Use the alphabetic strip below to view sections of this glossary.
In relation to money laundering legislation, criminal property is what represents a persons benefit from criminal conduct. It includes all property, real or personal, and includes money and rights to land and other assets.
Counter Terrorist Funding Practices
Failure to Report
To know that an offence of Money Laundering or Terrorist Financing has taken place and your suspicion has not been reported. This is a serious offence.
The Financial Action Task Force on Money Laundering (FATF), also known by the French name Groupe d'action financière sur le blanchiment de capitaux (GAFI), is an inter-governmental body founded in 1989 by the G7. The purpose of the FATF is to develop policies to combat money laundering and terrorist financing.
When someone uses another persons identity to commit a fraud.
The third and final stage of the money laundering process. This involves the criminal removing money from the financial system and using the now ‘clean’ money for everyday consumption.
Know Your Customer (KYC)
Know your customer, otherwise known as ‘customer due diligence’, refers to a set of practices that companies regulated by the UK’s Money Laundering Regulations must apply. The key obligations it involves are to verify the identities of customers and certain beneficial owners, obtain additional information about customers’ sources of wealth, their occupations etc., and to monitor customer financial activity.
The second stage of the money laundering process. This usually involves the criminal engaging in a number of financial transactions to complicate the audit trail.
The illegal process through which criminals seek to disguise the proceeds of crime. The process has three stages: Placement, Layering and Integration.
Money Laundering Reporting Officer (MLRO)
Also known as the ‘nominated officer’, this is an employee of appropriate authority and competence who is appointed by the company to receive, vet and communicate confidential reports of known or suspicious money laundering and terrorist financing activities to the authorities.
The first stage of the money laundering process, referring to the criminal depositing or investing the financial proceeds of crime into a bank, business or other asset.
Politically Exposed Person(s) (PEPs)
PEPs are individuals who have, or have had, a high political profile or public appointment and who are now deemed to pose a higher money laundering risk to financial companies because their position makes them vulnerable to corruption.
Suspicious Activity Report (SAR)
Suspicious Activity Report is the document required by the MLRO. This must be completed and submitted when suspicious activity has taken place.
Terrorist Financing (TF)
In UK law, this refers to ‘the provision or collection of funds, by any means, directly or indirectly, with the intention that they should be used or in the knowledge that they to be used, in full or in part, in order to carry out’ terrorist acts – as defined in law.
The criminal offence of hinting or leaking information to the person under suspicion or to a third party who could disrupt an investigation.