Money Laundering Definitions Clarified
Efforts to Combat Financial Crimes
In an effort to combat financial crimes, the government has clarified several key definitions related to money laundering. These clarifications aim to enhance transparency and strengthen anti-money laundering efforts.
Revised Definition of “Criminal Property”
According to the revised definition of “criminal property”, it refers to any property derived or realized from criminal conduct, including matters listed in that definition. This means that criminal property is connected to any offenses or conduct listed under the definition of “criminal conduct”.
Revised Definition of “Money Laundering”
The revised definition of “money laundering” ties together three key factors:
- Dealing with property
- Property being criminal property
- Such criminal property being connected to criminal conduct
Other Key Definitions Clarified
Here are some other key definitions that have been clarified:
Services and Transactions
- Money or Value Transfer Service: a service that involves accepting currency, cheques, or other monetary instruments and paying a corresponding sum in currency or other form to a beneficiary.
- Occasional Transaction: any transaction that does not take place in the context of a business relationship.
Financial Institutions and Entities
- Originating Entity: a financial institution that receives a request from a person to execute an electronic currency transfer.
- Reporting Entity: an institution that has been given the meaning under Clause 7 and is defined for the purposes of various FATF Standards recommendations.
Individuals and Organizations
- Politically Exposed Person: an individual who has been given the meaning under Clause 6 and is currently defined under Section 2 of the Anti-Money Laundering Act 2008.
- Shell Bank: a bank that is incorporated or licensed in a country where it has no physical presence and is not affiliated with a financial group subject to effective consolidated supervision.
Consequences
These clarifications aim to strengthen anti-money laundering efforts by providing a clearer understanding of key terms and definitions. The government hopes that these revisions will enhance transparency and help prevent the misuse of financial systems for criminal activities.