Reference
Quick reference for KYB, AML, and compliance terminology.
50 terms
A
Adverse media
Monitoring negative news and its impact on verification decisions.
AMLAnti-Money Laundering
Regulatory framework and compliance programs.
AMLDAnti-Money Laundering Directive
EU directives shaping KYB requirements.
Auto-verification
Instant business verification through automated data checks.
B
Beneficial ownership
The distinction between beneficial and legal ownership in KYB.
BOIBeneficial Ownership Information
Corporate Transparency Act reporting requirements.
BSABank Secrecy Act
The US anti-money laundering reporting framework.
Business graph
Interconnected entity modelling for relationships.
Business identity
Brand, legal entity, and location dimensions.
Business registry
Cross-jurisdictional verification sources.
C
CBDDQCorrespondent Banking Due Diligence Questionnaire
The Wolfsberg standard questionnaire for correspondent relationships.
CDDCustomer Due Diligence
FinCEN's four pillars for verification.
CFTCombating the Financing of Terrorism
The complement to AML programs.
CIPCustomer Identification Program
The foundation of identity verification.
Correspondent banking
AML risks and due diligence requirements.
CTACorporate Transparency Act
Beneficial ownership reporting to FinCEN.
CTRCurrency Transaction Report
Mandatory reporting of large cash transactions.
D
Data enrichment
Adding verified attributes to a record you already hold.
E
EDDEnhanced Due Diligence
Deeper verification for higher-risk relationships.
Entity resolution
Deciding which records describe the same business.
Entity verification
Confirming a business exists and is what it claims.
F
FATFFinancial Action Task Force
The intergovernmental standard-setter for AML/CFT.
FinCENFinancial Crimes Enforcement Network
The US financial intelligence unit.
Formation agent
A service that incorporates companies on behalf of others.
G
Ground truth
Evidence a business cannot self-report.
K
KYBKnow Your Business
Verifying a business customer and the people behind it.
KYCKnow Your Customer
Verifying an individual customer's identity.
L
Legal entity
The registered company itself, as filed.
M
Manual review
A human decision on an application that did not clear automatically.
Micro-business
The smallest operating businesses, often sole-operated.
Money laundering
Moving criminal proceeds into the legitimate economy.
O
OFACOffice of Foreign Assets Control
The US sanctions administrator.
Ongoing monitoring
Verification treated as continuous rather than one-off.
Operating location
Where a business actually trades.
Operating status
Whether a business is currently trading.
P
PEPPolitically Exposed Person
An individual in a prominent public function, and their close associates.
R
Registered agent
The party designated to receive legal service for an entity.
Reporting company
An entity required to file beneficial ownership under the CTA.
Risk-based approach
Matching the depth of diligence to the level of risk.
S
Sanctions screening
Checking parties against restricted-party lists.
SARSuspicious Activity Report
A confidential report of suspected illicit activity.
SDDSimplified Due Diligence
Reduced measures where risk is demonstrably low.
SDNSpecially Designated Nationals
OFAC's principal blocked-persons list.
Secretary of State
The US state office holding corporate registrations.
Shell company
A registered entity with no genuine operations.
Sole proprietor
A business that is legally the same person as its owner.
STPStraight-Through Processing
An application completed with no human touch.
T
Trade nameDBA — doing business as
The name a business trades under, not its registered name.
U
UBOUltimate Beneficial Owner
The natural person at the end of an ownership chain.
W
Watchlist screening
Matching parties against sanctions, PEP and enforcement lists.