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President
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rada of Ukraine
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 : : Legal Framework
2009-01-01 00:00:00  Print Version



                                                                
                                                                          
APPROVED
By the Order of the State Committee for Financial Monitoring of Ukraine
 
of February 28, 2007 37
 
 
 
 
 
 
 
 
EXEMPLARY RULES
FOR CONDUCTING INTERNAL FINANCIAL MONITORING BY GAMBLING INSTITUTIONS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                                                  I APPROVE
                                                                                  the Head of gambling institution
                                                                                     ..
                                                                                     _________________________
                                                                                                             
                                                                                  seal
 
 
 
RULES
FOR CONDUCTING INTERNAL FINANCIAL MONITORING
 
These rules for conducting internal financial monitoring by gambling institution are elaborated by the compliance officer for internal financial monitoring conduct, taking into consideration the structure of gambling institution.
The structure of gambling institution, which is considered in these Rules envisages one separated subdivision (at that on practice the gambling institution can have other organization structure). In the separated subdivision compliance officer is appointed, which executes detection of financial transactions and their registration, identification of clients, submits information on detected financial transactions and taken measures of the compliance officer of the gambling institution and fulfills other obligations in the AML area, prescribed by these Rules and job description of the compliance officer of separated subdivision.
Registration of detected financial transactions and submission of information to the SCFM of Ukraine on financial transactions, which are subject to financial monitoring or related to terrorist financing, is executed only by the compliance officer (person, which temporarily fulfills his obligations) of the gambling institution.
Compliant for organization of fulfillment of requirements of legislation of Ukraine on AML issues, and organization of internal AML system of gambling institution, is the Head of the gambling institution.
 
 
1. GENERAL PROVISIONS
 
Rules for conducting of internal financial monitoring by gambling institution and its separated subdivision (hereinafter referred to as the Rules) are elaborated to fulfill requirements of the Article 5 of the Law of Ukraine „On Prevention and Counteraction to Legalization (Laundering) of Proceeds from Crime” (hereinafter referred to as the Law), resolution of the Cabinet of Ministers of Ukraine „On Approval of the Procedure for Conducting of Internal Financial Monitoring by Economic Entities, Providing Economic Activities for Organization and Maintenance of Casinos, Other Gambling Institutions and Pawnshops” of November 20, 2003 1800 and taking into consideration requirements of other normative acts in the AML/CTF area.
These Rules prescribe procedure and conditions for conducting by gambling institution (separated subdivision) of measures, directed on prevention and counteraction to use of the institution for ML/FT.
These Rules contain:
Ø     Description of the system of internal financial monitoring of the gambling institution;
Ø     The main principles of activities of the gambling institution and its separated subdivision on the issues of conducting internal financial monitoring;
Ø     Requirements to qualification of compliance officer of the gambling institution (separated subdivision);
Ø     Rights and obligations of the compliance officer of the gambling institution (separated subdivision), as well of other employees, engaged in conducting internal financial monitoring;
Ø     Procedure for identification of persons, which receive payment of the winning (prize);
Ø     Procedure of taking measures for clarification of nature and aim of financial transactions, which are subject to internal financial monitoring;
Ø     Procedure of detection of financial transactions, which are subject to financial monitoring and which can be related to, linked with or targeted at terrorist financing;
Ø     Procedure for registration of financial transactions, which, in accordance with the Law, are subject to financial monitoring;
Ø     Procedure for suspension of conducting of financial transaction, which its participant or beneficiary according to it is the person, which is included into the list of persons, related to terrorist activities;
Ø     Procedure for refuse from provision of execution of financial transaction in case of determination that this financial transaction contains the features of the one, which in accordance with the Law is subject to financial monitoring;
Ø     Procedure for preparation and submission to the compliance officer of information, necessary for taking decision on informing, in accordance with the legislation of SCFM of Ukraine and/or law enforcement agencies;
Ø     Procedure for collection and keeping of documents, which refer to identification of persons, conducting financial transactions, and documents as regards to conducted financial transactions, which are subject to financial monitoring and/or can be related to, linked with or targeted at terrorist financing;
Ø     Requirements to provision of confidentiality of information as regards to financial transactions, which are subject to financial monitoring and/or can be related to, linked with or targeted at terrorist financing;
Ø     Procedure of acquaintance of employees with internal documents on internal financial monitoring issues;
Ø     Procedure for organization and conducting of educational and practical measures for employees of the gambling institution (separated subdivision);
Ø     Description of measures, directed on prevention to possible use of modern technologies in the AML/CTF schemes;
Ø     Procedure of informing of the Head of gambling institution on detected financial transactions, which are subject to financial monitoring, and measures, which were taken as regards to realization of norms of AML legislation.
The main principles of elaboration and fulfillment of these Rules are:
·        Direct participation of every employee of the entity (separated subdivision), in the framework of his competence, in detection of financial transactions, which can be related to ML/FT;
·        Impartiality in financial monitoring conduct;
·        Confidentiality of information, which is submitted to the SCFM of Ukraine (including the fact of submission of information on financial transaction), and other information on financial monitoring issues;
·        Prevention to attraction of employees of the gambling institution and its separated subdivision to ML.
 
2. ORGANIZATIONAL PROVISION OF INTERNAL FINANCIAL MONITORING SYSTEM
 
Internal financial monitoring constitutes activities for detection by gambling institution, in accordance with the Law, of financial transactions, which are subject to obligatory financial monitoring, and other financial transactions, which can be related to ML/FT.
Compliance officer of the gambling institution, responsible for conducting of internal financial monitoring (hereinafter referred to as compliance officer) is appointed (discharged) by the Order of the Head of gambling institution.
The person can not be appointed as compliance officer if:
-       It has previous convictions for commitment of intended crime, if this conviction was not exculpated or quashed in the procedure, prescribed by legislation;
-       The gambling institution (separated subdivision) doesn’t have labor relations with it.
Compliance officer is independent in its activities and provides reports only to the Head of the gambling institution.
The Head of gambling institution according to the proposal of the head of separated subdivision and upon coordination with compliance officer of the gambling institution appoints compliance officer in the separated subdivision. Compliance officer of separated subdivision in his activities is independent and provides report only to the Head of the gambling institution.
While conducting of financial monitoring, compliance officer of the gambling institution (separated subdivision) in the framework of his competence takes decisions independently.
In case of disagreement of compliance officer with instructions of the Head of the gambling institution concerning organization of the AML system and other issues concerning financial monitoring conduct, compliance officer can inform the SCFM of Ukraine with written mentioning of his objections.
Job description of the compliance officer of the gambling institution (separated subdivision) is approved by the Head of gambling institution.
For the type of absence of the compliance officer or impossibility of fulfillment of obligations, laid on him (business trip, illness, vocation, etc.) the person, who will fulfill his obligations, is appointed. Rights, obligations and requirements, prescribed for the compliance officer, spread over the mentioned person.
It is necessary to inform the SCFM of Ukraine about appointment of discharge of the compliance officer (or person, who temporarily fulfills his duties) of the gambling institution (separated subdivision) during three business days from the moment of his appointment (discharge).
The form of informing on appointment/discharge of compliance officer (or person, who temporarily fulfills his duties) is the „Card for registration of the entity of initial financial monitoring (separated) and compliance officers” (hereinafter referred to as Registration card), approved by the Order of the SCFM of Ukraine of May 13, 2003 48 „On approval of some forms or registration and submission of information, related to financial monitoring conduct, and Instructions as regards to its filling in”, which are sent by mail, which notification upon serving, and for submission of information on electronic carriers, approved by the Order of SCFM of Ukraine of September 28, 2004 122 „On approval of the Procedure for appropriation of identifier to the entities of initial financial monitoring for submission of information to the SCFM of Ukraine and submission of information on electronic carriers by the entities of initial financial monitoring, which are not banks”.
The copy of sent Registration card with information on appointment/discharge of compliance officer (or person, who temporarily fulfills his duties) shall be kept together with report from SCFM of Ukraine on results of its processing (the form 3-) during five days from the date of submission of the Registration card to the SCFM of Ukraine.
In case of change of details of gambling institution (separated subdivision),which were mentioned in the Registration card, new Registration card shall be submitted to the SCFM of Ukraine, which information on such changes during three business days from the date of their occurrence.
Informing by the compliance officer of the gambling institution (separated subdivision) of the Head of gambling institution about detected financial transactions, which are subject to financial monitoring, and measures, which were taken or on absence of detected financial transactions, is conducted at least once per month by means of provision to the latest of written report in free from.
 
 
3. REQUIREMENTS TO QUALIFICATION OF COMPLIANCE OFFICER
Compliance officer of the gambling institution (separated subdivision) shall know:
·        Legislation, regulating relations in the AML/CTF area, in particular:
Ø     The Law of Ukraine „On Prevention and Counteraction to Legalization (Laundering) of Proceeds from Crime”;
Ø     Resolution of the Cabinet of Ministers of Ukraine of November 20, 2003 1800 “On Approval of the Procedure for Conducting of Internal Financial Monitoring by Economic Entities, Providing Economic Activities for Organization and Maintenance of Casinos, Other Gambling Institutions and Pawnshops”;
Ø     Resolution of the Cabinet of Ministers of Ukraine of April 26, 2003 646 „On approval of the Procedure of registration by the State Committee for Financial Monitoring of Ukraine of financial transactions, which are subject to obligatory financial monitoring”;
Ø     Resolution of the Cabinet of Ministers of Ukraine of April 26, 2003 645 „On the procedure of determining of countries (territories), which do not participate in international cooperation in the area of prevention and counteraction to legalization (laundering) of proceeds from crime and terrorist financing”;
Ø     Resolution of the Cabinet of Ministers of Ukraine of July 17, 2003 419- „On the list of countries (territories), which do not participate in international cooperation in the area of prevention and counteraction to legalization (laundering) of proceeds from crime and terrorist financing”;
Ø     Resolution of the Cabinet of Ministers of Ukraine of February 24, 2003  77- „On the list of offshore zones”;
·        Normative legal acts of the SCFM of Ukraine in the AML/CTF area;
·        Job descriptions and functional obligations of employees of gambling institution (separated subdivision), taking part in provision of financial transactions conduct;
·        Rules for conducting internal financial monitoring and program of its execution;
·        Norms of legislation, envisaging criminal, administrative and civil legal responsibility for violation of requirements of the Law;
Compliance officer of the gambling institution (separated subdivision) shall know and be skilled in use in practice:
·        Procedure of identification of persons, conducting financial transactions;
·        Procedure of keeping documents, dealing with identification of persons, conducting financial transactions, which, in accordance with the Law, are subject to financial monitoring, and all documents on conducing of financial transactions;
·        Procedure of detection of financial transactions, which are subject to financial monitoring and can be related to, linked with or targeted at terrorist financing;
·        Features of financial transactions, which are subject to financial monitoring;
·        Features of financial transactions, which are subject to internal financial monitoring;
·        Criteria of estimation of the risk of conducting by the client of financial transactions for legalization (laundering) of proceeds from crime or terrorist financing;
·        Procedure of keeping register of financial transactions, which are subject to financial monitoring;
·        Procedure of submission to the SCFM of Ukraine of information on financial transactions, which are subject to financial monitoring;
·        Procedure of informing of the SCFM of Ukraine and the law enforcement agencies of Ukraine on financial transactions, as regards to which there is or may be suspicion, that they are related to, linked with or targeted at financing of terrorist activities, terrorist acts or terrorist organizations;
·        Procedure of suspension of financial transactions, if its participant or beneficiary is the person, included into the list of persons, related to conducting of terrorist activities;
·        Requirements as regards to prevention to disclosure of information, which is submitted to the SCFM of Ukraine, other information on financial monitoring issues, including the fact of its submission.
The compliance officer shall permanently develop his qualification on the issues of methodology of detection of financial transactions, which can be related to AML/CTF, taking into consideration recommendations of the SCFM of Ukraine.
 
4. RIGHTS AND OBLIGATIONS OF THE COMPLIANCE OFFICER
The following is referred to the job obligations of the compliance officer of the gambling institution, in particular:
·        Elaboration and permanent updating of Rules of internal financial monitoring and programs of its conduct;
·        Provision of observance by the employees of the gambling institution (separated subdivision), conducting financial transactions, of rules of internal financial monitoring and programs of its conduct;
·        Provision of preparation, studying and consulting of staff as regards to detection of financial transactions, by means of conducting educational and practical measures;
·        Detection of financial transactions, which are subject to financial monitoring;
·        Carrying out of identification of clients, which conduct financial transactions, which are subject to financial monitoring;
·        Taking decision on registration and, directly, registration of financial transactions, which are subject to financial monitoring;
·        Taking decision on informing of the SCFM of Ukraine on detected financial transactions and execution of the relevant informing;
·        Provision of submission of additional information on financial monitoring issues at the requests of SCFM of Ukraine;  
·        Provision of prevention to disclosure of information, which is submitted to the SCFM of Ukraine, other information on financial monitoring issues, including the fact of its submission;
·        Contributing to the representatives of the SCFM o Ukraine on the issues of analyzing of financial transactions, which are subject to financial monitoring;
·        Elaboration of criteria of estimation of risk of conducting by the client of financial transactions for ML/FT;
·        Taking decision on suspension of financial transaction and on recommencement of such financial transaction, if its participant or beneficiary is the person, which is included into the list of persons, related to terrorist activities;
·        Provision of keeping information as regards to identification of clients and all documents as regards to relevant financial transactions, which are subject to financial monitoring or can be relate to terrorist financing during 5 years after their conducting;
·        monthly, not later than on the 5th of every month following the reporting one (gambling institution can prescribe its/other date in the Rules for conduct of internal financial monitoring), written informing of the Head of gambling institution on fulfillment of norms of legislation in the AML area and internal documents of the institution.
To fulfill job obligations, the compliance officer of the gambling institution has the right:
·        to carry out verifications of observance by the employees of the gambling institution (separated subdivision) of the rules for conducting internal financial monitoring and programs of its conduct;
·        involvement to the verifications on the issues of internal financial monitoring conduct of any employees of gambling institution (separated subdivision), provision of them with commissions and orders, within his competence, obligatory for execution, as well as demanding from them of assistance while carrying out of such actions;
·        receipt of explanations from employees of gambling institution (separated subdivisions), irrespective of the positions, occupied by them, on the issues of conducting internal financial monitoring;
·        submission to the Head of gambling institution under results of verifications, of information concerning detected violations by the employees of legislation in the AML/CTF area and proposals as regards to their elimination;
·        taking decision under coordination with the Head of gambling institution, on refuse to provide conducting of financial transaction and submission of information on such transaction to the SCFM of Ukraine;
·        receipt of access to all premises, documents of gambling institution (separated subdivision) and information, related to financial monitoring conduct.
Compliance officer fulfills other functions in accordance with legislation of Ukraine, rules of internal financial monitoring and job description.
The following refers to the official obligations of compliance officer of separated subdivision of the gambling institution:
·        provision to the compliance officer of the gambling institution of proposals concerning elaboration and updating of the rules for internal financial monitoring conduct and programs for its conduct;
·        carrying out of preparation and training for staff of separated subdivision as regards to detection of financial transactions, which are subject to financial monitoring, by means of conduct of educational and practical measures;
·        provision of observance by the employees of the separated subdivision of the rules of internal financial monitoring conduct and programs for its execution;
·        keeping register of detected in the separated subdivision of financial transactions, which are subject to financial monitoring (their registration is executed by compliance officer of the gambling institution);
·        fulfillment of other obligations, envisaged by the Law and job description of the compliance officer of separated subdivision.
Compliance officer of separated subdivision for fulfillment of its official obligations has the following rights:
·        carrying out of verification of activities of separated subdivision and its employees as regards to their fulfillment of the rules of internal financial monitoring conduct and programs of its execution;
·        engagement to carrying out of verifications on financial monitoring issues of any employees of separated subdivision, irrespective of positions, occupied by them, provision them with commissions and orders, within his competence, obligatory for execution;
·        receipt of access to all premises and documents of the separated subdivision, as well as to the information, related to financial monitoring conduct.
 
4.1. Procedure of organization and conducting of educational and practical measures for employees of gambling institution (separated subdivision)
 
To provide relevant level of preparation of the staff on the issues of internal financial monitoring conduct, which is engaged into conduct of internal financial monitoring, compliance officer of gambling institution (separated subdivision) organizes and carries out relevant training among the employees of gambling institution (separated subdivision).
Training of employees, depending on their official obligations is carried out by means of carrying out educational and training studies according to the following directions:
·        acquaintance of employees with international standards in the AML area, in particular, FATF 40 Recommendations and 9 Special FATF Recommendations;
·        acquaintance of the employees with requirements of the legislation of Ukraine on AML issues;
·        acquaintance of the employees with requirements of internal documents of gambling institution on financial monitoring issues;
·        studying of experience in detection of financial transactions, which can be related to ML/FT;
·        acquaintance with measures and approaches of studying of clients and verification of information as regards to their identification.
 
Compliance officer of gambling institution (separated subdivision) conducts practical events as regards to studying of methods of current experience according to the following directions:
·        detection of financial transactions, which can be related to ML/FT;
·        acquaintance with measures and approaches of studying of clients and verification of information as regards to their identification;
·        identification of persons, conducting financial transactions, which are subject to financial monitoring in accordance with the Law;
·        detection of financial transactions, which are subject to obligatory and internal financial monitoring and can be related to, linked with or targeted at terrorist financing;
·        preparation and submission to the compliance officer of the gambling institution (separated subdivision) of information on financial transaction (in the form, which is determined by the compliance officer), necessary for taking decision on its registration;
·        procedure of suspension of financial transaction conduct, if its participant or beneficiary is the person, which is included into the list of persons, related to terrorist activities;
·        keeping documents, related to identification of persons, who conducted financial transaction, which, in accordance with the Law, is subject to financial monitoring, and all documents on conducting of financial transaction;
·        provision of measures as regards to prevention to disclosure of information (including persons, as regards to financial transaction of which financial monitoring is conducted), which is provided to the SCFM of Ukraine, and other information on financial monitoring issues;
·        explanation and analyzing of the most wide spread schemes of legalization (laundering) of proceeds, from crime, or terrorist financing, related to activities of gambling institution.
Training of employees is carried out according to the schedule, approved by the Head of the gambling institution. The schedule is attached to the Program of training of staff on the issues of financial monitoring conduct and constitutes its integral part.
 
4.2. Procedure of acquaintance of employees with internal documents on the issues of internal financial monitoring and access to them
 
Procedure of acquaintance of employees with internal documents of gambling institution on financial monitoring issues is prescribed by these Rules.
Employees of the gambling institution (separated subdivision), taking part in conducting or ensuring of conducting of financial transaction, get acquainted with these Rules personally, in presence of compliance officer, the fact of which personally signed in the Register of acquaintance of employees with the Rules of internal financial monitoring.
At the same time, these employees are notified about responsibility for violation of AML/CTF legislation and legislation on confidentiality of information as regards to financial transactions, which are subject to financial monitoring and/or can be related to, linked with or targeted at terrorist financing.
The register of financial transactions, which are subject to financial monitoring, is formed and kept only by compliance officer of the gambling institution and in case of necessity by the person, which temporarily fulfills his obligations. Unauthorized access of other employees to the Register of financial transactions is forbidden.
With the aim of maintenance of confidentiality of information as regards to execution by the gambling institution of measures in the AML/CTF area, the employees, taking part in conducting or ensuring of conduct of financial transactions is forbidden to notify third persons as regards to measures, which are taken by the gambling institution in this area.
Access of employees of the gambling institution (separated subdivision) to the original of these Rules is executed only with notification or in presence of compliance officer of the gambling institution.
 
4.3. Description of measures, directed on prevention to possible use of modern technologies in the ML/FT schemes
The gambling institution, compliance officer of gambling institution (separated subdivision), employees, conducting or ensuring conducting of financial transactions take the following measures, directed on prevention to possible use of modern technologies in the ML/FT schemes:
-       verification of person as regards to the fact, that it doesn’t possess electronic (magnetic) devices or systems, use of which in gambling impairs the system of its work and provides possibility to calculate its result;
-       permanent supervision over the person (persons), conducting gambling, with the aim of their observance of the gambling rules;
-       verification of tokens (chips), which are given for exchange for funds as regards to their belonging to the gambling institution (in particular, the method of their production);
-       keeping of daily registration of winnings according to the prescribed form;
-       etc.
 
5. PROCEDURE OF IDENTIFICATION AND CLIENTS STUDYING
Identification of clients is carried out by compliance officer of the gambling institution (separated subdivision) or other defined employee of gambling institution, taking part in conducting or ensuring of conducting of financial transaction.
In case of identification of person, conducting financial transaction by such employee, all information and documents concerning identification are submitted to the compliance officer of the gambling institution (separated subdivision) personally.
Procedure of identification of persons, conducting financial transactions, which are subject to financial monitoring in accordance with the Law includes:
Procedure of initial identification of persons;
Procedure of conducting of measures, directed on verification of information as regards to identification of client;
Procedure of taking measures as regards to clarification of information on client, and procedure of their conduct in case of change of information, necessary for identification conduct, termination of validity of documents, on the basis of which it was conducted;
Procedure of taking measures for additional studying of person;
Criteria for risk assessment of conducting by the client of financial transactions, related to ML/FT.
 
5.1. Procedure of conducting initial identification of clients
 
Compliance officer of gambling institution (separated subdivision) or other defined employee is obliged to conduct identification of person, which executes financial transactions, which, in accordance with the Law, are subject to financial monitoring.
Identification is carried out on the basis of provided originals or copies of documents, which are duly authenticated (by notary or agency, which issued this document). Such documents shall be valid at the moment of their provision for identification.
Upon identification, first of all, shall be clarified sound of client to terrorist financing or terrorist activity through searching his presence/absence in the List of persons related to terrorist activity.
If the person acts as the representative of another person or the employee of the gambling institution has suspicion concerning if the person acts in own name or the beneficiary is another person (regarding the gambling for own money), the gambling institutions shall be obliged to identify also: the person in the name of or by the order of who the financial transaction is executing; the beneficiary.
The following shall be determined with the purpose of identification:
-       for residents – surname, name and patronymic; the birth date; series and number of the Ukrainian citizen passport (or other identification document), the issue date and the issued authority; location; identification number according to the State register of natural person – payers of the taxes and other obligatory payments.
If the natural person under religious motives refused to receive identification number, there shall be the relevant check in his passport.
-       for nonresidents – surname, name and patronymic (if available); the birth date; series and number of the passport document (or other identification document), issue date and issued authority; citizenship; location or temporary staying.
The identification of the person is not obligatory in case if financial transaction is executing by the person who was previously identified by the gambling institution (separate subdivision) according to the legislation of Ukraine or the identifying information haven’t changed.
In processing identification of the person (resident/nonresident), the employee of the gambling institution shall fill the client form according to the attached form.
For examining the nature and purpose of financial transaction executing by the client the gambling institution foresees in client form the questions about the purpose of performing by the client gambling in the gambling institution.
The employee of the gambling institution shall form the case on each the client with appropriate certified copies of documents grounds for identifying the person and the client form. The compliance officer for each case shall record the number of case, surname and initials of the person and the date of financial transaction.
The information concerning identification of the persons executed financial transaction subject to financial monitoring according to the Law, and all documentation on executing financial transaction shall be stored for 5 years after executing such financial transaction.
 
5.2. Procedure of taking measures aimed at examining the identification information of client
 
If the financial transaction subject to financial monitoring is executing by the persons who declares that he was identified by the gambling institution previously, the compliance officer of the gambling institution (separate subdivision) shall examine such information.
The compliance officer of the gambling institution (separate subdivision) shall review the case of such person under his surname and examine presence of necessary for identification documents and their validity.
The compliance officer of the gambling institution (separate subdivision) shall certain that all necessary documents in case are present and valid.
After executing financial transaction the compliance officer of the gambling institution (separate subdivision) shall write on such client case new date of executing financial transaction and keep storing information and all documents in case for 5 years from the last executed financial transaction.
 
5.3. Procedure of taking measures on clarifying the client information
 
In case if the compliance officer of the gambling institution (separate subdivision) during examining the client case finds out that identification information has changed he shall request from the person to submit for identification the original or certified copy of the document confirming relevant changes.
If the validity term of identification documents is over the compliance officer of the gambling institution (separate subdivision) shall request from the person to submit for identification the valid original or certified copy of identification document.
In case the person submits the original of such document the compliance officer of the gambling institution (separate subdivision) shall take the copy of this document and make the inscription “the true copy” and signs it by himself or it signs the person - client.
The relevant copies of the documents shall be added to the client case by the compliance officer of the gambling institution (separate subdivision).
The clarifying identification information and examining client shall be also performed in following cases:
if the high-risked person, patron, has executed periodically during the year financial transactions subject to financial monitoring;
if the low-risked person, patron, has executed during 3 years financial transactions subject to financial monitoring.
 
 
 
 
 
5.4. Procedure of taking measures on additional examining clients
 
The compliance officer of the gambling institution (separate subdivision)shall take the measures on additional examining the persons who uses the gambling institution services repeatedly.
The compliance officer of the gambling institution (separate subdivision) can collect the information, e.g. on the following:
the loss/winning amount of this client in the gambling institution;
the quantity of violations of gambling rules by this person;
the nature of such violations;
the timely/untimely receiving of the winning by he person;
the quantity of received prizes and their amount of this person;
etc.
 
The additional documents and data related to identification shall be stored in client case.
 
In case of failure to submit the data needed by the gambling institution (separate subdivision) for fulfillment legislation requirements on identification, the compliance officer of the gambling institution shall register such financial transaction in the register by the sign to internal financial monitoring, prescribed by the Clause e) of the Part 1 of the Article 12 of the Law “refusal in submitting by the persom (client) the information prescribed by the legislation and relevant internal documents of the initial financial monitoring entity”.
The compliance officer assessed the legalization (laundering) of the proceeds from crime risk of this financial transaction shall take the decision on necessity of informing the SCFM of Ukraine about this financial transaction.
 
5.5. Assessing ML/FT criteria for executing by the client financial transactions
 
The following persons could be considered the high-risked of executing financial transactions on legalization (laundering) of the proceeds from crime:
residents of countries (territories), that are not adhere the general standards in counteraction to the legalization (laundering) of the proceeds from crime or terrorist financing;
residents of countries (territories) in which warfare is hold;
residents of offshore countries (territories);
who serves (served) at the widely authorized position or is politically exposed person;
who has criminal record.
The following person could be considered the low-risked client:
who is patron of the gambling institution with excellent reputation;
pension aged persons executing financial transactions on small amounts – less UAH 1000.
 
 
6. PROCEDURE OF REVEALMENT AND REGESTRATION OF FINANCIAL TRANSCTION SUBJECT TO FINANCIAL MONITORING AND SUBMITTING INFORMATION TO THE SCM OF UKRAINE
The employee of the gambling institution (separate subdivision) who directly provides financial transaction shall execute the following:
Revealing of financial transaction subject to financial monitoring and could be related to, connected or intended for terrorist financing;
Preparing and submitting to the compliance officer of the gambling institution (separate subdivision) the information necessary for making decision on its registration;
Collecting and storing the documents related to identification of the persons executing financial transactions and documents on executed financial transactions subject to financial monitoring or could be related to, connected or intended for terrorist financing;
Providing measures on preventing disclosure (including to the persons financial transactions of whom are examining) the information submitting to the SCFM of Ukraine and other relevant information on financial monitoring issues (including the fact of submitting such information).
The analyses of financial transactions for reveal financial transactions that according to the legislation in the sphere of prevention to the legalization of the proceeds from crime subject to financial monitoring shall be executed permanently by the employees of the gambling institution and its separate subdivision.
Before executing the financial transaction but the next business day at least the employee of the gambling institution (separate subdivision), who provides financial transaction or the compliance officer, shall clarify the opportunity to consider this financial transaction subject to financial monitoring according to the Law, and in case of revealing such financial transaction the compliance officer of the gambling institution shall register it the same day.
The payment of the winning (prize) shall be subject to obligatory financial monitoring, if the amount of financial transaction equals or exceeds UAH 80000 or equals or exceeds its equivalent in currency.
The financial transaction shall be subject to internal financial monitoring if it has one or more following signs:
Ø     submitting by the person – client identification information that can’t be examined;
Ø     refusal in submitting by the person – client information prescribed by the legislation and relevant internal documents of the gambling institution;
Ø     loss (winning) by the person the amount equals or exceeds UAH 10000 or equals or exceeds its equivalent in currency on slot machines, casino etc;
Ø     repeated losses by the person the amount equals or exceeds UAH 10000 or equals or exceeds its equivalent in currency on slot machines during short period of time (3 days);
Ø     presenting for exchange tokens (chips) without previously held gambling;
Ø     purchasing tokens (chips) on the amount equals or exceeds UAH 10000 or equal or exceeds its equivalent in currency;
Ø     addressing by the person – client with request to change gambling rules for his loss/winning;
Ø     repeated losses by the owners of the gambling institution or their relatives in the gambling institution the amount equals or exceeds UAH 10000 or equal or exceeds its equivalent in currency.
 
The internal financial monitoring could be executed also on other financial transactions if the compliance officer of the gambling institution (separate subdivision) has the suspicious that such financial transaction executing with ML/FT purpose.
In case revealing such financial transaction the employee of the gambling institution immediately (taking measures on non-disclosure such information to third parties or to client) shall inform the compliance officer of the gambling institution, and the employee of the separate subdivision shall inform the compliance officer of the separate subdivision who, in turn, shall inform the compliance officer of the gambling institution.  
The compliance officer of the gambling institution after examining and confirming of the received information shall register it the same day.
Registration of the financial transactions subject to financial monitoring shall be performed in the Register forming and keeping by the compliance officer of the gambling institution and is the electronic (paper) document with defined specified structure.
The Register is the totality of information on financial transactions subject to financial monitoring and their participants.
The format, structure of the Register, reference book of codes and the procedure of submitting the information on paper are established by the Order of SCFM of Ukraine from May 13, 2003 under 48 “On execution of certain forms relevant to financial monitoring and Instructions for their filling in.
The procedure of submitting information in electronic form approved by the Order of SCFM of Ukraine from September 28, 2004 under 122 “Procedure of appropriation of identifier to the entities of initial financial monitoring for submitting of information to SCFM of Ukraine”.
For every record in the Register the serial number and time and date of recording shall be assigned as well as the position, surname, name and patronymic of the compliance officer of the gambling institution who made the record shall be written. The Register shall have the continuous numbering from the beginning registration of the first financial transaction.
In case taking the decision by the compliance officer if the gambling institution on inexpediency of informing the SCFM of Ukraine about the financial transaction subject to initial financial monitoring, the compliance officer shall compose the written reference note where he grounds his decision. Reference note particularly shall include the composing date, serial number of the financial transaction in the Register, the results of taken measures on clarifying nature and purpose of executing this financial transaction by the client and signature of the compliance officer.
The reference with other documents on financial transaction shall be stored in the client case.
If the compliance officer of the gambling institution has grounded suspicious that revealed financial transaction is executing for the legalization (laundering) of the proceeds from crime, he shall submit information on such financial transaction to the SCFM of Ukraine.
The compliance officer of the gambling institution shall be personal responsible for protection the Register from damage, unsanctioned access, modification or data corruption.
Correction registered data shall be not permitted.
In the case of necessity to correct noisy data in the Register on individual financial transaction, informational field of the Register consisting data on this financial transaction shall be amended with the note of its canceling and new note shall be added to the Register about this financial transaction with new number and date of registration and submitted to the SCFM of Ukraine in new information reference during 3 business days from the refusal in recording previous reference date.
Every day if new records is made to the Register, all new records or changed during business day records shall be printed. Printed pages of the Register shall be certified with signature of the compliance officer of the gambling institution.
Printed pages of the Register for previous month shall be formed by the dates, stringed and certified by the signature of the compliance officer ad by the signet of the gambling institution and shall be stored for 5 years.
On the first page of the case shall be written the case name, case number under the nomenclature of the gambling institution first and last register records numbers, first and last financial transaction registration dates, the number of pages in case and the storage term.
 
7. SUBMITTING THE INFORMATION ON REVEALED FINANCIAL TRANSACTION FROM COMPLIANCE OFFICER OF THE SEPARATE SUBDIVISION TO THE COMPLIANCE OFFICER OF THE GAMBLING INSTITUTION
If employee of the separate subdivision executing and providing financial transaction finds out that financial transaction subjects to financial monitoring, he shall the same business day shall compose the plain form reference on revealed financial transaction and the same day shall submit it and grounding financial transaction documents to the compliance officer of the separate subdivision.
After examination of received reference on revealed financial transaction and relevant documents (if available) the compliance officer of the separate subdivision shall submit this information to the compliance officer of the gambling institution for registration such financial transaction.
The separate subdivision shall not independently submit the information to the SCFM of Ukraine but just shall provide the record keeping of the revealed by the separate subdivision financial transactions subject to financial monitoring under the properties mentioned in the Register.
For this purpose the compliance officer of the separate subdivision shall keep the Recording Journal of financial transactions that could be related to the legalization (laundering) of the proceeds.
The compliance officer of the separate subdivision shall take measures on protecting information and non-admission third parties.
The compliance officer of the gambling institution shall register the revealed in separate subdivision financial transaction and make decision on informing/non-informing (if financial transaction subjects to internal financial monitoring) the SCFM of Ukraine about it.
After registration of financial transaction the compliance officer of the gambling institution shall submit to relevant separate subdivision the data on registration particularly serial number of the financial transaction registration in the Register.  After receiving such information the compliance officer of the gambling institution shall record to the Record Journal of financial transactions that could be related to the legalization (laundering) of the proceeds the serial number of the financial transaction registration in the Register.
 
8. PROCEDURE OF REVEALING AND SUSPENDING FINANCIAL TRANSACCTION PARTICIPANT OR BENEFICIARY OF WHICH IS PERSON INLUDED TO THE LIST OF PERSONS RELATED TO TERRORIST ACTIVITY
 In pursuance of the requirements of the Article 121 of the Law on suspending financial transactions related to terrorist activity, before executing each financial transaction employee of the gambling institution (separate subdivision) who provides executing such financial transaction, first of all, shall check the presence, among participants or beneficiaries of financial transaction, of persons included to the List of persons related to terrorist activity.
If there is person included to the List of persons related to terrorist activity among the participants, the information on such financial transaction shall be immediately submitted to the compliance officer of the gambling institution in written form.
The List of persons related to terrorist activity shall be composed according to the legislation and the gambling institution shall be informed in prescribed procedure by the SCFM of Ukraine.
The compliance officer of the gambling institution shall immediately register such financial transaction and, through composing written commission, obligatory for executing by all employees of the gambling institution (separate subdivision), shall make the decision on suspending financial transaction participant or beneficiary of which is person included to the List of persons related to terrorist activity up to 2 business days.
The compliance officer of the gambling institution (separate subdivision) shall inform the SCFM of Ukraine the same day about made decision on suspending financial transaction trough composing and submitting relevant reference according to established by the SCFN of Ukraine form or relevant file – reference (complying the requirements of the Orders of the SCFM of Ukraine from September 28, 2004 under 122; from May 19, 2006 under 74 and from May 20, 2006 under 76).
The information shall be submitted to the SCFM of Ukraine with complying measures on excluding uncontrolled access to it or documents during their delivery (e.g., personally, by the post with a return receipt on receiving, with assistance of courier or special communications).
At least the next business day after submitting the information reference on suspending financial transaction the compliance officer of the gambling institution (separate subdivision) shall insure that submitted information is received by the SCFM of Ukraine.
In case of non-receiving during 2 business days from the suspending financial  transaction date (informing the SCFM of Ukraine) the decision of SCFM of Ukraine on further suspending financial transaction, the compliance officer of the gambling institution shall renew executing financial transaction through relevant written commission obligatory for executing by all employees of the gambling institution.
In case of receiving the decision of the SCFM of Ukraine on further suspending of financial transaction the compliance officer of the gambling institution shall provide further suspending of financial transaction for term mentioned in decision of the SCFM of Ukraine through relevant written commission obligatory for executing by all employees of the gambling institution.
The common term of financial transaction suspending shall be no longer than 7 business days.
 
Schedule of the procedure of suspending financial transactions participants or beneficiaries of which are persons included to the List of persons related to terrorist activity:
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
 

9. PROCEDURE OF REFUSING FROM PROVIDING FINANCIAL TRANSACTION AND SUBMITTING INFORMATION ABOUT IT TO THE SCFM OF UKRAINE
 
The gambling institution shall have the right to refuse from providing financial transaction in case of presence of financial transaction signs according to the Law subject to financial monitoring, meanwhile, it shall be necessary to identify persons executing mentioned financial transaction and inform the SCFM of Ukraine about this persons and the nature of financial transaction.
If transaction is executing in the separate subdivision, the compliance officer of the separate subdivision shall inform the compliance officer of the gambling institution about attempting of executing financial transaction subject to financial monitoring according to the Law, and about persons executed or attempted to execute mentioned financial transaction, and the nature of this financial transaction in written form.
About taken decision on refusing to execute or provide financial transaction subject to financial monitoring according to the Law the compliance officer of the gambling institution shall inform the Head of the institution, and only after that he shall submit written commission on refusing to execute financial transaction.
 
10. PROCEDURE OF INFORMING THE HEAD BY THE COMPIANCE OFFICER ON REALIZATION OF INTERNAL FINANCIAL MONITORING RULES
 
The compliance officer at least once per month shall inform the Head about revealed financial transactions subject to financial monitoring and taken measures on organization of financial monitoring.
Informing shall be executed through submitting to the Head of the gambling institution plain form written reference.
The reference, particularly, shall include information about the following:
Issuing date;
Quantity of revealed clients;
Quantity of revealed financial transactions subject to financial monitoring;
Quantity of recorded financial transactions with signs of obligatory and internal financial monitoring;
Quantity of submitted to the SCFM of Ukraine financial transactions subject to obligatory and internal financial monitoring;
Quantity of repeatedly submitted to the SCFM of Ukraine financial transactions after correcting made mistakes;
Taken measures on developing and renewing of internal financial monitoring rules and programs considering the requirements of the legislation, including normative legal acts of SCFM of Ukraine;
Taken measures on preparing personnel on revealing financial transactions subject to financial monitoring according to the Law through holding educational and practical measures;
Signature of compliance officer of the gambling institution.
The reference with resolution of the Head of the gambling institution shall be returned to the compliance officer of the gambling institution and stored in individual case according to the nomenclature number of this case for 5 years.
If during the month the compliance officer didn’t reveal financial transactions subject to financial monitoring, and, accordingly, if the compliance officer didn’t take any measures during the month, it also shall be specified in written reference.
 
11. RESPONSIBILITY FOR NON-COMPLYING THE REQUEREMENTS OF THE LEGISLATION IN THE SPHERE OF THE LEGALIZATION (LAUNDERING) OF THE PROCEEDS FROM CRIME AND THIS RULES
Persons guilty of violations of the requirements of the Law shall be criminal, administrative and civil responsible according to the Law. Such persons also could be disentitled to execute certain types of activity according to the legislation.
Legal persons executed financial transactions for legalization (laundering) of the proceeds from crime or financed terrorist could be liquidate under the court decision.
If the gambling institution didn’t comply the requirements of this Law the fine could be used to it according to the procedure prescribed by the legislation in the amount up to 1000 untaxed minimum income. In case when gambling institution disagrees to pay fine the decision on forfeiting or on its refusal shall be taken by the court under the request of authority that supervises the activity of gambling institution and issues the licenses or other special authorizations.
Repeated violations by the gambling institution of the requirements of this Law shall be punishable under court decision by limitation, temporary suspending and deprivation of license or other authorization on the right for performing certain types of activity in the procedure established by the legislation. The following shall be used for violations of the legislation on prevention and counteraction to the legalization of the proceeds from crime:
. the administrative responsibility prescribed by the Article 1669 of the Code on Administrative Offenses of Ukraine.
The Article 1669. Violation of the legislation on preventing legalization (laundering) of proceeds from crime
Cases, when demands concerning identification of a person, executing a financial transaction, the order of registration financial transactions, which are the subject to initial financial monitoring, are broken, special authorities of executive power, dealing with financial monitoring, do not provide, provide untimely or provide inauthentic information about such financial transactions, demands concerning storing the documents, dealing with identification of persons, who perform financial transactions and documents concerning the performed financial transactions, are not fulfilled,  lead to fines imposing on officials of the subjects of primary financial monitoring at the rate from fifty to hundred untaxed income minimums.
Cases, when information, given to special authorities of executive power, dealing with financial information, or the fact of providing such information, is disclosed lead to fines imposing at the rate from one hundred to three hundred untaxed income minimums.
. The criminal responsibility is prescribed by the Article 2091 of Criminal Code of Ukraine.
1. Repeated intentional submission of deliberately false information regarding transactions subject to internal or compulsory financial monitoring to the SCFM of Ukraine shall be punishable by a fine of 1000 to 2000 untaxed minimum incomes of citizen, or limitation of liberty for a term up to two years, or imprisonment for the same term with the deprivation of the right to occupy certain positions or engage in certain activities for a term up to three years.
2. Illegal disclosure of information in any form, which was submitted to the SCFM of Ukraine, by a person who learned such information in the course of performance of his/her professional or service duties, shall be punishable by a fine of 2000 to 3000 untaxed minimum incomes of citizen, or limitation of liberty for a term up to three years, or imprisonment for the same term with the deprivation of the right to occupy certain positions or engage in certain activities for a term up to three years.
. For violations of this Rules employees of the gambling institution (separate subdivision) under decision of the Head of gambling institution could be called for responsibility prescribed by the Code of the Laws on Labour established for   failure to fulfill of their job responsibilities (labour discipline).
 
 
Compliance officer of the
gambling institution                                                            ___________________
                                                                                                                                                                                 signature
 
 
 
 
 
 
 
 
 

Annex 1
Client form (for natural person - resident)
of record
Information
1.1.
Surname __________________________________
Name _______________________________________
Patronymic _________________________________
1.2.
Birth date ____________________________
1.3.
1.3.1.Data of identification document
Passport/other document _______Series _______ ___________ issue date ________________
Issued authority ____________________________________________
1.4.
Location
____________________________________________
1.5.
Identification number according to the State Register of natural persons – tax payers
____________________________________________
1.6.
Purpose of participation in gambling in gambling institution and expected result
____________________________________________
____________________________________________
1.7.
Do You act from own name and at own expense ____________________________________________
If no:
On the ground ____________________________________
                                               Here shall be written document grounding on which person acts
In interests of: ____________________________________
                            Here shall be written resident/nonresident, surname, name, patronymic of the interested person
_______________________________________________
birth date, citizenship, location, identification number according to the State Register of natural persons – tax persons (for residents)
__________________________________________________________________________________
1.8.
Do You relate to financing terrorism, terrorist activity ______________________
1.9.
Information on criminal records ______________
1.10.
E-mail address _____________________
 
 Filling date  ___________       Client signature   _____________
 
Annex 2
Client form (for natural person – nonresident)
of record
Information
1.1.
Surname ___________________________________
Name ________________________________________
Patronymic (if available)___________________
1.2.
Birth date ______________________
1.3.
1.3.1.Data of identification document
Passport/other document _______Series _______                          ___________ issue date ________________
Issued authority ____________________________________________
1.4.
Citizenship ________________________________
1.5.
Temporary location place/address ____________________________________________
1.6.
Purpose of participation in gambling in gambling institution and expected result
____________________________________________
____________________________________________
1.7.
Do You act from own name and at own expense ____________________________________________
If no:
On the ground ____________________________________
                                               Here shall be written document grounding on which person acts
In interests of: ____________________________________
                         Here shall be written resident/nonresident, surname, name, patronymic of the interested person
_______________________________________________
birth date, citizenship, location, identification number according to the State Register of natural persons – tax persons (for residents)
__________________________________________________________________________________
1.8.
Do You relate to financing terrorism, terrorist activity ________________________
1.9.
Information on criminal records ______________________
1.10.
E-mail address _______________________
 
Filling date ___________       Client signature   _____________
 


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