AML/CFTR 1.3.2 What is a financial institution?

(1) A financial institution is any entity that conducts, as a business, 1 or more of the following activities for or on behalf of a customer:
(a) accepting deposits or other repayable funds from the public, including, for example, private banking;
(b) lending (including consumer credit and mortgage credit), the purchase of debts and equity whether with or without the right to recourse, and financing commercial transactions;
(c) financial leasing, other than financial leasing arrangements in relation to consumer products;
(d) transferring money or value, whether in the formal sector or informal sector (such as an alternative remittance activity), but does not include the provision to a financial institution of services consisting solely of the provision of messaging or other support services for transmitting funds;
(e) issuing or managing means of payment, including, for example, credit and debit cards, cheques, travellers' cheques, money orders, bankers' drafts and electronic money;
(f) providing financial guarantees or commitments;
(g) trading in:
(i) money market instruments, including, for example, cheques, bills, certificates of deposit and derivatives;
(ii) foreign exchange;
(iii) exchange, interest rate and index instruments;
(iv) transferable securities; or
(v) commodity futures;
(h) participating in securities issues and providing financial services related to securities issues;
(i) undertaking individual or collective portfolio management;
(j) safekeeping or administering cash or liquid securities on behalf of other entities;
(k) otherwise investing, administering or managing funds on behalf of other entities;
(l) underwriting or placing life insurance and other investment-related insurance, whether as insurer or insurance intermediary;
(m) money or currency changing;
(n) any other activity or transaction prescribed by a decision of the Council of Ministers under Article 2 of the Implementing Regulations of Law No. (20) of 2019 on Combatting Money Laundering and Terrorism Financing.
(2) Despite subrule (1), every authorised firm (other than an authorised firm that is a firm within the meaning given by the Anti-Money Laundering and Combating Terrorist Financing (General Insurance) Rules 2012, rule 1.3.1) is a financial institution.
Derived by QFCRA RM/2019-8 (as from 1st February 2020)