OSCB Assistant Manager key terms

The practice of drawing on uncollected funds by writing a cheque against one account and depositing it into another, exploiting the delay in cheque clearing to create a temporary inflated balance.

The sequence of steps by which a deposited cheque is presented, settled and honoured between banks, covering the period before funds become available to the depositor.

The amount of money represented by cheques or transfers in transit that has been recorded but not yet settled, temporarily counted twice in the banking system.

A credit posted to a customer account before the underlying instrument or transfer is finally settled, subject to reversal if the item is dishonoured.

The reversal of a previously credited payment, typically initiated by the payer's bank or a card scheme, returning funds to the payer after a dispute or failed settlement.

An account a bank holds with a correspondent bank in a foreign currency, used to settle payments and hold balances in that currency on behalf of the bank.

An account held by a correspondent bank in the local currency of the bank where the account sits; the mirror image of a nostro account from the counterparty's view.

A bank that provides payment, settlement and other services in a market or currency to another bank that has no direct presence there.

The process of comparing two sets of records, such as internal ledger balances and external statements, to confirm they agree and to identify and explain differences.

A temporary ledger account used to park funds or entries whose correct destination is not yet known, which must be cleared and investigated within set timeframes.

A discrepancy identified during reconciliation between two records that requires investigation, explanation and correction before the accounts can be confirmed as matching.

A method that records income and expenses in the period they are earned or incurred, regardless of when cash actually moves, giving a truer view of performance.

An amount set aside in the accounts for a probable obligation or expected loss whose exact amount or timing is still uncertain, such as a loan impairment charge.

The point in time at which transactions are allocated to one reporting period rather than the next, ensuring period-end figures reflect the correct set of activity.

The mandatory process of identifying customers, verifying their identity using reliable documents, and understanding the nature and purpose of their relationship with the bank.

Ongoing measures a bank applies to understand and monitor a customer, including identity checks, risk rating, expected activity and periodic review of the relationship.

Additional, more intensive checks applied to higher-risk customers or transactions, such as politically exposed persons, including source-of-funds and source-of-wealth verification.

The natural person who ultimately owns or controls a customer or the funds involved in a transaction, identified by ownership thresholds such as a percentage of shares or voting rights.

A person entrusted with a prominent public function, or a close associate or family member, whose accounts are treated as higher risk and require enhanced scrutiny.

Evidence explaining where the money used in a specific transaction or relationship came from, such as salary, sale proceeds or a loan, used to assess legitimacy.

The explanation of how a customer's overall net worth was accumulated, distinct from the source of a particular payment, and central to high-risk onboarding.

A confidential report a bank files with the financial intelligence unit when it knows, suspects or has reason to suspect money laundering, terrorist financing or other criminal activity.

Disclosing to a customer or third party that a suspicious report has been or may be filed, which is itself a criminal offence in most regimes.

The automated and manual review of customer activity against expected patterns and rules to detect unusual or potentially suspicious transactions for further investigation.

The process of disguising the origin of proceeds of crime through placement, layering and integration so that the funds appear to come from a legitimate source.

Allocating compliance and control resources in proportion to assessed risk, so that higher-risk customers and products receive more intensive scrutiny than lower-risk ones.

The amount and type of risk a bank is willing to accept in pursuit of its objectives, formally approved by the board and expressed in qualitative and quantitative limits.

A structured log recording identified risks, their likelihood and impact ratings, assigned owners, and the controls or actions in place to manage them.

A governance model in which business units own risk, an independent risk and compliance function oversees it, and internal audit provides assurance to the board.

Splitting incompatible tasks, such as initiating and approving a payment, between different people so that no single individual can complete a transaction or conceal an error alone.

A control in which one person prepares or enters a transaction and a second, independent person reviews and authorises it before it takes effect.

A requirement that two authorised individuals act together to complete a sensitive operation, such as opening a vault or releasing a large transfer.

An independent function that evaluates the adequacy and effectiveness of controls, processes and risk management, reporting its findings to the audit committee and senior management.

A loan on which the borrower has failed to make scheduled payments for a defined period, typically 90 days, or which shows other signs of likely non-repayment.

The ratio of a loan amount to the appraised value of the asset securing it, used to size exposure and set lending limits; higher ratios indicate greater credit risk.

An asset pledged by a borrower to secure a loan, which the lender may realise if the borrower defaults, reducing potential loss.

A condition written into a loan agreement requiring the borrower to meet specified financial or behavioural standards, such as maintaining a minimum ratio or providing regular statements.

The maximum amount a bank permits a customer to borrow or draw at any time under a facility, set according to assessed repayment capacity and risk.

The reduction in the carrying value of a loan or other asset when objective evidence shows the expected future cash flows are lower than previously recognised.

A scheme that protects depositors up to a specified limit if a bank fails, funded by premiums from member banks and often administered by a statutory authority.

An account with no customer-initiated activity for an extended period, subject to special controls, reactivation procedures and, in some regimes, transfer to a government fund.

A regulatory measure requiring a bank to hold enough high-quality liquid assets to cover net cash outflows over a 30-day stress period.

A documented commitment defining the level of service a branch or department will deliver, such as response times and resolution targets, with measures for tracking performance.

The documented process for receiving, recording, investigating and resolving customer complaints within set timeframes, with escalation and root-cause review.

A conduct principle requiring fair treatment of customers across product design, sales, servicing and complaints, with outcomes that are clear, suitable and properly disclosed.

The requirement to recommend or sell a product only where it matches the customer's needs, objectives, risk tolerance and financial circumstances, supported by documented evidence.

A quantifiable measure used to track progress toward a defined objective, such as sales volume, error rate or turnaround time, and to guide management action.

A structured periodic review of an employee's work against agreed objectives and competencies, used to give feedback, plan development and support pay or promotion decisions.

A development approach in which a manager gives targeted, timely feedback and guidance to help an employee improve specific skills and performance.

The process of identifying and developing employees who can fill key roles when they become vacant, reducing disruption and preserving institutional knowledge.

The risk of loss from inadequate or failed internal processes, people, systems or external events, including fraud, errors and business disruption.

Documented procedures that allow a branch or bank to maintain or restore critical operations during disruption, covering roles, backups, communications and recovery time objectives.

The technical and procedural arrangements for restoring IT systems and data after a failure or disaster, usually measured against a recovery time objective.

An access control requiring two independent forms of verification, such as a password plus a one-time code, before a user can enter a system or authorise a transaction.

A social-engineering attack in which a fraudster impersonates a trusted party by message or call to trick a person into revealing credentials or approving a payment.

Manipulating people into breaking normal security procedures by exploiting trust, urgency or authority, rather than attacking systems directly.

The global messaging network banks use to send authenticated payment instructions and other financial messages to one another, distinct from the settlement systems that move the funds.

A listing of items that fall outside normal parameters or expected values, such as failed controls, unmatched entries or unusual transactions, produced for management follow-up.