Glossary

GLOSSARY OF TERMS

  • 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...

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  • Bank Secrecy Act (BSA)
    Requires financial institutions in the United States to assist U.S. government agencies to detect and prevent money laundering.

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    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...

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  • Correspondent Banking
    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.

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  • 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...

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  • 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...

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    Financial Institution
    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...

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  • 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.

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  • 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...

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    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...

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  • 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.

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    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...

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  • Non-SDN list
    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...

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  • 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...

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  • Politically Exposed Persons (PEP)
    Politically Exposed Persons: Individuals, or their relatives, who are prominent public functionaries.

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    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.

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  • Red Flag
    A potentially suspicious or money laundering situation raises a Red Flag or warning signal.

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    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...

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    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.

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    Routing Number
    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...

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  • Safe Harbor
    Under SEC rules, safe-harbor provisions protect management from liability for making financial projections and forecasts made in good faith.

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    SDN List
    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...

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  • Web Services
    Web service is part of a SOAP architecture and is defined as "a software system designed to support interoperable machine-to-machine communication”.

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