AML is regulations and procedures put in place by lawmakers to prevent criminals from disguising illegally obtained capital as legitimate funds. Sometimes referred to as CFT or Countering the Financing of Terrorism or Combating the Financing of Terrorism.
Authentication is an integral part of verification. Whether an individual, business or asset needs to be verified for the like of compliance, authentication is required by a third party or computer system to verify the identity.
Biometrics are related to individual human characteristics such as fingerprint, palm veins, facial recognition, iris recognition, etc. Biometrics authentication can be used as a method of identification and access control.
A blockchain is an extending list of cryptographically signed, permanent transactional records shared by all participants in a network, otherwise known as distributed ledger technology (DLT). Each record contains a timestamp and reference links to previous transactions without the ability to edit or delete the data.
Blockchain governance refers to a set of rules or parameters that each stakeholder involved within a blockchain network has to abide by.
The CFATF describes themselves as an organization made up of 25 states and territories within The Caribbean, which have agreed to implement standard countermeasures against money laundering and terrorism financing.
Combating the Financing of Terrorism (CFT) includes investigating, examining, deterring, and preventing funding sources for actions intended to achieve political, religious, or ideological goals.
Compliance is a state of a being for an individual, business or asset or a process of meeting specific standards or rules that abide by domestic and international regulatory bodies.
CSP is an entity that conducts company management processes, typically for international clients looking for assistance into new jurisdictions to abide by local regulations.
CDD is the process where relevant information about the customer is collected and evaluated for any potential risk for the organization or money laundering/terrorist financing activities.
Data Room is utilized to assist with due diligence, corporate governance, regulatory compliance, and other areas where substantial amounts of documents need to be securely shared.
A digital asset is a digital representation of value from an existing asset (tangible or intangible) distributed through a blockchain-based platform.
A cryptographic signature is a specific type of electronic signature (e-signature) that relies on public-key cryptography to support identity authentication and provide data and transaction integrity.
The digital economy is the global network of economic activities, commercial transactions and professional interactions enabled by information and communications technologies. These transactions and processes are all monitored and stored digitally for the ease of traceability, accountability and security.
Digital identity is a way to verify who an individual is online securely in a manner that safeguards personal information. A digital identity can be linked to biometrics as well as personal documentation such as passports and driving licenses to provide proof of identity directly through the use of facial recognition or other biometrics.
A digital wallet is a system or tool that allows an individual to make electronic transactions and store forms of value from digital or fiat currencies or even types of digital assets.
Digitalization is the use of digital technologies to evolve a business model and provide new revenue and value-producing opportunities; it is the process of moving towards a digital business.
Digitization is the process of changing from analog to digital form, creating digital versions of paper documents, photographs, sounds, etc. Mixed with DLT, digitization of assets then allows for asset ownership to be shared, sold or traded globally in a matter of seconds.
Federated blockchain is a partly private blockchain that is identical to the fully private network. It also draws features from a public blockchain network and provides the best from the two worlds. The power doesn't stay with one entity; it works under a group of leaders who manage the blockchain. It is beneficial for companies working together on a project or a group of entities managing a consortium blockchain. That also means to participate in the network, one should require permission to access it. The primary use-case is for organization and collaboration.
Federated digital identity links a person's electronic identity and attributes securely stored on the blockchain. Users can verify their identity electronically using a combination of different aspects through the government (like a driver's license), banking log information and biometrics such as fingerprints or facial recognition.
The FATF describes themselves as an inter-governmental body established in 1989. Its standards promote effective implementation of legal, regulatory, and operational measures for combating money laundering, terrorist financing, and other related threats to the international financial system's integrity.
A financial institution is a company that deals with financial and monetary transactions such as deposits, loans, investments, and currency exchanges.
FinTech is the term used to describe the emerging industry that aims to modernize, improve and automate the delivery of financial services. FinTech companies look to offer beneficial products or services to existing financial institutions or compete against them for market share.
The General Data Protection Regulation defines itself as a European Union law that was implemented on May 25, 2018. It requires organizations to safeguard personal data and uphold the privacy rights of anyone in EU territory. The regulation includes seven principles of data protection that must be implemented and eight privacy rights that must be facilitated.
Identity management identifies, authenticates, and authorizes individuals or groups of individuals on an application, system, or substantial IT environment. With public and private key infrastructure providing additional security within the blockchain industry, identity management and public/private key management is essential from an individual standpoint.
IBC is an offshore company formed under some jurisdictions' laws as a tax-neutral company, which is typically limited in terms of the actions it may conduct in but not necessarily from the jurisdiction in which it is incorporated.
Know Your Customer, otherwise known as 'know your client,' is the process of a business verifying its clients' identity and assessing their suitability, along with their potential risks of illegal intentions towards the business relationship.
OCR is used to recognize and convert the written text of any type into machine-readable data. An excellent example of this can be extracting data from a picture of a passport page to automatically input data into an application form.
Payment Service Provider is a Payment Institution licensed under regulations set out by the Central Bank of Bahamas. PSP offers online services for obtaining electronic payments by a variety of payment methods. Typically, software as a service model and form a single payment gateway for their clients (merchants) to multiple payment methods.
The FATF defines a PEP as an individual who is or has been entrusted with a prominent function. Many PEPs hold positions that can be abused for the purpose of laundering illicit funds or other predicate offences such as corruption or bribery.
RegTech is the use of information technology prominent within the financial services industry to enhance the regulatory processes. Within RegTech, the main functions include compliance, reporting, and regulatory monitoring, amongst others. RegTech is also adapting more into governmental services to verify passports and driving licenses or even health records.
A smart contract is a self-executing block of code that allows the processing and verification of a transaction in an automated manner. Typically, a smart contract runs on a decentralized ledger such as a blockchain, which monitors and enforces the contract.
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