AML glossary

This glossary summarizes principal AML and sanctions compliance terminology referenced in the public policy. It is an abbreviated extract of the internal compliance knowledge base.

AML (Anti-Money Laundering)

Legal and operational controls intended to prevent the conversion of illicit proceeds into apparently legitimate assets.

Beneficial Owner

Natural person who ultimately owns or controls an entity (≥25% ownership or designated control individual).

CDD (Customer Due Diligence)

Baseline identity verification and risk assessment performed at onboarding and during the relationship lifecycle.

EDD (Enhanced Due Diligence)

Additional verification, scrutiny, and monitoring applied to higher‑risk users or transactions.

KYC (Know Your Customer)

Processes to verify identity and understand purpose / nature of a customer relationship.

PEP (Politically Exposed Person)

An individual entrusted with a prominent public function, plus close family members and associates, requiring enhanced scrutiny.

Sanctions Screening

Process of comparing parties and transactions to restricted / denied lists (e.g., OFAC SDN List).

SAR (Suspicious Activity Report)

Regulatory filing documenting suspected money laundering, fraud, or other illicit financial activity.

Structuring

Deliberate fragmentation of transactions to evade thresholds or detection mechanisms.

Terrorist Financing

Provision or collection of funds with the intention or knowledge that they will be used to support terrorist acts or organizations.