Customer Due Diligence
Adverse Media Screening negative news, reputational risk, media monitoring A systematic process of reviewing newspapers, online publications, and broadcast media for information that could indicate a customer’s involvement in illicit ac …
Customer Due Diligence
… Customer Identification Unit ( Customer Identification Unit ) and other CDD systems. Access control ensures that only authorized personnel can perform identity verification, update risk profiles, or approve exceptions. Example: A compliance officer is granted read‑only access to client records, while a senior analyst receives edit rights to approve high‑risk cust …
Fraud Risk Assessment and Management
Accountability refers to the state of being answerable for one's actions, and is a critical concept in Fraud Governance and Controls, as it ensures that individuals are held responsible for their roles in preventing and detecting fraud. Related terms include compliance, governance, and i …
Fraud Risk Assessment and Management
… transfers from a normally domestic account may trigger an alert. Practical application includes integrating rule‑based filters with statistical models to capture both known and unknown fraud patterns. Challenges arise when legitimate business spikes mimic fraudulent behavior, leading to high false‑positive rates and increased investigation workload. Baseline Monitorin …
Fraud Risk Assessment and Management
… Ongoing transaction monitoring systems flag abnormal patterns for review. Challenges: Keeping up with evolving laundering techniques and cross‑jurisdictional legal differences. Anti‑fraud Controls Related terms: Risk assessment, Internal controls. Explanation: Measures implemented to detect, prevent, and mitigate fraudulent activities. Example: Segregation of dutie …
Fraud Risk Assessment and Management
… Suspicious Activity Report Explanation: AML refers to the set of laws, regulations, and procedures designed to prevent criminals from disguising illicit funds as legitimate revenue. In a fraud risk assessment, AML controls help identify transactions that could be linked to fraud schemes such as embezzlement or procurement fraud. Example: a supplier consistently receives …
Fraud Risk Assessment and Management
Abuse of Authority – Related terms: conflict of interest, insider fraud . A situation where an individual misuses their position to obtain personal benefit, often by overriding controls or influencing decisions. Example: a procurement manager awarding …
Compliance and Anti Money Laundering
… conversion of illicit funds into legitimate assets. The Ethics and Governance Office (EGO) ensures that the organization’s AML program aligns with statutory requirements and internal risk appetite. Example: A bank detects a sudden influx of large cash deposits from a new client; the AML system flags the activity, prompting a SAR filing. Practical application: Devel …
Compliance and Anti Money Laundering
Anti‑Money Laundering (AML) Program – A structured set of policies, procedures, and controls designed to detect, deter, and report money‑laundering activities. Related terms: compliance , risk‑based approach , internal controls. Explanation: An AML program typically includes customer due diligence, transaction monitoring, staff training, and independent testing. Practic …
Compliance and Anti Money Laundering
Adverse Media – A source of information that reports negative or suspicious activity about an individual or entity. Related terms: negative news , media screening , reputational risk . Explanation: Investigators use adverse media to corroborate other intelligence and assess the credibility of a potential money‑laundering risk. Example: A news article linking a …
International Anti Money Laundering Standards
… designed to prevent the generation of illicit funds. Related terms: KYC, CDD, FATF Explanation: AML frameworks require institutions to identify, assess, and mitigate money‑laundering risks through policies, procedures, and controls. Example: A bank implements AML software to flag transactions exceeding a specified amount that match known typologies. Practical appli …
International Anti Money Laundering Standards
… staff. Anti‑Money Laundering (AML) Framework – the set of policies, procedures, and controls designed to prevent and detect money laundering. Related terms: Regulatory Compliance, Risk Assessment . The framework guides transaction monitoring, reporting, and training. Example: a bank adopts a risk‑based AML framework aligned with FATF recommendations. Challenge: …
International Anti Money Laundering Standards
Term: AML Risk Assessment Related terms: Customer Due Diligence, Risk Matrix, Risk Appetite Explanation: An AML Risk Assessment identifies the likelihood and impact of money‑laundering threats w …
International Anti Money Laundering Standards
Adverse Media – negative press, reputational risk A source of information that may indicate a customer’s involvement in illicit activities, including newspaper articles, online reports, and regulatory filings. Financial instituti …
Regulatory Compliance Management
… Commission. Practical application: enhances credibility and facilitates market access. Challenges: maintaining continuous compliance and undergoing periodic audits. Adverse Impact Assessment – Related terms: risk assessment, impact analysis. Definition: systematic evaluation of potential negative effects of a policy on stakeholders, especially protected groups. Exampl …
Regulatory Compliance Management
… approved, or deleted information, including timestamps and user IDs. It enables traceability and supports investigations. Example: A financial institution logs every change to a customer’s risk profile, creating an audit trail that regulators can review. Practical application: Automated audit‑trail generation in compliance software reduces manual effort and ensures compl …
Regulatory Compliance Management
Audit Related terms: Compliance Risk Assessment , Control, Assurance, Findings An audit is a systematic, independent examination of an organization’s processes, records, and controls to determine whether they comply …
Regulatory Compliance Management
… Laundering (AML) – Concept: A set of laws, regulations, and procedures designed to detect, prevent, and report illicit financial activities. Related terms: KYC , Financial Crime , Risk Assessment . Explanation: AML frameworks require organizations to verify customer identities, monitor transactions for suspicious patterns, and maintain records for regulatory rev …
Crime Scene Investigation
… comparison. Explanation: Evaluates ink, paper, typeface, and alterations. Example: Determining that a forged signature was created using a ballpoint pen. Practical application: Supports fraud investigations and validates contracts. Challenges: Subtle variations and skilled forgeries demand high expertise. Evidence Bag Concept: Sealed container used to transport collect …
Criminal Behavior Analysis
… crime from its intended location or target to another. Related terms: target substitution, geographic profiling, offender mobility Explanation: Displacement may occur due to increased risk, opportunity, or personal constraints, affecting geographic patterns. Example: A serial arsonist who sets fires in a neighboring city after a heightened police presence. Practical …
