The Impact of the Notary Profession on Money Laundering Risk Assessment

6th International Scientific Conference – EMAN 2022 – Economics and Management: How to Cope With Disrupted Times, Ljubljana, Slovenia, March 24, 2022, CONFERENCE PROCEEDINGS, published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-57-8, ISSN 2683-4510

 Abstract:

The impact of globalization on the development of money laundering and terrorist financing has gradually included the notary profession, which is gaining more and more impor­tant in the prevention of money laundering and terrorist financing by implementing the basic steps of compiling and drafting notarial documents. It is especially pronounced in the identifica­tion of signatories and entry of accurate and true data when amending notarial documents. The nature of notarial work allows risk assessment to determine the level of risk of money launder­ing and terrorist financing with an individual party, business relation, financial instrument, and transaction. Therefore, this profession is obliged to assess the risk at the level of taxpayers, which includes reports of suspicious transactions. The essential tool for preventing fraud is the justified denial of official action of a notary public due to the nullity of a legal transaction, achieving an evidently inadmissible or unfair goal, as well as due to committing criminal offenses, inability to comply with essential formalities when drawing up a notarial document, i.e. official certification of private documents, and lack of power of attorney and for other justified reasons if the party is not authorized to undertake and conclude a legal transaction.

Keywords:

Risk assessment; Notarial deed; Suspicious transactions; Denial of official action; Fraud

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