Compliance Glossary

Chain of Custody is a regulatory and legal standard that documents the chronological sequence of custody, control, transfer, and handling ...

Champion Challenger is a model validation methodology where the currently deployed predictive model (the champion) runs in parallel against ...

A chargeback is a payment reversal that a card issuer initiates to return funds to a cardholder after a disputed transaction, withdrawing ...

Chargeback rate is a payment fraud metric that measures the proportion of transactions reversed by cardholders through their issuing bank, ...

Compliance and AML Officer, abbreviated CAMLO, is a senior executive position at a regulated financial institution responsible for ...

Concentration risk is a risk-management concept that describes the exposure a financial institution faces when too much of its activity, ...

Configurable autonomy is an AI-governance design principle that lets operators set precise limits on how much authority an AI system can ...

A confusion matrix is a performance evaluation table for classification models that summarizes counts of true positives, true negatives, ...

Control Environment is a governance and risk concept that defines the organizational tone, structures, and processes establishing the ...

Correspondent banking is a bank-to-bank arrangement in which one institution (the correspondent) provides payment, settlement, or account ...

Counter-Financing of Terrorism (CFT) is a regulatory and compliance framework that requires financial institutions to detect, prevent, and ...

A critical business service is a service that a financial firm delivers to external customers which, if disrupted, could cause intolerable ...

Cryptocurrency laundering is a money laundering method that uses digital assets like Bitcoin to disguise the origin of criminal proceeds, ...

A cryptocurrency mixer is a service that pools and scrambles digital assets from many users, then redistributes equivalent amounts to break ...

CSAM Detection is a fraud and financial crime compliance process that identifies payment transactions and account activity connected to ...

Cuckoo smurfing is an AML typology in which criminals deposit illicit cash into the bank accounts of people expecting legitimate ...

A Currency Transaction Report (CTR) is a mandatory AML filing that U.S. financial institutions must submit to FinCEN whenever a customer ...

A custodial wallet is a cryptocurrency wallet in which a third-party service provider holds and controls the private keys on behalf of the ...

Customer Due Diligence (CDD) is a KYC process that financial institutions use to verify customer identities, assess the risk each customer ...

Customer Risk Rating (CRR) is a KYC classification that assigns each customer a quantified risk level, typically low, medium, or high, to ...