CFCS (Other exams) key terms

The process of disguising the origin of money obtained from crime so it appears to come from a legitimate source. It typically moves through placement, layering, and integration stages.

The first stage of money laundering, where illicit cash enters the financial system, for example through deposits, purchases, or cash-intensive businesses.

The stage of money laundering in which transactions are layered to obscure the audit trail and separate funds from their criminal source, often using transfers, shell companies, or offshore accounts.

The final money laundering stage, where laundered funds are reintroduced into the legitimate economy as apparently lawful assets, investments, or income.

Deliberately breaking up cash transactions into smaller amounts to stay below reporting thresholds and avoid triggering currency transaction reports. Also called smurfing.

A filing made by a financial institution to the national financial intelligence unit reporting activity that may indicate money laundering, fraud, or other financial crime.

A regulatory filing required when cash transactions exceed a set threshold, used to create a record of large cash movements.

The process of identifying and verifying a customer's identity, understanding their business and risk profile, and monitoring their activity on an ongoing basis.

Additional, more intensive checks applied to higher-risk customers or transactions, such as politically exposed persons or those in high-risk jurisdictions.

The natural person who ultimately owns or controls a legal entity or arrangement, even if the entity is held through layers of companies or nominees.

An entity with no real operations or assets that exists mainly to hold accounts or move funds, often used to conceal ownership or launder money.

A person entrusted with a prominent public function, or a close associate or family member, who poses higher corruption and money laundering risk.

A national agency that receives, analyzes, and disseminates suspicious transaction reports and other financial information to support anti-money laundering and counter-terrorist financing efforts.

A warning indicator or pattern of behavior that suggests possible financial crime and prompts further scrutiny or investigation.

A recognized pattern or method by which money laundering, terrorist financing, or fraud is carried out, used to help institutions detect similar activity.

Intentional deception to obtain money, property, or advantage by making false representations or concealing material facts.

Theft or misuse of an organization's resources by someone entrusted with them, such as embezzling cash or misusing company property.

Using another person's personal information without permission to commit fraud, open accounts, or obtain credit and benefits.

A fraud in which a criminal gains control of a victim's existing account, often through stolen credentials or social engineering, to move funds or data.

A social engineering attack that tricks people into revealing credentials or clicking malicious links by impersonating a trusted party, usually via email or messages.

Manipulating people into breaking normal security procedures or disclosing confidential information through deception and psychological pressure.

The abuse of entrusted power or position for private gain, including bribery, kickbacks, and embezzlement.

Offering, giving, soliciting, or accepting something of value to influence the actions of a person in a position of trust.

An approach that allocates compliance resources in proportion to the assessed likelihood and impact of financial crime risk, rather than applying uniform controls to everyone.

The structured process of identifying, analyzing, and rating financial crime risks across customers, products, channels, and geographies to guide controls.

Restrictive measures imposed by governments or international bodies to influence behavior, such as asset freezes and trade restrictions against persons, entities, or countries.

A government-ordered restriction on trade or financial dealings with a particular country, region, or group of goods.

The process of comparing customers, transactions, and counterparties against sanctions lists to identify matches and prevent prohibited dealings.

An alert generated by a screening or monitoring system that turns out not to be a true match or genuine risk after review.

A legal measure that prevents designated persons or entities from moving, using, or accessing their funds or assets.

The legal process by which the state permanently deprives a person of property connected to crime, either through criminal conviction or civil proceedings.

Any property or money derived from, or obtained through, criminal activity, which may be subject to seizure and forfeiture.

A structured conversation, often with a suspect, witness, or employee, to gather facts and assess credibility during an investigation.

A documented record of who handled evidence, when, and how, used to prove that evidence has not been altered or tampered with.

Information stored or transmitted in electronic form, such as emails, logs, or device data, that can be used to prove facts in an investigation.

A fixed-length digital fingerprint produced by a mathematical function, used to verify that electronic evidence has not been changed.

Providing or collecting funds, directly or indirectly, with the intention that they be used to carry out terrorist acts or support terrorist organizations.

The set of procedures used to identify customers, verify their identity, and understand their expected activity before and during a business relationship.

A situation in which a person's personal or professional interests could improperly influence their judgment or actions in a role.

The principles and standards of conduct that guide professional behavior, including integrity, objectivity, confidentiality, and compliance with the law.

Reporting wrongdoing or illegal conduct within an organization, often protected by law from retaliation.

An underlying crime whose proceeds are laundered; money laundering charges typically require proving or alleging such an offence.

A formal process by which one country requests another's help to obtain evidence or enforce orders in a criminal or forfeiture matter.