Fraud Detection and Prevention
Abnormality: in the context of fraud detection, an abnormality refers to a pattern or behavior that deviates from the expected or normal behavior, often indicating a potential threat or anomaly. Related terms: anomal …
Fraud Detection and Prevention
… two versions of a system, process, or application to determine which one performs better, often used in Transaction Monitoring Techniques to evaluate the effectiveness of different fraud detection models, identifying the most accurate and efficient approach to prevent fraud. Acquiring Bank is a financial institution that enables merchants to accept payments, proce …
Fraud Detection and Prevention
Abnormality Detection refers to the process of identifying patterns or behaviors that deviate from the norm, often used in fraud detection to flag suspicious transactions or activities. Related terms include Anomaly detection and Outlier analysis. Abnormality detection is crucial in fraud detection as it he …
Ship Inspection and Audit Techniques
ABP – Advanced Bunker Plan. Related terms: fuel management , environmental compliance . The ABP outlines the procedures for bunkering, fuel quality verification, and documentation required to demonstrate compliance with MARPOL Annex VI. E …
Customer Due Diligence
… or controls a client, even if the ownership is exercised through a chain of legal entities. Related: UBO, Transparency Register . Identifying the beneficial owner is essential for risk assessment, especially in high‑risk jurisdictions where ownership structures may be opaque. Compliance Officer – An individual appointed by a financial institution to oversee the …
Customer Due Diligence
Acceptable Risk is the level of risk that an organization is willing to accept in order to achieve its objectives, it involves weighing the potential benefits against the potential costs and taki …
Customer Due Diligence
Adverse Media Screening negative news, reputational risk, media monitoring A systematic process of reviewing newspapers, online publications, and broadcast media for information that could indicate a customer’s involvement in illicit ac …
Customer Due Diligence
… Customer Identification Unit ( Customer Identification Unit ) and other CDD systems. Access control ensures that only authorized personnel can perform identity verification, update risk profiles, or approve exceptions. Example: A compliance officer is granted read‑only access to client records, while a senior analyst receives edit rights to approve high‑risk cust …
Fraud Risk Assessment and Management
Accountability refers to the state of being answerable for one's actions, and is a critical concept in Fraud Governance and Controls, as it ensures that individuals are held responsible for their roles in preventing and detecting fraud. Related terms include compliance, governance, and i …
Fraud Risk Assessment and Management
… transfers from a normally domestic account may trigger an alert. Practical application includes integrating rule‑based filters with statistical models to capture both known and unknown fraud patterns. Challenges arise when legitimate business spikes mimic fraudulent behavior, leading to high false‑positive rates and increased investigation workload. Baseline Monitorin …
Fraud Risk Assessment and Management
… Ongoing transaction monitoring systems flag abnormal patterns for review. Challenges: Keeping up with evolving laundering techniques and cross‑jurisdictional legal differences. Anti‑fraud Controls Related terms: Risk assessment, Internal controls. Explanation: Measures implemented to detect, prevent, and mitigate fraudulent activities. Example: Segregation of dutie …
Fraud Risk Assessment and Management
… Suspicious Activity Report Explanation: AML refers to the set of laws, regulations, and procedures designed to prevent criminals from disguising illicit funds as legitimate revenue. In a fraud risk assessment, AML controls help identify transactions that could be linked to fraud schemes such as embezzlement or procurement fraud. Example: a supplier consistently receives …
Fraud Risk Assessment and Management
Abuse of Authority – Related terms: conflict of interest, insider fraud . A situation where an individual misuses their position to obtain personal benefit, often by overriding controls or influencing decisions. Example: a procurement manager awarding …
Compliance and Anti Money Laundering
… conversion of illicit funds into legitimate assets. The Ethics and Governance Office (EGO) ensures that the organization’s AML program aligns with statutory requirements and internal risk appetite. Example: A bank detects a sudden influx of large cash deposits from a new client; the AML system flags the activity, prompting a SAR filing. Practical application: Devel …
Compliance and Anti Money Laundering
Anti‑Money Laundering (AML) Program – A structured set of policies, procedures, and controls designed to detect, deter, and report money‑laundering activities. Related terms: compliance , risk‑based approach , internal controls. Explanation: An AML program typically includes customer due diligence, transaction monitoring, staff training, and independent testing. Practic …
Compliance and Anti Money Laundering
Adverse Media – A source of information that reports negative or suspicious activity about an individual or entity. Related terms: negative news , media screening , reputational risk . Explanation: Investigators use adverse media to corroborate other intelligence and assess the credibility of a potential money‑laundering risk. Example: A news article linking a …
International Anti Money Laundering Standards
… designed to prevent the generation of illicit funds. Related terms: KYC, CDD, FATF Explanation: AML frameworks require institutions to identify, assess, and mitigate money‑laundering risks through policies, procedures, and controls. Example: A bank implements AML software to flag transactions exceeding a specified amount that match known typologies. Practical appli …
International Anti Money Laundering Standards
… staff. Anti‑Money Laundering (AML) Framework – the set of policies, procedures, and controls designed to prevent and detect money laundering. Related terms: Regulatory Compliance, Risk Assessment . The framework guides transaction monitoring, reporting, and training. Example: a bank adopts a risk‑based AML framework aligned with FATF recommendations. Challenge: …
International Anti Money Laundering Standards
Term: AML Risk Assessment Related terms: Customer Due Diligence, Risk Matrix, Risk Appetite Explanation: An AML Risk Assessment identifies the likelihood and impact of money‑laundering threats w …
International Anti Money Laundering Standards
Adverse Media – negative press, reputational risk A source of information that may indicate a customer’s involvement in illicit activities, including newspaper articles, online reports, and regulatory filings. Financial instituti …
