What is the Financial Action Task Force (FATF)? The Financial Action Task Force (FATF) is an intergovernmental body that functions as a global watchdog, setting the international standard for anti-money laundering (AML) and counter-terrorist financing (CTF) procedures. This standard is called the FATF Recommendations and includes requiring countries to regulate and supervise financial institutions. How […]
What is FRAML? FRAML is a catch-all term often used to describe Fraud and Anti-Money Laundering strategies and operations. It is seen as a shift in approach to fighting financial crime, combining the efforts to fight fraud and money laundering by using an integrated approach between teams.
What are implicit sanctions? Implicit sanctions make up 95% of sanctioned entities. These entities may be subject to sanctions if they fit within the broad statement (the narrative summary), which accompanies each sanctions list. As such, their sanctioning is implied. This means that a person not named in a sanctions list might be sanctioned through […]
What is Know Your Customer (KYC)? Know your customer (KYC) is a term that relates to financial institutions having to know whom they are dealing with via various background checks and processes. Using anti-financial crime software, banks and other organizations must confirm the identity of individual clients and organizations and ensure that they are not […]
What is machine learning? A field of study in artificial intelligence (AI), machine learning involves the development of algorithms that allow computers to find patterns in data and forecast or make judgments about their findings using computational models. What types of algorithms does machine learning use? Machine learning may use a variety of different algorithms […]
What is money laundering? Money laundering is a process that criminals use to make their money appear as though it has been earned legitimately. A type of financial crime, the term ‘laundering’ comes from the appearance of taking ‘dirty’ money and ‘cleaning’ it for use in the wider world, masking its origin. When they come […]
What is name screening? Name screening is part of the KYC/CDD process, which is vital for preventing money laundering, payment fraud, terrorist financing and other financial crimes. It is often mentioned alongside transaction screening under the umbrella term of sanctions screening. It refers to taking a given individual or organization’s name and comparing it against […]
What is ongoing due diligence (ODD)? Ongoing due diligence refers to the ongoing analysis of customers so that banks and financial institutions can better understand customer relationships, their transactions, and the nature of their business. It helps to identify, mitigate, and manage the risk of money laundering or terrorism financing. Alongside this, ongoing due diligence […]
What is payment fraud? Payment fraud is a type of fraud whereby a criminal intentionally uses stolen or false information to make a purchase. An example might be using someone’s credit card to make a purchase without their permission. Some businesses are more susceptible to payment fraud than others. Retail businesses, especially those who deal […]
What is pKYC? Perpetual KYC (pKYC) is a relatively new method for safeguarding customers, improving the traditional Know Your Customer (KYC) process with continual checks. Rather than only assessing individuals or entities on sign up and then every few years, pKYC allows for ongoing checks that take place in near real-time. As a result, it […]