Glossary

The process of checking individual and corporate names against global news data sources to screen for undesirable results.

A term referring to all the policies and procedures in place to tackle money laundering.

Documents articulating and evidencing a firm’s anti-money laundering policy which is shared with employees. This includes the measures and controls in place to prevent it from happening and how the firm will deal with it if it does arise.

APIs are mechanisms that enable two different software components to communicate or “talk to each other”. This means our compliance checks can be added seamlessly into your existing platform, for limited downtime.

The legal process whereby regulatory bodies or courts place restrictions on access to, or control over, an individual’s or an organisation’s/entity’s assets. This prevents the transfer, withdrawal or disposal of assets suspected to be associated with illegal activity like money laundering, terrorist financing, or other financial crimes.

Check(s) businesses can run to confirm that bank account details submitted match those of prospective clients or payees.

A type of data processing and communications where transactions are grouped and transmitted for processing. This typically happens on the same device and using the same application.

When information or data from multiple individuals or entities is analysed at one time via automation i.e., in “one batch”. This gives companies the ability to screen their entire customer base, or multiple potential customers, using different search parameters. This saves time and resource and removes human error.

The person(s) who owns a legal entity or arrangement.

A person who (directly, or indirectly) owns or controls a corporate entity i.e., a person who enjoys the benefit of ownership.

The automated process of recognising individuals based on their unique characteristics, e.g., their facial features, fingerprints, biological measurements etc.

A term referring to the process of running background checks and screening of customers, or potential customers as part of a risk assessment. This typically includes identity and bank account verification, as well as analysing other important information. This can also sometimes be referred to as client due diligence.

The process of checking a customer’s credit history, or credit report, to gain insight into how they’ve managed their finances and uncovering any debt they may have had in the past. This helps organisations to appropriately manage risk associated with particular customers.

A term referring to the adherence to laws, regulations, guidelines, and standards in relation to an organisation’s operations and industry. For AML compliance specifically, this refers to the implementation of policies, procedures, and controls to detect, mitigate, and report suspicious activities related to financial crimes like money laundering.

The UK Disclosure & Barring Service, a governmental body that assists recruitment by providing criminal record checks at basic, standard and enhanced levels.

The steps taken by an organisation that investigates and verifies information about entities before doing business together.

Checking and verifying a client (or potential client’s) identity electronically e.g., via a liveness check. This is compared with public record documents for confirmation.

A more thorough customer due diligence process to investigate more information about their history and better establish risk. This is typically triggered if clients (or potential clients) have risk indicators associated with them e.g., high levels of wealth, UBOs, etc.

The authoritative organisation that works alongside the Prudential Regulatory Authority (PRA) to regulate the financial services industry in the UK.

The legal framework that outlines guidelines for collecting and processing personal data from individuals residing inside, and outside, of the European Union (EU).

The process of overseeing control and direction of something.

A composite check covering applicant/employee identity & address verification, including credit screening, directorship, and bank account verification. May be conducted alongside DBS and Right to Work (RTW) checks.

Checks conducted to verify the identity of a person. This involves proving the identity given is a real one and that the person is who they say they are.

The collation of results generated from the background checks run on an international company to mitigate the novel risks associated with working with overseas firms.

Know Your Business (KYB): A term referring to the due diligence process regulated businesses carry out to verify credibility and legitimacy of businesses wishing to partner with them. This can involve looking at company bank accounts, and ownership structures.

A term referring to the checks regulated institutions must perform to gain relevant insight into their customers needed to do business with them.

When an individual or entity is found to be liable for something, it means they are legally responsible for something—this could be fines, debt, non-compliance, or something else.

The process used by criminals to conceal the origins of money that’s been obtained illegally. This typically involves three stages: placement, layering, & integration.

A UK law enforcement agency.

The integration of a new customer, employee, or business partner into your organisation, or the process of familiarising them with your company’s products or services.

A government-backed initiative allowing customers to safely and securely share their banking data with an organisation, as part of anti-money laundering processes.

Someone who owns or controls a company. It is a legal requirement for PSCs within a company to be notified to Companies House.

A person who holds a prominent public function and therefore presents a higher risk with regards to involvement in bribery, corruption, and fraud.

The checks conducted by employers to confirm the background of a potential employee, ensure they satisfy the pre-requisites of the role, and to identify potential compliance risks associated with employing them.

The process of evaluating potential risks that could be involved in a project.

An approach focused on understanding the risks a specific organisation faces and implementing protocols and measures to mitigate these risks based on the extent of the damage they can bring.

Restrictive financial and travel measures imposed by governments and international agencies on individuals or organisations (“designated persons”) to reduce or limit their illegal activities and encourage compliance.

An anti-money laundering check that seeks to reveal the origin of funds being used to complete a specific transaction.

A document that financial institutions and associated businesses/individuals must file known or suspected money laundering, terrorist financing, or other suspicious activity related to criminal behaviour with the National Crime Agency.

The means and methods used by terrorist groups to finance their illegal activities. This could come from legitimate sources like business profits or from illegal activities such as trafficking of weapons, drugs or people.

The company owner or a person who controls a company. They will own, directly or indirectly, 25% or more of the shares or voting rights for the company.

The process of confirming the validity of identities, documentation and authorisations.

The process of reporting certain suspected, or actual, types of wrongdoing observed at work—typically by an employee. This could include the revealing of information about activity associated with danger, risk, malpractice, or wrongdoing that impacts others.