|
|
Sanctions:
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011
In the last several years, the Republic of San Marino has been
aggressively combating the image of a fiscal haven, improving its
anti-money laundering regime, and increasing the transparency of
its financial sector. While there is no significant market for illegal
or smuggled goods in San Marino, money laundering occurs to
some extent in both the formal and non-bank financial systems,
unrelated to narcotics trafficking. Money laundering is mainly
trade-based and carried out by foreigners to avoid higher taxes in
their countries. However, the country has recently adopted stricter
monitoring regulations and there appears to be a decrease
overall in financial crimes. There are no free trade zones in San
Marino.
Since September 2009, San Marino has been included in the
OECD’s white list, and has signed Tax Information Exchange
Agreements with over 30 countries (21 of which are OECD or EU
member states).
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks and other financial institutions, the postal
service, electronic money institutions, investment firms, insurance
companies, lawyers, trust companies, accountants, auditors,
gaming centers, money exchangers
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Financial institutions, insurance and re-
insurance companies, and natural persons or entities whose
professions or business activities involve the movement of money
or securities, accountants and tax advisors, real estate agents,
notaries, legal professionals, gaming centers and dealers in
precious stones and metals
Number of STRs received and time frame: 296 in 2010
Number of CTRs received and time frame: Not available
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Not available
Convictions: Not available
Assets forfeited: criminally: Not available civilly: Not available
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
San Marino is a member of The Committee of Experts on the
Evaluation of Anti-Money Laundering Measures and the Financing
of Terrorism (MONEYVAL). Its most recent mutual evaluation
report can be found here: http://www.coe.
int/t/dghl/monitoring/moneyval/Countries/San%20Marino_en.asp
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
In the past, the lack of appropriate legislation and resources to
enforce AML regulations made San Marino vulnerable to money
laundering, especially from tax evasion and fraudulent financial
activities such as false invoicing. In recent years, however, the
country has made substantial improvements to meet international
financial standards.
On July 20, 2010, San Marino became a party to the UN
Convention against Transnational Organized Crime.
San Marino should continue to improve personnel training and
increase resources with a view to fully implementing its laws and
regulations. San Marino should become a party to the UN
Convention against Corruption.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
US State Dept Trafficking in Persons Report 2011
(introduction):
No report available
US State Dept Terrorism Report 2009
No report available
____________________________________________________
AML News / Updates
February 10, 2011 - The Global Forum on Transparency and
Exchange of Information for Tax Purposes has issued a Phase 1
peer review for San Marino
View Review....
Links:
Worldwide AML Legislation (International Bar Association)
Agenzia di Informazione Finanziaria (AIF)
Financial Intelligence Agency (FIA)
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011
In the last several years, the Republic of San Marino has been
aggressively combating the image of a fiscal haven, improving its
anti-money laundering regime, and increasing the transparency of
its financial sector. While there is no significant market for illegal
or smuggled goods in San Marino, money laundering occurs to
some extent in both the formal and non-bank financial systems,
unrelated to narcotics trafficking. Money laundering is mainly
trade-based and carried out by foreigners to avoid higher taxes in
their countries. However, the country has recently adopted stricter
monitoring regulations and there appears to be a decrease
overall in financial crimes. There are no free trade zones in San
Marino.
Since September 2009, San Marino has been included in the
OECD’s white list, and has signed Tax Information Exchange
Agreements with over 30 countries (21 of which are OECD or EU
member states).
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks and other financial institutions, the postal
service, electronic money institutions, investment firms, insurance
companies, lawyers, trust companies, accountants, auditors,
gaming centers, money exchangers
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Financial institutions, insurance and re-
insurance companies, and natural persons or entities whose
professions or business activities involve the movement of money
or securities, accountants and tax advisors, real estate agents,
notaries, legal professionals, gaming centers and dealers in
precious stones and metals
Number of STRs received and time frame: 296 in 2010
Number of CTRs received and time frame: Not available
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Not available
Convictions: Not available
Assets forfeited: criminally: Not available civilly: Not available
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
San Marino is a member of The Committee of Experts on the
Evaluation of Anti-Money Laundering Measures and the Financing
of Terrorism (MONEYVAL). Its most recent mutual evaluation
report can be found here: http://www.coe.
int/t/dghl/monitoring/moneyval/Countries/San%20Marino_en.asp
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
In the past, the lack of appropriate legislation and resources to
enforce AML regulations made San Marino vulnerable to money
laundering, especially from tax evasion and fraudulent financial
activities such as false invoicing. In recent years, however, the
country has made substantial improvements to meet international
financial standards.
On July 20, 2010, San Marino became a party to the UN
Convention against Transnational Organized Crime.
San Marino should continue to improve personnel training and
increase resources with a view to fully implementing its laws and
regulations. San Marino should become a party to the UN
Convention against Corruption.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
US State Dept Trafficking in Persons Report 2011
(introduction):
No report available
US State Dept Terrorism Report 2009
No report available
____________________________________________________
AML News / Updates
February 10, 2011 - The Global Forum on Transparency and
Exchange of Information for Tax Purposes has issued a Phase 1
peer review for San Marino
View Review....
Links:
Worldwide AML Legislation (International Bar Association)
Agenzia di Informazione Finanziaria (AIF)
Financial Intelligence Agency (FIA)
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| Further Tables |
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*Please note that FATF deems that a country has significant aml deficiencies if
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| SAN MARINO |
| KnowYourCountry |
|
|
San Marino has a low crime environment. No specific money laundering
(ML)/financing of terrorism (FT) risk assessment has been undertaken.
The money laundering risks, according to the authorities continue to
derive from the foreign predicate offenses (primarily offences of
fraud, usury and bankruptcy), with proceeds being invested or
transferred through San Marino, with the banking and fiduciary sectors
being the areas with the greatest vulnerability. Money laundering is
often committed by making use of fictitious business operations to
justify movements of capital. Indicators suggest that San Marino is
susceptible to ML, such as cross linked investments to launder in San
Marino proceeds from tax evasion and from the Italian criminal
organisations, possibly exploiting the vulnerabilities of San Marino’s
financial system. The TF risks are deemed to be low.
Money laundering is criminalised largely in line with the FATF standard
and the legal framework provides an ability to freeze and confiscate
assets in appropriate circumstances. There remain a number of
deficiencies to ensure that FT offence is fully in line with the
international requirements. Since the previous evaluation, there has
been an increase in the number of money laundering investigations,
with annual numbers rising from 4 in 2007 to 13 in 2008, and with the
development of jurisprudence on money laundering, with convictions
reached in 4 judgements. There has also been an increase of
international co-operation with foreign authorities on money laundering
cases, with predicate offences identified being inter alia fraud, usury,
bankruptcy, international trafficking in narcotics, which have led to a
number of seizure orders of important amounts. As of the assessment
date, there have been no prosecutions or convictions for terrorism
financing. Additional measures are required to ensure a comprehensive
system for freezing terrorist assets in application of the United
Nations Security Council Resolutions (UNSCR).
San Marino has made substantial progress to establish an operational
financial intelligence unit (FIA), which is now at the centre of the overall
AML/CFT effort. However, the additional functions entrusted to FIA and
the over reliance by other authorities on FIA to carry out a number of
non-FIU tasks impact on the workload of its staff and thus affect its
effectiveness. Additional measures are required to ensure that the San
Marino police officials start playing an active role in AML/CFT efforts.
Considering the large number of legislative, regulatory and institutional
measures adopted by San Marino since March 2008, the authorities
have demonstrated a clear commitment to implement AML/CFT
standards. The preventive regime has undoubtedly been strengthened
and while the legal framework is comprehensive for both financial and
non financial institutions, it falls short of the international standards in
some areas such as simplified due diligence and risk management
procedures and raises certain concerns about the quality of the
implementation.
The competence for supervision of compliance with AML/CFT
requirements lies now with the Financial Intelligence Agency, which has
a comprehensive supervisory mandate and powers, though the limited
resources allocated to that effect appear to impact negatively on the
implementation of its supervisory function. These resources need to be
increased and supervisory action be strengthen to ensure that both
financial and non financial institutions are adequately implementing the
AML/CFT requirements.
The effectiveness of the operational co-operation and of the
coordination mechanisms led by the Technical Commission of National
Coordination gathering all domestic competent authorities has
improved. The Commission’s role should be enhanced by providing for
a fora where trends and emerging money laundering risks could be
examined and regular reviews undertaken of the AML/CFT strategic
direction on the basis of risks identified, so as to make necessary
adjustments to relevant policies and measures.
The legal framework for mutual legal assistance is sound and San
Marino responds to requests for assistance generally in an efficient and
effective manner. Further efforts appear necessary to ensure that the
legal framework regarding non-MLA related assistance, in particular
international cooperation with foreign supervisory authorities, is
adequate and cooperation mechanisms in this area are effective.
(ML)/financing of terrorism (FT) risk assessment has been undertaken.
The money laundering risks, according to the authorities continue to
derive from the foreign predicate offenses (primarily offences of
fraud, usury and bankruptcy), with proceeds being invested or
transferred through San Marino, with the banking and fiduciary sectors
being the areas with the greatest vulnerability. Money laundering is
often committed by making use of fictitious business operations to
justify movements of capital. Indicators suggest that San Marino is
susceptible to ML, such as cross linked investments to launder in San
Marino proceeds from tax evasion and from the Italian criminal
organisations, possibly exploiting the vulnerabilities of San Marino’s
financial system. The TF risks are deemed to be low.
Money laundering is criminalised largely in line with the FATF standard
and the legal framework provides an ability to freeze and confiscate
assets in appropriate circumstances. There remain a number of
deficiencies to ensure that FT offence is fully in line with the
international requirements. Since the previous evaluation, there has
been an increase in the number of money laundering investigations,
with annual numbers rising from 4 in 2007 to 13 in 2008, and with the
development of jurisprudence on money laundering, with convictions
reached in 4 judgements. There has also been an increase of
international co-operation with foreign authorities on money laundering
cases, with predicate offences identified being inter alia fraud, usury,
bankruptcy, international trafficking in narcotics, which have led to a
number of seizure orders of important amounts. As of the assessment
date, there have been no prosecutions or convictions for terrorism
financing. Additional measures are required to ensure a comprehensive
system for freezing terrorist assets in application of the United
Nations Security Council Resolutions (UNSCR).
San Marino has made substantial progress to establish an operational
financial intelligence unit (FIA), which is now at the centre of the overall
AML/CFT effort. However, the additional functions entrusted to FIA and
the over reliance by other authorities on FIA to carry out a number of
non-FIU tasks impact on the workload of its staff and thus affect its
effectiveness. Additional measures are required to ensure that the San
Marino police officials start playing an active role in AML/CFT efforts.
Considering the large number of legislative, regulatory and institutional
measures adopted by San Marino since March 2008, the authorities
have demonstrated a clear commitment to implement AML/CFT
standards. The preventive regime has undoubtedly been strengthened
and while the legal framework is comprehensive for both financial and
non financial institutions, it falls short of the international standards in
some areas such as simplified due diligence and risk management
procedures and raises certain concerns about the quality of the
implementation.
The competence for supervision of compliance with AML/CFT
requirements lies now with the Financial Intelligence Agency, which has
a comprehensive supervisory mandate and powers, though the limited
resources allocated to that effect appear to impact negatively on the
implementation of its supervisory function. These resources need to be
increased and supervisory action be strengthen to ensure that both
financial and non financial institutions are adequately implementing the
AML/CFT requirements.
The effectiveness of the operational co-operation and of the
coordination mechanisms led by the Technical Commission of National
Coordination gathering all domestic competent authorities has
improved. The Commission’s role should be enhanced by providing for
a fora where trends and emerging money laundering risks could be
examined and regular reviews undertaken of the AML/CFT strategic
direction on the basis of risks identified, so as to make necessary
adjustments to relevant policies and measures.
The legal framework for mutual legal assistance is sound and San
Marino responds to requests for assistance generally in an efficient and
effective manner. Further efforts appear necessary to ensure that the
legal framework regarding non-MLA related assistance, in particular
international cooperation with foreign supervisory authorities, is
adequate and cooperation mechanisms in this area are effective.
| Last Updated: 20 May 2012 |
AML News / Updates
Extracted from IMF Report - Republic of San Marino: 2012 Article IV
Consultation (May 2012)
The authorities have recognized the need to adjust their economic model
andexplore new sources of growth. There has been broad support across
the political spectrum for efforts to enhance transparency and comply with
international standards, which are viewed as critical for normalizing
relations with Italy. In particular, the authorities have amended laws and
regulations and stepped up enforcement in response to critical reports by
MONEYVAL on money laundering and the OECD on tax transparency.
While developing new sources of growth is a key long-term goal, both the
authorities and the private sector are pinning their hopes on a speedy
removal from the Italian ‘blacklist’ to help turn the economy around.
Read Report
Extracted from IMF Report - Republic of San Marino: 2012 Article IV
Consultation (May 2012)
The authorities have recognized the need to adjust their economic model
andexplore new sources of growth. There has been broad support across
the political spectrum for efforts to enhance transparency and comply with
international standards, which are viewed as critical for normalizing
relations with Italy. In particular, the authorities have amended laws and
regulations and stepped up enforcement in response to critical reports by
MONEYVAL on money laundering and the OECD on tax transparency.
While developing new sources of growth is a key long-term goal, both the
authorities and the private sector are pinning their hopes on a speedy
removal from the Italian ‘blacklist’ to help turn the economy around.
Read Report