PliOS Resources

Compliance glossary

Plain-English definitions of the terms that come up across BSA/AML, sanctions, licensing, and risk — written by compliance practitioners.

BSA/AML

Bank Secrecy Act / Anti-Money Laundering

The US legal framework requiring financial institutions to detect, prevent, and report money laundering and other financial crime.

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KYC

Know Your Customer

The process of verifying a customer’s identity and assessing their risk before and during a business relationship.

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CIP

Customer Identification Program

The BSA rule requiring institutions to collect and verify identifying information before opening an account.

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CDD

Customer Due Diligence

Ongoing risk-based review of customers, including understanding the nature and purpose of the relationship and monitoring activity.

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OFAC Sanctions

Office of Foreign Assets Control

US Treasury–administered economic sanctions that prohibit dealings with designated persons, entities, and jurisdictions.

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FinCEN Travel Rule

A BSA requirement that financial institutions pass along originator and beneficiary information on qualifying funds transfers.

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Money Transmitter License

MTL

A state license required to transmit money or convertible virtual currency on behalf of others.

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BitLicense

New York’s dedicated license for businesses conducting virtual currency activity (23 NYCRR Part 200).

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Money Services Business

MSB

A FinCEN registration category covering money transmitters, currency dealers, and certain crypto businesses.

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Suspicious Activity Report

SAR

A confidential report filed with FinCEN when a transaction is suspected to involve illegal activity.

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Currency Transaction Report

CTR

A report filed with FinCEN for cash transactions exceeding $10,000 in a single business day.

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Beneficial Ownership

The natural persons who ultimately own or control a legal-entity customer, which institutions must identify under the CDD Rule.

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Inherent vs. Residual Risk

Inherent risk is exposure before controls; residual risk is what remains after controls are applied — the model regulators expect in a risk assessment.

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MRA / MRIA

Matter Requiring Attention / Matter Requiring Immediate Attention

Formal supervisory findings examiners issue to direct an institution to correct a deficiency.

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Third-Party Risk Management

TPRM

The lifecycle of identifying, assessing, and monitoring the risks vendors and partners introduce to your institution.

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