Anti-Money Laundering Regulations: Definitions
As part of efforts to combat money laundering and terrorist financing in the islands, the government has introduced new regulations aimed at strengthening the financial system. In this report, we will provide a breakdown of key terms used in the Anti-Money Laundering Regulations (2023 Revision).
Definitions
According to Regulation 2, the following definitions are crucial:
- Anti-Money Laundering Compliance Officer: A person designated in accordance with regulation 3(1).
- Appeal: An appeal for which leave is granted by the Grand Court under regulation 55ZK and any further appeals relating to the decision on such an appeal.
- Applicant for Business: A person seeking to form a business relationship or carry out a one-off transaction with a person carrying out relevant financial business in the islands.
- Banking Business: Has the meaning assigned in the Banks and Trust Companies Act (2021 Revision).
- Batch File Transfer: Several individual transfers of funds that are bundled together for transmission.
Beneficial Owner
The beneficial owner is defined as the natural person who ultimately owns or controls a legal entity, including:
- A manager of a company
- A director, secretary, or senior executive of a company, regardless of job title
- The natural person who ultimately owns or controls ten percent or more of the shares or voting rights in a company
Cross-Border Wire Transfer
A cross-border wire transfer is defined as a single wire transfer where the ordering financial institution and beneficiary financial institution are located in different countries.
Customer
A customer is defined as a person who is in a business relationship or carrying out a one-off transaction with a person carrying out relevant financial business in the islands.
Designated Non-Financial Business and Profession (DNFBP)
A designated non-financial business and profession is a natural or legal person designated under regulation 55A.
Discretionary Fine
A discretionary fine is defined as a proposed fine for which a supervisory authority has fine discretion, or a fine in respect of which a supervisory authority exercised fine discretion.
These definitions are crucial in understanding the Anti-Money Laundering Regulations and their implementation. The government’s efforts to combat money laundering and terrorist financing aim to strengthen the financial system and ensure transparency and integrity in business transactions.
Conclusion
Stay tuned for more updates on this topic as we continue to monitor developments in the fight against money laundering and terrorist financing.