glossary
Explore Quick Definitions
of Financial Terminology
AML (Anti-Money Laundering)
Regulations, laws and procedures aimed at preventing criminals from disguising illegally obtained funds as legitimate income.
API Integration
API integration refers to the process of connecting different pieces of software so that they can communicate with each other and share data.
Account Holder
An account holder is the individual or entity that owns and controls a financial account.
Account Information Service Provider (AISP)
An Account Information Service Provider (AISP) is a regulated financial entity that accesses and consolidates account information.
Account-to-Account (A2A) Payments
Account-to-Account (A2A) Payments refer to a payment method that enables the direct transfer of funds between two bank accounts or digital wallets.
Advanced Encryption Standard (AES)
The Advanced Encryption Standard (AES) is a widely used encryption algorithm that secures sensitive data via symmetric key cryptography.
Adverse Media Screening
Searching for negative news about a client that may indicate involvement in financial crime or reputational risk.
Atfinity's AI-Powered Rule Engine
An AI-driven no-code rule engine that automates complex banking rules and policies as part of end-to-end process orchestration.
Authorized Signer
An authorized signer is an individual who has been granted permission to perform certain banking activities on the behalf of the account holder.
Background Check
A background check is the process of investigating an individual's or entity's history and activities to identify potential risks.
Banking as a Service (BaaS)
Banking as a service or BaaS is a business model that allows non-banking companies to offer banking and other financial services.
Beneficial Owner
The real person who ultimately owns, controls or benefits from a company or transaction, even if their name is not officially recorded.
Blockchain
The blockchain is a ledger system technology that records data in a series of linked and immutable blocks via a peer-to-peer network.
Business Process Management (BPM)
Business Process Management (BPM) is the process of analyzing, monitoring, and tweaking business processes.
Business Rules Engine (BRE)
A Business Rules Engine (BRE) is a software system that automates the execution of logical statements or business rules.
Buy Now Pay Later (BNPL)
Buy Now Pay Later or BNPL is a payment option that allows consumers to make purchases immediately and then provide payments at a later date.
Card Not Present (CNP) Transactions
Card Not Present (CNP) transactions refers to all transactions where a cardholder does not have to physically present their card.
Case Management System (CMS)
A Case Management System (CMS) is a digital tool or platform used to track and manage case-related information, workflows, and activities.
Citizen Developer (CD)
A citizen developer is a non-professional programmer who creates applications, automates processes, or develops software solutions.
Client Lifecycle Management (CLM)
Managing the entire relationship with a client, from initial onboarding through ongoing services, periodic reviews, and eventual offboarding.
Client Remediation
Client remediation refers to the process of updating and correcting information, documentation and risk assessments for clients.
Client Risk Assessment
Evaluating the potential risk a client poses in terms of financial crime, based on factors like jurisdiction, products used, transaction patterns, etc.
Combating the Financing of Terrorism (CFT)
Combating the Financing of Terrorism or CFT regulations refer to the rules and measures designed to combat the financing of terrorism.
Controlling Person (CP)
In KYC/KYB, a controlling person is an individual who exercises significant control or influence over a legal entity, trust or foundation.
Credit Assessment
A credit assessment refers to the evaluation process of determining an individual or legal entity’s financial health.
Crypto Wallet
A crypto wallet is a digital tool that allows users to safely store, send and receive different cryptocurrencies.
Customer Due Diligence (CDD)
The process of identifying customers and verifying their identity, understanding the nature of their activity, and assessing money laundering risks.
Customer Identification Program (CIP)
A Customer Identification Program or CIP is a mandatory process for financial institutions to verify the identities of their customers.
Customer Relationship Management (CRM)
Customer Relationship Management (CRM) refers to the strategies and processes used to to manage and analyze customer behavior.
Data Parsing
Data parsing is the process of analyzing, interpreting and converting raw data from one format into a structured and readable format.
Data Quality
Data quality refers to the accuracy, completeness, reliability and timeliness of data that is used in some capacity (such as customer data).
Database Management System (DBMS)
A Database Management System (DBMS) is a specialized software that enables banks to store, manage, and retrieve financial data.
Decentralized Finance (DeFi)
Decentralized Finance is a financial ecosystem based on the blockchain that provides financial services without relying on traditional banks.
Digital ID
A digital ID, or Digital Identity, is an electronic representation of one’s identity that can be used instead of traditional ID in some cases.
Digital Wallet
A digital wallet is a software-based system that securely stores users’ payment information and passwords across different payment methods.
Director
In the context of KYB/KYC, a director is a natural person with managing, governing and high-level decision-making responsibilities.
Domain-Specific Language (DSL)
A Domain-Specific Language (DSL) is a programming or scripting language designed to solve problems within a specific domain or industry.
Domiciliary Company
In Switzerland, a domiciliary company is defined as all legal entities or similar associations that are non-operating.
Dynamic PDF
A dynamic PDF is the opposite of a static PDF as it can adapt to user input or changes in external data sources.
Electronic Identity Verification (eIDV)
Electronic Identity Verification (eIDV) is the process of verifying an individual’s identity through digital means.
Embedded Finance
Embedded finance is the integration of financial services, such as payments, lending, or insurance, into non-finance platforms.
End-to-End (E2E) Solution
An End-to-End (E2E) Solution is a comprehensive system or service that provides a fully integrated process from start to finish.
Enhanced Due Diligence (EDD)
Enhanced Due Diligence (EDD) is the most robust form of Customer Due Diligence that is utilized when a customer is considered a high risk.
FATCA
FATCA is a U.S. law requiring foreign financial institutions to report accounts held by U.S. taxpayers to the IRS.
FATF (Financial Action Task Force)
The global money laundering and terrorist financing watchdog that sets international standards to prevent illegal activities.
Family Office
A family office is a private wealth management advisory firm that serves ultra-high-net-worth individuals (UHNWIs) or families.
Fintech
Fintech, which stands for Financial Technology, refers to the use of innovative technology in the financial sector.
High Net Worth Individual (HNWI)
A high net worth individual (HNWI) is a person with at least $1 million in liquid financial assets.
Intelligent document processing (IDP)
Intelligent Document Processing (IDP) is an advanced technology that automates the extraction, classification, and processing of data.
Joint Account Holder (JAH)
A joint account holder is an individual who shares ownership of and has equal access to a bank account with one or more people.
KAST Forms
Forms K, A, S, and T are AML forms used in Switzerland to identify beneficial ownership of a given legal entity.
KYC Orchestration
KYC orchestration is the process of managing and coordinating various processes, technologies, and platforms involved in performing KYC.
Know Your Business (KYB)
Similar to KYC but for business clients, verifying a company's identity, ownership structure, and legitimacy to assess risk before engaging in transactions.
Know Your Customer (KYC)
The process of verifying a customer's identity and assessing their risk before entering into a business relationship, in order to prevent financial crimes.
Legacy System
A legacy system refers to software or hardware that has become outdated in some way.
Loan Origination
Loan origination is the process of applying for and obtaining a loan from a lender.
Loan Servicing
Loan servicing refers to the processes and tasks performed from after a loan has been issued up until it has been completely paid off.
Low-code
Low-code platforms provide a visual, intuitive interface for software development that requires little to no coding knowledge.
Mass Affluent
A bank may consider an individual to be mass affluent if they possess between $100,000 and $1 million USD.
Microfinance (MFI)
Microfinance refers to financial services provided to low-income individuals or businesses who might not be eligible for them otherwise.
Mobile Banking
Mobile banking refers to the use of a mobile device in order to access banking services and perform financial transactions.
Money Laundering
Money laundering is the process of disguising the origins of illegally obtained funds and making it appear as though it comes from legitimate sources.
Near-Field Communication (NFC)
Near-Field Communication (NFC) is a short-range wireless exchange of data between two electronic devices that are close to each other.
Neobank
A neobank is a digital-only bank offering services exclusively through mobile apps and online platforms.
No-code
No-code is a software development approach that allows users to create applications without writing code.
Onboarding
The process of bringing a new client into a business relationship, including collecting necessary information, performing background checks, and setting up accounts.
Open Banking
Open banking is a system that allows banks to securely share customer data with third parties to offer tailored financial services.
Operating Address (OA)
An operating address is the physical location where a business conducts its core activities. It is distinct from a registered address.
Operating Legal Entity (OLE)
In KYB, an operating legal entity is a registered organization actively conducting business or operational activities.
Optical Character Recognition (OCR)
Optical Character Recognition (OCR) is a technology that converts analog data into digital, machine-readable code.
Ownership Structure
The ownership structure of a legal entity includes all of the natural persons with significant control and/or ownership of the business.
PDF Parsing
PDF parsing refers to the process of extracting and interpreting data from PDF files, often used for creating contracts or customer profiles.
PEPs (Politically Exposed Persons)
Individuals entrusted with prominent public functions, who may present a higher risk for potential involvement in bribery and corruption.
Payment Initiation Service Provider (PISP)
A Payment Initiation Service Provider (PISP) is a regulated financial entity that initiates payments directly from a user’s bank account.
Peer-to-Peer (P2P) Lending
Peer-to-peer lending is an approach to lending where individuals or businesses borrow money directly from other individuals or businesses.
Periodic Review
A periodic review refers to the scheduled assessment of a customer’s financial information, risk profile, and account activities.
Perpetual KYC
Continuous monitoring and regular reviews of client information to ensure KYC information remains up-to-date.
Power of Attorney (POA)
Power of Attorney (POA) is a legal document that grants one person the authority to act on behalf of another person.
Private Bank
A financial institution that provides personalized banking, investment, and wealth management services to high-net-worth individuals.
Private Wealth Management (PWM)
Private Wealth Management (PWM) refers to a set of financial and investment services provided to affluent individuals.
Process Automation
Process automation involves using technology to execute business processes with reduced human intervention.
Process Orchestration
Process orchestration is the automated coordination and management of tasks, data, and systems to streamline end-to-end business processes.
Real-Time Payments (RTP)
Real-time payments refer to digital payment systems that are operational 24/7 all year round and can be used for instantaneous transfers.
Regulatory Compliance
Conforming to the laws, regulations, guidelines and specifications relevant to a business.
Relatives and Close Associates (RCA)
Relatives and Close Associates refers to individuals who have a close relationship with a high risk client, most commonly a PEP.
Risk Appetite (RA)
Risk appetite refers to the level and type of risk that a financial institution is willing and able to accept.
Risk Management (RM)
Risk Management (RM) refers to the process of identifying, assessing, mitigating, monitoring and reporting on risks that could negatively affect a given business.
Risk Rating
A risk rating is a measure used by financial institutions to determine the risk of conducting business with a given customer.
Risk-Based Approach
Focusing compliance efforts and resources on the areas of highest risk, as determined through risk assessments.
Robotic Process Automation (RPA)
Robotic Process Automation or RPA refers to the usage of bots to automate repetitive tasks via a rule-based system.
Rule Engine
A software component that executes business rules and decision logic separately from application code.
Sanctions Screening
Checking clients and transactions against official sanctions lists to avoid doing business with prohibited individuals/entities.
Simplified Due Diligence (SDD)
Simplified Due Diligence is the simplest form of Customer Due Diligence that is used when a customer is seen as a low risk.
Smart Contract
A smart contract is a self-executing program that automatically executes an agreement when predefined conditions are met.
Software as a Service (SaaS)
Software as a service is a cloud-based software delivery model where software providers “rent” their software to their clients.
Source of Funds (SoF)
Documentation and information regarding the origin of the particular funds or assets involved in a transaction.
Source of Wealth (SoW)
Documentation and information that proves the origin of a client's entire body of wealth.
Special Interest Entities (SIE)
A Special Interest Entity (SIE) refers to a legal entity that has been accused of, convicted of, or is undergoing trial for serious criminal activities.
Special Interest Persons (SIP)
Special Interest Persons or SIPs are individuals who are being suspected or convicted of criminal activities.
Standard Due Diligence
Standard Due Diligence is the most common form of Customer Due Diligence that is used when a customer is low-to-medium risk.
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