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Anti Money Laundering (AML)
The Patriot Act, which amends the Bank Secrecy Act (BSA), was adopted in response to the September 11, 2001 terrorist attacks. The Patriot Act is intended to strengthen U.S. measures to prevent, detect, and prosecute international money laundering and the financing of terrorism. These efforts include anti-money laundering (AML) tools that impact the banking, financial, and investment communities. An AML Program must be in writing and must include:
- the development of internal policies, procedures, and controls
- the designation of a compliance officer
- an ongoing employee training program
- an independent audit function to test programs
Bank Secrecy Act (BSA)
Requires financial institutions in the United States to assist U.S. government agencies to detect and prevent money laundering.
BIS Denied Person list
The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce is responsible for the regulation of exports for national security, foreign policy, and nonproliferation reasons, as well as the enforcement of those regulations. The BIS Denied Persons List (formerly known as the Denial Orders List or the DOL List) lists individuals who have been denied export privileges in whole or in part. BIS Denied Person list is a key list to be scanned against in order to comply with the USA PATRIOT Act.
A relationship entered into between a small bank and a big bank in which the big bank provides a number of deposit, lending, and other services.
Electronic Funds Transfer (EFT)
Electronic funds transfer or EFT refers to the computer-based systems used to perform financial transactions electronically. An EFT is the electronic exchange or transfer of money from one account to another, either within the same financial institution or across multiple institutions. Two main EFT remittance methods are wire transfers and automated clearing house (ACH).
Financial Crimes Enforcement Network (FINCEN)
The Financial Crimes Enforcement Network (or FinCEN) is a bureau of the United States Department of the Treasury that collects and analyzes information about financial transactions in order to combat money laundering, terrorist financiers, and other financial crimes.
Any public or private bank, credit union, or savings and loan, subject to national and state banking laws, and capable of both accepting deposits and making loans. These institutions collect funds from the public or other institutions, and invest them in financial assets.
International Bank Account Number (IBAN)
The International Bank Account Number (IBAN) is an international standard for identifying bank accounts across national borders in a way that would minimise the risk of propagating transcription errors.
Know Your Business (KYB)
Know Your Business is the due diligence review of your business and industry which when reviewed against Money Laundering techniques allows you to develop policies and assess suspicious activities or transactions.
Know Your Customer (KYC)
Know Your Customer is the due diligence and bank regulation that financial institutions and other regulated companies must perform to identify their clients and ascertain relevant information pertinent to doing financial business with them.
Money Laundering Control Act (MLCA)
The Money Laundering Control Act of 1986 is a United States Act of Congress that made money laundering a Federal crime.
Money Services Business (MSB)
Money Services Business is a legal term defined by federal law and regulation. Part of a 1999 ruling revising the regulatory definitions of certain non-bank financial institutions for purposes of the Bank Secrecy Act (BSA). This include non-bank financial institutions, currency dealers, exchange companies and travelers check issuers.
Non-SDN list also known as the PLC list. Listed are individuals who are members of the Palestinian Legislative Council, and transactions with these individuals must be rejected. Non-SDN list is a key list to be scanned against in order to comply with the USA PATRIOT Act.
Office of Foreign Assets Control (OFAC)
Office of Foreign Assets Control. A US regulatory Agency that is responsible for monitoring funds held or transferred to illegal entities. The OFAC list is a list of companies/individuals that should be prevented from sending/receiving funds.
Politically Exposed Persons (PEP)
Politically Exposed Persons: Individuals, or their relatives, who are prominent public functionaries.
Previously Used Routing Number
A routing number that was once the primary routing number for an institution and since replaced, but still accepted for payments.
A potentially suspicious or money laundering situation raises a Red Flag or warning signal.
Red Flag Rules
The Red Flags Rules are part of the Fair and Accurate Credit Transactions (FACT) Act of 2003. Under these Rules, financial institutions and creditors with covered accounts must have identity theft prevention programs in place by November 1, 2008, to identify, detect, and respond to patterns, practices, or specific activities that could indicate identity theft.
Retired Routing Number
A number that is no longer active (or no longer accepted by an institution) for check transactions, ACH transactions and/or wire transfers.
The routing number (also referred to as RTN, routing transit number, ABA or bank routing number) is a nine-digit numeric code printed on the bottom of checks. This number is used to facilitate the electronic routing of funds (ACH transfer) from one bank account to another.
Under SEC rules, safe-harbor provisions protect management from liability for making financial projections and forecasts made in good faith.
The Specially Designated Nationals (SDN) List is a publication of OFAC which lists individuals and organizations with whom United States citizens and permanent residents are prohibited from doing business. A key list to be scanned against in order to comply with the USA PATRIOT Act.
Web service is part of a SOAP architecture and is defined as "a software system designed to support interoperable machine-to-machine communication”.