Regulatory Glossary

Laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income.

The process of verifying the identity of customers and assessing their risk profile before onboarding.

The process of verifying the identity and risk profile of business entities, including beneficial owners.

An individual who is or has been entrusted with a prominent public function, presenting higher risk for potential corruption.

A report filed with financial intelligence units when suspicious activity is detected. Also known as STR (Suspicious Transaction Report).

The international term for SAR — a report of suspicious transactions to the relevant authorities.

An intergovernmental body that sets international standards for anti-money laundering and combating terrorist financing.

U.S. Treasury department that administers economic and trade sanctions programs.

Additional verification measures applied to higher-risk customers, typically PEPs and those from high-risk jurisdictions.

Basic verification procedures for all customers to establish identity and assess risk.

The natural person(s) who ultimately owns or controls a customer or the person on whose behalf a transaction is conducted.

Government-imposed restrictions on trade with specific countries, entities, or individuals.

Articles, court records, or other public information that may indicate potential risk associated with an entity.

The designated person responsible for receiving and disseminating SARs within an organization.

U.S. Treasury bureau that collects and analyzes financial transaction data to combat financial crimes.

The financing of terrorist activities, which may involve legitimate or illegitimate funds.

Body that coordinates inter-agency efforts on AML/CFT issues.

Internal team responsible for investigating and filing SARs.

The process of checking customers against sanctions lists, PEP databases, and adverse media.

A numerical value (0-100) representing the overall money laundering risk associated with an entity.