REGULATION OF FINANCING OF TERRORISM AND SANCTIONS

On May 15th Law 19,749 came into force, against the financing of terrorism and application of financial sanctions against persons and entities linked to terrorism, their financing and the proliferation of weapons of mass destruction. It has been regulated by Decree No. 136/019 of May 16th, 2019.

The purpose of this new rule is the regulation and implementation of everything involved with the fight against the financing of terrorism, the application of financial sanctions against persons and entities linked to it and the proliferation of weapons of mass destruction.

It establishes, among other news, the procedure for:

• Verification and controls in the lists of individuals or entities associated with terrorist organizations made by the United Nations pursuant to Security Council Resolutions.

• And if applicable, the freezing of the assets of the individual, legal entity or entity in question.

This regulation is addressed to the obliged subjects referred to in articles 8, 12, 13 and 29 of Law No. 19,574 ("Comprehensive Law against Money Laundering"), this is:

· Public Entities;

· Financial entities subject to the control of the Central Bank of Uruguay;

· Obliged persons of the non-financial sector (Casinos, Realtors, Real estate developers, construction companies and other intermediaries in transactions involving real estate - with the exception of leases -, lawyers, accountants, scribes, auctioneers, operators and direct and indirect users of free zones, providers of corporate services, civil associations, foundations, political parties and in general any non-profit organization);

· Individuals and Legal Entities subject to the control of the Central Bank of Uruguay, carriers of cash, precious metals and other instruments.

The commented rules are part of the tasks that were pending regarding certain legal aspects within the framework of the national strategy on prevention of money laundering and financing of terrorism.

Montevideo, June 2019