Article 2 – Definitions

(1)

‘money laundering’ means the conduct set out in Article 3, paragraphs 1 and 5, of Directive (EU) 2018/1673 including aiding and abetting, inciting and attempting to commit that conduct, whether the activities which generated the property to be laundered were carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances;

(2)

‘terrorist financing’ means the conduct set out in Article 11 of Directive (EU) 2017/541 including aiding and abetting, inciting and attempting to commit that conduct, whether carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances;

(3)

‘criminal activity’ means criminal activity as defined in Article 2, point (1), of Directive (EU) 2018/1673, as well as fraud affecting the Union’s financial interests as defined in Article 3(2) of Directive (EU) 2017/1371, passive and active corruption as defined in Article 4 (2) and misappropriation as defined in Article 4(3), second subparagraph, of that Directive;

(4)

‘funds’ or ‘property’ means property as defined in Article 2, point (2), of Directive (EU) 2018/1673;

(5)

‘credit institution’ means:

(6)

‘financial institution’ means:

(7)

‘crypto-asset’ means a crypto-asset as defined in Article 3(1), point (5), of Regulation (EU) 2023/1114 except when falling under the categories listed in Article 2(4) of that Regulation;

(8)

‘crypto-asset services’ means crypto-asset services as defined in Article 3(1), point (16), of Regulation (EU) 2023/1114, with the exception of providing advice on crypto-assets as referred to in Article 3(1), point (16)(h), of that Regulation;

(9)

‘crypto-asset service provider’ means a crypto-asset service provider as defined in Article 3(1), point (15), of Regulation (EU) 2023/1114 where performing one or more crypto-asset services;

(10)

‘financial mixed activity holding company’ means an undertaking, other than a financial holding company or a mixed financial holding company, which is not the subsidiary of another undertaking, the subsidiaries of which include at least one credit institution or financial institution;

(11)

‘trust or company service provider’ means any natural or legal person that, by way of its business, provides any of the following services to third parties:

(12)

‘gambling service’ means a service which involves wagering a stake with monetary value in games of chance, including those with an element of skill, such as lotteries, casino games, poker games and betting transactions that are provided at a physical location, or by any means at a distance, by electronic means or any other technology for facilitating communication, and at the individual request of a recipient of services;

(13)

‘non-financial mixed activity holding company’ means an undertaking, other than a financial holding company or a mixed financial holding company, which is not the subsidiary of another undertaking, the subsidiaries of which include at least one obliged entity as referred to in Article 3, point (3);

(14)

‘self-hosted address’ means a self-hosted address as defined in Article 3, point (20), of Regulation (EU) 2023/1113;

(15)

‘crowdfunding service provider’ means a crowdfunding service provider as defined in Article 2(1), point (e), of Regulation (EU) 2020/1503;

(16)

‘crowdfunding intermediary’ means an undertaking other than a crowdfunding service provider the business of which is to match or facilitate the matching, through an internet-based information system open to the public or to a limited number of funders, of:

(17)

‘electronic money’ means electronic money as defined in Article 2, point (2), of Directive 2009/110/EC of the European Parliament and of the Council (38), but excluding monetary value as referred to in Article 1(4) and (5) of that Directive;

(18)

‘establishment’ means the actual pursuit by an obliged entity of an economic activity covered by Article 3 in a Member State or third country other than the country where its head office is located for an indefinite period and through a stable infrastructure, including:

(19)

‘business relationship’ means a business, professional or commercial relationship connected with the professional activities of an obliged entity, which is set up between an obliged entity and a customer, including in the absence of a written contract and which is expected to have, at the time when the contact is established, or which subsequently acquires, an element of repetition or duration;

(20)

‘linked transactions’ means two or more transactions with either identical or similar origin, destination and purpose, or other relevant characteristics, over a specific period;

(21)

‘third country’ means any jurisdiction, independent state or autonomous territory that is not part of the Union and that has its own AML/CFT legislation or enforcement regime;

(22)

‘correspondent relationship’ means:

(23)

‘shell institution’ means:

(24)

‘crypto-asset account’ means a crypto-asset account as defined in Article 3, point (19), of Regulation (EU) 2023/1113;

(25)

‘anonymity-enhancing coins’ means crypto-assets that have built-in features designed to make crypto-asset transfer information anonymous, either systematically or optionally;

(26)

‘virtual IBAN’ means an identifier causing payments to be redirected to a payment account identified by an IBAN different from that identifier;

(27)

‘Legal Entity Identifier’ means a unique alphanumeric reference code based on the ISO 17442 standard assigned to a legal entity;

(28)

‘beneficial owner’ means any natural person who ultimately owns or controls a legal entity or an express trust or similar legal arrangement;

(29)

‘express trust’ means a trust intentionally set up by the settlor, inter vivos or on death, usually in a form of written document, to place assets under the control of a trustee for the benefit of a beneficiary or for a specified purpose;

(30)

‘objects of a power’ means the natural or legal persons or class of natural or legal persons among whom trustees may select the beneficiaries in a discretionary trust;

(31)

‘default taker’ means the natural or legal persons or class of natural or legal persons who are the beneficiaries of a discretionary trust should the trustees fail to exercise their discretion;

(32)

‘legal arrangement’ means an express trust or an arrangement which has a similar structure or function to an express trust, including fiducie and certain types of Treuhand and fideicomiso;

(33)

‘basic information’ means:

(34)

‘politically exposed person’ means a natural person who is or has been entrusted with prominent public functions including:

(35)

‘family member’ means:

(36)

‘person known to be a close associate’ means:

(37)

‘management body’ means an obliged entity’s body or bodies, which are appointed in accordance with national law, which are empowered to set the obliged entity’s strategy, objectives and overall direction, and which oversee and monitor management decision-making, and include the persons who effectively direct the business of the obliged entity; where no such body exists, the person who effectively directs the business of the obliged entity;

(38)

‘management body in its management function’ means the management body responsible for the day-to-day management of the obliged entity;

(39)

‘management body in its supervisory function’ means the management body acting in its role of overseeing and monitoring management decision-making;

(40)

‘senior management’ means the members of the management body in its management function, as well as officers and employees with sufficient knowledge of the obliged entity’s money laundering and terrorist financing risk exposure and sufficient seniority to take decisions affecting its risk exposure;

(41)

‘group’ means a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU;

(42)

‘parent undertaking’ means:

(43)

‘cash’ means cash as defined in Article 2(1), point (a), of Regulation (EU) 2018/1672 of the European Parliament and of the Council (39);

(44)

‘competent authority’ means:

(45)

‘supervisor’ means the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620;

(46)

‘supervisory authority’ means a supervisor who is a public body, or the public authority overseeing self-regulatory bodies in their performance of supervisory functions pursuant to Article 37 of Directive (EU) 2024/1640, or AMLA when acting as a supervisor;

(47)

‘self-regulatory body’ means a body that represents members of a profession and has a role in regulating them, in performing certain supervisory or monitoring functions and in ensuring the enforcement of the rules relating to them;

(48)

‘funds or other assets’ means any assets, including, but not limited to, financial assets, economic resources, including oil and other natural resources, property of every kind, whether tangible or intangible, movable or immovable, however acquired, and legal documents or instruments in any form, including electronic or digital, evidencing title to, or interest in, such funds or other assets, including, but not limited to, bank credits, travellers cheques, bank cheques, money orders, shares, securities, bonds, drafts, or letters of credit, and any interest, dividends or other income on or value accruing from or generated by such funds or other assets, and any other assets which potentially may be used to obtain funds, goods or services;

(49)

‘targeted financial sanctions’ means both asset freezing and prohibitions to make funds or other assets available, directly or indirectly, for the benefit of designated persons and entities pursuant to Council Decisions adopted on the basis of Article 29 TEU and Council Regulations adopted on the basis of Article 215 TFEU;

(50)

‘UN financial sanctions’ means both asset freezing and prohibitions to make funds or other assets available, directly or indirectly, for the benefit of designated or listed persons and entities pursuant to:

(51)

‘UN financial sanctions relating to proliferation financing’ means both asset freezing and prohibitions to make funds or other assets available, directly or indirectly, for the benefit of designated or listed persons and entities pursuant to:

(52)

‘professional football club’ means any legal person that is, owns or manages a football club that has been granted a licence and participates in the national football leagues in a Member State and whose players and staff are contractually engaged and are remunerated in exchange for their services;

(53)

‘football agent’ means a natural or legal person who, for a fee, provides intermediary services and represents football players or professional football clubs in negotiations with a view to concluding a contract for a football player or represents professional football clubs in negotiations with a view to concluding an agreement for the transfer of a football player;

(54)

‘high-value goods’ means goods listed in Annex IV;

(55)

‘precious metals and stones’ means metals and stones listed in Annex V;

(56)

‘cultural goods’ means goods listed in Annex I to Council Regulation (EC) No 116/2009 (40);

(57)

‘partnership for information sharing’ means a mechanism that enables the sharing and processing of information between obliged entities and, where applicable, competent authorities referred to in point 44(a), (b) and (c), for the purposes of preventing and combating money laundering, its predicate offences and terrorist financing, whether at national level or on a cross-border basis, and regardless of the form of that partnership.

(a)

members of governing bodies of political parties represented at regional or local level, as referred to in paragraph 1, point (34)(a)(iii);

(b)

heads of regional and local authorities, as referred to in paragraph 1, point (34)(a)(viii).