Glossary
Definition | Meaning |
Act | Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (as amended) |
AML/CFT | Anti-Money Laundering and Countering the Financing of Terrorism |
Captured Activities | Activities that are specified under the definition of ‘designated non-financial business or profession’ in the Act. |
CDD | Customer Due Diligence (AML/CFT term for conducting CDD on clients). |
Customers or Clients | The person or entity that you are acting for. |
Code | Amended Identity Verification Code of Practice 2013 and Explanatory Note (Updated December 2017). |
Compliance Programme | AML/CFT Compliance Programme |
Occasional Activity | Means an activity: (i) that is specified in s6(4) of the Act in relation to a reporting entity (other than an occasional transaction); and
(ii) that does not involve a business relationship between the reporting entity and the reporting entity’s client
Section 6(4) states that for a conveyancer, incorporated conveyancing agency or real estate agent, this is limited to the activities carried out by that reporting entity that are activities described in the definition of DNFBP. In essence, a one-off activity, such as the sale of a freehold estate or interest in land, is captured by the Act.
(Refer to the Act for more detail) |
Occasional Transaction | A cash transaction (including bearer-negotiable instruments e.g. bearer cheques) that occurs outside of a business relationship and is equal to or above the applicable threshold value (whether the transaction is carried out in a single transaction or several transactions that appear to be linked). The applicable threshold for a cash transaction is currently $10,000.00.
Wire transfers of more than $1,000 that occur outside of a business relationship and involves the receipt of a wire transfer by a beneficiary institution for an amount of more than $1,000 (whether the transaction is carried out in a single operation or several operations that appear to be linked).
(Refer to the Act for more detail) |
PEP | A PEP is an individual who holds, or has held at any time in the preceding 12 months, in any overseas country, certain prominent public functions. This includes heads of state or of government, government ministers, senior judicial or military officials, senior foreign representatives, ambassadors or high commissioners, senior executives of state/government owned enterprises and the Reserve Bank Governor (or equivalent position). The definition of PEP also includes any immediate family member of the individual (i.e. spouse, partner, child, parent, etc.) and certain known associates (having regard to publicly available information) of an individual who is a PEP.
Approval from a Senior Manager is required before establishing or continuing a business relationship with a PEP. |
Risk Assessment | AML/CFT Risk Assessment |
Nature & Purpose | You are required to obtain information on the nature and purpose of the proposed business relationship with clients. This includes understanding what the client is trying to achieve, how much business (volume and value) is expected, and how regular their interactions will be. |