Compliance Glossary

A set of laws, regulations, and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income. In the US, the Bank Secrecy Act (BSA) is the primary AML framework.

The 1970 US law that requires financial institutions to assist US government agencies in detecting and preventing money laundering. It mandates record-keeping and reporting of certain financial transactions.

A US requirement mandated by the USA PATRIOT Act that requires financial institutions to verify the identity of any person seeking to open an account.

A bureau of the US Department of the Treasury that collects and analyzes information about financial transactions in order to combat domestic and international money laundering, terrorist financing, and other financial crimes.

The process of a business verifying the identity of its clients and assessing their suitability, along with the potential risks of illegal intentions towards the business relationship.

An agency of the US Treasury Department that administers and enforces economic and trade sanctions based on US foreign policy and national security goals.

An individual who is or has been entrusted with a prominent public function. Because of their position and influence, it is recognized that many PEPs are in positions that can be potentially abused for the purpose of committing money laundering offences.

A document that financial institutions must file with FinCEN following any suspicious transaction that may indicate money laundering or fraud.

A list maintained by OFAC containing individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries. Their assets are blocked and US persons are generally prohibited from dealing with them.