With the amendment to the law, the Financial Intelligence Unit became a competent authority that responds to certain inquiries about restrictions related to public procurement, provides feedback on the application of the restriction on public procurement (Article 5k of Regulation (EU) 833/2014), and performs other tasks assigned by law.
The changes result from Regulation No. 833/2014 of the Council of the European Union, which prescribes restrictions on the conclusion and execution of procurement contracts with entities with Russian participation and the possibility of concluding a procurement contract or continuing its execution with the permission of an exception issued by the competent authority in certain areas.
The procedure for notifying the Financial Intelligence Unit and collecting additional information, if necessary, is established. The procurers are obliged to inform the Financial Intelligence Unit within three working days if they have decided to eliminate the bidder, reject the bid, cancel the procurement contract, or withdraw from it due to the application of a sanction. In case of suspicion of the application of a sanction, the procurer obliges to collect additional information, and if the additional information does not make it possible to verify the legality of the proposed decision or action, the procurer is obliged to inform the Financial Intelligence Unit without delay before making the decision or action. The Financial Intelligence Unit then assesses the legality of the decision or action and informs the procurer within 12 working days. In justified cases, the Financial Intelligence Unit can extend the deadline to a maximum of 60 days.
In addition, the Financial Intelligence Unit can demand additional information with a precept in case of suspected violation of a restriction related to public procurement, stop a transaction or action suspected of violation, and oblige to take the necessary measures to apply the sanction.
New persons with special obligations
Conjointly, the International Sanctions Act stipulates additional persons with special obligations, who are, in the sense of the Money Laundering and Terrorist Financing Prevention Act:
- Gambling operators, other than commercial lotteries
- real estate purchase and sale agents
- persons engaged in the purchase of precious stones or wholesale of precious metal, precious metal products, except for precious metals and precious metal products used for production, scientific and medical purposes
- sworn auditors in the provision of audit services and accounting service providers
- providers of consulting services in the field of accounting or taxation
- trust management and company service providers
- notaries, lawyers, bailiffs, bankruptcy trustees, temporary bankruptcy trustees, and other legal service providers in economic, professional, or professional activities if they act in a financial or real estate transaction for and on behalf of their client.
According to the International Sanctions Act, all persons with special obligations must create and implement their own international sanctions risk mitigation and risk management system based on risk appetite and risk assessment. At the same time, all persons with special obligations must keep specific data and fulfill the obligation to provide information.
See the memorandum from the Financial Intelligence Unit for persons with special obligations:
