Financial Crime World

NAURU: New Definitions in Anti-Money Laundering Bill

The Anti-Money Laundering and Targeted Financial Sanctions Bill 2023, currently under review in Nauru, incorporates new definitions for various terms related to financial crime prevention. Here’s a summary of these definitions, drawn from the Bill’s explanatory memorandum:

Financial Crime

A new term covering:

  • Money laundering
  • Terrorist financing
  • Proliferation financing of weapons of mass destruction

Criminal Property

Any property derived or realized from criminal conduct, including:

  • Various forms of income or value accruing from such property
  • Property converted, transformed, or intermingled with criminal funds

Money Laundering

Dealing or dealing with criminal property, involving activities such as:

  • Concealing, disguising, converting, transferring, and receiving property
  • Entering into an agreement or arrangement related to such property
  • Consents, authorizations, or enabling actions that facilitate the designated activities

Counter-Terrorist Financing

Relates to crimes of providing financial support to terrorists or terrorist groups and dealing with terrorist property, encompassing:

  • Involvement in terrorist financing and material support
  • Dealing with or providing services relating to weapons or means of delivery of nuclear, chemical, or biological weapons

Reporting Entity

An individual or legal entity obligated to report specific transactions or information to the Financial Intelligence Unit (FIU) under the legislation:

  • Financial institutions
  • Casinos
  • Certain other businesses and professions

Customer

A person in whose name or for whom a transaction, business relationship, or account is arranged, opened, or undertaken:

  • Signatories
  • People authorized to conduct transactions
  • Those assigned or transferred business relationships or accounts

Customer Due Diligence

Obligations imposed on reporting entities to verify the identity of their customers and assess the risk of money laundering and terrorist financing in their relationships

Document

Any record of information, whether physical or electronic form

Electronic Currency Transfer

A transaction carried out by electronic means with the intention of making an amount of currency available to a recipient outside of a reporting entity

False Name

A fictitious, pseudo, anonymous, or otherwise non-registered name under the Births, Deaths, and Marriages Act 2017 or any other similar legislation

Identification Information

Name, address, and occupation for individuals, and registration number, registered address, and principal place of business for legal entities

Intermediary Entity

A financial institution that receives a request to receive and transmit an electronic currency transfer on behalf of an originating entity and a beneficiary entity or another intermediary entity

International Electronic Currency Transfer

A single or chain of electronic currency transfers occurring when any party to the transaction is located outside of the Republic

These definitions contribute to the comprehensive legal framework aimed at preventing and addressing money laundering, terrorist financing, and related financial crimes in Nauru.