Anti-Money Laundering Policy

Anti-Money Laundering Policy

1. Introduction

The Legal Notice and Terms of Engagement apply in their entirety to this document. The definitions set forth in the Legal Notice are hereby incorporated by reference and shall apply throughout this document.

2. General Overview

This Anti-Money Laundering Policy (hereinafter: “Policy”) applies to all BOPA Lawyers and other personnel, including but not limited to Partners, Attorneys at Law, and Associates. This Policy also applies to all sub-contractors engaged by BOPA on an ad-hoc basis. Furthermore, all persons engaged in any way by BOPA, including those conducting tasks, shall observe this Policy (hereinafter: “BOPA Personnel”).

3. Notions of Money Laundering and Terrorism Financing

BOPA is committed to the prevention of money laundering and financing of terrorism. Our mission is to provide legal assistance at the level of excellence in a lawful manner. Our vision is to be a leading law firm that will be a role model to legal practitioners in Serbia in regard to professional standards. Accordingly, BOPA provides legal assistance to its clients with full observance of the law, in particular, the Law on the Prevention of Money Laundering and the Terrorism Financing of the Republic of Serbia- “Official Gazette of the RS” no. 113/2017, 91/2019, 153/2020, 92/2023 and 94/2024 – hereinafter: the “Law“) and its by-laws, which make a legal framework for the prevention of money laundering and financing of terrorism in Serbia.

3.1. Money Laundering

Pursuant to the Law, money laundering is to be understood as:

  • conversion or transfer of property acquired via criminal offence;
  • concealment or misrepresentation of the true nature, source, location, movement, disposition, ownership of, or rights in regard to the property acquired via criminal offence;
  • acquisition, possession, or use of property acquired via the commission of a criminal offense.

‍

Pursuant to Article 245 of the Criminal Code of the Republic of Serbia (“Official Gazette of the RS”, no. 85/2005, 88/2005, 107/2005, 72/2009, 111/2009, 121/2012, 104/2013, 108/2014, 94/2016, 35/2019 and 94/2024 (hereinafter: “Criminal Code”) money laundering is a criminal offense. The sanction for this offense can reach 12 years of imprisonment.

3.2. Terrorism Financing

Pursuant to the Law, terrorism financing means the provision or collection of funds or property, or an attempt to do so, with the intention of using them, or in the knowledge that they may be used, in full or in part:

  • to carry out a terrorist act;
  • by terrorists;
  • by terrorist organizations.
    ‍

Terrorism financing means inciting and assisting in the provision or collection of property, regardless of whether a terrorist act was committed or whether property was used for the commission of a terrorist act.

Pursuant to the Law, a terrorism act is to be understood as a criminal offense specified in the treaties listed in the annex to the International Convention for the Suppression of the Financing of terrorism, as well as any other act intended to cause death or a serious bodily injury to a civilian or any other person not taking an active part in the hostilities in a situation of armed conflict, when the purpose of such act, by its nature or context, is to intimidate a population or to compel a government or an international organization to do or to restrain from doing any act.

Pursuant to the Law, a terrorist is to be understood as a person who, individually or together with other persons, wilfully:

  • attempts or perpetrates an act of terrorism in any way, directly or indirectly;
    aids and abets in the commission of a terrorist act;
  • has knowledge of the intention of a group of terrorists to commit an act of terrorism, contribute to the commission, or assist in the continuation of the commission of a terrorist act to a group acting with a common purpose.

‍

Pursuant to the Law, a terrorist organization is to be understood as a group of terrorists which:

  • attempts or perpetrates an act of terrorism in any way, directly or indirectly;
    incites aids and abets in the commission of a terrorist act;
  • has knowledge of the intention of a group of terrorists to commit an act of terrorism, contribute to the commission, or assist in the continuation of the commission of a terrorist act to a group acting with a common purpose.

‍

Pursuant to Article 393 of the Criminal Code, terrorism financing is considered to be a criminal offense. The sanction for this offense can reach 10 years of imprisonment.

4. Obligations of Lawyers

Pursuant to the Law, attorneys are obliged to apply certain actions and measures for the prevention of money laundering and terrorism financing when providing the following forms of legal assistance:

1. Assisting in planning or execution of transactions for a client concerning:

  • buying or selling of real estate or a company;
  • management of client’s assets;
  • opening or disposing of an account with a bank (bank, savings or securities accounts);
  • collection of contributions necessary for the creation, operation or management of companies;
  • creation, operation, or management of an entity existing under foreign law.

‍

2. Carrying out, on behalf of or for a client, any financial or real estate transaction.
The measures and actions at issue are applied on the following occasions in the course of the provision of above-mentioned forms of legal assistance of an attorney:

  • when establishing a business relationship with a client;
  • when carrying out a transaction amounting to the RSD equivalent of EUR 15,000 or more, calculated by the National Bank of Serbia median rate on the date of execution of the transaction, irrespective of whether the transaction is carried out in one or more than one connected operation;
  • when there are reasons for suspicion of money laundering or terrorism financing with respect to a client or transaction;
  • when there are doubts about the veracity or credibility of previously obtained information about a client or a beneficial owner.

Those measures and actions are as follows:

  • verification of the identity of a client and his representatives (if applicable);
Identification of a beneficial owner of a client, which is a legal person (definition of a beneficial owner is given below);
  • obtaining information on the purpose and intended nature of a business relationship or transaction, as well as on a business activity of a client;
  • collection of information on the value of a transaction and the manner of performance;
  • collection of information on the origin of property which is or shall be a subject matter of business relation or transaction;
  • regular monitoring of business transactions of a client and checking the consistency of the client’s activities with the nature of the business relationship and the usual scope and type of the client’s business transactions.

‍

Beneficial owner of a company or any other legal person is to be understood as:

  • individual who owns, directly or indirectly, 25% or more of the business share, shares, voting right, or other rights, based on which he participates in the management of the legal person or who participates in the capital of the legal person with 25% or more of the share, or has a dominant position in managing the assets of the legal person;
  • individual who has provided or provided funds to a company in an indirect manner, which entitles him to significantly influence the decisions rendered by the managing bodies of the company concerning its financing and business operations.

‍

Beneficial owner of an entity existing under a foreign law, which receives, manages, or allocates assets for a specific purpose, is to be understood as:

  • an individual using, indirectly or directly, 25% or more of the assets that are the subject matter of management, provided that the future users have been designated;
  • an individual or group of persons for whose interest an entity existing under a foreign law is established or operates, provided that such individual or group of persons are identifiable;
  • an individual who, indirectly or directly, without limitations, manages 25% or more of the property of an entity existing under a foreign law.

‍

An attorney will determine the identity of a client or its representative by way of an insight into a personal identity document of such persons in their presence or into the original or certified copy of the documentation from an official public register, which shall be issued no earlier than 3 months before its submission to an attorney, or by direct insight into an official public register.
‍

An attorney will determine the identity of a beneficial owner of a client who is a legal person by way of an insight into the original or certified copy of the documentation from an official public register, which shall be issued no earlier than 3 months before its submission to the attorney. If it is not possible to obtain the required information from such sources, the information shall be obtained by way of an insight into the original or certified copy of a document or other business documentation submitted by a representative of the legal person.
‍

An attorney shall obtain other relevant information by way of an insight into the original or certified copy of an identity document or other business documentation.
An attorney shall obtain a written statement from a client concerning any missing information.
‍

BOPA observes all mentioned obligations which relate to the collection of information in the course of the provision of legal assistance to its clients.


5. Reporting obligations

If a BOPA Personnel member determines that there are reasons for suspicion of money laundering or terrorism financing regarding a person or a transaction, he/she shall immediately inform the Managing Partner of such suspicion. BOPA shall immediately inform the Administration for Prevention of Money Laundering of the Republic of Serbia (hereinafter: “Competent Authority”) of the existing suspicion before carrying out the transaction and indicate in a report the time when the transaction should be performed. In a case of urgency, such report may be made by telephone, in which case it shall subsequently be sent to the Competent Authority in writing, but no later than the next working day. This reporting obligation shall also apply to a planned transaction, irrespective of whether or not the transaction was later carried out.

Should BOPA be unable to comply with these obligations, either due to the nature of a transaction, or because a transaction has not been carried out, or for any other justified reason, it shall send the report to the Competent Authority as soon as possible. BOPA shall make a written statement explaining the reasons why it did not act as prescribed.

When a client requests legal assistance from BOPA concerning money laundering or terrorism financing, BOPA shall report it to the Competent Authority promptly but no later than 3 days after the day when the client requested such legal assistance.
Notwithstanding the mentioned reporting obligations, an attorney will not be under the obligation to deliver to the Competent Authority any information or documentation that he obtains from a client or about a client when determining his legal position or when representing him in a court proceeding or in relation to a court proceeding, including any advice provided in relation to the initiation or avoidance of such proceedings, irrespective of whether such information has been obtained before, during, or after the court proceedings. In the given situation, an attorney shall not be obliged to send information or documentation to the Competent Authority upon its request for information or documentation. However, an attorney shall send a written statement stating the reasons why he did not act according to such request immediately but no later than within 15 days from the date of receipt of such a request.

Pursuant to the Rulebook on Methodology of Performance of Business Activities in Accordance with the Law on Prevention of Money Laundering and the Terrorism Financing (“Official Gazette of the RS” no. 80/2020 and 18/2022 – hereinafter: “Official Prevention Methodology”), an attorney is obliged to keep evidence on the collected information and documentation, which relates to such information, electronically, chronologically and in a manner that provides an adequate approach to such information.

Information from the evidence must be searchable under the following criteria:

  • name and last name of an individual;
  • name of a legal person;
  • date of a transaction;
  • currency of a transaction;
  • a country in which a transaction is performed.

‍

BOPA observes all mentioned obligations that relate to reporting and monitoring stipulated by the Law and its by-laws.
‍

6. Ensuring Compliance

‍
Pursuant to the Official Prevention Methodology, BOPA will duly and timely render an annual program of annual professional training and improvement of BOPA Personnel for prevention and discovering of money laundering and terrorism financing. In particular, the annual program will contain:

  • planned number of trainings on an annual level;
  • planned number of BOPA Personnel which will attend trainings, as well as profiles of members of BOPA Personnel who will attend such trainings;
  • matters from the area of prevention of money laundering and terrorism financing that will be included in the training;
  • manner of realisation of the training (seminars, workshops, etc.).

‍

In addition, the Managing Partner will take all other necessary steps to ensure that BOPA Personnel are well acquainted with all forms of money laundering and terrorism financing and situations in which there is a high possibility of the existence of money laundering and terrorism financing. In addition, BOPA will ensure that BOPA Personnel are properly introduced to their obligations related to the prevention of money laundering and terrorism financing, in particular, reporting obligations and collecting relevant information from clients.
‍

7. Breach of Policy

In case of breach of any of the above obligations for prevention of money laundering and terrorism financing by any member of BOPA Personnel, the Managing Partner will apply appropriate measures in order to ensure general and special prevention of such misconduct among BOPA Personnel.
‍

8. Adjustment of Policy

BOPA will duly and timely amend this Policy to adjust it in accordance with changes in the legal and social context of applicable laws. Therefore, this Policy shall always be fully applicable and effective so that the full implementation of the relevant provisions of the law is achieved.

‍