Acronyms

ACH – The Automated Clearing House is an electronic network for financial transactions in the United States. ACH processes large volumes of credit and debit transactions in batches. ACH credit transfers include direct deposit, payroll and vendor payments. ACH direct debit transfers include consumer payments on insurance premiums, mortgage loans, and other kinds of bills.

ACAMS – Association of Certified Anti-Money Laundering Specialists is the largest international membership organization dedicated to advancing the professional knowledge, skills and experience of those dedicated to the detection and prevention of money laundering around the world, and to promote the development and implementation of sound anti-money laundering policies and procedures

AML – Anti-money laundering  refers to a set of procedures, laws or regulations designed to stop the practice of generating income through illegal actions.

Money laundering is the criminal practice of processing ill-gotten gains, or “dirty” money, through a series of transactions; in this way the funds are “cleaned” so that they appear to be proceeds from legal activities. Money laundering generally does not involve currency at every stage of the laundering process.

ATM – An automated teller machine is an electronic banking outlet, which allows customers to complete basic transactions without the aid of a branch representative or teller.

BHC – A Bank Holding Company is a company that owns and/or controls one or more U.S. banks or one that owns, or has controlling interest in, one or more banks. A bank holding company may also own another bank holding company, which in turn owns or controls a bank; the company at the top of the ownership chain is called the top holder. The Board of Governors is responsible for regulating and supervising bank holding companies, even if the bank owned by the holding company is under the primary supervision of a different federal agency (OCC or FDIC)

BOD – The Board of Directors  is a body of elected or appointed members who jointly oversee the activities of a bank.

BSA – The Bank Secrecy Act requires financial institutions in the United States to assist U.S. government agencies to detect and prevent money laundering

CAMSCertified Anti Money Laundering Specialist is a certification testing the knowledge of those entrusted with the detection and prevention of money laundering. CAMS has become the gold standard in AML certifications and is recognized by private institutions, governments and law enforcement.

CDDCustomer Due Diligence begins with verifying the customer’s identity and assessing the risks associated with that customer.

CFR – The Code of Federal Regulations is the codification of the general and permanent rules published in the Federal Register by the departments and agencies of the Federal Government. It is divided into 50 titles that represent broad areas subject to Federal regulation.

CIF – A Customer Information File is a file a bank keeps on each of its account holders and other clients. It contains information on account balances, outstanding loans, assets and so forth. It is updated frequently to ensure correct information.

CIP – The Customer Information Program rule implements section 326 of the USA PATRIOT Act and requires each bank to implement a written CIP that is appropriate for its size and type of business and that includes certain minimum requirements. The CIP is intended to enable the bank to form a reasonable belief that it knows the true identity of each customer. At a minimum, the bank must obtain the following identifying information from each customer before opening the account: Name, Date of birth for individuals, Physical Address, and Identification number.

CTR – Currency Transaction Report is a report that U.S. financial institutions are required to file with FinCEN for each deposit, withdrawal, exchange of currency, or other payment or transfer, by, through, or to the financial institution which involves a transaction in currency of more than $10,000. 31 CFR 1010.311 — “Reports of Transactions in Currency”

EDD – Enhanced due diligence  for higher-risk customers is especially critical in understanding their anticipated transactions and implementing a suspicious activity monitoring system that reduces the bank’s reputation, compliance, and transaction risks.

FATF – The Financial Action Task Force is an inter-governmental body that has developed a series of Recommendations that are recognised as the international standard for combating of money laundering and the financing of terrorism and proliferation of weapons of mass destruction

FDIC – The Federal Deposit Insurance Corporation is a United States government corporation providing deposit insurance to depositors in US banks. The FDIC was created by the 1933 Banking Act after the Great Depression to restore trust in the American banking system

FFIEC Federal Financial Institutions Examination Council is a formal interagency body empowered to prescribe uniform principles, standards, and report forms for the federal examination of financial institutions by the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC), and the Consumer Financial Protection Bureau (CFPB), and to make recommendations to promote uniformity in the supervision of financial institutions. In 2006, the State Liaison Committee (SLC) was added to the Council as a voting member.

FinCEN – The Financial Crimes Enforcement Network  is a bureau of the United States Department of the Treasury that collects and analyzes information about financial transactions in order to combat domestic and international money laundering, terrorist financing, and other financial crimes.

GRCGovernance, Risk Management and Compliance

HIDTA – The High Intensity Drug Trafficking Area program is a drug-prohibition enforcement program run by the United States Office of National Drug Control Policy. It was established in 1990 after the Anti-Drug Abuse Act of 1988 was passed.

HIFCAHigh Intensity Financial Crime Area, these high risk areas were first announced in the 1999 National Money Laundering Strategy and were conceived in the Money Laundering and Financial Crimes Strategy Act of 1998 as a means of concentrating law enforcement efforts at the federal, state, and local levels in high intensity money laundering zones.

INCSR – The 2016 International Narcotics Control Strategy Report is an annual report by the Department of State to Congress prepared in accordance with the Foreign Assistance Act. It describes the efforts of key countries to attack all aspects of the international drug trade in Calendar Year 2015. Volume I covers drug and chemical control activities. Volume II covers money laundering and financial crimes

LELaw enforcement

LOBLine of Business

KRIKey Risk Indicator

KYCKnow your Customer

MISManagement Information Systems

MLMoney Laundering

MSB – A money services business is a legal term used by financial regulators to describe businesses that transmit or convert money. The definition was created to encompass more than just banks which normally provide these services to include non-bank financial institutions

NAICS – The North American Industry Classification System is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy

NRA – A nonresident alien is a classification assigned to a non-U.S. citizen, or foreign national, who doesn’t pass the green card test or the substantial presence test.

NSFNon-sufficient funds  is the status of a checking account that does not have enough money to cover transactions. The acronym also describes the fee incurred from these checks, and colloquially, NSF checks are known as bounced checks or bad checks. If a bank receives a check written on an account with insufficient funds, the bank can refuse payment and charge the account holder an NSF fee.

OFAC – The Office of Foreign Assets Control is a financial intelligence and enforcement agency of the U.S. government charged with planning and execution of economic and trade sanctions in support of U.S. national security and foreign policy objectives.

P&PPolicies and Procedures

PSP – A professional service provider acts as an intermediary between its client and the bank. Professional service providers include lawyers, accountants, investment brokers, and other third parties that act as financial liaisons for their clients

RARisk assessment of the banks’ exposure to money laundering, terrorist financing and OFAC.

SAR – A Suspicious Activity Report is a document that financial institutions must file with the Financial Crimes Enforcement Network following a suspected incident of money laundering or fraud

SDNSpecially Designated Nationals are individuals, groups, and entities, such as terrorists and narcotics traffickers designated under programs that are not country-specific.

TFTerrorist Financing

TIN – A Taxpayer Identification Number is an identifying number used for tax purposes in the United States

USA PATRIOT ActUniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 is a law intended to help government agencies detect and prevent possible acts of terrorism, or sponsorship of terrorist groups