bank Law concerning the Regulation of Financial Institutions promulgated by Law No. (13) of 2012,
and Law No. (6) of 2014 concerning the Regulation of Real Estate Development,
and Law No. (15) of 2014 concerning the Regulation of Charitable Works,
and the Commercial Companies Law promulgated by Law No. (11) of 2015,
and Law No. (23) of 2017 concerning the Regulation of Real Estate Brokerage,
and the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, promulgated by Approval Decree No. (130) of 1990,
and the United Nations Convention against Corruption, promulgated by Ratification Decree No. (17) of 2007,
and the United Nations Convention against Transnational Organized Crime of 2000, promulgated by Approval Decree No. (10) of 2009,
and the Arab Convention against Corruption, promulgated by Ratification Decree No. (37) of 2012,
and the International Convention for the Suppression of the Financing of Terrorism of 1999, promulgated by Approval Decree No. (20) of 2018,
and the Council of Ministers Resolution No. (7) of 2007 establishing the National Committee for Combating Terrorism, as amended,
and the Bill submitted by the Council of Ministers,
After consulting the Shura Council,

We have enacted the following Law:

Article (1)
The provisions of the Anti-Money Laundering and Terrorism Financing Law, attached to this Law, shall be applied.

Article (2)
The Council of Ministers shall issue the Executive Regulations for the attached Law. Until such regulations are issued, currently applicable decisions shall remain in force, provided they do not conflict with the provisions of the attached Law.

Article (3)
Entities subject to the provisions of the attached Law shall align their status with its provisions within six months from the date of its implementation.
The Council of Ministers may, by decision, extend this period for one or more additional periods.

Article (4)
Law No. (4) of 2010, referred to above, is hereby repealed, as is any provision that conflicts with the provisions of the attached Law.

Article (5)
All competent authorities shall implement this Law, each within its respective jurisdiction.
It shall be enforced from the day following its publication in the Official Gazette.

Tamim bin Hamad Al Thani
Amir of the State of Qatar

Issued at the Diwan Amiri on: 12/1/1441 AH
Corresponding to: 11/9/2019 AD

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Anti-Money Laundering and Terrorism Financing Law
Chapter One: Definitions

Article (1)
For the application of the provisions of this Law and its Executive Regulations, the following words and expressions shall have the meanings indicated alongside each, unless the context dictates otherwise:

| Term | Meaning |
|----------|---------|
| The Bank | Qatar Central Bank. |
| The Governor | The Governor of the Bank. |
| The Committee | The National Committee for Combating Money Laundering and Terrorism Financing, as stipulated in Article (29) of this Law. |
| The Unit | The Financial Information Unit, as stipulated in Article (31) of this Law. |
| Competent Authority | Any public authority vested with responsibilities related to combating money laundering or terrorism financing. |
| Regulatory Authorities | Authorities competent to license financial institutions and businesses, specified non-financial businesses and professions, or not-for-profit organizations, or to supervise them, or ensure their compliance with AML/CFT requirements, as specified by the Regulations. |
| The Authority | The Charitable Affairs Authority. |

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Primary Offense:
Any act constituting a felony or misdemeanor, according to the prevailing laws in the State, whether committed inside or outside the State, provided it generates proceeds and is punishable in both states.

Instruments:
Anything used or intended to be used, wholly or partially, for committing a money laundering or terrorism financing offense.

Proceeds:
Any assets derived or obtained, directly or indirectly, through the commission of a primary offense, including profits, interest, income, or any other yield generated by such funds, whether remaining as is or converted wholly or partially into property or other investment returns.

Funds:
Assets or properties, of any kind, whether tangible or intangible, movable or immovable, including financial assets and economic resources such as oil and other natural resources and all rights related thereto, regardless of their value or method of acquisition, along with all legal documents or records in any form, including digital or electronic images, that prove ownership of such assets or an interest therein, as well as profits.

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Terrorist Act:
-1 Any act constituting a terrorist offense according to the law regulating the combating of terrorism or relevant international conventions to which the State is a party.
-2 Any act aimed at causing death or serious bodily injury to any person, provided that such person was not actively participating in hostilities during an armed conflict, and the purpose of this act, by its nature or context, is to terrorize a group of people, or compel a government or international organization to do or abstain from doing any act.

Terrorist:
Any natural person who intentionally commits any of the following acts:
-1 Committing or attempting to commit terrorist acts, by any means, directly or indirectly, and unlawfully.
-2 Participating as a partner in terrorist acts.

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Terrorist Entity:
-3 Organizing or directing other persons to commit terrorist acts.
-4 Participating with a group of persons, acting with a common purpose to commit terrorist acts, and aiming to expand terrorist activities, or knowing of the group's intention to commit a terrorist act.

Freezing:
Refers to prohibiting any transfer, conversion, disposal, or movement of funds, equipment, or other instruments based on a decision taken by a competent authority, for a specified period.

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Seizure:
The continuation of this decision, or until a decision to lift the freeze is issued.
Or the competent court issues a ruling accordingly.

Confiscation:
The permanent deprivation of funds, based on a judicial ruling.

Financial Institution:
Any person who conducts, as a commercial activity, one or more activities or operations on behalf of the client or in their name, as specified by the Regulations.

Financial Group:
A group consisting of a company or any other type of corporate entity, which holds controlling interests and coordinates functions with the rest of the group to exercise effective control over them, with branches or subsidiaries subject to AML/CFT policies and procedures at the group level.

Specified Non-Financial Businesses and Professions:
Include the following businesses, activities, or professions:
-1 Real estate brokers, when they conduct transactions related to the purchase or sale of real estate on behalf of clients.

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-2 Dealers in precious metals or gemstones, when they participate in traditional transactions with their clients amounting to or exceeding the minimum threshold specified by the Regulations.
-3 Authorized notaries, lawyers, accountants, and certified auditors, whether practicing individually or as partners, or professionals working in professional firms, when preparing, executing, or conducting transactions on behalf of or for their clients regarding any of the following activities:
-a Purchasing or selling real estate.
-b Managing client funds, securities, or other assets.
-c Managing bank accounts, savings accounts, or securities accounts.
-d Organizing subscriptions for the establishment, operation, or management of companies or other entities.
-e Forming corporate bodies or legal arrangements, or buying/selling commercial entities.

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-4 Providers of investment funds and companies, when preparing or executing transactions on behalf of clients regarding the following activities:
-a Acting as a trustee for corporate bodies.
-b Acting, or arranging for another person to act, as a director, secretary of a company or corporate body partner, or in a similar capacity, regarding other relevant persons.
-c Providing a registered office, business address, correspondence address, or administrative address for a company or corporate body to any relevant person.
-d Acting, or arranging for another person to act, as a trustee of an investment fund or performing a similar function in another legal arrangement.
-e Acting, or arranging for another person to act, as a shareholder by proxy on behalf of another person.
-5 Any other business or profession to be specified by a decision of the Council of Ministers, based on the Committee's proposal.

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Not-for-Profit Organization:
Any entity, legal person, or legal arrangement, or organization that collects or disburses funds for charitable, religious, cultural, educational, social, or mutual purposes, or to achieve one or more public benefit objectives.

Trust:
A legal relationship that does not give rise to a separate legal personality, created by a written document under which a person places funds under the management of a trustee for one or more beneficiaries or for a specific purpose.

Direct Investment:
Direct investment funds or any similar arrangements.

Traditional Financial Instruments:
Shares, checks, or negotiable securities.

Negotiable Instruments:
Checks and promissory notes, payment orders, which are either to bearer, endorsed without restrictions, or issued to a named beneficiary in another form where the right transfers upon delivery, and incomplete instruments, including checks, promissory notes, and payment orders.
Signed, but with the payee's name omitted.

Beneficial Owner:
The natural person who ultimately owns or controls the customer, or the natural person on whose behalf a transaction is being conducted, as well as the natural person who ultimately exercises effective control over a legal entity.

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Politically Exposed Persons:
Individuals who have been entrusted with prominent public functions, whether in the State, a foreign country, or an international organization.

Correspondent Banking:
A bank that has no physical presence in the country or region where it was established, and obtained a license from it, and is not part of any regulated financial group. The term "physical presence" in a country or region refers to actual management within the country/region of establishment, capable of making decisions, not merely the presence of a local agent or junior staff.

Customer:
Any person or legal arrangement that deals with financial institutions or specified non-financial businesses and professions.

Financial Investigation:
Procedures conducted in parallel with a criminal investigation or within its context in money laundering, terrorism financing, or primary offenses, for the purpose of:
-1 Determining the scope of criminal networks or the offense.
-2 Identifying and tracing proceeds and funds.

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-3 Identifying property subject to confiscation or likely to be confiscated.
-4 Preparing evidence that can be used in criminal proceedings.

Business Relationship:
A continuous relationship arising between the customer and a financial institution or specified non-financial business/profession regarding the services provided to them.

International Organizations:
Entities established through formal political arrangements between member states, which are treaty-based arrangements and legally recognized by member states, and are not treated as resident institutional units in the countries where their headquarters are located.

Person:
A natural person or a legal entity.

Legal Entity:
Any entity other than a natural person that can establish a permanent business relationship with a financial institution, company, or association, including similar entities.

Originator:
The account holder who permits an electronic transfer to be made from them, or the person who issues an order to a financial institution to execute an electronic transfer, in case no account exists.

Targeted Financial Sanctions:
Freezing and prohibiting funds to prevent them from being provided, directly or indirectly, to specified persons and entities, in accordance with the relevant law combating terrorism.

Money/Value Transfer Service:
A financial service involving the exchange of cash or checks, or other monetary instruments or value stores, and paying an equivalent amount in cash or any other form to a beneficiary through connection, message, transfer, or via a network belonging to this service, specializing in money/value transfer.

Risk-Based Approach:
Refers to a set of measures and procedures aimed at identifying, assessing, understanding, and mitigating money laundering and terrorism financing risks.

Executive Regulations for this Law:

Chapter Two: Money Laundering and Terrorism Financing

Article (7)
Any person who intentionally commits any of the following acts shall be considered guilty of money laundering:
-1 Transferring or moving funds, knowing them to be proceeds of crime or involving participation in this offense, with the intent to conceal or disguise the unlawful source of such funds, or assisting any person who committed this offense in evading legal consequences for their acts.
-2 Concealing or disguising the true nature, source, location, disposition, movement, ownership, or rights related to funds, knowing them to be proceeds of crime.
-3 Acquiring, possessing, or using funds, knowing at the time of receipt that they are proceeds of crime.
-4 Participating, associating, conspiring, assisting, instigating, facilitating, advising, cooperating, contributing, or colluding in committing any of the acts specified in this Article.
Money laundering is considered an independent offense from the primary offense.
When it is proven that funds are proceeds of crime, it is not required that the person has been convicted of a primary offense.
Persons who commit the primary offense are not exempted from punishment for money laundering.

Article (8)
Any person who intentionally and unlawfully provides or collects funds by any means, directly or indirectly, for use or knowing they will be used wholly or partially in any of the following, shall be considered guilty of terrorism financing:
-1 Committing a terrorist act or acts.
-2 By a terrorist or terrorist entity, even in the absence of a link to a specific terrorist act or operations.
-3 Financing the travel of individuals to a country other than their residence or nationality, for the purpose of committing, preparing, planning, or participating in a terrorist act, or obtaining/receiving terrorist training.
-4 Organizing, directing others to commit, or attempting to commit any of the acts specified in this Article.
-5 Participating, conspiring, assisting, instigating, facilitating, advising, cooperating, contributing, or colluding in committing any of the acts stipulated in this Article.
Funds used in a terrorism financing offense include those from lawful or unlawful sources, regardless of whether they are actually used in executing or attempting a terrorism financing offense, or linked to any specific terrorist act.
A terrorism financing offense is established regardless of whether the accused person is located in the State where the terrorist entity resides, or in the State where the terrorist act was committed or attempted, or in another country.
Terrorism financing is considered a primary offense for money laundering.

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Article (9)
The provisions of Article (46) of the aforementioned Penal Code shall apply to the offenses stipulated in Articles (7) and (8) of this Law.

Article (10)
The knowledge and intent required to establish a money laundering or terrorism financing offense may be inferred from objective factual circumstances.

Chapter Three: Preventive Measures

Article (6)
Financial institutions and specified non-financial businesses and professions shall identify their money laundering and terrorism financing risks, and study, understand, assess, and document them upon request.
In doing so, they shall consider risks that may arise from the development of new products and professional practices or new technologies before their use.
Financial institutions and specified non-financial businesses and professions must, among other considerations, take into account nationally identified risks and any other influencing factors when conducting risk assessments.

Article (7)
Financial institutions and specified non-financial businesses and professions shall adopt a risk-based approach by establishing internal policies, procedures, and controls based on risks, and implement them to manage identified risks, including those in the national risk assessment, and reduce them proportionately to their business nature and size, reviewing, updating, and enhancing them as needed.
They shall apply these policies, procedures, and internal controls to all their majority-owned branches and subsidiaries.
The Regulations shall specify the internal policies, procedures, and controls to be established.
Implemented in accordance with the provisions of this Article and consistent with this Law.

Article (8)
Financial institutions and specified non-financial businesses and professions shall establish appropriate systems and apply preventive measures to verify their compliance with the provisions of this Law regarding targeted financial sanctions.

Article (9)
Financial institutions and specified non-financial businesses and professions are prohibited from maintaining anonymous or clearly nominal accounts.

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Article (10)
Financial institutions and specified non-financial businesses and professions shall apply due diligence measures when:
-1 Establishing a business relationship.
-2 Conducting occasional transactions equal to or exceeding a specified amount.
-3 As specified by the Regulations, whether conducted once or multiple times in a manner that appears linked.
-4 Executing occasional transactions via electronic transfers in the cases specified in Article (18) of this Law.
-5 When there is suspicion of money laundering or terrorism financing, regardless of the transaction amount.
-6 When there are doubts regarding the validity or sufficiency of previously obtained identification data.

Article (11)
Financial institutions and specified non-financial businesses and professions shall apply due diligence measures, including procedures to identify and verify the identity of permanent or occasional customers by relying on data or documents from an independent and reliable source.
These measures include the following: