3.3. Financial institutions: definition for AML/CFT purposes through activities and operations related to managing clients’ assets
Note: Numbering of activities and operations refers to their original classification from the General Glossary.
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Financial institutions |
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Activities |
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Conduct as a business |
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Operations |
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Managing of clients’ assets |
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Deposits |
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1. Acceptance of |
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Other re- |
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payable |
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Includes private banking |
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funds |
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12. Underwriting and placement of
Applies to
Insurance undertakings
Insurance intermediaries
9. Portfolio management
Cash
10. Safekeeping and admin- 
istration Liquid se-
curities
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Money |
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11. Investing, administering |
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or managing |
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Funds |
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Customers
For
On behalf of
From the public
Life insurance
Other investment related insurance
Agents
Brokers
Collective
Individual
On behalf of other persons
3.4. Definition of financial institutions for AML/CFT purposes through activities and operations other then managing clients’ assets
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Other activities and operations |
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Consumer credit |
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With |
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Without |
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recourse |
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recourse |
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2. Lending |
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Mortgage credit |
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Including |
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Factoring |
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E.g. |
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forfeiting |
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Finance of commercial transactions |
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3. Financial leasing 
Does not extend to consumer products
5. Issuing and managing means of payment
E.g.
4. Money or value transfer services (MVTS)
Does not apply to persons that provide financial institutions with message or support systems (See IN to Rec. 16)
13. Money and currency changing
7. Trading in 
(a) Money market instruments
(b) Foreign exchange |
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(c) Exchange, interest rate and |
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E.g. |
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index instruments |
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(d) Transferable securities
(e) Commodity futures trading
6. Financial guarantees and commitments
8. Participation in securities issues
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Credit cards
Debit cards
Cheques
Traveler’s cheques
Money orders
Bankers’ drafts
Electronic money
Cheques
Bills
Certificates of
deposit
Derivatives
Provision of related financial services
3.5. AML/CFT definition of designated non-financial businesses and professions
Designated non-financial businesses and professions (DNFPBs)
Casinos |
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Includes Internetand ship-based casinos |
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Real estate agents
Dealers in precious metals
Dealers in precious stones
Lawyers
Notaries
Independent legal professionals
Independent accountants
Persons and businesses not covered elsewhere
Trust and company |
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service providers |
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(TCSP) |
Acting as |
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Provide following ser- |
Providing |
vices to third parties |
Within professional firms
Partners
Employed professionals
Sole practitioners
Does not refer to “internal” professionals that are employees of other types of businesses
A formation agent of legal persons
A director or a secretary of a company or a partner of a partnership
A trustee of an express trust
A nominee shareholder for another person
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Registered office |
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Accommodation |
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Address |
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Or arranging |
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for another per- |
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Correspondence |
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Administrative |
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son to act as |
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3.6. AML/CFT risk-assessment obligations and decisions for countries
Countries assess risks of
Money laundering |
Terrorist financing |
(i) Inform potential changes |
to the AML/CFT regime |
Including changes to
Assessments should be kept up-to-date
(ii) Assist in allocation |
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By competent |
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and prioritization of |
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authorities |
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AML/CFT resources |
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(iii) Provide financial institu- |
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R. 1, IN |
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tions and DNFBPs with |
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Information necessary for conducting
AML/CFT risk assessments
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Relevant competent authorities |
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Laws |
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Regulations |
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Other measures |
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Self-regulatory bodies (SRBs) |
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Appropriate information on the results |
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Financial institutions |
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DNFBPs |
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of assessments should be provided to |
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Countries assess risks of |
Consider applying |
At risk of abuse from |
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money laundering or |
Money laundering |
quirements |
terrorist financing |
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Terrorist financing |
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Strictly limited |
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3. Another type of: |
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institution |
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circumstances |
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activity |
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business |
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Exemptions: de- |
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1. Financial institutions |
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profession |
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cide not to apply |
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AML/CFT re- |
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2. DNFBPs |
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quirements |
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Proven |
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low risk |
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Relates to a particular type of financial |
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institution, activity or DNFBP |
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Gathered information should |
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be retained as in R. 11 |
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An activity other than the |
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transferring of money or value |
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A financial activity is carried out on |
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Having regard to quantitative criteria |
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an occasional or very limited basis |
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