Any individual, group or organisation participating in a financial contract.

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.

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 ensuring secure, efficient, and compliant transaction processing within the framework of Anti-Money Laundering (AML) regulations.

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, or enter sensitive information into fake forms.

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 funds. This scam is increasingly relevant in the context of AML as it often involves laundering the stolen money through various channels.

The first phase of the money laundering process is the physical disposal of proceeds from illegal activity.

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 families and close associates. The term PEP does not extend to middle- ranking individuals in the specified categories. Various country regulations will define the term PEP, which may include domestic as well as foreign persons.

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 investors are tricked into investing on the promise of unusually attractive returns. The scheme operator can keep the operation going by paying off early investors with the money from new investors until the scheme collapses under its weight or the promoter vanishes with the remaining money.