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.
Dual-use goods refer to items, materials, or technologies that can be used for both civilian and military purposes. These goods have legitimate civilian applications but can also be repurposed for military or proliferation-related activities. Examples include chemicals, electronics, software, and manufacturing equipment.
Due diligence involves thoroughly investigating and verifying information about individuals, entities, transactions, or business relationships. It is essential for assessing risks and ensuring compliance with regulatory standards, particularly in fields such as AML, CTF, and Know Your Customer (KYC) practices.
Dynamic customer risk scoring is a methodology institutions use to assess the risk associated with individual customers in real-time or periodically based on their behaviour, transactions, and other relevant factors. Unlike static risk scoring, which assigns a fixed risk level to customers, dynamic risk scoring adjusts the risk level dynamically as new information becomes available.
The application of trade or financial restrictions and sanctions by one or more countries against another country, institution, or individual to change behaviour. Economic sanctions can include actions such as tariffs, trade restrictions, and financial limitations.
The Egmont Group consists of numerous national financial intelligence units (FIUs) that meet regularly to promote FIUs’ development and cooperation, especially in information exchange, training, and the sharing of expertise. The goal of the Group is to provide a forum for FIUs to improve collaboration in the fight against money laundering and the financing of terrorism and to foster the implementation of domestic programs in this field.
An automated process through which companies can perform customer identity verification digitally. eKYC is an alternative to the traditional method that requires physical documents.
A formal government move to prohibit trade or commercial activity with a specific country, usually involving a particular product of trade (e.g., a grain or oil embargo).
The unlawful act of taking or misappropriating funds entrusted by an employer or organisation for one’s own use.
EDD refers to an advanced KYC due diligence process that organisations undertake when they require further risk investigation and higher identity assurance. Whereas CDD may be automated, EDD is typically a manual process. EDD procedures are also triggered when dealing with high-risk individuals, and high transactional amounts.
An act of avoiding sanction notifications and engaging in prohibited activity without being caught.
