# GLOSSARY/DEFINITIONS
# 1.- Glossary
Caribbean Financial Action Task Force (CFATF). The CFATF is an organization of 25 states of the Caribbean basin, which have agreed to implement common countermeasures to address the problem of criminal money laundering. CFATF was established as a result of meetings convened in Aruba in May 1990 and in Jamaica in November 1992. The CFATF maintains a website at: http://www.cfatf.org/
Certify means to declare formally that a certain stated fact is true.
Client or customer. Pursuant to article 1, sub c of the NOIS, a client/customer is anyone to whom a service, as defined in article 1 sub b of the NOIS, is rendered.
Close associates are individuals who are closely connected to a PEP, either socially or professionally.
Complex life insurance companies and intermediaries (insurance brokers) have large operations/ activities (internationally) and or complex terms of contract, distribution, payments system or contract law.
Credit institution. Pursuant to article 1, paragraph 1 of the National Ordinance Supervision Banking and Credit Institutions 1994 (N.G. 2019, nr. 59 (C.T.)) a credit institution is a company or institution whose primary business activity is acquiring power of disposal of monies that are due and payable immediately or in due course, including in the form of savings or in exchange for one or more types of debt instrument, and providing loans or making investments at its own expense.
Direct family members are individuals who are related to a PEP either directly (consanguinity) or through marriage or similar (civil) forms of partnership.
Felony refers to a serious offence committed for which the lawbreaker will be tried, judged and sentenced by a court in Curaçao.
Financial Action Task Force on Money Laundering (FATF). The FATF is an intergovernmental body established in 1989, whose purpose is to develop and promote policies to combat money laundering and terrorist financing. The FATF has 37 member jurisdictions and 2 member regional organizations (the Gulf Cooperation Council and the European Commission). The FATF has also 31 international and regional organizations that are associate members or observers and participate in its work. The FATF maintains a website at: http://www.fatf-gafi.org/
Financial Group means a group that consists of a parent company or of any other type of legal person exercising control and coordinating functions over the rest of the group together with branches and/or subsidiaries that are subject to AML/CFT/CFP policies and procedures at the group level.
Financial institution means any natural or legal person who conducts as a business, in or from Curaçao, one or more of the services as referred to in article 1, paragraph 1, sub paragraph b, under 1°, 2°, 3°, 4°, 5°, 6°, 7°, 8°, 9°, 10°, 16°, 18°, 19°, 20°, 21°, and 22° of the NOIS.
Financial Intelligence Unit (FIU). The FIU is a central national agency which falls under the competence of the Ministry of Finance and is under the management of a head with the duties stipulated in the NORUT. Pursuant to article 11, paragraph 1 of the NORUT, anyone who renders a service, as referred to in article 1, paragraph 1, sub paragraph a of the NORUT, as a profession or as a trade is obliged to report immediately to the FIU any performed or intended unusual transaction.
Financing of proliferation. Financing of proliferation refers to the act of providing funds or financial services which are used, in whole or in part, for the manufacture, acquisition, possession, development, export, trans-shipment, brokering, transport, transfer, stockpiling or use of nuclear, chemical or biological weapons and their means of delivery and related materials (including both technologies and dual use goods used for non-legitimate purposes), in contravention of national laws or, where applicable, international obligations.
Higher-risk countries are jurisdictions that have been identified by the FATF with strategic deficiencies in their frameworks to combat money laundering and the financing of terrorism and of proliferation.
Identify means to establish the identity of the natural person or legal entity.
Illegal wildlife trade is a major transnational organized crime and refers to acts committed contrary to national laws and regulations of jurisdictions intended to protect natural resources (flora and fauna) and to administer their management and use. The proceeds generated are considered as a global threat, rather than as a problem only for those jurisdictions where wildlife is illegally harvested, transited, or sold.
Know Your Customer (KYC). The objective of KYC policies and procedures of life insurance companies and intermediaries (insurance brokers) is for them to know the customer with whom they are dealing. Sound KYC policies and procedures are critical in protecting the safety and soundness of the institutions and the financial system.
Misdemeanor is a minor crime which is punishable.
Politically exposed persons (PEPs). Persons who are or have been entrusted with prominent public functions and the direct family members or close associates of such persons. PEPs are also persons who are or have been entrusted with a prominent function by an international organization as members of senior management, i.e. directors, deputy directors and members of the board or equivalent functions and the direct family members or close associates of such persons.
Senior Management. Comprises the individuals entrusted with the daily management of the operations to achieve the institution’s objectives.
Source of funds refers to the activity that generated the funds for a client to be deposited into an account. This may include e.g. earned income, interest and dividend payment.
Source of wealth refers to the activity that generates or which have generated an individual's net financial position.
Supervisory Board of Directors. The governing body of an institution, elected by the shareholders, to oversee and supervise the management of the institution’s resources and activities. They are ultimately responsible for the conduct of the institution’s affairs, and control its direction and, hence its overall policy.
Third party means a financial institution or DNFBP that is supervised or monitored and that meets the requirements of FATF Recommendation 17. This third party is an independent separate legal entity or natural person, usually with an existing business relationship with the customer, which is independent from the relationship to be formed by the customer with the relying institution and would apply its own procedures to perform the CDD measures.
Unusual transaction. A transaction that is considered as such on the basis of certain indicators, pursuant to Article 10 of the NORUT.
(Ultimate) beneficial owner(s). Refers to the natural person(s) who (ultimately) own(s) or controls a customer and/or the person on whose behalf a transaction is being conducted. It also incorporates those persons who exercise ultimate effective control over a legal person.
Verify means to confirm, to establish the truth, accuracy or reality of something.
Viatical Contract. A viatical contract is a contract regarding the sale of a life insurance policy to a third party. The owner (viator) of the life insurance policy sells the policy for an immediate cash benefit. The buyer (the viatical settlement provider) becomes the new owner of the life insurance policy, pays future premiums, and collects the death benefit when the insured dies.
Virtual Asset. A virtual asset is a digital representation of value that can be digitally traded, or transferred, and can be used for payment or investment purposes. Virtual assets do not include digital representations of fiat currencies, securities, and other financial assets that are already covered elsewhere in the FATF Recommendations.
Virtual Asset Service Providers. Virtual asset service provider means any natural or legal person who is not covered elsewhere in the FATF Recommendations, and as a business conducts one or more of the following activities or operations for or on behalf of another natural or legal person:
# i. exchange between virtual assets and fiat currencies;
# ii. exchange between one or more forms of virtual assets;
# iii. transfer56 of virtual assets;
# iv. safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets
# v. participation in and provision of financial services related to an issuer’s offer and/or sale of virtual asset.
- Without delay means, ideally, within a matter of hours of a designation by the UN Security Council or its relevant Sanctions Committee. For the purposes of S/RES/1373(2001) it means upon having reasonable grounds, or reasonable basis, to suspect or to believe that a person or entity is a terrorist, one who finances terrorism or a terrorist organization. In both cases, “without” should be interpreted in the context of the need to prevent the flight or dissipation of funds or other assets which are linked to terrorists, terrorists organizations, those who finance terrorism and to the financing of proliferation of weapons of mass destruction, and the need for global, concerted action to interdict and disrupt their flow swiftly.
# 2- Acronyms
- AML - Anti-Money Laundering
- BRA - Business Risk Assessment
- CDD - Customer due diligence
- CFT - Combatting the financing of terrorism
- DDP - Due Diligence Persons
- DDB - Due Diligence Business
- EU - European Union
- EUS - European Union sanctions
- FIAU - Financial Intelligence Analysis Unit
- FATF - Financial Action Task Force
- FIs - Financial Institutions
- FIUs - Financial Intelligence Units
- KPI - Key Performance Indicators
- KYC - Know-your-customer
- ML - Money Laundering
- OFAC - Office of Foreign Assets Control
- SG- Safer Gambling
- STRs - Suspicious Transaction Reports
- TF - Terrorist Financing
- TL - Terrorist List
- UNSC - United Nations Security Council