Ethics and Professionalism in Banking Compliance
Expert-defined terms from the Certificate in Anti-Money Laundering and Compliance in Banking (United Kingdom) course at HealthCareStudies (An LSPM brand). Free to read, free to share, paired with a globally recognised certification pathway.
Anti #
Money Laundering (AML)
Anti #
Money Laundering (AML) refers to the laws, regulations, and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income. AML measures aim to detect and deter money laundering activities in the financial sector.
Bank Secrecy Act (BSA) #
Bank Secrecy Act (BSA)
The Bank Secrecy Act (BSA) is a U #
S. law requiring financial institutions to assist government agencies in preventing money laundering. It mandates the reporting of cash transactions over $10,000 and suspicious activities to the authorities.
Compliance Officer #
Compliance Officer
A Compliance Officer is an individual responsible for ensuring that a company co… #
In the context of banking compliance, Compliance Officers oversee adherence to AML regulations and other requirements.
Customer Due Diligence (CDD) #
Customer Due Diligence (CDD)
Customer Due Diligence (CDD) is a process that financial institutions must perfo… #
CDD involves collecting information about customers to establish a risk profile.
Enhanced Due Diligence (EDD) #
Enhanced Due Diligence (EDD)
Enhanced Due Diligence (EDD) refers to a more comprehensive level of scrutiny ap… #
EDD involves obtaining additional information to understand the nature of the customer's transactions.
Financial Action Task Force (FATF) #
Financial Action Task Force (FATF)
The Financial Action Task Force (FATF) is an intergovernmental organization that… #
The FATF provides guidance and promotes effective implementation of AML measures worldwide.
Know Your Customer (KYC) #
Know Your Customer (KYC)
Know Your Customer (KYC) is a process through which financial institutions verif… #
KYC involves collecting information about customers' identity, occupation, and financial activities.
Money Laundering #
Money Laundering
Money Laundering is the process of disguising the origins of illegally obtained… #
Criminals engage in money laundering to avoid detection and prosecution for their illicit activities.
Suspicious Activity Report (SAR) #
Suspicious Activity Report (SAR)
A Suspicious Activity Report (SAR) is a document that financial institutions mus… #
SARs help law enforcement agencies investigate potential financial crimes.
Terrorist Financing #
Terrorist Financing
Terrorist Financing refers to the financial support provided to terrorist organi… #
Financial institutions must implement measures to detect and prevent terrorist financing as part of their AML compliance efforts.
Code of Ethics #
Code of Ethics
A Code of Ethics is a set of principles and values that guide the behavior and d… #
In banking compliance, employees are expected to adhere to a Code of Ethics that promotes integrity, honesty, and ethical conduct in their professional roles.
Conflicts of Interest #
Conflicts of Interest
Conflicts of Interest arise when an individual's personal interests or relations… #
In banking compliance, employees must avoid conflicts of interest that could compromise their judgment or decision-making processes.
Due Diligence #
Due Diligence
Due Diligence is the process of investigating and assessing the risks associated… #
In the context of banking compliance, Due Diligence involves verifying the identity of customers, assessing their risk profile, and monitoring their activities for signs of money laundering or other illegal behaviors.
Ethics #
Ethics
Ethics refers to the principles and values that govern individuals' behavior and… #
In banking compliance, Ethics are essential for promoting honesty, integrity, and professionalism in all aspects of the financial industry.
Professionalism #
Professionalism
Professionalism encompasses the behaviors, attitudes, and conduct expected of in… #
In banking compliance, professionalism involves maintaining a high standard of ethical conduct, integrity, and accountability while performing job duties.
Regulatory Compliance #
Regulatory Compliance
Regulatory Compliance refers to the adherence to laws, regulations, and industry… #
In banking compliance, regulatory compliance involves ensuring that financial institutions comply with AML regulations, customer protection laws, and other requirements to prevent financial crimes.
Whistleblowing #
Whistleblowing
Whistleblowing is the act of reporting illegal or unethical behavior within an o… #
In banking compliance, whistleblowing plays a crucial role in uncovering potential money laundering activities, fraud, or other violations of AML regulations.