Operational risk
It is defined as the risk of loss resulting from inadequate or failed processes, people and systems, or external events.
Onboarding, Due Diligence (ODD)
An ODD assessment refers to conducting thorough due diligence on potential customers or business partners during onboarding. This assessment aims to gather comprehensive information about the customer’s identity, background, business activities, and financial history to assess the risk of money laundering, terrorist financing, or other illicit activities.
Operational Risk
Operational risk is the collective term for the diverse inherent risk to any business practice. It includes people, processes, systems, and natural disaster risks. Such risks can range from extreme events, such as terrorist attacks, to the most common failures in project management. According to the Basel Committee on Banking Supervision (BCBS), ‘Operational Risk is […]
Offshore Company
In literal terms, “offshore” means away from one’s home country; for example, for someone living in Europe, the U.S. would be considered “offshore.” In the context of money laundering, the term refers to jurisdictions that are considered favourable for foreign investments due to factors such as low or no taxation and strict bank secrecy regulations.
Offshore Financial Center (OFC)
Institutions that cater to or otherwise encourage banks, trading companies, and other corporate or legal entities to physically or legally exist in a jurisdiction but limit their operations to “offshore,” meaning outside the jurisdiction (see Offshore). OFCs have historically been located in the Caribbean or on Mediterranean islands to be in reasonable proximity to the major financial […]
Offshore Banking License
A license that prohibits a bank from doing business with local citizens or in local currency as a condition of its license.
Offshore
Literally, away from one’s own home country—if one lives in Europe, the U.S. is “offshore.” In the money laundering lexicon, the term refers to jurisdictions deemed favourable to foreign investments because of low or no taxation or strict bank secrecy regulations.
Office of Foreign Assets Control (OFAC)
The agency within the US Department of the Treasury is responsible for administering and enforcing economic sanctions issued as part of US foreign policy and by international organisations like the United Nations against targeted foreign countries. It often collaborates with other agencies, such as the Department of State, to oversee national security goals. A core […]