Key concepts

Core Concepts & Terminology

This section provides an overview of some of the core concepts and terminology used in fraud and AML monitoring.

• Fraud Prevention involves a set of activities and processes established by a company to prevent the risk and cost of Fraud.
• Fraud Verification involves a set of checks performed during the onboarding of a customer to both prevent and detect fraud. It can address a variety of Fraud issues, such as Identity theft, stolen and fraudulent credit card transactions or Account takeovers.
• Fraud Monitoring works by continuously monitoring financial transactions and activities to detect and mitigate the risk of fraud attacks impacting financial institutions and their customers. Failure of addressing Fraud trends generally results in direct financial loss and reputational impacts.
• AML Transaction monitoring is the process of monitoring a customer’s transactions such as transfers, deposits and withdrawals to help you identify suspicious behavior which could indicate money laundering or other financial crime activities.
  AML Transaction Monitoring is governed by regulations specific for each country (for example, Austrac for Australia) and identified suspicious behaviors have to be submitted to the regulator. Failure to have an AML Program in place and detection of criminal activities may result in a fine issued by the regulator.
• AML Name Screening consists of checking your customer’s personal details against known watchlists (i.e. PEP, Sanctions) and Adverse Media to understand the exposure of that customer. This check is performed initially at onboarding and can be subsequently performed periodically based on your internal policies.