Financial Crime World

Anti-Money Laundering Definitions

The following article provides an overview of key terms related to anti-money laundering laws, as outlined in relevant Acts or Bills. The main terms and their meanings are highlighted below.

Key Terms

International Electronic Currency Transfer

  • A transfer where one party is located outside Nauru.

Money Laundering

  • Deal or dealing with property that is criminal property, connected to criminal conduct.

Deal or Dealing with Property

  • Includes concealing, disguising, converting, transferring, removing, bringing into Nauru, receiving, acquiring, using, possessing property, or engaging in banking transactions related to property.

Key Concepts

Criminal Property

  • Property derived from, obtained, used, or intended to be used in connection with criminal conduct.

Money or Value Transfer Service

  • A service that accepts currency, cheques, or other monetary instruments and pays a corresponding sum to a beneficiary through communication or transfer.

Transaction Types

Occasional Transaction

  • Any transaction not taking place within a business relationship.

Entity Roles

Originating Entity

  • A financial institution receiving a request to execute an electronic currency transfer.

Reporting Entity

  • Defined elsewhere in the Act/Bill (Clause 7).

Shell Bank

  • A bank with no physical presence in its country of incorporation or license, and not affiliated with a financial group subject to effective consolidated supervision.

Individual Roles

Politically Exposed Person

  • Not defined in this section, but likely refers to individuals holding public office (e.g., politicians, government officials).

Senior Management

  • Directors of the reporting entity or key employees responsible for overseeing the entity’s proper conduct.

Additional Terms

Property

  • Assets of any kind, including documents or instruments evidencing title to or an interest in those assets.

Record

  • Material on which data or information is recorded and capable of being read or understood by a person, computer system, or device.

Secretary

  • Refers to the Secretary for Justice and Border Control.

Sender

  • A person requesting a reporting entity to execute an electronic currency transfer.