Glossary

A bank that:

• has no physical presence in the country in which it is incorporated,
• is not affiliated with another banking corporation that does have a physical presence, and
• is authorised to carry on a banking business in its country of incorporation.

Physical presence means the corporation carries on a banking business at a physical place in that country and has at least one full-time employee who performs banking-related duties there. It involves meaningful decision-making and management.

See section 15 of the AML/CTF Act

A provision under the AML/CTF Act and Rules that enables a reporting entity to rely on customer identification procedures undertaken by another reporting entity or a AML/CTF-regulated foreign third party. This can be done under a customer due diligence (CDD) arrangement or on a case-by-case basis, taking into account the customer relationship and ML/TF risks faced.

See Reliance on customer identification procedures by a third party

For the purposes of reliance, a senior managing official is an individual who makes, or participates in making decisions that affect the whole, or a substantial part, of the business of a reporting entity or who has the capacity to significantly affect the financial standing of a customer.

For the purposes of a correspondent banking relationship, a financial institution can determine who is a senior officer, depending on the size and complexity of the organisation. A senior officer does not have to be a person in executive management.

The senior officer should have sufficient knowledge of the business’s money laundering, terrorism financing and serious crime risk exposure, and have sufficient authority to make decisions affecting the business’s risk exposure.

Someone who transfers or moves illegally-acquired money on behalf of someone else.

Money mules can move funds in various ways, whether it be physical cash, through bank account transfers, obtaining and depositing cashier’s cheques, digital currency, use of prepaid debit cards, or via remittance service providers.

Individuals providing designated services covered by anti-money laundering and counter-terrorism financing legislation. These services include:

• brokering the sale, purchase or transfer of real estate on behalf of a buyer, seller, transferee or transferor in the course of carrying on a business 
• selling or transferring real estate in the course of carrying on a business selling real estate, where the sale or transfer is not brokered by an independent real estate agent.

A business relationship means a relationship between a reporting entity and a customer involving the provision of a designated service or designated services that has, or could reasonably be expected to have, an element of duration. 

Express trust means a trust expressly and intentionally created in writing by a settlor but doesn’t include a testamentary trust. 

Foreign country includes a region where any of the following apply:

• the region is a colony, territory or protectorate of a foreign country
• the region is part of a foreign country
• the region is under the protection of a foreign country
• a foreign country exercises jurisdiction or control over the region
• a foreign country is responsible for the region’s international relations.

Know your customer information (KYC information) means any information about a customer that:

• provides reasonable grounds to establish certain matters required for initial customer due diligence, or
• enables you to identify or assess the ML/TF risk of the customer.

KYC information includes both information sourced from the customer and from other sources.

For example, the customer may provide KYC information about their identity while you may source other KYC information from searches online or third-party sources.