Exemption 11: Exemption for estate agents The definition of “estate in the Estate Agency Affairs Act includes estate agents who render services to body corporates of sectional title schemes and share block companies. This exemption was initiated as the business of a managing agent does not hold a risk of being abused for money laundering purposes. This is now included implicitly in the Amendment Act with the introduction of a approach which allows an estate agent to determine which business relationships or transactions pose a lower ML/TF risk and apply the necessary CDD requirements as described in the institution’s RMCP. Exemption 12: Exemption for entertainment activities in gambling institutions Schedule 1 specifically refers to a gambling activity which makes this exemption superfluous. Exemption 13: Exemption for gambling institutions in respect of single transactions This exemption was intended to relieve the compliance burden for gambling institutions in relation to certain circumscribed single transactions. This is now included implicitly in the Amendment Act with the introduction of a risk-based approach which allows a gambling institution to determine which business relationships or transactions pose a lower ML/TF risk and apply the necessary CDD requirements as described in the institution’s RMCP. Exemption 14: Exemption for gambling institutions for single transactions This exemption applies to all other single transactions that do not fall under exemption 13. This is now included implicitly in the Amendment Act with the introduction of a approach which allows a gambling institution to determine which business relationships or transactions pose a lower ML/TF risk and apply the necessary CDD requirements as described in the institution’s RMCP. Exemption 15: Exemption for banks for unsecured loans This exemption relates to unsecured loans of relatively small amounts. This is now included implicitly in the Amendment Act with the introduction of a risk-based approach which allows an accountable institution to determine which business relationships or transactions pose a lower ML/TF risk and apply the necessary CDD requirements as described in the institution’s RMCP. Exemption 16: Exemption for foreign banks This exemption was to simplify identification and verification requirements intended for banks in relation to transactions with banks from foreign countries where the institutions are subject to anti-money laundering measures which, to the satisfaction of a supervisory body, are equivalent to those of the FIC Act.
This is now included implicitly in the Amendment Act with the introduction of a risk-based approach which allows an accountable institution to determine which business relationships or transactions pose a lower ML/TF risk and apply the necessary CDD requirements as described in the institution’s RMCP. Exemption 17: Exemption for banks for low value products The exemption was intended to simplify identification and verification requirements for low value products. This is now included implicitly in the Amendment Act with the introduction of a risk-based approach which allows an accountable institution to determine which business relationships or transactions pose a lower ML/TF risk and apply the necessary CDD requirements as described in the institution’s RMCP. Exemption on prepaid instruments (25 June 2010) The exemption was intended to simplify identification and verification requirements for low products. This is now included implicitly in the Amendment Act with the introduction of a risk-based approach which allows an accountable institution to determine which business relationships or transactions pose a lower ML/TF risk and apply the necessary CDD requirements as described in the institution’s RMCP. Exemption on cross border remittance The exemption was intended to simplify identification and verification requirements for low value products. This is now included implicitly in the Amendment Act with the introduction of a risk-based approach which allows an accountable institution to determine which business relationships or transactions pose a lower ML/TF risk and apply the necessary CDD requirements as described in the institution’s RMCP.