Supervision Department - AML/CFT Training
Definitions GlosSTRy
2
Counter-Terrorism Committee (CTC)
A United Nations Committee established in 2001 pursuant to Security Council Resolution 1373 (2001).
Concerning counter- terrorism, the CTC consists of all 15 Security Council members. The committee
monitors the implementation of UN Security Council Resolution 1373, and aims to increase the capacity of
member states to fight terrorism financing.
Credit Cards
A plastic card with a credit limit used to purchase goods and services and to obtain cash advances on credit.
The cardholder is subsequently billed by the issuer for repayment of the credit extended. Credit cards may
be used to launder money when payments of the amounts owed on the card are made with criminal money.
Credit Finance
The use of credit to buy expensive items, and the subsequent payment of the borrowed credit with criminal
funds. The criminal borrows funds to purchase a high value asset, such as a yacht, pays off the loan
promptly with cash from illegal proceeds, sells the boat and starts all over again. By paying the credit loans
off with illicit money, money launderers can use credit to finance criminal activity.
Criminal Proceeds
Any property derived from or obtained, directly or indirectly, through the commission of a crime.
Cross Border
Used in the context of activities that involve at least two countries, such as wiring money from one country
to another or taking currency across a border.
Cross-Border Transfer
Any wire transfer in which the originator and beneficiary institutions are located in different jurisdictions. A
cross-border transfer also refers to any chain of wire transfers that has at least one cross-border element.
Cuckoo Smurfing
A form of money laundering linked to alternative remittance systems in which criminal funds are
transferred through the accounts of unwitting persons who are expecting genuine funds or payments from
overseas. The term cuckoo smurfing first originated in investigations in the U.K., where it is a significant
money laundering technique.
Currency
Banknotes and coins that are in circulation as a medium of exchange.
Currency Smuggling
The illicit movement of large quantities of cash across borders, often into countries with strict banking
secrecy, poor exchange controls or poor anti-money laundering legislation.
Supervision Department - AML/CFT Training
Definitions GlosSTRy
2
Currency Transaction Report (CTR)
A report that documents a currency transaction that exceeds a certain monetary threshold. A CTR can also
be filed on multiple currency transactions that occur in one day that add up to or are greater than the
required reporting amount. In some countries, including the U.S., currency transaction reports must be filed
with government authorities under specific circumstances.
Custodian
A bank, financial institution or other entity that is responsible for managing or administering or safekeeping
assets for other persons or institutions. Typically, custodians are not active, aggressive managers of the
assets in question, but, instead, serve to passively conserve them.
Custody
The act or authority of safeguarding and administration of clients‘ investments or assets.
Customer Due Diligence (CDD)
In terms of money laundering controls, it means implementing adequate policies, practices and procedures
that promote high ethical and professional standards for dealing with customers and are designed to prevent
banks from being used, intentionally or unintentionally, by criminal elements. Customer due diligence
includes not only establishing the identity of customers, but also monitoring account activity to identify
those transactions that do not conform with the normal or expected transactions for that customer or type of
account.
Customer Identification Program (CIP)
The policies and procedures of an institution that aim to identify and verify the identity of its customers. In
general, the program must be in writing, have senior board approval and include procedures for customer
notification.
Customer Information Order
Requires all financial institutions—or a targeted sample of banks and other financial institutions—to
provide the details of any accounts held by the person under investigation, thus enabling an investigator to
find out where the suspect‘s accounts are held.
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Supervision Department - AML/CFT Training
Definitions GlosSTRy
2
Debit Card
A card issued by a financial institution that permits an account- holder to draw funds from a pre-existing
account in his or her name for the purpose of paying obligations or for making purchases in other locations
or businesses. Debit cards have been found to be convenient tools to launder criminal proceeds, especially if
they are issued by financial institutions in secrecy havens because they leave few, if any, traces of the
debited sources of funds.
Debit Transaction
A transaction that involves the use of a bankcard to purchase goods and services or to obtain cash. The
transaction automatically debits the cardholder‘s deposit account.
Designated Categories of Offense
In its 40 Recommendations of 2003, FATF issued for the first time a list of ―designated categories of
offense‖ that enumerates crimes that may lead to money laundering prosecutions. Each country may decide
how it will define those offenses and their elements. Many nations do not specify which crimes can serve as
predicates for laundering prosecutions and merely state that all serious felonies may be predicates. Others,
such as the U.S., specify long lists of crimes that must be present in order for a money laundering
prosecution to proceed. Under the FATF definition, the designated categories are:
- Participation in an organized criminal group and racketeering;
- Terrorism, including terrorist financing;
- Trafficking in human beings and migrant smuggling;
- Sexual exploitation, including sexual exploitation of children;
- Illicit trafficking in narcotic drugs and psychotropic substances;
- Illicit arms trafficking;
- Illicit trafficking in stolen and other goods;
- Corruption and bribery;
- Fraud;
- Counterfeiting currency;
- Counterfeiting and piracy of products;
- Environmental crime;
- Murder, grievous bodily injury;
- Kidnapping, illegal restraint, and hostage-taking;
- Robbery or theft;
- Smuggling;
- Extortion;
- Forgery;
- Piracy; and
- Insider trading and market manipulation.
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