Compliance Glossary

Residual risk is a risk management concept that quantifies the level of exposure remaining after an organization's controls and mitigation ...

A respondent bank is a financial institution that receives banking services, including cross-border payment clearing and foreign currency ...

Restricted Party Screening (RPS) is a compliance process that checks individuals, entities, vessels, and aircraft against ...

Right to Erasure is a data privacy right, established under Article 17 of the General Data Protection Regulation (GDPR), that entitles ...

Risk appetite is a risk governance concept that defines the aggregate level and types of risk an organization is willing to accept in ...

Risk-Based Approach (RBA) is an AML/CFT compliance framework that requires financial institutions to identify, assess, and address money ...

ROC AUC (Receiver Operating Characteristic Area Under the Curve) is a model performance metric that measures a binary classifier's ability ...

Romance scam is a fraud type in which criminals fabricate online romantic relationships with targets, then use the emotional bond to ...

Round-tripping is an anti-money laundering typology in which funds are moved out of a jurisdiction, routed through offshore intermediaries ...

Sanctions evasion is a financial crime in which a designated individual, entity, or state deliberately circumvents legally imposed ...

A sanctions list is a government- or intergovernmental-published register of designated individuals, entities, and jurisdictions that ...

Sanctions screening is a compliance process in which financial institutions check customers, transactions, and counterparties against ...

SAR Narrative is a required written component of a Suspicious Activity Report that describes, in plain language, the suspicious activity ...

The Sarbanes-Oxley Act (SOX) is a United States federal law that establishes mandatory standards for financial reporting accuracy, ...

Secondary sanctions is a sanctions enforcement mechanism by which a government, most often the United States, penalizes foreign persons or ...

Sectoral Sanctions is a type of economic sanctions measure that restricts specific categories of financial or commercial transactions with ...

SHAP (SHapley Additive exPlanations) is a game-theory-based method for explaining machine learning model outputs by assigning each input ...

A shell bank is a financial institution that has no physical presence in the jurisdiction where it is incorporated or licensed and is not ...

A shell company is a legal entity that exists on paper, conducts no meaningful business operations, holds no significant assets, and is ...

Simplified Due Diligence (SDD) is a KYC procedure that applies reduced customer identification and ongoing monitoring requirements to ...