Anti Money Laundering Definitions

Anti Money Laundering Definitions

An Act to provide for prevention of money laundering, following are the anti money laundering definitions.

WHEREAS   it   is   expedient   to   provide   for   prevention   of   money laundering, combating financing of terrorism and forfeiture of property derived from, or involved in, money laundering or financing of terrorism and for matters connected therewith or incidental thereto;

Short title, extent and commencement.— (1) This Act may be called the Anti-Money Laundering Act, 2010.

(i)       “AML/CFT”   means   Anti   Money   Laundering   and   Countering Financing of Terrorism;

(ii)      “AML/CFT regulatory authority” means the regulator or SRB as defined under section 6A of this Act;

(iii)     “attachment” means prohibition of transfer, conversion, disposition or movement of property by an order issued under section 8;

(iv)     “beneficial owner” means,—

(a) natural person who ultimately owns or controls a customer or the natural person on whose behalf a transaction is being conducted; or

(b) natural person who exercises ultimate effective control over a legal person or legal arrangement;

(v)      “business    relationship”    means    professional    or    commercial relationship between a reporting entity and a customer to conduct transaction, activity or to provide service or product;

(vi)     “CDD” means customer due diligence and the obligations set out in section 7A;

(vii)    “company” means any body corporate and includes a firm or other association of individuals;

(viii)   “Competent authorities” means the regulators, oversight bodies for SRBs,  the  Financial  Monitoring  Unit  and  the  Investigating  or prosecuting agencies as defined in this Act;

(ix)     “Corporate group” means a group that consists of a parent entity exercising control or management on branch or subsidiary that are subject to AML/CFT policies and procedures at the group level;

(x)      “Court” means the Court specified under section 20;

(xi)     “CTR”  means  report  on  currency  transactions  exceeding  such amount as may be specified by the National Executive Committee by notification in the official Gazette;

(xii)    “Designated non-financial businesses and professions or DNFBPs” mean the following persons, namely:-

(a) real estate agents, including builders and real estate developers, when  performing  the  prescribed  activities  in  the  prescribed circumstances and manner;

(b) dealers  in  precious  metals  and  precious  stones,  including jewellers  and  gem  dealers,  when  performing  the  prescribed activities in the prescribed circumstances and manner;

(c) lawyers, notaries, accountants and other legal professionals who carryout monetary transactions for their clients concerning the following activities:-

(I) managing, operating, buying and selling of real estate, legal persons and legal arrangements and preparing documents therefor;

(II) managing of client money, securities or other assets;
(III) managing bank, savings or securities accounts; or

(IV) organizing contributions for the creation, operation or management of companies;

(d) trust  and  company  service  providers,  when  they  carry  out monetary transactions or services for a client concerning the following activities:-

(I) acting as a formation agent of legal persons;

(II) acting as or arranging for another person to act as a director  or  secretary  of  a  company,  a  partner  of  a partnership, or a similar position in relation to other legal persons;

(III)         providing   a   registered   office,   business   address   or accommodation, corres-pondence or administrative address for
a  company,  a  partnership  or  any  other  legal  person  or arrangement;

(IV) acting as or arranging for another person to act as a trustee of a trust or performing the equivalent function for another form of legal arrangement; and

(V) acting as or arranging for another person to act as a nominee shareholder for another person; and

(e) such other designated non-financial businesses and professions as may be notified by the Federal Government;

(xiii)   “Director General” means the Director General of FMU appointed under sub-section (3) of section 6;

(xiv)   “financial institution” includes any person carrying on any one or more of the following activities, namely:-

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

(b) lending in whatsoever form;

(c) financial leasing;

(d) money or value transfer;

(e) issuing and managing means of payments including but not limited to credit and debit cards, cheques, traveller’s cheques, money orders, bank drafts and electronic money;

(f) financial guarantees and commitments; and

(g) trading in —

(i)     money market instruments;

(ii)    foreign exchange;

(iii)   exchange, interest rate and index instruments;

(iv)    transferable securities;

(v)     commodity futures trading;

(vi)    participation  in  shares  issues  and  the  provision  of services related to such issues;

(vii)   individual and collective portfolio management;

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

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

(x)     insurance business transactions;

(xi)    money and currency changing; and

(xii)   carrying out business as intermediary;

(xv)    “FMU” means the Financial Monitoring Unit established under section 6;

(xvi)   “foreign serious offence” means an offence,—

(a) against the law of a foreign state stated in a certificate issued by, or on behalf of, the government of that foreign state; and

(b) which, had it occurred in Pakistan, would have constituted a      predicate offence;

(xvii) “investigating officer” means the officer nominated or appointed under section 24;

(xviii) “investigating    or    prosecuting    agency”    means    the    National Accountability Bureau (NAB), Federal Investigation Agency (FIA), Anti-Narcotics Force (ANF), Directorate General of (Intelligence and Investigation – Customs) Federal Board of Revenue, Directorate General (Intelligence and Investigation Inland Revenue) Federal Board of Revenue, Provincial Counter Terrorism Departments or any other law enforcement agency as may be notified by the Federal Government for the investigation or prosecution of an offence under this Act;

(xix)   “legal arrangements” means trusts, waqfs or other similar legal arrangements as may be defined in any other law;

(xx)    “legal   person”   means   companies,   associations,   foundations, partnerships, societies and any other legal person as may be defined in any other law;

(xxi)   “National  Executive  Committee”  means  the  National  Executive Committee constituted under section 5;

(xxii) “occasional transactions” means any transaction conducted by a reporting entity for a customer with whom the reporting entity does not have a business relationship;

(xxiii) “offence of money laundering” has the meaning as defined in section 3;

(xxiv) “oversight body for SRB” means a body appointed by the Federal Government by notification in the Official Gazette to monitor the compliance of an SRB with respect to the provisions of this Act;

(xxv)  “person” means any natural or legal person;

(xxvi) “predicate offence” means an offence specified in Schedule-I to this Act;

(xxvii)  “prescribed” means prescribed by rules or regulations made under this Act;

(xxviii)    “proceeds of crime” means any property derived or obtained directly or indirectly by any person from the commission of a predicate offence or a foreign serious offence;

(xxix) “proliferation financing” means the financing of proliferation of weapons of mass destruction;

(xxx)  “property” means property or assets of any description, whether corporeal   or   incorporeal,   movable   or   immovable,   tangible   or intangible, and includes deeds and instruments evidencing title to, or interest in, such property or assets, including cash and monetary instruments, wherever located;

(xxxi) “property involved in money laundering” means, regardless of who holds or has held the property, proceeds of crime, property derived or  obtained  directly  or  indirectly  from  the  offence  of  money laundering and property used or intended to be used in commission of the offence of money laundering, a predicate offence or a foreign serious offence;

(xxxii) “record” includes the records maintained in the form of books or stored in a computer or any electronic device, or such other form as may be prescribed;

(xxxiii)    “regulator” means a regulator as mentioned in clause (1) of Schedule -IV of this Act; 7

(xxxiv)    “reporting entity” means financial institutions and DNFBPs and any other person notified by the Federal Government in the official Gazette;

(xxxv) “risk” means the risk of money laundering or the risk of financing of terrorism;

(xxxvi)     “SBP” means State Bank of Pakistan established under the State Bank of Pakistan Act, 1956 (XXXIII of 1956);

(xxxvii)   “Schedule” means schedule to this Act;

(xxxviii)  “SECP” means Securities and Exchange Commission of Pakistan established under the Securities and Exchange Commission of

Pakistan Act, 1997 (XLII of 1997);

(xxxix)     “SRB” means a self-regulatory body as mentioned in clause (2) of Schedule-IV of this Act;

(xl)     “STR” or “Suspicious Transaction Report” means the report on suspicious transaction as provided under section 7;

(xli)    “TFS” or “Targeted Financial Sanctions” means the freezing and prohibition obligations in relation to the property of the designated or proscribed persons under the United Nations (Security Council) Act 1948  or  the  Anti-terrorism  Act, 1997  and  any  rules  or regulations made thereunder; and

(xlii)   “transfer” means sale, lease, purchase, mortgage, pledge, gift, loan or any other form of transfer of right, title, possession or lien.

Anti Money Laundering Training

Anti Money Laundering Training / Financial Crime training is available in Lahore, Islamabad, Karachi Pakistan as “online live training” or “onsite live training”.

This training on Anti Money Laundering in Lahore will cover different types of anti money laundering schemes and will equip participants in knowing how to analyze them and how to identify leads.

This training on Anti Money Laundering in Lahore, Islamabad, Karachi, Faisalabad is also available as inhouse training option for companies all over Pakistan.

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