AHWG – EAG Ad Hoc Working Group for Development and Implementation of Operational Guidance.
AML – Anti-money laundering.
AML/CFT – Anti-money laundering/combating financing of terrorism.
AMLID – Anti Money Laundering International Database - a secure, multilingual database established by IMoLIN. AMLID is a compendium of anti-money laundering laws and regulations, including two general classes of money laundering control measures (domestic laws and international cooperation), as well as information about national contacts and authorities.
APG – Asia/Pacific Group on Combating Money Laundering - a FATF-style regional body for the Asia/Pacific region, which defines regional AML/CFT policy in accordance with 40 FATF Recommendations.
ARS – Alternative Remittance Systems - also referred as underground or parallel banking. It typically involves transfer of values between countries, outside the legitimate banking system and does not involve a physical movement of currency. ARS can be defined as transferring funds and sometimes gold through traditional "underground" banking networks by which trading companies accept money at one location and make it available in another. These systems are also known as Hawala, Hundi, Chiti Banking, chop-chop banking etc.
ASEAN – Association of South East Nations - a geo-political and economic organization of 10 countries located in Southeast Asia.
Beneficial owner – refers to the individual who ultimately owns or controls a customer and/or the person on whose behalf a transaction is being conducted. It also incorporates those persons who exercise ultimate effective control over a legal entity or arrangement.
Basle Principles – the Core Principles for Effective Banking Supervision issued by the Basle Committee on Banking Supervision in recognition of the vulnerability of the financial sector to misuse by criminals. First issued in 1988.
EAG – The Eurasian group on combating money laundering and financing of terrorism - a FATF-style regional body uniting Belarus, India, Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan, Turkmenistan and Uzbekistan. 16 states and 23 international and regional organizations have observer status within the EAG.
EBRD – European Bank for Reconstruction and Development - an international financial institution that supports projects in 29 countries from central Europe to central Asia.
ECOSOC - UN Economic and Social Council – ECOSOC was established under the United Nations Charter as the principal organ to coordinate economic, social, and related work of the 14 UN specialized agencies, functional commissions and five regional commissions.
Egmont Group of Financial Intelligence Units – a number of financial Intelligence units in 1995 that began working together in an informal organization known as Egmont group. Their agenda is to provide a platform for the FIUs to improve support to their respective national AML programs and liaison for the sharing of information.
EAEU – an international economic organization, whose activities are related to the formation of common external customs borders of its member countries (Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia), the development of a common foreign economic policy, tariffs, prices and other components of the functioning of the common market. It has a observer status in the EAG.
EU – European Union - an economic and political union committed to regional integration.
ESAAMLG – Eastern and Southern Africa Anti-Money Laundering Group - a FATF-style regional body consisting of 14 member states of Eastern and Southern Africa.
CDD – Customer Due Diligence – one of the measures to be taken by financial institutions and non-financial business and professions to prevent money laundering and terrorist financing, mentioned in recommendation 5 of the FATF 40 Recommendations: financial institutions should not keep anonymous accounts or accounts in obviously fictitious names.
CE – Council of Europe - one of the oldest international organisations working towards European integration. It has a particular emphasis on legal standards, human rights, democratic development, the rule of law and cultural co-operation.
CFATF – Caribbean Financial Action Task Force - an organisation of thirty states of the Caribbean Basin , which have agreed to implement common countermeasures to address the problem of criminal money laundering.
CND – Commission on Narcotic Drugs - the central drug policy-making body within the United Nations system. The Commission has important functions under the drug control treaties in force today. Most notably, it can amend the Schedules of controlled substances.
CTAG – Counter-Terrorist Action Group - The G8 formed the Counter-Terrorism Action Group (CTAG) in July 2003 under the French Presidency of the G8 as part of the G8 Action Plan: Building International Political Will and Capacity to Combat Terrorism adopted by Leaders at the Evian Summit.
CTC – Counter-Terrorism Committee - the CTC has been working to bolster the ability of United Nations Member States to prevent terrorist acts both within their borders and across regions. The CTC is assisted in its efforts by the Counter-Terrorism Committee Executive Directorate (CTED), which carries out the policy decisions of the Committee, conducts expert assessments of each Member State and facilitates counter-terrorism technical assistance to countries.
DNFBP – Designated non-financial businesses and professions - means:
- Casinos (which also includes internet casinos).
- Real estate agents.
- Dealers in precious metals.
- Dealers in precious stones.
- Lawyers, notaries, other independent legal professionals and accountants – this refers to sole practitioners, partners or employed professionals within professional firms. It is not meant to refer to "internal" professionals that are employees of other types of businesses, nor to professionals working for government agencies who may already be subject to measures that would combat money laundering.
FATF – Financial Action Task Force - The Financial Action Task Force (FATF) is an inter-governmental body whose purpose is the development and promotion of national and international policies to combat money laundering and terrorist financing. The FATF is therefore a 'policy-making body' that works to generate the necessary political will to bring about legislative and regulatory reforms in these areas. The FATF has published 40 Recommendations in order to meet this objective.
FATF Recommendations – 40 recommendations to combat ML and Terrorist Financing issued by FATF. These are the measures the FATF has agreed to implement and which all countries are encouraged to adopt.
FIU – Financial Intelligence Unit - a central agency formed/nominated to collect, analyze, disseminate and create/maintain database for suspicious transaction reports.
Follow-up reports – reports of member states of EAG on improvements in national AML/CFT regime, which were made following the recommendations developed by the results of mutual evaluation.
FT – Financing of terrorism.
FSAP – Financial Sector Assessment Programme - the International Monetary Fund and the World Bank launched the Financial Sector Assessment Program (FSAP) in 1999. The program helps countries identify vulnerabilities in their financial systems and determine needed reforms.
FSRB – FATF-Style Regional Body - the bodies whose which core task it is to combat money laundering and financing of terrorism in relevant regions, in particular by means of mutual evaluations of compliance national systems of their members with international AML/CFT standards (the FATF 40 Recommendations) and of conduct of research of money laundering and financing of terrorism trends and methods (typologies) that are specific to a relevant region.
GAFILAT – The Financial Action Task Force on Money Laundering in Latin America - the FATF Style Regional Body (FSRB) for South America. It was established in 2000 by representatives of the governments of its ten member countries. GAFILAT is an Associate Member of the FATF. The GAFILAT Secretariat is located in Argentina.
GIABA – Intergovernmental Action Group against Money-Laundering in West Africa - the FATF Style Regional Body for West Africa. GIABA was established by the Economic Community of West African States (ECOWAS) Authority of Heads of State and Government in December 1999.
GPML – The Global Programme against Money Laundering - the key instrument of the United Nations Office of Drug Control and Crime Prevention in combating money laundering. Through the GPML, the United Nations helps member states to introduce legislation against money laundering and to assist them in detecting, seizing and confiscating illicit proceeds, as required under UN related instruments and worldwide accepted standards by providing relevant and appropriate technical assistance upon request from States.
IMF – International Monetary Fund - the international organization that oversees the global financial system by following the macroeconomic policies of its member countries, in particular those with an impact on exchange rate and the balance of payments.
IMOLIN – International Money Laundering Information Network - an Internet-based network assisting governments, organizations and individuals in the fight against money laundering and the financing of terrorism. IMOLIN has been developed with the cooperation of the world's leading anti-money laundering organizations.
IOSCO – International Organisation of Securities Commissions - an international organization that brings together the regulators of the world’s securities and futures markets. Currently, IOSCO members regulate more than 90 percent of the world's securities markets.
KYC – Know your customer - the due diligence and bank regulation that financial institutions and other regulated companies must perform to identify their clients and ascertain relevant information pertinent to doing financial business with them.
MENAFATF – Middle East and North Africa Financial Action Task Force - the Middle East and North African Financial Action Task Force was formed at an inaugural ministerial meeting in Bahrain on November 30, 2004 attended by the governments of fourteen countries.
ML – Money Laundering.
MONEYVAL – Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism of the Council of Europe - the FATF Style Regional Body charged with evaluating the performance of Council of Europe member (and applicant) states, which are not members of the FATF. Members of MONEYVAL who subsequently become members of the FATF can elect to retain full membership of MONEYVAL.
MOLI-RU – Project Against Money Laundering implemented by the Council of Europe in the Russian Federation.
MSB – Money Services Business - non-bank financial institutions, currency dealers, exchange companies and travelers cheque issuers.
Mutual evaluations – a process of mutual evaluations of national AML/CFT systems for compliance with FATF standards on the basis of the FATF Methodology. Evaluations are mutual in that representatives of all member states of FATF-style regional bodies evaluate other member states in turn in accordance with the evaluation schedule.
Mutual evaluation reports – one of the vital elements in carrying out mutual evaluations process and in taking further steps (on the basis of mutual evaluations results) aimed at bringing national AML/CFT systems in conformity with international standards.
Mutual legal assistance – cooperation between two countries for the purpose of gathering and exchanging information in an effort to enforce public laws or criminal laws. This assistance may take the form of examining and identifying people, places and things, custodial transfers, and providing assistance with the immobilization of the instruments of criminal activity.
NCCT – Non-cooperative Countries & Territories - countries which FATF perceives to be non-cooperative in the global fight against money laundering and terrorist financing.
OGBS – Offshore Group of Banking Supervisors - the objects of the Group are to cooperate with relevant international organizations in setting and promoting the implementation of international standards for cross-border banking supervision, and for combating money laundering and terrorist financing; to encourage members to apply high standards of supervision based on internationally accepted principles; to conduct mutual evaluations; to participate in the work of FATF and other international organizations to improve international standards on combating money laundering and financing of terrorism; to continue an active work on implementation of FATF Recommendations and other relevant international standards.
OECD – Organization for Economic Cooperation and Development - OECD brings together the governments of countries committed to democracy and the market economy from around the world.
Palermo Convention – a UN Convention against Transnational Organized Crime, 2000.
PEP – Political exposed persons - individuals who are or have been entrusted with prominent public functions in a foreign country, for example Heads of State or of government, senior politicians, senior government, judicial or military officials, senior executives of state owned corporations, important political party officials.
Predicate Offences Crimes – crimes underlying money laundering or terrorist financing activity, may include drug trafficking, gambling and prostitution rings, arms trade, smuggling, and even embezzlement, insider trading, bribery etc.
Red Flag – a warning signal on potentially suspicious or money laundering situation raises a Red Flag.
SCO – Shanghai Cooperation Organization - an intergovernmental mutual-security organisation which was founded in 2001 in Shanghai by the leaders of China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan. Its main objectives are to provide safety and stability, to fight terrorism, separatism, extremism and drug traffic, and to develop economic cooperation as well as scientific and cultural exchange between member states.
STR – Suspicious Transactions Report – report on any transactions that involve potential money laundering.
Supervisors – refers to the designated competent authorities responsible for ensuring compliance by financial institutions with requirements to combat money laundering and terrorist financing.
Tax Haven Countries – countries offering special tax incentives/avoidance to foreign investors and depositors.
The FATF Recommendations – provide a complete set of counter-measures against money laundering (ML) covering the criminal justice system and law enforcement, the financial system and its regulation, and international co-operation.
The Risk-Based Approach (RBA) – risk management process for dealing with money laundering and terrorist financing. This process encompasses recognizing the existence of the risk(s), undertaking an assessment of the risk(s) and developing strategies to manage and mitigate the identified risks.
The Wolfsberg Group – an association of twelve global banks, which aims to develop financial services industry standards, and related products, for Know Your Customer, Anti-Money Laundering and Counter Terrorist Financing policies. The Wolfsberg Anti-Money Laundering Principles are recommended as effective anti-money laundering procedures for private banking.
Typology – a term used by FATF and FSRBs to refer to money laundering and terrorist financing methods and techniques.
UN – United Nations - an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and the achieving of world peace. The UN was founded in 1945 after World War II to replace the League of Nations, to stop wars between countries, and to provide a platform for dialogue. It contains multiple subsidiary organizations to carry out its missions.
UNDCP – United Nations Drug Control Programme.
UNGA – United Nations General Assembly - one of the five principal organs of the United Nations and the only one in which all member nations have equal representation. Its powers are to oversee the budget of the United Nations, appoint the non-permanent members to the Security Council, receive reports from other parts of the United Nations and make recommendations in the form of General Assembly Resolutions.
UNODC – United Nations Office on Drugs and Crime - a United Nations agency that was established in 1997 as the Office for Drug Control and Crime Prevention by combining the United Nations International Drug Control Programme (UNDCP) and the Crime Prevention and Criminal Justice Division in the United Nations Office at Vienna. It was renamed the United Nations Office on Drugs and Crime in 2002.
UNSC – United Nations Security Council - one of the principal organs of the United Nations charged with the maintenance of international peace and security. Its powers, outlined in the United Nations Charter, include the establishment of peacekeeping operations, the establishment of international sanctions, and the authorization of military action. Its powers are exercised through United Nations Security Council Resolutions.
Vienna convention – UN Convention against the Illicit Traffic in Narcotic Drugs and Psychotropic Substances, 1988.
WB – World Bank – an international financial institution that provides leveraged loans to developing countries for capital programs. The World Bank has a stated goal of reducing poverty.
WGEL – EAG Working group on mutual evaluations and legal issues.
WGTA – EAG Working group on technical assistance.
WGTYP – EAG Working group on typologies and Combating Financing of Terrorism and Crime.