Managing Financial Crimes and Sanctions Compliance
Expert-defined terms from the Advanced Certificate in Sanctions and Trade Embargoes in International Business course at London School of Business and Administration. Free to read, free to share, paired with a globally recognised certification pathway.
A #
A
AML. Anti #
Money Laundering. A set of procedures, laws, and regulations designed to stop the practice of generating revenue through illegal activities.
Anti #
Money Laundering (AML) Program. A set of policies, procedures, and internal controls designed to detect, prevent and report money laundering activities.
Automated Screening #
The use of technology to screen customers and transactions against sanctions lists and other relevant databases.
B #
B
Beneficial Owner #
The natural person who ultimately owns or controls a legal entity.
Bribery #
The offering, giving, receiving, or soliciting of something of value as a means to influence the actions of an individual or organization.
C #
C
Correspondent Banking #
A banking arrangement where a bank (correspondent bank) provides services on behalf of another bank (respondent bank), such as handling transactions and maintaining accounts.
Corruption #
The misuse of public power for private gain.
Customer Due Diligence (CDD) #
The process of identifying and verifying the identity of customers, as well as assessing the risks associated with doing business with them.
Cybercrime #
Criminal activities committed using the internet or other forms of computer networks.
D #
D
Derisking #
The process of reducing or terminating business relationships with customers or categories of customers to avoid risks associated with financial crimes.
Due Diligence #
The process of investigating and evaluating a customer or business relationship to ensure compliance with laws and regulations, and to manage risks associated with financial crimes.
E #
E
Embargo #
A government order prohibiting commerce and trade with a specific country or group.
Enhanced Due Diligence (EDD) #
A more detailed and rigorous form of customer due diligence, typically required for high-risk customers or business relationships.
F #
F
FATF #
The Financial Action Task Force. An intergovernmental organization founded in 1989 to combat money laundering and terrorist financing.
FCPA #
The Foreign Corrupt Practices Act. A US law that prohibits the bribery of foreign officials to obtain or retain business.
Financial Crime #
Any illegal activity involving financial transactions, including money laundering, fraud, corruption, and cybercrime.
Financial Crime Compliance #
The processes and procedures put in place by financial institutions to prevent, detect, and report financial crimes.
Fraud #
The use of deception, trickery, or dishonesty to obtain an unfair or unlawful advantage.
K #
K
Know Your Customer (KYC) #
The process of identifying and verifying the identity of customers, as well as assessing the risks associated with doing business with them.
L #
L
Listed Entity #
A person or organization that has been placed on a sanctions list or other relevant database.
M #
M
Money Laundering. The process of making illegally #
gained proceeds appear legal, often involving three stages: placement, layering, and integration.
Monitoring #
The ongoing review and assessment of customer transactions and behavior to detect and prevent financial crimes.
Sanctions #
Measures imposed by governments or international organizations to restrict or prohibit commercial activity with a specific country, group, or individual.
Screening #
The process of checking customers and transactions against sanctions lists and other relevant databases to ensure compliance with laws and regulations.
T #
T
Terrorist Financing #
The provision or collection of funds with the intention of using them, or knowledge that they will be used, to carry out terrorist activities.
Trade #
Based Money Laundering. The use of international trade to launder money, often involving the misrepresentation of the price, quantity, or quality of goods.
Trade Embargoes #
Restrictions on trade with a specific country, group, or individual, often imposed as a form of economic sanction.
Treasury #
The department or agency responsible for managing a country's financial resources, including the implementation and enforcement of financial sanctions.
U #
U
UN #
The United Nations. An intergovernmental organization founded in 1945 to promote peace, security, and cooperation among nations.
UN Sanctions #
Sanctions imposed by the United Nations Security Council, typically targeting countries, organizations, or individuals involved in activities such as terrorism, weapons of mass destruction, or human rights abuses.
W #
W
Whistleblower #
An individual who reports suspected illegal or unethical activities within an organization.
Wire Transfer #
An electronic transfer of funds between banks, often used for cross-border transactions.