A conflict of interest is a circumstance in which personal or financial interests interfere with the objective and impartial performance of AML responsibilities. It can lead to biased decision-making or actions that jeopardise the effectiveness of anti-money laundering measures, regulatory compliance, and ethical standards inside financial institutions and regulatory agencies. Identifying and managing conflicts of interest is critical to maintaining the integrity and credibility of anti-money laundering initiatives and protecting the financial system from illicit activity.

Counter-terrorist finance (CTF), sometimes known as combatting terrorism financing (CFT), aims to halt the flow of illicit funds to terrorist organisations. It is closely related to anti-money laundering.

To accomplish their goals, terrorist organisations require financial assistance and an adequate financial infrastructure. According to the International Convention for the Suppression of the Financing of Terrorism, an individual commits the crime of financing terrorism “if that person by any means, directly or indirectly, unlawfully and willfully, provides or collects funds with the intention that they should be used or in the knowledge that they are to be used, in whole or in part, in order to carry out” an offence within the scope of the Convention.

An opposite party in a contract or financial transaction or any individual or organisation utilising the services provided by the Service Provider.

An opposite party in a contract or financial transaction or any individual or organisation utilising the services provided by the Service Provider.

Payments involve more than one country, whether physically moving cash across an international border or electronically transferring funds from one jurisdiction to another.

A cryptocurrency fraud strategy is where scammers deceive victims to take their digital assets. This can take various forms, including bogus investment opportunities, phishing attacks, Ponzi schemes, and fraudulent initial coin offerings. Crypto scams take advantage of cryptocurrency’s anonymity and lack of regulation, frequently resulting in substantial financial losses for the victims.

Cuckoo Smurfing essentially takes large transactions into smaller ones to steal or launder money from the government. This technique is often used as a way to avoid paying taxes illegally. Through Cuckoo Smurfing, criminals can use cash or drugs without being caught. Criminals deposit their money into seemingly innocent bank accounts. They typically enlist the help of internal bank employees to find these accounts.

The money is inserted into the financial system, often by purchasing casinos or international currency. From there, the money is allocated to other accounts through complex bank transactions designed to conceal its source.

An indidudual or legal entity (a company) who uses the Service Provider Services. Refer to Counterparty.

CDD involves implementing policies, practices, and procedures within a financial regulatory obligation to anticipate the transactions a customer is expected to conduct accurately. This process consists of verifying the customer’s identity and establishing a standard of account activity to detect transactions deviating from typical or anticipated patterns.

Customer fraud is when fraudsters pose as customers and deceive a business into committing a financial crime, such as using forged currency or another person’s payment card to buy goods and services or to get a line of credit they use without intending to pay back.