Anti-Money-Laundering, Compliance and Notarial Record-Keeping
Core concepts
Notaries are obliged entities under AML rules: customer due diligence (CDD), beneficial ownership identification, risk assessment, suspicious transaction reporting (STR), and record retention. Understand enhanced due diligence for politically exposed persons (PEPs) and high-risk transactions, and the interaction between secrecy and reporting duties.
Traps in questions
Traps: assuming the notary may tip off the client about a report (tipping-off prohibition); confusing identification (who) with verification (proof); and overlooking that cash-intensive real estate deals trigger enhanced scrutiny. Questions also test retention periods - records must be kept for the legally defined period, not indefinitely or briefly.
Rule of thumb
Identify, verify, assess, record, report. If the source of funds is unclear, escalate and consider an STR; never disclose the report.
Worked example
A buyer pays a large cash sum for property with no plausible source. The notary should apply enhanced due diligence, document findings, and file an STR without informing the client.