Exclusive Report: Global Financial Regulators Unveil New Definitions for Anti-Money Laundering Efforts
Strengthening International Cooperation Against Financial Crime
In a move aimed at bolstering international cooperation against financial crime, global financial regulators have introduced new definitions to combat money laundering and terrorist financing. The updated definitions, announced today, will take effect immediately and apply to all countries.
Revised Definitions
The revised definitions aim to provide a clearer understanding of the terms used in anti-money laundering regulations and will help countries comply with international standards set by the Financial Action Task Force (FATF).
Criminal Property
“Criminal property” refers to any property, whether situated within or outside of a country, that is derived from or used in connection with criminal conduct. This includes assets obtained through illegal activities, such as fraud, corruption, or drug trafficking.
Money Laundering
The term “money laundering” has also been redefined to include the processing and transfer of criminal property, as well as its concealment or disguise. This clarification aims to strengthen the link between money laundering and predicate offenses, such as bribery and extortion.
Key Definitions
Other important definitions introduced by regulators include:
- Money or Value Transfer Service: Any service that involves the acceptance of currency, cheques, or other monetary instruments, followed by a corresponding payment to a beneficiary.
- Occasional Transaction: Any transaction that does not take place in the context of a business relationship. This term is used to distinguish between routine transactions and those that may be suspicious.
- Originating Entity: A financial institution that receives a request from a person to execute an electronic currency transfer.
- Politically Exposed Person: An individual who holds or has held a prominent public office, including heads of state, government ministers, and senior officials.
- Property: Assets of any kind, whether real or personal, corporeal or incorporeal, moveable or immovable, tangible or intangible. This definition also covers virtual currencies, non-fungible tokens, and other digital assets.
Enhancing Cooperation and Effectiveness
These updated definitions are intended to provide a clearer understanding of the terms used in anti-money laundering regulations and will help countries comply with international standards set by the FATF. Regulators hope that these changes will enhance cooperation between countries and improve the effectiveness of anti-money laundering efforts, ultimately helping to disrupt criminal networks and protect the integrity of the global financial system.
Sources:
- Financial Action Task Force (FATF)
- Global Financial Regulatory Bodies