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Start your learning journey with the latest and updated AML-KYC Glossary Terms.
A
Aadhaar in AML/KYC?
Aadhaar is a 12-digit unique identification number issued by the Indian government to its citizens. It is used as an identity proof for various purposes, including financial transactions. In the context of AML/KYC, Aadhaar is used as one of the documents for identity verification and customer due diligence (CDD) procedures.
Al-Qaida sanctions committee in AML/KYC?
The Al-Qaida sanctions committee is a subsidiary body of the United Nations Security Council responsible for overseeing the implementation of sanctions against individuals and entities associated with Al-Qaida and the Taliban. In the context of AML/KYC, financial institutions are required to implement measures to prevent and detect transactions with individuals and entities on the sanctions list issued by the committee.
Anti-money laundering (AML) director in AML/KYC?
The AML director is a senior executive responsible for overseeing the implementation of anti-money laundering policies and procedures within a financial institution. The AML director ensures that the institution complies with AML laws and regulations, conducts risk assessments, develops and implements AML programs, and provides training and guidance to employees.
Arms embargo in AML/KYC?
An arms embargo is a ban on the import, export, or sale of weapons to a particular country, group, or individual. In the context of AML/KYC, financial institutions are required to implement measures to prevent and detect transactions related to the purchase or sale of weapons, as well as transactions with individuals or entities subject to an arms embargo.
Asset freeze in AML/KYC?
An asset freeze is a legal order that prevents individuals or entities from disposing of, transferring, or dealing with their assets. In the context of AML/KYC, financial institutions are required to implement measures to prevent and detect transactions with individuals or entities subject to an asset freeze.
Asset recovery in AML/KYC?
Asset recovery is the process of identifying, tracing, freezing, and recovering assets that are the proceeds of crime or are otherwise involved in criminal activity. In the context of AML/KYC, financial institutions may be required to cooperate with law enforcement authorities in the asset recovery process.
Audit committee in AML/KYC?
An audit committee is a committee of the board of directors of a company or organization responsible for overseeing the financial reporting process, internal controls, and risk management. In the context of AML/KYC, the audit committee may be responsible for overseeing the implementation of AML policies and procedures and ensuring that the institution complies with AML laws and regulations.
B
Beneficial owner in AML/KYC?
A beneficial owner is a natural person who ultimately owns or controls a legal entity, such as a company or trust. In the context of AML/KYC, identifying the beneficial owner is important to prevent money laundering and terrorist financing by detecting any attempts to conceal the true ownership or control of an entity.
Beneficial ownership in AML/KYC?
Beneficial ownership refers to the natural person(s) who ultimately own or control a legal entity or asset, such as a company, trust, or property. In the context of AML/KYC, identifying the beneficial owner is important to prevent money laundering and terrorist financing by detecting any attempts to conceal the true ownership or control of an entity.
Bilateral agreement in AML/KYC?
A bilateral agreement is an agreement between two parties, such as two countries or two financial institutions, to cooperate in a specific area or on a specific issue. In the context of AML/KYC, bilateral agreements may be established between countries or financial institutions to share information, coordinate investigations, and cooperate in the fight against money laundering and terrorist financing.
Biometric identification in AML/KYC?
Biometric identification refers to the use of unique physical characteristics, such as fingerprints or facial recognition, to verify a person’s identity. In the context of AML/KYC, biometric identification may be used as part of the customer due diligence process to ensure that the person presenting the identification documents is the same person who owns or controls the account.
Black money in AML/KYC?
Black money refers to income or assets that have not been declared to the tax authorities, and therefore are not subject to taxation. In the context of AML/KYC, black money may be generated through illegal activities, such as money laundering or terrorist financing, and financial institutions are required to implement measures to prevent and detect such activities.
Board member in AML/KYC?
A board member is an individual who serves on the board of directors of a company or organization, and is responsible for overseeing the management and direction of the organization. In the context of AML/KYC, board members may be responsible for overseeing the implementation of AML policies and procedures and ensuring that the institution complies with AML laws and regulations.
Board of Directors in AML/KYC?
The board of directors is the governing body of a company or organization, responsible for overseeing the management and direction of the organization. In the context of AML/KYC, the board of directors may be responsible for overseeing the implementation of AML policies and procedures and ensuring that the institution complies with AML laws and regulations.
Business nature and purpose in AML/KYC?
The business nature and purpose refer to the activities and objectives of a company or organization. In the context of AML/KYC, financial institutions are required to understand the business nature and purpose of their customers to assess the level of risk associated with their transactions, and to identify any suspicious activities that may indicate money laundering or terrorist financing.
C
Cash Transaction Reporting (CTR) in AML/KYC?
Cash Transaction Reporting (CTR) is the process of reporting cash transactions that exceed a certain threshold to the relevant authorities. In the context of AML/KYC, financial institutions are required to report cash transactions above a certain threshold to prevent money laundering and terrorist financing.
CERSAI (Central Registry of Securitization Asset Reconstruction and Security Interest) in AML/KYC?
CERSAI is a central registry established by the Indian government to maintain records of security interests created for loans and advances granted by banks and financial institutions. In the context of AML/KYC, CERSAI provides a platform for financial institutions to register security interests and help prevent fraudulent activities such as multiple financing of the same asset.
Chief compliance officer (CCO) in AML/KYC?
A Chief Compliance Officer (CCO) is a senior executive who is responsible for ensuring that an organization complies with applicable laws, regulations, and internal policies. In the context of AML/KYC, the CCO is responsible for ensuring that the financial institution has effective AML/KYC policies and procedures in place to prevent money laundering and terrorist financing.
Code of conduct in AML/KYC?
A code of conduct is a set of guidelines and ethical standards that an organization or its employees are expected to follow. In the context of AML/KYC, financial institutions are required to have a code of conduct that promotes ethical behavior and compliance with applicable laws and regulations.
Compliance director in AML/KYC?
A Compliance Director is a senior executive responsible for overseeing the compliance function of an organization. In the context of AML/KYC, the Compliance Director is responsible for ensuring that the financial institution has effective AML/KYC policies and procedures in place to prevent money laundering and terrorist financing.
Compliance function in AML/KYC?
The Compliance Function is a dedicated department within a financial institution responsible for ensuring that the institution complies with applicable laws, regulations, and internal policies. In the context of AML/KYC, the Compliance Function is responsible for developing and implementing AML/KYC policies and procedures to prevent money laundering and terrorist financing.
Confiscation in AML/KYC?
Confiscation is the legal process by which the government seizes assets that have been acquired through illegal means, such as money laundering or terrorist financing. In the context of AML/KYC, confiscation is a tool used to deter money laundering and terrorist financing and to recover illicit funds.
Conflict of interest in AML/KYC?
A conflict of interest occurs when an individual or organization has competing interests that may affect their ability to act impartially. In the context of AML/KYC, financial institutions are required to have policies and procedures in place to prevent conflicts of interest that may arise during the customer due diligence process or when conducting transactions with customers.
Correspondent bank in AML/KYC?
A correspondent bank is a financial institution that provides services, such as wire transfers, to another financial institution. In the context of AML/KYC, correspondent banks are required to have effective AML/KYC policies and procedures in place to prevent money laundering and terrorist financing.
Correspondent banking in AML/KYC?
Correspondent banking refers to the provision of services, such as wire transfers, by one financial institution to another. In the context of AML/KYC, correspondent banking is subject to AML/KYC regulations to prevent money laundering and terrorist financing.
Counterfeit currency in AML/KYC?
Counterfeit currency refers to fake money that is produced with the intention of deceiving others. In the context of AML/KYC, financial institutions are required to have policies and procedures in place to detect
Counterfeit currency report (CCR) in AML/KYC?
Counterfeit currency report (CCR) in AML/KYC refers to a report that financial institutions and other entities submit to the appropriate regulatory authority when they detect or suspect the use of counterfeit currency in a transaction.
Counterfeit Currency Reporting (CCR) in AML/KYC?
Counterfeit Currency Reporting (CCR) in AML/KYC is the same as Counterfeit currency report (CCR) and refers to the process of reporting the use of counterfeit currency in a transaction.
Counter-terrorism in AML/KYC?
Counter-terrorism in AML/KYC refers to the measures and procedures put in place by financial institutions and regulatory authorities to prevent the financing of terrorist activities through the financial system.
Counter-terrorism financing in AML/KYC?
Counter-terrorism financing in AML/KYC refers to the use of funds, financial services, and other assets to finance terrorist activities, and the measures taken by financial institutions and regulatory authorities to prevent such activities.
Criminal investigation in AML/KYC?
Criminal investigation in AML/KYC refers to the process of investigating criminal activities, such as money laundering, terrorist financing, and other financial crimes, to identify the individuals or organizations involved and bring them to justice.
Criminal proceeds in AML/KYC?
Criminal proceeds in AML/KYC refers to the proceeds obtained from criminal activities, such as money laundering, and the measures taken to prevent such activities and seize the proceeds.
Cross-border cooperation in AML/KYC?
Cross-border cooperation in AML/KYC refers to the collaboration between different countries’ regulatory authorities and financial institutions to prevent and investigate financial crimes that involve transactions across borders.
Currency transaction report (CTR) in AML/KYC?
Currency transaction report (CTR) in AML/KYC refers to a report that financial institutions are required to submit to the appropriate regulatory authority when a customer conducts a transaction that involves a certain threshold amount of cash.
Customer acceptance policy (CAP) in AML/KYC?
Customer acceptance policy (CAP) in AML/KYC refers to the policies and procedures put in place by financial institutions to assess and manage the risks associated with accepting customers.
Customer due diligence (CDD) in AML/KYC?
Customer due diligence (CDD) in AML/KYC refers to the process of verifying the identity of a customer, assessing the risks associated with the customer, and obtaining information about the customer’s business activities, among other things.
Customer identification in AML/KYC?
Customer identification in AML/KYC refers to the process of verifying the identity of a customer using documents such as passports, driving licenses, or other official identification documents.
Customer identification process in AML/KYC?
Customer identification process in AML/KYC refers to the procedures and steps that financial institutions take to verify the identity of a customer, including collecting and verifying identification documents.
Customer identification program (CIP) in AML/KYC?
Customer identification program (CIP) in AML/KYC refers to the formal policies and procedures that financial institutions put in place to identify and verify the identity of their customers.
Customer information record in AML/KYC?
Customer information record in AML/KYC refers to the record that financial institutions maintain about their customers, including information about their identity, business activities, and transactions.
Customer information update in AML/KYC?
Customer information update in AML/KYC refers to the process of updating and verifying the customer information record to ensure that the information is accurate and up-to-date.
Customer profiling in AML/KYC?
Customer profiling in AML/KYC refers to the process of assessing and categorizing customers based on their risk profile, such as their business activities, transaction history, and other relevant factors.
Customer risk rating in AML/KYC?
Customer risk rating in AML/KYC refers to the process of assigning a risk rating to customers based on their risk profile, which helps financial institutions to determine the appropriate level of due diligence required for each customer.
Customer segmentation in AML/KYC?
Customer segmentation in AML/KYC refers to the process of dividing customers into different segments based on their risk profile and other relevant factors, such as their business activities and transaction history. This helps financial institutions to manage risks and compliance requirements more effectively.
D
Data analysis in AML/KYC?
Data analysis in AML/KYC refers to the process of examining large sets of customer data to identify suspicious patterns or behaviors that could indicate money laundering or other illicit activities.
Designated Director in AML/KYC?
Designated Director in AML/KYC refers to an individual within an organization who is responsible for ensuring compliance with AML/KYC regulations. This individual is typically appointed by the organization’s board of directors.
Designated non-financial business or profession (DNFBP) in AML/KYC?
Designated non-financial business or profession (DNFBP) in AML/KYC refers to businesses or professions that are not involved in financial services but are still subject to AML/KYC regulations, such as real estate agents, lawyers, and accountants.
Digital KYC in AML/KYC?
Digital KYC in AML/KYC refers to the use of digital technologies such as biometrics, artificial intelligence, and blockchain to verify the identity of customers remotely and securely.
Dirty money in AML/KYC?
Dirty money in AML/KYC refers to money that has been obtained through illegal or unethical means and is being used to fund illicit activities.
Document review in AML/KYC?
Document review in AML/KYC refers to the process of examining customer documents such as passports, driver’s licenses, and utility bills to verify the customer’s identity and assess their risk level for potential money laundering or terrorist financing.
Documentary evidence in AML/KYC?
Documentary evidence in AML/KYC refers to the physical or digital documents that are used to verify the identity of a customer, such as passports, driver’s licenses, birth certificates, and utility bills. These documents are examined during the customer onboarding process to ensure that the customer is who they claim to be and to assess their risk level for potential money laundering or terrorist financing.
Due diligence review in AML/KYC?
Due diligence review in AML/KYC refers to the process of conducting a thorough and systematic investigation of a customer’s background, including their identity, source of funds, and business activities, to assess their risk level for potential money laundering or terrorist financing. This review is typically conducted during the customer onboarding process and on an ongoing basis to ensure that the customer’s risk profile remains consistent with the organization’s risk tolerance.
E
Electronic identification in AML/KYC?
Electronic identification in AML/KYC refers to the use of electronic means to verify the identity of a customer, such as through biometric data or online verification services. Electronic identification can be used as a part of a customer onboarding process and helps to streamline the verification process and prevent fraud.
Enhanced due diligence (EDD) in AML/KYC?
Enhanced due diligence (EDD) in AML/KYC refers to a higher level of scrutiny and investigation of a customer’s background and activities to assess their risk level for potential money laundering or terrorist financing. EDD is typically required for customers who are deemed to be high-risk, such as politically exposed persons (PEPs) or customers from high-risk countries.
Evidence gathering in AML/KYC?
Evidence gathering in AML/KYC refers to the process of collecting and analyzing information and documentation to build a case against individuals or entities suspected of money laundering or other illicit activities. This may involve gathering evidence through financial records, interviews, and other investigative techniques.
Extradition in AML/KYC?
Extradition in AML/KYC refers to the legal process by which a person who is wanted in one country for a crime is transferred to that country from another country where they are currently located. Extradition can be an important tool in the fight against money laundering and other illicit activities, as it allows law enforcement authorities to bring suspects to justice across international borders.
G
Geographical risk in AML/KYC?
Geographical risk in AML/KYC refers to the potential for money laundering or terrorist financing activities to occur in a particular geographic location. This risk can be influenced by a variety of factors, including the political stability of the country, the effectiveness of its law enforcement and regulatory regimes, the prevalence of organized crime or terrorist groups, and the transparency and accountability of its financial system.
I
Identity verification in AML/KYC?
Identity verification in AML/KYC refers to the process of confirming the identity of a customer or beneficial owner of a legal entity as part of the customer onboarding process or when changes are made to customer information. Identity verification can be done through a variety of methods, including document verification, biometric verification, or electronic identity verification.
Illicit funds in AML/KYC?
Illicit funds in AML/KYC refer to funds that are obtained through illegal activities, such as drug trafficking, corruption, fraud, or terrorism. AML/KYC regulations aim to prevent the use of financial institutions for laundering illicit funds and to detect and report suspicious activities related to such funds.
Independent review in AML/KYC?
Independent review in AML/KYC refers to an assessment of a financial institution’s AML/KYC program by an external auditor or consultant who is not directly involved in the institution’s operations. Independent reviews are required by some AML/KYC regulations and can help to identify weaknesses or gaps in a financial institution’s AML/KYC program.
Information security in AML/KYC?
Information security in AML/KYC refers to the measures taken by financial institutions to protect customer information and prevent unauthorized access, use, or disclosure of sensitive data. AML/KYC regulations often require financial institutions to implement strong information security controls to prevent data breaches or cyber attacks.
Integration in AML/KYC?
Integration in AML/KYC refers to the integration of AML/KYC systems and processes with other systems and processes used by a financial institution. Integration can help to improve the efficiency and effectiveness of AML/KYC compliance, as well as reduce the risk of errors or inconsistencies in customer data.
Intelligence sharing in AML/KYC?
Intelligence sharing in AML/KYC refers to the sharing of information and intelligence related to money laundering, terrorist financing, and other illicit activities between financial institutions, law enforcement agencies, and other relevant authorities. Intelligence sharing can help to identify and mitigate risks more effectively and facilitate the detection and investigation of suspicious activities.
Interbank messaging in AML/KYC?
Interbank messaging in AML/KYC refers to the secure communication channels used by financial institutions to exchange messages and information related to financial transactions. Interbank messaging systems, such as SWIFT, play an important role in facilitating cross-border payments and ensuring compliance with AML/KYC regulations.
Internal audit director in AML/KYC?
Internal audit director in AML/KYC refers to the individual responsible for overseeing the internal audit function within a financial institution’s AML/KYC program. The internal audit director is responsible for ensuring that internal audits are conducted in accordance with relevant regulations and industry best practices, and that any issues or deficiencies identified are addressed in a timely and effective manner.
Internal audit function in AML/KYC?
Internal audit function in AML/KYC refers to the function within a financial institution responsible for conducting independent assessments of the institution’s AML/KYC program to ensure compliance with relevant regulations and industry best practices. The internal audit function is responsible for identifying any weaknesses or deficiencies in the AML/KYC program and recommending improvements or corrective actions as necessary.
International cooperation in AML/KYC?
International cooperation in AML/KYC refers to the collaboration and cooperation between countries and financial institutions in the fight against money laundering, terrorist financing, and other illicit activities. International cooperation can involve information sharing, joint investigations, and mutual legal assistance, among other measures.
Investigation report in AML/KYC?
Investigation report in AML/KYC refers to a report prepared by a financial institution or law enforcement agency following an investigation into suspicious activities related to money laundering, terrorist financing, or other illicit activities. Investigation reports typically include detailed information about the activities under investigation, as well as any findings or conclusions reached during the investigation.
ISIL (Da’esh) and Al-Qaida sanctions committee in AML/KYC?
ISIL (Da’esh) and Al-Qaida sanctions committee in AML/KYC refers to the United Nations Security Council’s sanctions committee responsible for overseeing the implementation of sanctions against individuals and entities associated with the Islamic State in Iraq and the Levant (ISIL)
K
Know Your Customer (KYC) in AML/KYC?
Know Your Customer (KYC) is a critical process in AML/KYC that involves the verification of the identity of clients and customers, as well as the assessment of their risk for money laundering or terrorist financing activities. KYC procedures typically involve collecting personal information such as name, address, and date of birth, as well as verifying this information through official documents such as passports or driver’s licenses. KYC policies are put in place by financial institutions and other regulated entities to establish standards and procedures for conducting customer due diligence and risk assessments.
KYC – Updation in AML/KYC?
KYC updation refers to the process of updating customer information and re-verifying their identity on a periodic basis, typically every few years or as required by regulatory requirements. This is important to ensure that customer information remains accurate and up-to-date, and to identify any changes in risk factors that may require additional due diligence or monitoring.
KYC policy in AML/KYC?
A KYC policy is a set of procedures and guidelines that a financial institution or regulated entity follows to ensure compliance with AML/KYC regulations. The policy outlines the organization’s approach to identifying and verifying customer identity, assessing risk, and monitoring transactions for suspicious activity. It typically includes procedures for customer onboarding, ongoing monitoring, and KYC updation, as well as the roles and responsibilities of personnel involved in the process.
L
Law enforcement agency in AML/KYC?
A law enforcement agency in AML/KYC refers to government agencies responsible for enforcing laws related to money laundering, terrorist financing, and other financial crimes. These agencies may include the police, customs and border protection, intelligence agencies, and financial regulatory bodies. Law enforcement agencies are responsible for investigating suspected money laundering activities, gathering evidence, and prosecuting offenders.
Layering in AML/KYC?
Layering in AML/KYC refers to the process of creating complex financial transactions to conceal the origin and ownership of illegal funds. This can involve multiple transactions through various accounts and jurisdictions, making it difficult to trace the source of the funds. Layering is a common technique used by money launderers to hide illicit funds and avoid detection.
the Legal framework in AML/KYC?
The legal framework in AML/KYC refers to the laws, regulations, and guidelines that govern the prevention and detection of money laundering and terrorist financing activities. This includes both domestic laws and international standards set by organizations such as the Financial Action Task Force (FATF). The legal framework provides guidance for financial institutions and other regulated entities on their obligations for customer due diligence, reporting suspicious transactions, and other AML/KYC measures.
LEI (Legal Entity Identifier) in AML/KYC?
The Legal Entity Identifier (LEI) is a unique identifier assigned to legal entities that participate in financial transactions. The LEI is designed to facilitate transparency and help prevent financial crimes by providing a standardized method for identifying and tracking legal entities involved in financial transactions.
Low-risk customer in AML/KYC?
A low-risk customer in AML/KYC refers to a customer or client who is deemed to have a lower risk for money laundering or terrorist financing activities. This may be based on factors such as the nature of their business or occupation, their financial profile, or their geographic location. Financial institutions and other regulated entities may apply simplified customer due diligence measures for low-risk customers, although ongoing monitoring and risk assessment is still required.
N
Name screening in AML/KYC?
Name screening in AML/KYC refers to the process of checking the names of individuals or entities against a list of sanctioned or high-risk individuals or entities. This is done to identify potential matches and investigate further if necessary. Name screening can be conducted manually or through automated software.
National Electronic Funds Transfer (NEFT) in AML/KYC?
National Electronic Funds Transfer (NEFT) in AML/KYC is an electronic payment system used in India that enables customers to transfer funds from one bank account to another. Financial institutions are required to comply with AML/KYC regulations when conducting NEFT transactions to prevent money laundering and terrorist financing activities.
Non-compliant jurisdiction in AML/KYC?
Non-compliant jurisdiction in AML/KYC refers to a country or jurisdiction that does not comply with international AML/KYC standards and regulations. Financial institutions and other regulated entities are required to conduct enhanced due diligence when conducting transactions with customers or entities based in non-compliant jurisdictions.
Non-face-to-face verification in AML/KYC?
Non-face-to-face verification in AML/KYC refers to the process of verifying the identity of a customer or client without a physical meeting. This can be done through various methods such as video conferencing, biometric authentication, or electronic verification of identity documents. Non-face-to-face verification is becoming increasingly important as more transactions are conducted online or remotely.
Non-profit organization (NPO) in AML/KYC?
Non-profit organization (NPO) in AML/KYC refers to an organization that is not primarily driven by profit and is often established to promote charitable or social causes. Non-profit organizations are subject to AML/KYC regulations to prevent money laundering and terrorist financing activities.
Non-profit organization transaction report (NTR) in AML/KYC?
Non-Profit Organization Transaction Reports (NTRs) in AML/KYC refer to reports that are filed by financial institutions and other regulated entities when they conduct transactions with non-profit organizations. The reports are used to identify potential money laundering or terrorist financing activities involving non-profit organizations.
Non-profit organizations (NPOs) in AML/KYC?
Non-profit organizations (NPOs) in AML/KYC refer to organizations that are not primarily driven by profit and are often established to promote charitable or social causes. Non-profit organizations are subject to AML/KYC regulations to prevent money laundering and terrorist financing activities.
Non-proliferation in AML/KYC?
Non-proliferation in AML/KYC refers to efforts to prevent the proliferation of weapons of mass destruction (WMD) and other related materials. AML/KYC regulations can be used to prevent the financing of WMD proliferation by identifying and disrupting financial transactions related to these activities.
Nostro account in AML/KYC?
Nostro account in AML/KYC refers to a foreign currency account that a bank holds in another bank. Nostro accounts are used to facilitate international transactions and may be subject to AML/KYC regulations to prevent money laundering and terrorist financing activities.
P
Payment clearing and settlement in AML/KYC?
Payment clearing and settlement in AML/KYC refer to the processes involved in the transfer of funds from one party to another, including the identification and verification of the parties involved in the transaction.
Payment message in AML/KYC?
Payment message in AML/KYC refers to the information transmitted between the parties involved in a payment transaction, including details of the payment amount, payer, payee, and any associated fees.
Payment system in AML/KYC?
Payment system in AML/KYC refers to the infrastructure and processes used for the transfer of funds between parties, including electronic funds transfer, card payments, and other payment methods.
PEP screening in AML/KYC?
PEP screening in AML/KYC is the process of identifying and verifying politically exposed persons (PEPs), who are individuals with a prominent public function or a close associate or family member of such an individual. PEP screening is an important measure to prevent corruption and money laundering.
Periodic review in AML/KYC?
Periodic review in AML/KYC refers to the process of regularly reviewing customer information and transaction data to ensure that it is up-to-date and accurate.
Placement in AML/KYC?
Placement in AML/KYC is the first stage in the money laundering process, in which illicit funds are introduced into the financial system through a legitimate business or financial institution.
PMLA in AML/KYC?
PMLA in AML/KYC refers to the Prevention of Money Laundering Act, a law in India that establishes the legal framework for anti-money laundering and counter-terrorist financing measures.
Politically exposed person (PEP) in AML/KYC?
Politically exposed person (PEP) in AML/KYC refers to an individual who holds or has held a prominent public function or a close associate or family member of such an individual.
Predicate offence in AML/KYC?
Predicate offence in AML/KYC refers to the underlying criminal activity that generates the proceeds of crime, such as drug trafficking, fraud, or corruption.
Proceeds of crime in AML/KYC?
Proceeds of crime in AML/KYC refer to any funds or assets that are obtained through illegal or criminal activity, including money laundering and terrorist financing.
Proliferation financing in AML/KYC?
Proliferation financing refers to the act of providing financial support or resources to individuals or groups involved in the development, acquisition, or proliferation of weapons of mass destruction (WMDs). Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations are important in detecting and preventing proliferation financing.
S
Sanctions screening in AML/KYC?
Sanctions screening refers to the process of checking customers, transactions, and other activities against government-issued sanctions lists. Financial institutions are required to screen customers and transactions against these lists to ensure they are not doing business with individuals or entities that are subject to sanctions.
Segmentation in AML/KYC?
Sanctions screening refers to the process of checking customers, transactions, and other activities against government-issued sanctions lists. Financial institutions are required to screen customers and transactions against these lists to ensure they are not doing business with individuals or entities that are subject to sanctions.
Senior executive in AML/KYC?
Senior executives are responsible for ensuring that the financial institution has effective AML/KYC policies and procedures in place, and that those policies and procedures are being followed.
Senior management in AML/KYC?
Senior management refers to the group of individuals responsible for the overall management of a financial institution. They are responsible for ensuring that the institution has effective AML/KYC policies and procedures in place, and that those policies and procedures are being followed.
Shell bank in AML/KYC?
A shell bank is a financial institution that has no physical presence in the country where it is incorporated, and is not affiliated with a regulated financial group. Shell banks are often used for money laundering and terrorism financing, and are therefore prohibited by AML/KYC regulations.
Shell companies in AML/KYC?
A shell company is a company that exists only on paper and has no physical presence, employees, or significant assets or operations. Shell companies are often used for money laundering and terrorism financing, and are therefore a focus of AML/KYC regulations.
Simplified Due Diligence (SDD) in AML/KYC?
Simplified Due Diligence (SDD) is a process by which financial institutions can reduce the level of due diligence required for certain low-risk customers or transactions. SDD is only appropriate when the risks associated with the customer or transaction are low.
Smurfing in AML/KYC?
Smurfing refers to the process of breaking up large transactions into smaller transactions in order to avoid detection by AML/KYC controls. Smurfing is a common technique used by money launderers and is therefore prohibited by AML/KYC regulations.
Source of funds/wealth in AML/KYC?
The source of funds/wealth refers to the origin of the money or assets used in a transaction. Financial institutions are required to identify the source of funds/wealth for high-risk customers or transactions, to ensure that the funds are not derived from illegal activities.
Structuring in AML/KYC?
Structuring refers to the process of breaking up large transactions into smaller transactions in order to avoid detection by AML/KYC controls. Structuring is a common technique used by money launderers and is therefore prohibited by AML/KYC regulations.
Suspicious activity report (SAR) in AML/KYC?
A suspicious activity report (SAR) is a report that financial institutions are required to file when they identify a transaction or activity that may be related to money laundering, terrorism financing, or other illegal activities.
Suspicious activity reporting (SAR) in AML/KYC?
Suspicious activity reporting (SAR) refers to the process of filing a report when a financial institution identifies a transaction or activity that may be related to money laundering, terrorism financing, or other illegal activities.
Suspicious transaction in AML/KYC?
A suspicious transaction is a transaction that appears to be unusual or out of the ordinary and may be related to money laundering, terrorism financing, or other illegal activities.
Suspicious transaction report (STR) in AML/KYC?
A suspicious transaction report (STR) is a report that financial institutions are required to file when they identify a transaction or activity that may be related to money laundering, terrorism financing, or other illegal activities. The STR is typically filed with the financial intelligence unit (FIU) in the jurisdiction where the financial institution operates
Suspicious transaction reporting (STR) in AML/KYC?
Suspicious transaction reporting (STR) refers to the process of filing a report when a financial institution identifies a transaction or activity that may be related to money laundering, terrorism financing, or other illegal activities. The STR is typically filed with the financial intelligence unit (FIU) in the jurisdiction where the financial institution operates.
SWIFT in AML/KYC?
SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a global messaging network that financial institutions use to communicate with each other for the purpose of conducting financial transactions. SWIFT messages can be used to facilitate money laundering or terrorism financing, and therefore are subject to AML/KYC regulations. Financial institutions are required to monitor SWIFT messages for suspicious activity and report any suspicious activity to the relevant authorities.
U
Ultimate Beneficial Owner (UBO) in AML/KYC?
The Ultimate Beneficial Owner (UBO) is the natural person who ultimately owns or controls a legal entity, such as a company or trust. UBO identification is a critical aspect of AML/KYC compliance, as it is essential to know who the real owner of an entity is to prevent money laundering, terrorism financing, and other illegal activities.
UN Security Council Resolutions in AML/KYC?
The United Nations Security Council (UNSC) may adopt resolutions related to AML/KYC that impose sanctions on individuals, groups, or countries involved in money laundering, terrorism financing, or other illegal activities. Financial institutions are required to comply with these resolutions by implementing targeted financial sanctions and other measures.
Unified Payments Interface (UPI) in AML/KYC?
The Unified Payments Interface (UPI) is a payment system developed by the National Payments Corporation of India (NPCI) that enables instant payments and fund transfers between bank accounts. UPI transactions are subject to AML/KYC regulations, and financial institutions are required to implement measures to prevent money laundering, terrorism financing, and other illegal activities.
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Weapons of mass destruction (WMD) in AML/KYC?
Weapons of mass destruction (WMD) refer to weapons that can cause significant harm to a large number of people or infrastructure. AML/KYC regulations require financial institutions to implement measures to prevent the financing of WMD-related activities, such as proliferation financing.
Whistleblower complaints in AML/KYC?
Whistleblower complaints refer to reports of suspected AML/KYC violations or other illegal activities made by employees or other insiders of financial institutions. AML/KYC regulations require financial institutions to have policies and procedures in place to encourage and protect whistleblowers who report suspected violations.
Whistleblower policy in AML/KYC?
A whistleblower policy is a set of procedures and guidelines that financial institutions have in place to encourage and protect whistleblowers who report suspected AML/KYC violations or other illegal activities. The policy outlines the process for reporting and investigating whistleblower complaints and provides protection for whistleblowers against retaliation.
Wire transfers in AML/KYC?
Wire transfers refer to electronic transfers of funds between bank accounts. Financial institutions are required to implement measures to prevent money laundering, terrorism financing, and other illegal activities that may be facilitated through wire transfers. These measures include customer due diligence, transaction monitoring, and reporting suspicious activity.
Witness interviews in AML/KYC?
Witness interviews refer to interviews with individuals who have relevant information regarding suspected money laundering, terrorism financing, or other illegal activities. These individuals may include employees of financial institutions, customers, or other individuals with knowledge of the suspected activity.
Witness interviews are a critical tool in investigating suspicious activity and gathering evidence for potential enforcement actions.
