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Joint Programmes - Activities by Country
29 March 2020

Activity Details (ID# 15254)  

 
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Title Drafting the law on counteracting the financing of terrorist - working session (PACO Serbia) 
Description  
Status Completed 
Date 15/05/2006 - 19/05/2006 
Location Palic, Serbia
Countries CoE Members: Serbia
  Bilateral
  Joint Programme Activity - PACO-Serbia
Joint Programme EC/CoE
JP PACO-Serbia - Project against economic crime    (Logframe)  (Activities)
Project Purpose 1 - 2005/DG1/JP/1622   PACO-Serbia - Reforming legislative framework
Expected Result 1.4 - Ratification and implementation of the COE AML/CTF and Cyber crime Conventions Legislative proposals available permitting ratification and implementation of the new Convention on money laundering and terrorist financing (ETS 198) and the Convention on Cybercrime (ETS 185).
 PoA
Council of Europe Programme of Activities
Line of Action ⇒ 3 – Building a society based on the Rule of Law
Programme ☆ 3.2  European standards for crime control
Project 2004/DG1/143 Effective measures to fight economic crime
Expected Result 4 Capacities of member states strengthened against money laundering and the financing of terrorism

Working Method

Organisation of meetings - Seminar 
Directorate (Service) DG I Legal Affairs (Crime Problems Department)
CoE Contact MUSIAŁKOWSKI, Przemysław   email
Partners Ministry of Finance - National Institution
Web Pages
Documents & links
1 http://www.coe.int/moli  
Last Modified 19/06/2006 


Activity Synopsis (ID# 15254) (Hide Synopsis)

Objective(s) To prepare a Draft law on the suppression of terrorism financing for Serbia to meet the Moneyval recommendations and introduce the most urgent changes into its CTF system. 
Output/Results A group of Serbian drafters together with the COE expert and IMF representative had a four day working session to produce a new draft
The Working group started its work on a basis of the Draft law on the suppression of terrorism financing which was already written by representatives of the IMF and the Serbian FIU in January 2006. The original concept and the object of the Draft law was to set forth measures to detect and suppress terrorism financing, the responsibilities of state bodies, and the rights and obligations of natural and legal persons with respect to the implementation of relevant UN Security Council resolutions and treaties to which Serbia is party. The Working group noted that in many countries measures to detect and suppress terrorism financing are separated on a basis of their administrative or criminal nature and thus contained in different laws. For example, in some neighbouring countries (e.g. Slovenia and Croatia) the administrative measures, as envisaged by the UN Security Council resolutions, are determined in the Law on the repressive measures, meanwhile the obligation to detect and report the suspicion of terrorism financing is established in the Law for the prevention of money laundering and financing of terrorism. Due to the lack of time and the terms of reference of the Working Group to revise the January 2006 draft law, the Working group could not change the framework decisions that had led to the draft January 2006. It was made clear that not all the requirements deriving from international standards, including those beyond the AML/CFT standard were met by the Draft law.

The Draft law is for the most part harmonized with the following international AML/CFT instruments and standards:

- The UN International Convention for the Suppression of the Financing of Terrorism;
- The relevant UN Security Council resolutions (1267, 1333, 1363, 1390, 1455 and 1526, 1373, 1452 and 1617) dealing with terrorism, only as far as the freezing of assets is concerned;
- The Financial Action Task Force’s Forty Recommendations on Money Laundering and the FATF Nine Special Recommendations on Terrorist Financing;
- The Council of Europe Convention No 198 on laundering, search, seizure and confiscation of the proceeds from crime and on financing of terrorism (May 2005; hereinafter referred as “The Warsaw Convention”); and
- The third EU Directive on the prevention of the use of financial system for the purpose of money laundering, and terrorist financing (hereinafter referred as “The third EU Directive”).

The provisions of the Draft law do not fully encompass the following international obligations but these should be addressed elsewhere within the Serbian legislative framework:
- a ban on travel and weapons embargo aimed at the designated terrorists and terrorist organisations and as required by the above mentioned UN Security resolutions;
- requirements deriving from other “non-terrorist” UN Security Council resolutions, imposing different types of embargo against countries and natural or legal persons;
- some provisions of the FATF Forty Recommendations and the third EU Directive related to the customer due diligence, the identification of beneficial owners and the risk based analysis of customers, transactions and products; and
- provisions of the FATF Special Recommendations VII on Wire Transfers, SR VIII on Non-Profit Organisations and SR IX on Cash Couriers and consequently also provisions of the Regulation (EC) No 1889/2005 of the European Parliament and of the Council of 26 October 2005 on controls of cash entering or leaving the Community (L 309/9, 25. 11. 2005) and the Draft EU Regulation on payer’s information accompanying funds transfers, which aim to transpose provisions of SR VII and SR IX into the EU member states legislation.
 
Conclusions/Follow Up Results of the work were presented and discussed during a round-table duscussion in Belgrade. Draft has been highly evaluated and will be precessed by the government. Follow-up work will be necessary to all international standards 
Participants Representatives of:
Supreme Court of the Republic of Serbia,
District Public Prosecution Office in Novi Sad,
Ministry of Justice of the Republic of Serbia,
Ministry of Interior of the Republic of Serbia,
BIA - Secret Service of the Republic of Serbia,
Secretariat for Legislation of the Republic of Serbia,
Financial intelligence Unit of the Republic of Serbia,
as well as
Joy SMALLWOOD, expert representing the Legal Department of the IMF, and
Klaudijo STROLIGO, Council of Europe expert.
 
Consultants/Experts Klaudijo Stroligo 
CoE Secretariat Przemysław MUSIAŁKOWSKI 
Total No. Participants
Last Modified

19/06/2006 




 
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