Keep Money Laundering and Fraud out - TONBELLER® AG

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Whitepaper | Keep Money Laundering and Fraud out - Know your Customer (KYC) Beneficial Owner The natural person(s) 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 person or arrangement. Business Rule A Business rule usually is a statement that defines or constrains some aspect of the business. TONBELLER uses this term for the rules and policies that can be stored within the system. When carefully managed, this business rules can help the organization to e.g. better comply with legal requirements, reduce costly mistakes and improve communication. CDD Customer Due Diligence: Supervisors around the world are increasingly recognising the importance of ensuring that their banks have adequate controls and procedures in place so that they know the customers with whom they are dealing. Adequate due diligence on new and existing customers is a key part of these controls. Without this due diligence, banks can become subject to reputational, operational, legal and concentration risks, which can result in significant financial cost. CIP Customer Identification Program: According to provisions of the USA Patriot Act, all financial institutions must verify the identity of individuals wishing to conduct financial transactions. The law was implemented by regulations in 2003 which require financial institutions to develop a Customer Identification Program (CIP) appropriate to the size and type of its business. The CIP must be incorporated into the bank's Bank Secrecy Act/Anti-money laundering compliance program, which is subject to approval by the financial institution's board of directors. Code of Conduct A code of conduct is a set of rules outlining the responsibilities of or proper practices for an individual or organization. CTF Counter Terrorism Financing: CFT includes the combating of terrorist acts, and of terrorists and terrorist organisations. Dual Control See 4-eyes principle ECDD Enhanced Customer Due Diligence: High-risk customer (like PEPs) must always be subject to the enhanced due diligence measures, and thus all companies are required to have risk-sensitive measures in place to recognize and monitor high-risk customers. False Positive When a customer is incorrectly flagged as suspicious during the AML/CTF monitoring. 5-38
Whitepaper | Keep Money Laundering and Fraud out - Know your Customer (KYC) Fuzzy Search A computer search that returns not only exact matches to the search request, but also close matches that include text sequences that have been altered but also abbreviations, substitutions, modified writing patterns, deletions, acronyms or foreign translations. HMT HM Treasury, in full Her Majesty's Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the British government's public finance policy and economic policy. Identify Documents An identity document (also called a piece of identification or ID) is any document which may be used to verify aspects of a person's personal identity. KYC KYC is typically a policy implemented to conform to a customer identification program mandated under the Bank Secrecy Act, USA PATRIOT Act and 3 rd EU Directive. Know your customer policies are becoming increasingly important globally to prevent identity theft fraud, money laundering and terrorist financing. Legal Person Bodies corporate, foundations, partnerships, or associations, or any similar bodies that can establish a permanent customer relationship with a financial institution or otherwise own property. Natural Person In jurisprudence, a natural person is a human being, as opposed to an artificial, legal or juristic person, i.e., an organization that the law treats for some purposes as if it were a person distinct from its members or owner. OFAC The Office of Foreign Assets Control (OFAC) is an agency of the United States Department of the Treasury under the auspices of the Under Secretary of the Treasury for Terrorism and Financial Intelligence. OFAC administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals against targeted foreign states, organizations, and individuals. PEP Politically 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. Business relationships with family members or close associates of PEPs involve reputational risks similar to those with PEPs themselves. The definition is not intended to cover middle ranking or more junior individuals in the foregoing categories. Risk Assessment Risk assessment is a step in a risk management procedure. Risk assessment is the determination of quantitative or qualitative value of risk related to a concrete situation and a recognized threat. 5-39
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Page 17 and 18: 2.2.1 Customer Acceptance Whitepape
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Keep Money Laundering and Fraud out - TONBELLER® AG

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