To whom does the AML Laws Apply

3 Categories of Customer Due Diligence in Anti-Money Laundering-tafkeer-blog

To whom does the AML Laws Apply

This blog discusses on To whom does the AML Laws Apply.

  • Financial Institutions;
  • Designated non-financial businesses and professions;

The public is also affected, as any person who moves physical cash of USD10,000 or more has certain reporting obligations.

Financial Institutions:

“financial institution” means any person or entity, which conducts as a business, one or more of the following activities or operations—

(a) accepting deposits and other repayable funds from the public;

(b) lending, including consumer credit, mortgage credit, factoring, with or without recourse, and financing of commercial transactions;

(c) financial leasing;

(d) transferring of funds or value, by any means, including both formal and informal channels;

(e) issuing and managing means of payment (such as credit and debit cards, cheques, travellers’ cheques, money orders and bankers’ drafts, and electronic money);

(f) financial guarantees and commitments;

(g) trading in—
(i) money market instruments, including cheques, bills, certificates of deposit and derivatives;

(ii) foreign exchange;

(iii) exchange, interest rate and index funds;

(iv) transferable securities; and

(v) commodity futures trading;

(h) participation in securities issues and the provision of financial services related to such issues;

(g) trading in— cont’d
(i) individual and collective portfolio management;

(j) safekeeping and administration of cash or liquid securities on behalf of other persons;

(k) otherwise investing, administering or managing funds or money on behalf of other persons;

(l) underwriting and placement of life insurance and other investment related insurance; and

(m) money and currency changing;

Designated non-financial businesses

“designated non-financial businesses or professions” means—

(a) casinos (including internet casinos);

(b) real estate agencies;

(c) dealing in precious metals;

(d) dealing in precious stones;

(e) accountants, who are sole practitioners or are partners in their professional firms;

(f) non-governmental organisations; and

(g) such other business or profession in which the risk of money laundering exists as the Minister may, on the advice of the Centre, declare.

Have a look at our training courses on Corporate Crimes/ Anti-Money Laundering and to get latest news on world view please visit FATF website.

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