Compliance Glossary

Identity Verification (IDV) is a compliance process that confirms a person's claimed identity against authoritative documents and data ...

Illegal Wildlife Trade (IWT) is a predicate AML offense that involves the poaching, smuggling, and commercial sale of protected species and ...

Impact tolerance is an operational resilience concept that sets the maximum level of disruption a firm can absorb to a critical business ...

Incident Management is an operational process that identifies, classifies, responds to, and resolves disruptive events affecting business ...

An Informal Value Transfer System (IVTS) is a money-transfer mechanism that moves value between parties across borders without using formal ...

Inherent risk is a risk management measure that quantifies the financial crime exposure present in a business activity, customer segment, ...

Integration is a money laundering stage in which criminal proceeds, already obscured through layering, re-enter the legitimate economy as ...

An interchange fee is a payments charge that the merchant's bank (the acquirer) pays to the cardholder's bank (the issuer) on every card ...

The Internal Capital Adequacy Assessment Process (ICAAP) is a risk management process that requires banks to identify, measure, and hold ...

Internal Controls Over Financial Reporting (ICFR) is a regulatory framework of processes and procedures that gives reasonable assurance ...

The Internal Liquidity Adequacy Assessment Process (ILAAP) is a supervisory risk framework that requires banks to identify, measure, and ...

Investment scam is a fraud category in which criminals deceive victims into transferring funds to fictitious or manipulated investment ...

ISO/IEC 27001 is an international standard that specifies the requirements for establishing, implementing, maintaining, and continually ...

ISO 31000 is an international standard published by the International Organization for Standardization that provides principles, a ...

ISO 37301 is an international standard published by the International Organization for Standardization that specifies requirements and ...

An issuer bank is a payments institution that issues credit or debit cards to consumers and businesses, approves or declines their ...

A kill switch is an AI-governance control that immediately halts or suspends an automated system's decision-making authority when an ...

Know Your Business (KYB) is a regulatory due diligence process that requires financial institutions to verify the legal identity, ownership ...

Know Your Customer (KYC) is a regulatory process that obligates financial institutions to verify client identity, assess the risk each ...

Layering is the second stage of money laundering in which illicit funds are moved through a complex series of financial transactions to ...