FAQ

AML

AML is the abbreviation for Anti-Money Laundering.

AML Audit

Anti-Money Laundering (AML) Audit is a thorough examination of an regulated entity’s policies, procedures, systems and controls designed to identify potential risks and vulnerabilities related to money laundering, terrorist financing and proliferation activities, ensuring compliance with AML/CFT/CFP/FCP laws and regulations.

AML Education

AML Education is designed to improve the knowledge, performance and skills of employees by enhancing their understanding of anti-money laundering and counter terrorism financing laws and regulations. AML education is an ongoing process. thus, it is important to stay up to date on current developments and changes to laws and regulations.

AML Program

An AML Program is a set of procedures designed to safe guard against individuals attempting to use businesses to facilitate money laundering or terrorist financing.

AML Sanctions Lookback

Anti-Money Laundering (AML), BSA, OFAC Sanctions Lookback is a review of past transactions to identify potential missed or unreported suspicious activity, often triggered by regulatory actions or self-identified issues within a Financial Institution or Designated Non-Financial Businesses and Professions (DNFBP).

AML System Validation

Anti-Money Laundering (AML) System Validation is a process to ensure that AML models and systems effectively identify and prevent suspicious activity, ensuring compliance with regulations and preventing financial crimes.

APG

The Asia/Pacific Group on Money Laundering is an international inter-governmental task force comprising 42 member jurisdictions in the Asia-Pacific region.

Artificial Intelligence (AI)

Artificial Intelligence (AI) refers to the development of computer systems capable of performing tasks that typically require human intelligence, such as learning, reasoning, and problem-solving

Asset Recovery

Asset Recovery is the legal and investigative process of identifying, tracing, seizing, confiscating, and ultimately repatriating illicitly acquired funds or assets to their rightful owners or the state

ATA

The Anti-Terrorism Act

CFATF

The Caribbean Financial Action Task Force is an organization of 24 member states and territories of the Caribbean Basin. It is a FATF-Style Regional Body (FSRB) dedicated to implementing countermeasures against money laundering and the financing of terrorism.

Compliance

Compliance is undertaking activities or establishing policies or procedures in accordance with the requirements or expectations of an external authority that are imposed upon a business.

Corporate Transparency Act (CTA)

Corporate Transparency Act (CTA), a “Beneficial Owner” (BO) is an individual who directly or indirectly owns or controls at least 25% of a reporting company or exercises substantial control over it.

CPF

CPF is the abbreviation for Counter Proliferation Financing

CTF

CTF is the abbreviation for Counter Terrorism Financing.

Due Diligence

Due Diligence is the process of evaluating a prospective business relationship by obtaining information about the financial, legal, and other material state of the other party.

Egmont Group

The Egmont Group is an international network of over 170 national Financial Intelligence Units (FIUs)

Enhanced Due Diligence

Enhanced Due Diligence (EDD) is a risk-based process that involves gathering and analyzing more in-depth information about high-risk customers or business relationships to identify and mitigate potential financial crimes like money laundering, terrorist financing, proliferation financing and human trafficking.

ESAAMLG

The Eastern and Southern Africa Anti-Money Laundering Group is a regional organization established to help member countries implement international standards to fight financial crimes, specifically money laundering, terrorist financing, and the proliferation of weapons of mass destruction.

FATF

The Financial Action Task Force is an international policy-making and standard-setting body dedicated to combating money laundering and terrorist financing.

FIU

Financial Intelligence Units, FIUs are central national agencies responsible for receiving, analyzing, and disseminating disclosures of financial information concerning suspected proceeds of crime and potential financing of terrorism.

Financial Intelligence Unit

The Financial Intelligence Unit (FIU) in a country is a government agency that is responsible for receiving, analyzing, obtaining and disseminating information which relates to or may relate to the proceeds of money laundering or criminal offences.

GAFILAT

The Financial Action Task Force of Latin America is a regional intergovernmental organization composed of 18 member countries from South, Central, and North America.

GIABA

Inter-Governmental Action Group against Money Laundering in West Africa is a specialised institution of the Economic Community of West African States responsible for facilitating the adoption and implementation of Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) in West Africa.

Know Your Customer

Know Your Customer (KYC) is the activities of customer due diligence that financial institutions and other regulated businesses must perform to identify their customers and ascertain relevant information pertinent to doing financial business with them. KYC enables businesses to know/understand their customers and their financial dealings to be able to serve them.

KYB

Know Your Business is the process of verifying the identity, ownership of a company, control structure and legitimacy of its activities.

KYE

Know Your Employee is the process by which AML/CFT/CFP Regulated businesses verify the identity , background of personnel and conduct to prevent internal compliance and fraud threats.

KYV

Know Your Vendor is a due diligence process that regulated enitiies use to vet, verify and continuously monitor their third-party vendors, suppliers, service providers and contractors.

KYT

Know Your Transaction is the process of continuously monitoring, analyzing and evaluating transactions to ensure AML/CFT/CFP Compliance.

MER

A Mutual Evaluation Report (MER) for AML/CFT is a comprehensive peer review process conducted by the Financial Action Task Force (FATF) or its regional bodies to assess how effectively a country implements measures to combat money laundering, terrorist financing, and proliferation financing.

ML

Machine Learning is a subfield of artificial intelligence where software is trained to make predictions or decisions from data, rather than following explicit, hard-coded rules.

MLA

Mutual Legal Assistance

MONEYVAL

The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism is a permanent monitoring body of the Council of Europe.

Money Laundering

Money Laundering is the process criminals use to exchange their dirty money (funds they made through illegal activity) for clean money (funds that can’t be traced back to the crime or the criminals).

MVTS

Money and Value Transfer Services

NAMLC

National Anti-Money Laundering and Counter Financing of Terrorism Committee

NPO

Non-Profit Organisation

NRA

The National Risk Assessment is a comprehensive, government evaluation that identifies and assesses the country’s exposure to AML/CFT/CFP risks. It evaluates internal vulnerabilities and external threats to ensure financial systems are protected against illicit activities.

Politically Exposed Person

Politically Exposed Person (PEP) is a person identified as a senior foreign or domestic political figure, any member of their immediate family and any close associate. PEPs are individuals who have or have had positions of public trust.

PPP

Public-Private Partnership is a strategic collaboration between government entities/authorities (e.g., law enforcement, financial intelligence units, regulators) and the private sector companies (e.g., banks, financial institutions, DNFBP, NPO) to share data, analysis and financial intelligence.

Risk Assessment

Risk Assessment is the determination of quantitative or qualitative value of risk related to a concrete situation and a recognized threat.

Risk-Based Approach

A Risk-Based Approach (RBA) involves identifying, assessing and understanding potential risks, then implementing mitigation measures proportionate to the level of risk.

Stablecoin

A stablecoin is a cryptocurrency whose value is digitally “pegged” (or tied) to another stable reserve asset, often a traditional fiat currency such as the US dollar.

TFS

Targeted Financial Sanctions

Transaction Monitoring

Transaction Monitoring is the practice of proactively and reactively identifying and flagging potentially suspicious financial transactions for manual review, using rules and data to detect outliers and anomalies that could indicate money laundering, fraud, or other illicit activities.

Ultimate Beneficial Owner (UBO)

Ultimate Beneficial Owner (UBO) refers to the natural person(s) who ultimately own or control a business or legal entity, or on whose behalf a transaction is conducted.

UN

United Nations

UNSCRs

United Nations Security Council Resolutions

VASP

Virtual Asset Service Providers (VASPs) is an entity, business or individual that facilitate activities like exchanges, transfers, or custodies digital assets. Involve digital assets, such as cryptocurrency transactions.

WB

World Bank

AML