Section 4 GwG – Risk management
(1) In order to prevent money laundering and terrorist financing, the obliged entities must have in place effective risk management systems that are appropriate for the nature and size of their business.
(2) Risk management encompasses a risk analysis under section 5 as well as internal controls and safeguards under section 6.
(3) 1A member of the management is to be appointed to be responsible for risk management and compliance with provisions under anti-money laundering and counter terrorist financing law under this and other Acts as well as with statutory instruments adopted on the basis of this and other Acts. 2Risk analysis and internal controls and safeguards must be approved by this member of the management.
(4) Obliged entities as defined in section 2 (1) no. 14 must have in place an effective risk management system, including group-wide procedures:
- if they act as an intermediary for purchase agreements and
- if they act as an intermediary for rental or lease agreements with a monthly rental or lease payment of €10,000 or more.
(5) Obliged entities as defined in section 2 (1) no. 16 must have in place an effective risk management system, including group-wide procedures:
- if they act as a trader in goods in the following transactions:
a) transactions relating to works of art with a value of €10,000 or more,
b) transactions relating to valuables as defined in section 1 (10) sentence 2 no. 1 in which they make or
receive cash payments of €2,000 or more themselves or using third parties, or
c) transactions relating to other goods in which they make or receive cash payments of €10,000 or more themselves or using third parties, and
- if they act as intermediaries in the trade of works of art and persons storing works of art in transactions of €10,000 or more.