Isolation Company
A company that helps evaders avoid the appearance of involvement of either a sanctioned entity or an entity that is trying to do business with a sanctions target. Evaders choose an isolation company for its past business activities or its lack of traceable connection to the entities involved in the evasive activity.
Investigation
The process of obtaining, evaluating, recording, and storing information about an individual or legal entity with whom one is conducting business in response to an alert indicating a possible sanctions violation. Investigations often begin with simple checks before progressing to further investigation, such as account review, customer outreach, and potential escalation to the compliance function.
Internal Evasion
When an organization’s staff members commit or facilitate a sanctions violation. Examples include the following:
Integration
The integration phase, often referred to as the third and last stage of the classic money laundering process, places laundered funds back into the economy by re-entering the funds into the financial system and giving them the appearance of legitimacy.
Inherent Risk
The level of sanctions risks before controls are applied to mitigate them. There are four main inherent risk categories: customers, products and services, countries, and delivery channels. Inherent risk is linked to the risk assessment process, which evaluates the effectiveness of an institution’s risk controls. Inherent risk considers the likelihood and impact of non-compliance before […]
Identity fraud and identity theft
To commit fraud or other crimes, the unauthorised use of someone else’s personal information, such as name, government-issued identity card, social security number, or financial details, resulting in economic loss, damage to the victim’s credit, and other legal or personal consequences. Identity theft is a significant concern in AML efforts, as stolen identities can be […]
Identifier
Type of information about a sanctions target that is recorded on a sanctions list, for example, name, date of birth, jurisdiction, national identification number, entity with which a target is linked, information about penalties imposed against a target, registered legal address, and website URL. Identifiers apply to both individuals and legal entities.