ICC C5 key terms

A formal statement of the principles and standards of conduct that members of a profession commit to follow, covering integrity, competence, confidentiality, and conflicts of interest.

A situation in which a person's private interests or relationships could improperly influence their professional judgment, or appear to do so to a reasonable observer.

The act of proactively informing relevant parties about facts that could affect their decisions, such as a personal relationship, financial interest, or an error discovered in prior work.

Reporting suspected illegal, unethical, or unsafe conduct to an internal authority or an external regulator, typically protected by law when done in good faith.

Maintaining and applying the knowledge, skills, and judgment needed for a task, including recognizing the limits of one's expertise and declining work outside them.

A legal obligation to act in another party's best interest, placing their welfare above one's own and avoiding self-dealing, typically owed by advisers and trustees.

Structured ongoing learning, such as courses, certifications, and technical reading, that keeps a practitioner current with rules, methods, and market practice.

The process of identifying a client, verifying identity, and understanding their business, ownership, and risk profile before and during the relationship.

Risk-based steps taken to establish a client's identity and assess their risk, including collecting documents, screening names, and monitoring activity over time.

Additional scrutiny applied to higher-risk clients or transactions, such as politically exposed persons, involving deeper source-of-funds checks and senior sign-off.

The natural person who ultimately owns or controls a legal entity or arrangement, usually identified through an ownership or voting threshold such as 25 percent.

An individual entrusted with a prominent public function, or a close associate or family member, who is treated as higher risk for bribery and corruption.

Evidence explaining where the money used in a specific transaction came from, such as salary, savings, or a property sale, distinct from a client's overall wealth.

An explanation of how a client accumulated their total net worth over time, including business ownership, inheritance, or investments, used to assess plausibility.

A confidential filing made to the financial intelligence unit when a transaction or pattern of behavior suggests money laundering, fraud, or other criminal activity.

Unlawfully revealing to a client or third party that a suspicious activity report has been filed or that an investigation is underway, which can obstruct detection.

The process of concealing the criminal origin of funds through placement, layering, and integration so they appear to come from legitimate sources.

Comparing clients, counterparties, and transactions against government watchlists and prohibited-party lists to prevent dealings with designated persons or states.

A legal restriction that prevents a designated person or entity from moving, selling, or otherwise dealing with specified funds or property.

A government order restricting trade or financial dealings with a particular country, region, or category of goods, often broader than targeted individual sanctions.

The application of one country's laws to conduct, persons, or entities located outside its borders, commonly seen when sanctions reach foreign subsidiaries or transactions.

Penalties imposed on parties who are not the primary target but who conduct significant business with a sanctioned person, entity, or sector.

A structured evaluation of the likelihood and impact of adverse events, used to prioritize controls and resources according to the level of exposure.

The amount and type of risk an organization is willing to accept in pursuit of its objectives, expressed in qualitative statements or quantitative limits.

A governance model in which operational management owns risk, a compliance or risk function oversees it, and internal audit provides independent assurance.

Examining whether a control is designed properly and operates as intended, using sampling, walkthroughs, or data analysis to identify gaps.

A documented schedule of actions, owners, and deadlines for fixing a control weakness or compliance gap identified by testing, audit, or a regulator.

The set of rules and practices governing how personal information is collected, used, stored, shared, and deleted, including consent and retention limits.

Moving personal data from one jurisdiction to another, often subject to safeguards such as standard contractual clauses or adequacy decisions.

Rules specifying how long records must be kept and when they must be destroyed, balancing legal recordkeeping duties against privacy minimization.

The obligation to create and preserve accurate books, communications, and transaction records for a defined period so they can be reviewed by authorities.

A chronological, tamper-evident record of who accessed or changed a system or transaction, enabling reconstruction of events after the fact.

Significant information about an issuer that has not been disclosed broadly to the market and that could affect a reasonable investor's decision.

Buying or selling securities while in possession of material nonpublic information, or passing such information to someone who trades on it.

An organizational and physical separation, sometimes called a Chinese wall, that prevents sensitive information held in one unit from reaching colleagues who could misuse it.

Improper conduct that distorts markets, including insider dealing, unlawful disclosure, and manipulation such as false rumors or wash trades.

Actions intended to deceive traders by artificially controlling or affecting the price or supply of a financial instrument, such as spoofing or layering.

The requirement to ensure a recommended product or service matches a client's objectives, risk tolerance, financial situation, and knowledge before advising it.