Private Banking
A department in a financial institution that provides high-end services to wealthy individuals. Private banking transactions tend to be marked with confidentiality, complex beneficial ownership arrangements, offshore investment vehicles, tax shelters and credit extension services.
Predicate Crime
“Specified unlawful activities” whose proceeds, if involved in the subject transaction, can give rise to prosecution for money laundering. Most anti-money laundering laws contain a wide definition or listing of such underlying crimes. Predicate crimes are sometimes defined as felonies or “all offenses in the criminal code.”
Ponzi Scheme
A money laundering system named after Charles Ponzi, an Italian immigrant who spent 10 years in jail in the U.S. for a scheme that defrauded 40,000 people out of $15,000,000. Ponzi’s name became synonymous with using new investors’ money to pay off prior investors. Shape Ponzi schemes involve fake, non-existent investment schemes in which the […]
Politically Exposed Person (PEP)
According to FATF’s revised 40 Recommendations of 2012, a PEP is an individual who has been entrusted with prominent public functions in a foreign country, such as a head of state, senior politician, senior government official, judicial or military official, senior executive of a state-owned corporation or important political party official, as well as their […]
Placement
The first phase of the money laundering process is the physical disposal of proceeds from illegal activity.
Pig Butchering
A type of scam where fraudsters manipulate victims into making investments in fake or fraudulent schemes, often by building a sense of trust and then gradually encouraging larger investments. The term refers to the way scammers “fatten up” their victims by gaining their confidence and getting them to invest more before ultimately stealing the accumulated […]
Phishing Scam
Phishing is a form of cyber-attack where attackers impersonate legitimate organisations or individuals to trick recipients into revealing sensitive information, such as login credentials, credit card numbers, or personal details. Phishing scams typically involve fraudulent emails, text messages, or websites designed to appear genuine, often prompting recipients to click on malicious links, download malicious attachments, […]
Paymaster
A person or entity who acts as a neutral third party in a transaction(s) between two individuals, entities, or businesses ensures due diligence, the transaction is legitimate, and the transaction is carried out safely and effectively.
Payment Service Provider
A financial institution or company that facilitates online payment transactions between merchants and customers. PSPs offer a variety of services, including payment processing, gateway services, fraud detection, and currency conversion, enabling businesses to accept a wide range of payment methods such as credit cards, debit cards, and digital wallets. PSPs play a crucial role in […]
Party
Any individual, group or organisation participating in a financial contract.