Compliance Glossary

Strong Customer Authentication (SCA) is a payments security requirement that verifies a payer's identity using at least two independent ...

Structuring is an anti-money laundering offense in which a person deliberately breaks financial transactions into smaller amounts to avoid ...

A Suspicious Activity Report (SAR) is a regulatory disclosure document that financial institutions file with their national financial ...

A Suspicious Transaction Report (STR) is a mandatory regulatory filing that financial institutions submit to their jurisdiction's financial ...

Tabletop exercise is a discussion-based preparedness activity in which key organizational stakeholders walk through a predefined crisis ...

Tax evasion is an illegal act in which an individual or entity deliberately misrepresents or conceals income, assets, or financial ...

Third-party fraud is a category of financial crime in which a perpetrator uses a real person's identity, account credentials, or financial ...

Third-Party Risk Management (TPRM) is a governance discipline that identifies, assesses, and controls the risks a financial institution ...

Three Lines of Defense is a risk governance framework that divides accountability for risk management into three distinct organizational ...

Threshold tuning is an AI-governance practice that adjusts the decision cutoffs in detection models and rule-based systems to control the ...

Tokenization is a data-protection method that replaces sensitive data, such as a card number or account identifier, with a non-sensitive ...

Transaction monitoring is an AML compliance process that automatically reviews customer transactions against behavioral baselines and known ...

The Travel Rule is an anti-money laundering requirement that obligates financial institutions and virtual asset service providers to pass ...

True Positive is a detection outcome in AML monitoring where a system-generated alert is confirmed, after analyst investigation, to reflect ...

A typology is a documented pattern of behavior that describes how criminals move, hide, or disguise illicit funds through the financial ...

UBO disclosure is a regulatory requirement that obliges companies and financial institutions to identify and report the natural persons who ...

Ultimate Beneficial Owner (UBO) is a natural person who ultimately owns or controls a legal entity through direct or indirect shareholding, ...

Underground banking is an informal money transfer system that moves funds between parties outside licensed banking channels, relying on ...

An unhosted wallet is a cryptocurrency wallet in which the user holds the private keys directly, with no financial institution or service ...

Unified Payments Interface (UPI) is a real-time payment system that lets users move money instantly between bank accounts through a mobile ...