A
Affiliations
Affiliate refers to entities or individuals connected through ownership, control, or familial ties, such as subsidiaries or parent companies. These relationships can pose risks like conflicts of interest, impacting organizational transparency and fairness.
Audit
An audit is a formal examination of financial records, operations, or systems to ensure accuracy, compliance with laws, proper documentation, and reliability of reported information, often conducted by internal or external auditors.
Attestation
Attestation is the process of reviewing and confirming the accuracy and reliability of information, typically financial statements, by an independent third party, such as an auditor, to ensure it meets established standards and regulations.
Anti-Social Forces
Anti-social forces are individuals or entities that engage in behaviour threatening public order and safety, often involving coercion, violence, or unlawful activity, and are considered disruptive to a stable and lawful society.
Adverse Media
Adverse Media refers to publicly available information that links individuals or entities to behaviour that may indicate involvement in unlawful, unethical, or high-risk activity. This information, often found in news reports, online publications, or official records, is considered relevant in assessing potential threats to legal, financial, or reputation integrity.
Automated Technology
Automated Technology refers to systems or processes that operate with minimal human intervention, using machinery, software, or artificial intelligence to perform tasks efficiently, consistently, and at scale. It is employed to enhance productivity, reduce manual effort, and support the stable functioning of operations across various sectors.
B
Bribery
Bribery involves offering, giving, receiving, or soliciting something of value, such as money, gifts, or favors, to influence the actions or decisions of someone in a position of authority. This practice aims to gain an unfair advantage, potentially compromising integrity, fairness, and transparency in decision-making.
Beneficial Owner
A beneficial owner is the person who ultimately owns, controls, or benefits from an asset, such as a company or property, even if the legal title is in another name.
C
Corruption
Confiscation, including forfeiture, refers to the permanent loss of assets ordered by a competent authority or court. These orders are typically issued following a criminal conviction or court ruling, where the property is determined to be derived from or intended for use in unlawful activity.
Compliance
Compliance refers to adhering to laws, regulations, industry standards, and internal policies set by governments or regulatory bodies. It ensures that a person, company, or organization operates ethically, legally, and within the required guidelines to avoid penalties, maintain reputation, and promote accountability.
Compliance Officer
A compliance officer is a professional who ensures that a company or organization follows all relevant laws, regulations, and internal policies. They develop compliance programs, conduct audits, provide training, monitor operations, and report any violations to management, helping the organization avoid legal risks and maintain ethical standards.
Code of Conduct
A Code of Conduct is a set of written rules, principles, and expectations that guide the behaviour, decisions, and actions of employees or members within an organization. It promotes integrity, ethical conduct, professionalism, and compliance with laws and company policies, helping to create a respectful and responsible work environment.
Compliance Framework
Compliance Framework refers to a structured set of guidelines, policies, and procedures designed to ensure that an organization operates in accordance with legal, regulatory, and ethical standards. It supports the identification, management, and mitigation of compliance risks, promoting lawful and responsible conduct across business activities.
Compliance Technology
Compliance Technology refers to digital tools and systems developed to support the effective implementation, monitoring, and enforcement of compliance obligations. It enables organizations to manage regulatory requirements efficiently, reduce human error, and maintain transparency and accountability across operations.
D
Disputes
Disputes involve identifying and assessing potential legal issues or reputation risks arising from past business interactions. This process evaluates whether previous dealings could lead to conflicts, legal challenges, or a negative impact on the organization's reputation, potentially affecting its integrity or future operations.
Due Diligence
Due diligence is the careful investigation and evaluation of a person, company, or investment before deciding or entering into an agreement. It helps identify risks, verify information, and ensure compliance with legal and financial requirements to make informed and responsible choices.
Designated Person or Entity
A designated person or entity is an individual or organization officially identified by a government or regulatory body as being involved in illegal activities such as terrorism, money laundering, or financing of such actions. They are subject to sanctions, restrictions, or asset freezes to prevent further unlawful activity.
Domestic Wire Transfer
A domestic wire transfer is an electronic transfer of funds between banks or financial institutions within the same country. It allows for quick, secure movement of money for payments, purchases, or other financial transactions.
Database Check
Database Check refers to the process of screening individuals or entities against internal or external databases to identify potential risks, such as criminal records, sanctions, watchlists, or other adverse information. It is a key component in due diligence and risk management, helping organizations ensure compliance with regulatory and ethical standards.
Digital Footprint
Digital Footprints refer to the traces of data that individuals or entities leave behind through their interactions with digital platforms, including websites, social media, and online services. These records can provide insights into behavior, identity, and affiliations, and are often analyzed for purposes such as risk assessment, investigation, or compliance monitoring.
E
Embargo
An embargo refers to an official government order that bans trade or commercial activity with a specific country or entity. It may target all goods or specific products, such as oil or grain, and is typically imposed for political, economic, or security reasons.
Ethical Dilemmas
Ethical dilemmas are situations where a person faces a conflict between two or more moral principles or values, making it difficult to decide the right course of action. These dilemmas often involve choosing between what is legally right, morally right, or socially acceptable.
Ex Parte
Ex Parte refers to a legal proceeding or communication where only one party is present or heard by the judge or decision-maker, without the other party being notified or involved, usually in urgent or special situations.
Extended KYC
Extended KYC refers to a deeper level of due diligence conducted on individuals or entities that present a higher risk, involving enhanced verification processes, detailed background checks, and ongoing monitoring. It is designed to identify hidden risks, ensure compliance with regulatory standards, and prevent involvement in illicit activities such as money laundering, terrorism financing, or corruption.
F
Front Companies
Front companies are businesses that appear legitimate but are used to hide illegal activities like money laundering, tax evasion, or illicit trade. While they may engage in lawful operations, their main purpose is to obscure the true sources of funds, or the identities of individuals involved in criminal activities.
Fraud
Fraud is the intentional act of deceiving someone to gain unfair or unlawful financial or personal benefits, often by providing false information, concealing facts, or manipulating data.
False Declaration
False declaration is the intentional act of providing incorrect, misleading, or untrue information in official documents, statements, or forms. This is often done to gain an unfair advantage, evade legal responsibilities, or misrepresent facts, and it can lead to legal penalties or other serious consequences when discovered.
Foreign Counterparts
Foreign counterparts are individuals, companies, or organizations based in another country that engage in business, legal, or financial transactions with domestic entities. They often collaborate across borders for trade, investments, partnerships, or regulatory compliance purposes.
Fraud Detection
Fraud Detection refers to the process of identifying suspicious, deceptive, or unauthorized activities that may indicate an attempt to commit fraud. It involves the use of data analysis, monitoring systems, and investigative techniques to detect anomalies and prevent financial or reputation harm to individuals or organizations.
Fraud Management
Fraud Management refers to the coordinated set of strategies, processes, and tools used to identify, prevent, and respond to fraudulent activity. It supports the protection of assets, upholds regulatory compliance, and ensures the integrity of operations by addressing both internal and external threats.
G
Global Sanctions
Global sanctions are restrictive measures imposed by countries or international organizations to influence the behavior of individuals, entities, or governments. They aim to address violations of international laws, human rights, or security norms by targeting economic, political, or military activities.
Governance
Governance refers to the system of rules, practices, and processes by which an organization or country is directed and controlled. It involves balancing the interests of stakeholders, ensuring accountability, transparency, and effective decision-making to achieve goals and maintain ethical standards.
Gray Areas
Gray areas are situations or topics that are unclear, ambiguous, or not clearly defined by rules or laws. They often involve uncertainty where the right course of action is not obvious, making decisions more complex and open to interpretation.
H
High-Risk Customers
High-risk customers are individuals or entities that, due to certain characteristics, present a higher risk to businesses or financial institutions. These customers are more likely to be involved in activities such as money laundering, financial crimes, or other illicit conduct.
I
Illicit Financial Flows
Illicit financial flows (IFFs) refer to illegal cross-border money transfers linked to corruption, crime, or tax evasion. They harm economies, weaken governments, and fuel instability. Examples include trade-based money laundering by drug cartels, price misreporting by importers, or corrupt officials hiding funds in shell companies.
Integrity
Integrity is the quality of being honest, ethical, and having strong moral principles. It means doing the right thing consistently, even when no one is watching, and being trustworthy and reliable in actions and decisions.
J
Jurisdictional Risk
Jurisdictional risk arises from financial, legal, or operational challenges in specific countries, especially those flagged by FATF or the U.S. Treasury for money laundering or terrorism concerns. Unstable tax laws, corruption, and political unrest add to the complexity of doing business in these regions.
K
Key Identifiers
Key identifiers are essential data points that uniquely identify individuals, entities, or transactions. They play a critical role in verifying and distinguishing parties or activities, in legal, financial, and compliance contexts. Examples include names, addresses, Legal Entity Identifier, company registration numbers, ID codes and transaction reference codes.
L
Litigation Checks
Litigation Checks refer to the process of identifying whether an individual or entity is, or has been, involved in legal proceedings. This includes civil, criminal, or regulatory cases and serves as part of due diligence to assess legal risk, reputational exposure, and potential liabilities.
Law
Law is a system of rules established by governments or authorities to regulate behavior, maintain order, protect rights, and ensure justice within a society. Laws are enforceable through penalties or legal actions when broken.
Legal Compliance
Legal Compliance refers to the adherence to laws, regulations, and legal standards applicable to an organization’s operations, industry, and jurisdiction. It ensures that business activities are conducted lawfully, reducing the risk of penalties, reputation damage, and regulatory action.
M
Modern Slavery
Modern slavery is the exploitation of individuals through forced labour, human trafficking, and debt bondage. Victims are deprived of freedom and subjected to harsh conditions in industries like agriculture and construction. It violates human rights and undermines economies, fuelling inequality and instability.
Money Laundering
Money laundering is the process of disguising illegally obtained money to make it appear legal. It typically involves multiple transactions to hide the source, allowing criminals to use the funds without attracting suspicion.
Money or Value Transfer Service
Money or value transfer service is a financial service that allows individuals or businesses to send or receive money or its equivalent value, often across different locations or countries. These services include wire transfers, electronic funds transfers, prepaid cards, and digital payment platforms, enabling quick and secure movement of funds.
Morals
Morals are the personal principles or beliefs about what is right and wrong behaviour. They guide individuals in making ethical decisions and acting in ways that are considered good, fair, and acceptable by society.
N
Negative News
Negative news refers to information that highlights adverse, distressing, or harmful events. This encompasses topics such as accidents, scandals, criminal activity, economic recessions, political instability, and natural disasters- essentially, any development that underscores problems, risks, or challenges.
Non-conviction-based confiscation
Non-conviction-based confiscation is a legal process where authorities can seize or freeze assets suspected of being connected to criminal activity, even if the owner has not been formally convicted of a crime. This helps prevent criminals from benefiting from illegal gains when proving guilt in court is difficult.
Nominator
A nominator is a person or entity who proposes or recommends someone for a position, award, or responsibility. They put forward a candidate’s name for consideration or selection in a formal process.
O
Offshore Leaks
Offshore leaks is the unauthorized disclosure of financial information related to offshore accounts or entities, often used to evade taxes or launder money. These leaks, which can result from hacking or whistleblowing, pose significant risks to organizations, highlighting compliance failures and potential reputational damage.
OSINT
Open Source Intelligence (OSINT) refers to the collection and analysis of publicly available information from sources such as websites, social media, news outlets, and public records. It is used to support investigations, risk assessments, and decision-making, offering insights without the need for intrusive or covert methods.
Open Data Intelligence
Open Data Intelligence refers to the process of gathering, analyzing, and interpreting publicly available data to generate insights that support informed decision-making. It leverages structured and unstructured open data sources - such as government databases, public records, and online content - to identify trends, assess risks, and enhance operational awareness.
P
Politically Exposed Persons
Politically Exposed Person (PEP) is an individual holding a prominent public role, such as a senior government official, politician, or international organization executive. Due to their position and influence, PEPs are considered higher risk for potential involvement in bribery and corruption.
Proceeds
Proceeds refer to the money, assets, or benefits received because of a business activity, sale, transaction, or event. This includes any financial gain, profit, or returns obtained from selling goods, services, property, or investments, and can also include other forms of value derived from such activities.
Q
Qualitative Risk Assessment
Qualitative Risk Assessment is the process of evaluating potential risks, such as legal, regulatory, or reputational, using non-numerical criteria. It helps prioritize issues based on likelihood and impact to guide further investigation or mitigation.
Qualifying Wire Transfers
Qualifying wire transfers are electronic fund transfers that meet specific criteria set by banks or regulatory authorities, such as minimum amounts, types of transactions, or compliance requirements. These transfers are often subject to additional scrutiny to ensure they follow legal and security standards.
R
Red Flags
Red flags are warning signs or indicators that suggest a potential risk, such as fraud, corruption, or regulatory non-compliance. They signal the need for deeper investigation or enhanced scrutiny before proceeding with a business relationship or transaction.
Reasonable Measures
Reasonable measures are practical and appropriate actions taken by an individual or organization to prevent risks, comply with laws, or address problems. These steps are based on what a careful and responsible person would do in similar circumstances to achieve a fair and effective outcome.
Risk
Risk is the possibility of harm, loss, or negative outcomes resulting from an action, decision, or situation. It involves uncertainty about the impact on people, assets, or goals, and often requires assessment and management to minimize potential damage.
Regulation
Regulation is a rule or set of rules created by governments or authorities to control and guide the behaviour of individuals, businesses, or organizations. Regulations are designed to ensure safety, fairness, compliance with laws, and protection of public interests.
Risk Management
Risk management is the process of identifying, assessing, and prioritizing potential risks that could affect an organization or project. It involves developing strategies and taking actions to minimize, control, or eliminate these risks to protect assets, ensure safety, and achieve goals effectively.
Regulatory Compliance
Regulatory Compliance refers to the adherence to rules, laws, and regulations set by governing bodies that are relevant to an organization’s industry and operations. It ensures lawful conduct, mitigates legal and financial risks, and promotes accountability in line with established regulatory standards.
Reputation Management
Reputation Management refers to the strategic process of influencing, monitoring, and protecting the public perception of an individual, organization, or brand. It involves addressing negative publicity, promoting positive messaging, and managing communication across various platforms to maintain trust and credibility.
Risk Mitigation
Risk Mitigation refers to the process of identifying, assessing, and implementing measures to reduce the likelihood or impact of potential risks. It involves proactive strategies and controls aimed at minimizing harm to an organization’s operations, reputation, and compliance standing.
S
Social Profiles
Social profiles are digital footprints of individuals or entities on online platforms, reflecting their public persona, affiliations, behavior, and networks. They serve as valuable sources for identifying inconsistencies, reputational risks, undisclosed relationships, or indicators of misconduct that may not appear in official records.
Seize
Seize means to take possession or control of something, often by legal authority or force. It usually refers to confiscating property, assets, or goods, especially when they are involved in illegal activities or investigations.
Self-Regulatory Body
A self-regulatory body is an organization formed by members of a particular industry or profession to create and enforce standards, rules, and ethical guidelines within that group. It operates independently but aims to maintain integrity, professionalism, and compliance without direct government intervention.
Shell Bank
A shell bank is a financial institution that exists only on paper, without a physical presence or meaningful operations in any country. These banks are often used to facilitate money laundering, fraud, or other illegal activities because they lack proper oversight and transparency.
Sanctions Screening
Sanctions Screening refers to the process of reviewing individuals, entities, transactions, or business relationships against lists of sanctioned parties maintained by governments and international organizations. It aims to prevent prohibited dealings that could expose organizations to legal penalties, reputational harm, or regulatory violations.
T
Transaction Monitoring
Transaction monitoring is the process of continuously reviewing financial transactions to detect suspicious activity that may indicate money laundering, fraud, terrorist financing, or other financial crimes. It involves analyzing patterns, behaviors, and anomalies in real-time, often using rule-based systems or AI-driven tools, to flag transactions for further investigation.
Transparency
Transparency is the quality of being open, clear, and honest in actions, decisions, and communication. It means providing accurate and accessible information so that others can understand and trust the processes, helping to build accountability and reduce misunderstandings or corruption.
Targeted Financial Sanctions
Targeted financial sanctions are specific restrictions imposed on individuals or entities involved in illegal activities like terrorism or money laundering. They freeze assets and block transactions to stop funding without affecting the wider population.
Terrorism Financing
Terrorism financing is the act of providing money or resources to support terrorist activities, groups, or individuals. It includes collecting, transferring, or using funds to plan, carry out, or promote acts of terrorism.
U
Ultimate Beneficial Owner
Ultimate Beneficial Ownership refers to the natural person(s) who ultimately own or control a company or legal entity, even if the ownership is held indirectly through layers of other entities or nominees. It is crucial to uncover hidden ownership, prevent financial crimes, and ensure compliance with anti-money laundering regulations.
V
Vendor Due Diligence
Vendor Due Diligence is the process of assessing third-party vendors or service providers to identify potential risks before or during a business relationship. It typically involves evaluating the vendor’s financial health, compliance with laws and regulations, data security practices, operational capabilities, and reputation to ensure they meet the company’s standards and do not pose legal, operational, or reputational risks.
Virtual Asset
A virtual asset is a digital representation of value that can be traded, transferred, or used for payment electronically. Examples include cryptocurrencies like Bitcoin, digital tokens, or other forms of digital money stored and exchanged online.
W
Whistleblower
A whistleblower is an individual, often an employee or insider, who reports misconduct, illegal activities, or ethical violations within an organization to internal authorities or external regulators. Whistleblowers play a critical role in exposing fraud, corruption, or regulatory breaches, and are typically protected by laws to prevent retaliation.