Understanding Key Terms in the Anti-Money Laundering Bill of Nauru

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The Anti-Money Laundering (AML) Bill of Nauru defines various terms crucial for combating money laundering and financing terrorism. Below are the key definitions provided by the bill.

Beneficiary Entity

• An entity that receives an electronic currency transfer.

Intermediary Entity

• An entity involved in an international electronic currency transfer but not the originating or beneficiary entity.

International Electronic Currency Transfer

• A single or chain of electronic currency transfers involving a party outside Nauru (e.g., the originating entity, intermediary entity, or beneficiary entity).

Money Laundering

• Dealing with property that is criminal property, connected to any of the listed offenses or conduct.

Money or Value Transfer Service

• A service accepting currency, cheques, monetary instruments, or stores of value and paying a corresponding sum to a beneficiary via communication or transfer.

Occasional Transaction

• A transaction not taking place in the context of a business relationship.

Originating Entity

• A financial institution that receives a request from a person to execute an electronic currency transfer.

Politically Exposed Person (PEP)

• Has the same meaning as under Section 2 of the Anti-Money Laundering Act 2008.

Property

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

Record

• Material on which data or information is recorded and can be read by a person, computer system, or device.

Reporting Entity

• Has the meaning given under Clause 7 (not explicitly defined in this extract).

Secretary

• Refers to the Secretary for Justice and Border Control.

Sender

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

Senior Management

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

Shell Bank

• A bank incorporated or licensed in a country with no physical presence, not affiliated with a financial group subject to effective consolidated supervision.

These definitions will likely be used throughout the Anti-Money Laundering Bill and related regulations to clarify and implement anti-money laundering measures in Nauru.