Glossary of the FATF Recommendations

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N-R

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U-Z

General Glossary

Source: The FATF Recommendations

Non-conviction based confiscation

Non-conviction based confiscation means confiscation through judicial procedures related to a criminal offence for which a criminal conviction is not required.

 

Non-profit organisations

refers to a legal person or arrangement or organisation that primarily engages in raising or disbursing funds for purposes such as charitable, religious, cultural, educational, social or fraternal purposes, or for the carrying out of other types of “good works” (as this term is used in the Interpretive note to Recommendation 8).

 

Ordering financial institution

refers to the financial institution which initiates the wire transfer and transfers the funds upon receiving the request for an wire transfer on behalf of the originator (as this term is used in the Interpretive note to Recommendation 16).

 

Originator

refers to the account holder who allows the wire transfer from that account, or where there is no account, the natural or legal person that places the order with the ordering financial institution to perform the wire transfer (as this term is used in the Interpretive note to Recommendation 16).

 

Payable-through accounts

The term payable-through accounts refers to correspondent accounts that are used directly by third parties to transact business on their own behalf (as this term is used in the Interpretive note to Recommendation 13).

 

Physical cross-border transportation

refers to any in-bound or out-bound physical transportation of currency or BNIs from one country to another country. The term includes the following modes of transportation: (1) physical transportation by a natural person, or in that person’s accompanying luggage or vehicle; (2) shipment of currency or BNIs through containerised cargo or (3) the mailing of currency or BNIs by a natural or legal person (as this term is used in the Interpretive note to Recommendation 32).

 

Politically Exposed Persons (PEPs)

Foreign PEPs are individuals who are or have been entrusted with prominent public functions by a foreign country, for example Heads of State or of government, senior politicians, senior government, judicial or military officials, senior executives of state owned corporations, important political party officials.

Domestic PEPs are individuals who are or have been entrusted domestically with prominent public functions, for example Heads of State or of government, senior politicians, senior government, judicial or military officials, senior executives of state owned corporations, important political party officials.

Persons who are or have been entrusted with a prominent function by an international organisation  refers to members of senior management, i.e. directors, deputy directors and members of the board or equivalent functions.

The definition of PEPs is not intended to cover middle ranking or more junior individuals in the foregoing categories.

 

Proceeds

Proceeds refers to any property derived from or obtained, directly or indirectly, through the commission of an offence.

 

Property

Property means assets of every kind, whether corporeal or incorporeal, moveable or immoveable, tangible or intangible, and legal documents or instruments evidencing title to, or interest in such assets.

 

Qualifying wire transfers

means a cross-border wire transfer above any applicable threshold as described in paragraph 5 of the Interpretive Note to Recommendation 16 (as this term is used in the Interpretive note to Recommendation 16).

 

Reasonable measures

The term Reasonable Measures means: appropriate measures which are commensurate with the  money laundering or terrorist financing risks.

 

Related to terrorist financing or money laundering

when used to describe currency or BNIs, refers to currency or BNIs that are: (i) the proceeds of, or used in, or intended or allocated for use in, the financing of terrorism, terrorist acts or terrorist organisations; or (ii) laundered, proceeds from money laundering or predicate offences, or instrumentalities used in or intended for use in the commission of these offences (as this term is used in the Interpretive note to Recommendation 32).

 

Required

is used to describe a situation in which all elements of required information are present. Subparagraphs 6(a), 6(b) and 6(c) set out the required originator information. Subparagraphs 6(d) and 6(e) set out the required beneficiary information (as this term is used in the Interpretive note to Recommendation 16).

 

Risk

All references to risk refer to the risk of money laundering and/or terrorist financing. This term should be read in conjunction with the Interpretive Note to Recommendation 1. 

 

Source: The Glossary of the FATF Recommendations