Anti-Money Laundering Regulations: Key Definitions
The Anti-Money Laundering Regulations (2020 Revision) outline various terms and phrases used in the regulations to ensure compliance with anti-money laundering requirements. Understanding these definitions is crucial for individuals and organizations subject to the regulations.
1. Key Terms Defined
Domestic Wire Transfer
A wire transfer where the ordering financial institution and beneficiary financial institution are located in the same jurisdiction.
Established Business Relationship
A business relationship where a person providing a relevant financial service has obtained satisfactory evidence of the identity of an applicant for business.
Family Member
The spouse, parent, sibling, or child of a politically exposed person (PEP).
2. International Framework
Financial Action Task Force (FATF)
An international task force established to develop and promote policies to combat money laundering and terrorist financing.
3. Organizational Structure
Financial Group
A group consisting of a parent company and its subsidiaries that are subject to anti-money laundering policies and procedures at the group level.
4. Regulatory Framework
Fine Discretion
The Supervisory Authority’s discretion under regulation 55S(5) to decide whether to impose a fine and the amount of the fine.
Firm
A body corporate, association, partnership, or sole practitioner that engages in regulated activities such as law, accounting, or insurance.
5. Additional Definitions
- Government Body: A government company, entity within the public service, or statutory authority within the jurisdiction.
- Intermediary Payment Service Provider: A payment service provider that participates in the execution of transfers of funds.
- Legal Arrangement: A trust or partnership or other entity created between parties that lacks separate legal personality.
- Minor Fine: A fine under regulation 55S(1).
- Monetary Authority: An authority established under a law, which has jurisdiction over monetary matters.
- Money Laundering: Doing any act that constitutes an offence under certain sections of the Terrorism Law (2018 Revision) or section 144(10) of the Law.
These definitions are essential for understanding the regulations and ensuring compliance with anti-money laundering requirements.