A
Anti-Money Laundering (AML)
DEFINITION
Legal and organizational measures to prevent money laundering and terrorist financing.
MEANING
Core compliance obligation across industries.
EXAMPLE
Requirement to identify beneficial owners.
B
Beneficial Owner
DEFINITION
The individual who ultimately owns or controls an entity.
MEANING
Transparency is essential for anti-money laundering (AML) and fraud prevention.
EXAMPLE
A vendor is effectively controlled by one individual.
C
Compliance Breach Frequency
DEFINITION
Number of compliance violations.
MEANING
Early governance warning.
EXAMPLE
Multiple sanctions breaches.
Compliance Violation
DEFINITION
Failure to comply with laws, regulations, or internal policies.
MEANING
May result in penalties and reputational damage.
EXAMPLE
Ignoring sanctions requirements.
Corporate Criminal Liability
DEFINITION
Criminal liability of corporations.
MEANING
Drives compliance investment.
EXAMPLE
Company liable for control failures.
Customer Due Diligence (CDD)
DEFINITION
Risk-based assessment of customers and relationships.
MEANING
Ensures proportionate controls.
EXAMPLE
Enhanced checks for high-risk clients.
D
Deferred Prosecution Agreement (DPA)
DEFINITION
Agreement to defer prosecution under conditions.
MEANING
Common in US enforcement.
EXAMPLE
Fines and compliance obligations imposed.
E
Enhanced Due Diligence (EDD)
DEFINITION
Enhanced checks for higher-risk customers.
MEANING
Mandatory for elevated risk cases.
EXAMPLE
Additional source-of-funds verification.
Export Control Compliance
DEFINITION
Compliance with export control regulations.
MEANING
Prevents illegal technology transfers.
EXAMPLE
License required for software export.
K
Know Your Customer (KYC)
DEFINITION
Customer identification and verification procedures.
MEANING
Foundation for AML and fraud prevention.
EXAMPLE
Identity verification before onboarding.
M
Money Laundering
DEFINITION
The process of making illicit funds appear legitimate.
MEANING
Often linked to fraud and corruption.
EXAMPLE
Complex transactions with no clear rationale.
P
Politically Exposed Person (PEP)
DEFINITION
Individual holding prominent public function.
MEANING
Higher corruption and AML risk.
EXAMPLE
Minister identified as beneficial owner.
R
Regulatory Enforcement Action
DEFINITION
Action taken by regulators.
MEANING
Enforces compliance.
EXAMPLE
Fine imposed for AML breach.
Regulatory Reporting Obligation
DEFINITION
Legal duty to report to authorities.
MEANING
Failure may result in sanctions.
EXAMPLE
Suspicious activity report filed.
S
Sanctions Compliance
DEFINITION
Compliance with international sanctions regimes.
MEANING
Critical legal and reputational risk.
EXAMPLE
Blocked payment to sanctioned entity.
Shell Company
DEFINITION
A legally registered entity with little or no operational activity.
MEANING
Shell companies are not inherently illegal but may represent a red flag depending on context.
EXAMPLE
Payments made to an entity with no real business operations.
Suspicious Activity Report (SAR)
DEFINITION
Formal report of suspicious activity.
MEANING
Core AML mechanism.
EXAMPLE
Reporting unusual transactions.
Swiss Data Protection Act (DPA)
DEFINITION
Swiss federal data protection law.
MEANING
Governs investigations and data handling.
EXAMPLE
Restricted access to HR data.
T
Transaction Monitoring
DEFINITION
The systematic monitoring of transactions to detect anomalies.
MEANING
Core tool for AML and fraud detection.
EXAMPLE
Alert triggered by unusual refund activity.