Glossary

Anti-Financial Crime (AFC) covers strategies and regulations to prevent and respond to money laundering, fraud, bribery, tax evasion, and other financial crimes, protecting institutions and the broader economy.

Anti-Money Laundering (AML) refers to laws, regulations, and practices that prevent criminals from disguising illegal funds as legitimate income, protecting financial systems from misuse.

The Anti-Money Laundering Directive (AMLD) sets rules for all financial institutions in the EU to prevent money laundering and terrorist financing through checks, monitoring, and reporting.

A Bank Identifier Code (BIC) is a code that identifies banks in international payments. Managed by SWIFT, BICs ensure money and messages reach the correct institution securely and efficiently.

The Bank Recovery and Resolution Directive (BRRD) is the European Union’s framework for handling failing banks while safeguarding financial…

The Capital Requirements Directive (CRD) is the EU’s rulebook for banks and investment firms. It defines capital and risk standards to ensure financial stability and protect the banking system from crises.

An IBAN (International Bank Account Number) is a standardized, alphanumeric identifier used to route international payments accurately. It includes a country code, check digits, a bank account number (BBAN), and sometimes national check digits.

KYC and KYB are legal requirements that verify individuals and companies before financial transactions. They help prevent fraud, money laundering, and other financial crimes while boosting compliance and customer trust.

PSD2, the EU’s second Payment Services Directive, modernizes digital finance by enabling open banking, enhancing data security, and introducing strong customer authentication. It expands innovation, and consumer protection across the EU payments industry.

A Politically Exposed Person (PEP) is someone in a prominent public position whose influence could be misused for financial gain. Financial institutions must apply stricter AML checks, monitor transactions, and ensure transparency when dealing with PEPs.

A SWIFT code, short for Society for Worldwide Interbank Financial Telecommunication, identifies banks in global payments. Like a postcode for money transfers, it ensures funds reach the right institution, making international transactions fast and secure.