Non-Proliferation Treaty (NPT)
The UN Treaty on the Non-Proliferation of Nuclear Weapons was signed in 1968 and went into effect in March 1970. The NPT solidified the commitment of signing countries to prevent the spread of nuclear weapons. Its goal was to minimise the risk of the use of nuclear weapons in conflict, which could result in significant […]
Non-Profit Organizations (NPO)
These can take on a variety of forms, depending on the jurisdiction and legal system, including associations, foundations, fund-raising committees, community service organisations, corporations of public interest, limited companies and public benevolent institutions. FATF has suggested practices to help authorities protect organisations that raise or disburse funds for charitable, religious, cultural, educational, social or fraternal […]
Non-Governmental Organization (NGO)
Not-for-profit organisations that are not directly linked to specific countries’ governments perform various services and humanitarian functions, including bringing citizen concerns to governments, advocating for causes, and encouraging political participation. Some countries’ AML regulations for NGOs still have loopholes that some worry could be exploited by terrorists or terrorist sympathisers trying to move money secretly.
Nominee Director or Shareholder
A nominee director is an individual who is appointed to act on behalf of the actual directors or shareholders of a company. While they may not have direct involvement in the company’s operations or decision-making, their role is primarily to fulfill legal requirements or provide confidentiality for the actual owners. Although the use of nominee […]
Nesting
The practice where a respondent bank provides downstream correspondent services to other financial institutions and processes these transactions through its correspondent account. The correspondent bank is thus processing transactions for financial institutions on which it has not conducted due diligence. While this is a normal part of correspondent banking, it requires the correspondent bank to […]
Natural person
A human being (one with a legal personality) is an individual who is distinguished from the broader category of a legal person, like a corporation.
Name Screening
The process of matching an internal record (i.e., customer, counterparty, related account party) against a sanctioned list record, either manually or through an automated screening tool. Name screening may also include batch name screening, which allows a firm to periodically screen its entire customer base using automatic screening tools. When onboarding new customers, name screening […]