Financial Crime World

Anti-Money Laundering and Targeted Financial Sanctions Act 2023

Part II: Definitions

What are the Key Terms?

This section defines key terms used throughout the Anti-Money Laundering and Targeted Financial Sanctions Act 2023.

1. Associated Entity

  • An associated entity is an entity that is associated with a politically exposed person.
  • This includes:
    • The spouse or partner of a politically exposed person
    • Any child, parent, or sibling of a politically exposed person

2. Associate of a Politically Exposed Person

  • An associate of a politically exposed person is any individual who is related to them by family ties.

3. Beneficial Owner

  • A beneficial owner is an individual or entity that ultimately owns or controls, directly or indirectly, 25% or more of the voting power of a company.
  • This also includes individuals with significant influence or control over a company.

Types of Beneficial Owners

1. Individual Beneficial Owner

  • An individual is considered their own beneficial owner.
  • Their associates are also considered beneficial owners.

2. Entity Beneficial Owner

  • The beneficial owner of an entity that is not a natural person is:
    • Each person who owns or controls, directly or indirectly, 25% or more of the voting power of the entity
    • Any other person with significant influence or control over the entity

What is Beneficial Ownership Information?

  • Beneficial ownership information includes:
    • The name, address, and date of birth of a beneficial owner
    • Their nationality or residence
    • The nature and extent of their interest in a customer

Types of Reports

1. Beneficial Ownership Report

  • A report that contains the following information in respect of a customer:
    • The name, address, and date of birth of each beneficial owner
    • Their nationality or residence
    • The nature and extent of their interest in the customer

2. Beneficial Ownership Information Report

  • A report that is identical to the beneficial ownership report.

Other Definitions

1. Beneficiary

  • A beneficiary is:
    • The individual or entity to whom an electronic currency transfer is made
    • A recipient of a payment through a money or value transfer service
    • The holder of a negotiable instrument

2. Cash-Based Business

  • A cash-based business is any business that primarily involves the cash handling of goods and services in a transaction.