Freeze
To prevent or restrict the exchange, withdrawal, liquidation, or use of assets or bank accounts. Unlike forfeiture, frozen property, equipment, funds, or other assets remain the property of the natural or legal persons who held an interest in them at the time of the freezing and may continue to be administered by third parties. Courts […]
Financial Statement Fraud
When an individual deliberately alters a company’s financial statements to mislead investors regarding a company’s financial position, performance, or cash flow, also known as “cooking the books.”
Fraudster
A fraudster engages in deceptive practices to achieve financial or other personal gain. They could impersonate someone, spend counterfeit money, or trick others into revealing private information. Fraudsters can target several different industries and use many different tactics.
Fraud Prevention
Organisations employ measures and strategies to detect, mitigate, and stop fraudulent activities, increasingly intertwined with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) efforts.
Fraud
Intentional deception or misrepresentation made by a person or entity to secure an unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can involve various schemes, such as financial fraud, identity theft, investment scams, and embezzlement. It typically results in economic loss or harm to the victim and is a […]
Fraud and Anti-Money Laundering (FRAML)
It is a term that is used increasingly in the world of compliance. It describes an integrated approach to managing fraud and money laundering risks within financial institutions. The term has emerged recently as some financial institutions and regulators have recognized the overlapping nature of fraud and money laundering activities.
FIAT Money
Fiat money is a government-issued currency that is not backed by a physical commodity like gold or silver. Its value is derived from people’s trust and confidence in the issuing government. Fiat money is used as a medium of exchange, store of value, and unit of account in economies worldwide. Examples include the US dollar, […]
First Line of Defense
Within the governance structure of a sanctions compliance program, the first line of defence (also referred to as the “front line”) includes relationship managers and other customer-facing employees who are closest to the customers and counterparties during the onboarding and contracting phase of relationships. The first-line defence ensures adequate information is obtained to screen customers, […]
False Positive
A hit identified during the screening process as a possible alert, but when reviewed, is found not to be a match to a target named on a sanctions list.
Financial Intelligence Unit (FIU)
A central national agency is responsible for receiving, analysing, and transmitting disclosures on suspicious transactions to appropriate authorities.