§ 19. Obligation to apply due diligence measures
(1) The obliged entity applies due diligence measures:
1) upon establishment of a business relationship;
2) upon making or mediating occasional transactions outside a business relationship where a cash payment of over 15 000 euros or an equal amount in another currency is made, regardless of whether the financial obligation is performed in the transaction in a lump sum or in several related payments over a period of up to one year, unless otherwise provided by law;
3) upon verification of information gathered while applying due diligence measures or in the case of doubts as to the sufficiency or truthfulness of the documents or data gathered earlier while updating the relevant data;
4) upon suspicion of money laundering or terrorist financing, regardless of any derogations, exceptions or limits provided for in this Act.
(2) A trader applies due diligence measures at least every time a payment of over 10 000 euros or an equal sum in another currency is made to or by the trader in cash, regardless of whether the pecuniary obligation is performed in a lump sum or by way of several linked payments over a period of up to one year.
(3) A gambling operator applies due diligence measures at least upon payment of winnings, making of a bet or on both occasions where the sum given or receivable by the customer is at least 2000 euros or an equal sum in another currency, regardless of whether the pecuniary obligation is performed in a lump sum or by way of several linked payments over a period of up to one month.
(4) A payment service provider providing both the payer and the payee with a payment service identifies the customer in the case of each transfer of funds that meets the description provided for in Article 3(9) of Regulation (EU) No 2015/847 of the European Parliament and of the Council on information accompanying transfers of funds and repealing Regulation (EC) No 1781/2006 (OJ L 141, 05.06.2015, pp 1–18) and whereby the sum of the pecuniary obligation exceeds 1000 euros, regardless of whether the pecuniary obligation is performed in a lump sum or by way of several linked payments over a period of up to one month.
(5) The obliged entity applies the due diligence measures provided in clauses 1–5 of subsection 1 of § 20 of this Act before each establishment of a business relationship or the making of each transaction outside a business relationship, unless otherwise provided for in this Act.
(6) Where the duty to apply due diligence measures depends on the exceeding of a certain sum, the due diligence measures must be applied as soon as the exceeding of the sum becomes known or, where the exceeding of the sum depends on the making of several linked payments, as soon as the sum is exceeded.
(7) The provisions of this Chapter regarding cash are also applicable to the performance of pecuniary obligations using a precious metal which is measured in bars or other units.
§ 20. Due diligence measures
(1) The obliged entity applies the following due diligence measures:
1) identification of a customer or a person participating in an occasional transaction and verification of the submitted information based on information obtained from a reliable and independent source, including using means of electronic identification and of trust services for electronic transactions;
2) identification and verification of a customer or a person participating in an occasional transaction and their right of representation;
3) identification of the beneficial owner and, for the purpose of verifying their identity, taking measures to the extent that allows the obliged entity to make certain that it knows who the beneficial owner is, and understands the ownership and control structure of the customer or of the person participating in an occasional transaction;
4) understanding of business relationships, an occasional transaction or act and, where relevant, gathering information thereon;
5) gathering information on whether a person is a politically exposed person, their family member or a person known to be close associate;
6) monitoring of a business relationship.
(2) Upon implementation of clause 4 of subsection 1 of this section, the obliged entity must understand the purpose of the business relationship or the purpose of the occasional transaction, identifying, inter alia, the permanent seat, place of business or place of residence, profession or field of activity, main contracting partners, payment habits and, in the case of a legal person, also the experience of the customer or person participating in the occasional transaction.
(3) In the case of an occasional transaction made outside of a business relationship, the obliged entity gathers information on the origin of the property used in the transaction, instead of applying clause 4 of subsection 1 of this section.
(4) Where relevant, the obliged entity also gathers information on the origin of the customer’s wealth.
(5) A person participating in a transaction made in economic or professional activities, a person participating in a professional act or a person using a professional service or a customer submits, at the request of the obliged entity, documents required for application of the due diligence measures specified in subsections 1–4 of this section and provides relevant information. A person participating in a transaction made in economic or professional activities, a person participating in a professional act or a person using a professional service or a customer certifies by signature, at the request of the obliged entity, the correctness of the submitted information and documents submitted for the application of the due diligence measures.
(6) The obliged entity applies all the due diligence measures specified in subsection 1 of this section with regard to a customer, but determines the scope and exact manner of their application and the need specified in subsections 3 and 4 of this section based on previously assessed risks of money laundering and terrorist financing or those relating to a specific business relationship or to an occasional transaction, act or person. Upon assessment of the application of the due diligence measures of the obliged entity, the principle of reasonableness provided for in the Law of Obligations Act is taken into account.
(7) Upon assessment of specific risks related to a customer specified in subsection 6 of this section, the obliged person determines, based on clause 2 of subsection 1 of § 14 of this Act, the risk profile of the customer or person participating in the transaction, taking account of the risk assessment drawn up on the basis of § 13 of this Act and at least the following factors:
1) information gathered by the obliged entity upon implementation of clause 4 of subsection 1 of this section;
2) the volume of the property deposited by the customer or the proprietary volume of the transaction or of transactions made in the course of a professional act;
3) the estimated duration of the business relationship.
(8) The obliged entity ensures that the due diligence measures applied by it, which are specified in its rules of procedure, comply with its risk assessment and that the obliged entity is prepared to explain them to the competent supervisory authority, including to the data protection supervisory authority.
