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Anti-Money Laundering and Combating the Financing of Terrorism Rules 2019

Definition of Key Terms

The following terms are defined under the Anti-Money Laundering and Combating the Financing of Terrorism Rules 2019.

Politically Exposed Person (PEP)

• A person who is or has been entrusted with prominent public functions, including:
  • Heads of state or government
  • Senior politicians
  • Individuals who play a leading role in business or other significant activities

Close Associate

• A person associated with a PEP through:
  • Business relationship
  • Social relationship
  • Beneficial ownership of a legal person or arrangement owned or controlled by the PEP

Correspondent Banking

• The provision of banking services by one bank (the correspondent) to another bank (the respondent)

Shell Bank

• A bank that has no physical presence in the jurisdiction where it is incorporated and licensed, and is not affiliated with a regulated financial services group subject to effective consolidated supervision

Correspondent Securities Relationship

• A relationship between two firms under which one firm (the correspondent) provides services related to securities to another firm (the respondent)

General Provisions

Firms must develop an Anti-Money Laundering and Combating the Financing of Terrorism programme, which includes:

• Internal Policies: Developing internal policies, procedures, systems, and controls.
• Screening Procedures: Screening procedures for appointing or employing officers or employees.
• Ongoing Training Program: An ongoing training program for officers and employees.
• Independent Review: Independent review and testing of compliance with AML/CFT policies.
• Compliance Management Arrangements: Compliance management arrangements.