AML Vocab

Question 1

Nominee Shareholder

Answer 1

Is the RO of shares, held for the benefit of another person (beneficial owner).

Can be an individual or a body corp.

Question 2

Gatekeepers

Answer 2

Lawyers, accountants, real estate agents, trust service providers, who are also known as Designated non- financial businesses and professionals.

Due to their role and knowledge, they fall into the high risk category.

Question 3

Correspondent Bank

Answer 3

It’s a bank that provides services (e.g. funds transfer) to another bank, usually in another country.

Question 4

Intermediary

Answer 4

It’s a ‘go-betweener’ or a middle man, someone who mediates between two other parties.

Question 5

What is Inherent Risk?

Answer 5

Assessed ML/FT risk before any controls or mitigation measures have been put in place.

Question 6

What is Residual Risk?

Answer 6

Assessed ML/FT risk after any controls or mitigation measures have been put in place.