The origin of a company’s financial activity, the specific cash or monetary instrument subject to the transaction, or the source and method of transfer of funds accepted for the account.
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.
The origin of a company’s financial activity, the specific cash or monetary instrument subject to the transaction, or the source and method of transfer of funds accepted for the account.
A Straw Man Account is a financial account set up and used to conceal the actual account holder’s identity, typically to facilitate money laundering or other illicit activities.
ShapeA formal report filed by financial institutions and licensed regulated companies to the JFIU when transactions or activities appear unusual or potentially indicative of money laundering, terrorist financing, or other illicit activities. STRs/SARs are crucial for complying with and facilitating investigations into suspicious behavior, aiming to safeguard the financial system’s integrity.
Involves the misuse of tax reliefs and allowances or the re-characterisation of a transaction undertaken primarily to claim a tax advantage and not for genuine business reasons and often involves contrived, artificial transactions that serve little or no purpose other than to gain a tax advantage.
An illegal activity in which a person or entity deliberately avoids paying a true tax liability entails dishonest tax reporting, such as declaring less income, profits, or gains than the amounts earned or overstating deductions. Tax evasion is a crime in almost all countries and subjects the guilty party to fines, imprisonment, or both.
Tax havens are countries or jurisdictions that provide favourable tax policies and incentives to attract foreign investors and depositors seeking to minimise their tax obligations or achieve tax avoidance.
Terrorism financing is the act of providing financial support to terrorists or terrorist organisations to enable them to carry out terrorist acts or to benefit any terrorist or terrorist organisation.
While funds may come from criminal activities, they may also be derived from legitimate sources, such as salaries, revenue from legitimate businesses, or donations, including non-profit organisations.
HKMA is the central banking institution and the de facto central Bank of Hong Kong. It was established in 1993 as an independent authority under the Hong Kong Special Administrative Region (HKSAR) government. The HKMA is responsible for maintaining the stability and integrity of Hong Kong’s monetary and financial systems.
The third line’s key responsibility is to assess whether the first- and second-line functions are operating effectively; it is the duty of reporting to the board and audit committee, in addition to assuring regulators and external auditors that the control culture across the organisation is influential in its design and operation.
An individual or entity with some level of involvement in a negotiation or transaction but not the principal party.