Financial Crime World

Money Laundering Definition Unveiled: A Step Closer to Global Financial Transparency

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In a move aimed at strengthening international cooperation against financial crimes, the government has released a comprehensive definition of “money laundering” and related terms. This step is expected to enhance global efforts to combat financial crimes such as terrorist financing and organized crime.

What is Money Laundering?

According to the new definition, money laundering involves dealing with property that is derived from or used in connection with criminal conduct. This property can be in the form of:

  • Cash
  • Assets
  • Other forms of value

The property must be linked to a criminal offense.

In addition to the money laundering definition, the government has also defined several related terms, including:

  • Money or Value Transfer Service: A service that enables the transfer of funds from one person to another.
  • Occasional Transaction: A transaction that is not part of a regular business or financial activity.
  • Originating Entity: The entity that initiates a financial transaction.
  • Politically Exposed Person: An individual who has held a significant public office, such as a head of state, government minister, or member of parliament.
  • Property: Any asset or value that is the subject of a financial transaction.
  • Record: Any document or electronic record that contains information about a financial transaction.
  • Reporting Entity: A person or entity that is required to report suspicious transactions to regulatory authorities.
  • Sender: The person who initiates a financial transaction.
  • Senior Management: High-level executives and decision-makers within an organization.

What does this mean for you?

The new definition of money laundering is a significant step forward in the fight against financial crimes. For individuals and businesses alike, it means:

  • Greater transparency and accountability in financial transactions
  • Increased clarity around money laundering, which will help to prevent illegal activities such as tax evasion and bribery

Stay tuned for further updates on this developing story!