An internal control used to mitigate sanctions risks. Event-triggered monitoring occurs whenever relevant information about an existing customer (e.g., its jurisdiction of operation) changes, requiring an interim review prior to a scheduled review.
For financial crime professionals, AML officers, or anyone seeking clarity on fraud and AML terms, Edifice offers a glossary of common acronyms and definitions.
We’ll continuously update this resource to reflect industry developments.
An internal control used to mitigate sanctions risks. Event-triggered monitoring occurs whenever relevant information about an existing customer (e.g., its jurisdiction of operation) changes, requiring an interim review prior to a scheduled review.
When a customer or its third-party violates sanctions without the cooperation or knowledge of internal staff.
Actions taken by one person or more to assist or support another in carrying out an activity. In a sanctioned environment, facilitation occurs when one individual (person A) is not permitted to engage in an activity, which directs or indirectly facilitates or encourages another person (person B) to engage in that activity. The behaviour may not permanently be restricted for person B but simply for person A.
Either (1) a hit that is identified as a possible alert during the screening process but is dismissed, despite the fact that there is a match to a target named on a sanctions list; or (2) screened activity that would have generated a hit if the screening process had been calibrated to detect such activity, such as a target match that is unidentified because thresholds are too high.
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.
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, euro, yen, and other national currencies. It contrasts with commodity money, which has intrinsic value based on the material it is made of.
FATF is an intergovernmental organisation whose mission is to develop and promote national and international policies to prevent and combat money laundering and terrorist funding.
The FATF encourages the successful implementation of legal, regulatory, and operational measures to combat money laundering, terrorism financing, and other risks to the integrity of the international financial system. See www.fatf-gafi.org
A central national agency is responsible for receiving, analysing, and transmitting disclosures on suspicious transactions to appropriate authorities.
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.”
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, owners, and controllers effectively. In general, the first-line defence owns and manages the collection of SDD information.