Financial Crime World

Establishing Public Confidence in the Financial System

Definitions Key to Effective Anti-Money Laundering and Combating the Financing of Terrorism Efforts

As part of its efforts to strengthen the financial system, the government has introduced a raft of definitions aimed at establishing public confidence in the sector. The move comes as the country continues to grapple with the threat of money laundering and terrorism financing.

New Definitions for Clarity and Consistency

The definitions have been incorporated into the country’s anti-money laundering and combating the financing of terrorism (AML/CFT) laws, providing clarity and consistency in the application of AML/CFT regulations. The new definitions include:

  • Account: a facility or arrangement through which a reporting entity takes custody of or accepts deposits of property, allows withdrawals or transfers of such property on behalf of another person.
    • This includes facilities that allow customers to store their property, as well as closed accounts and dormant accounts with no balance.
  • Activity: an act or omission made by a person.
  • AML/CFT Compliance Programme: a programme developed under Section 19 of the AML/CFT laws.
  • Beneficial Ownership: having the same meaning given to it under Section 5 of the Beneficial Ownership Act 2017, including any amendment to the definition under that Act.
  • Cash: currency in physical form.
  • Criminal Conduct: conduct that constitutes an offence in the country or would do so if committed within its borders.
  • Criminal Property: any property derived from, obtained, used or intended to be used in connection with criminal conduct. This includes any interest in such property, dividends, income or value accruing from or generated by it.

Significance of Definitions

The introduction of these definitions is a significant step towards establishing public confidence in the financial system and ensuring that AML/CFT regulations are effective and consistent across the sector.

Quote: “This is an important move towards strengthening our financial system and preventing money laundering and terrorism financing,” said [Name], Minister of Finance. “By providing clarity and consistency in our AML/CFT regulations, we can ensure that our financial institutions are equipped to effectively combat these threats and maintain public trust.”

Industry Response

The government’s efforts to strengthen the financial system have been welcomed by industry stakeholders, who say that the definitions will help to reduce complexity and improve compliance.

Quote: “We commend the government for taking this important step towards strengthening our financial system,” said [Name], CEO of [Industry Association]. “These definitions will help to provide greater clarity and consistency in AML/CFT regulations, which is essential for maintaining public trust and preventing money laundering and terrorism financing.”