# Glossary ## A ### Adverse Media Screening The process of identifying negative news or media related to individuals or organisations as part of [risk assessment](https://regplatform.com/leading-with-risk-intelligence-reg-webinar/). ### AML Short for [Anti Money Laundering](https://regplatform.com/glossary/#anti-money-laundering), a framework of controls designed to prevent financial crime. Related: [AML insights](https://regplatform.com/anti-money-laundering/). ### Anti Money Laundering Processes and controls designed to prevent criminals from disguising illegally obtained funds as legitimate income. See also [AML](https://regplatform.com/glossary/#aml). Related: [AML insights](https://regplatform.com/anti-money-laundering/). ### Audit Trail A chronological record of system activity used to track actions for compliance and accountability purposes. ### Authorised Firm A business approved by a financial regulator to carry out regulated activities. ## B ### Beneficial Owner The individual who ultimately owns or controls a company or asset, even if held under another name. ### Binder Agreement An arrangement where underwriting authority is delegated from an insurer to another party such as an MGA. ### Bribery and Corruption The offering, giving, receiving, or soliciting of value to influence actions improperly within business or regulatory environments. ## C ### Compliance Adherence to laws, regulations, and internal policies governing business operations. See [Compliance insights](https://regplatform.com/regtech/). ### Compliance Monitoring The systematic review of processes and controls to ensure regulatory requirements are being met. ### Consumer Duty A regulatory principle requiring firms to deliver good outcomes for retail customers. See [Fair Value & Consumer Duty](https://regplatform.com/fair-value-consumer-duty/). ### Continuous Monitoring Ongoing review of customer activity and risk indicators to detect changes in risk exposure over time. ### Counterparty Risk Management The process of assessing and mitigating the risk that another party in a transaction may default on obligations. See [Counterparty Risk insights](https://regplatform.com/risk-management/). ### Customer Due Diligence The process of verifying a customer’s identity and assessing their risk profile in line with regulatory requirements. ## D ### Data Protection (GDPR) Regulations governing how personal data is collected, stored, and processed, including GDPR requirements. ### Delegated Authority An arrangement where underwriting or administrative responsibilities are delegated to another entity such as an MGA. ### Due Diligence The investigation or assessment of a business or individual to verify information and evaluate risk. ## E ### EDD Short for [Enhanced Due Diligence](https://regplatform.com/glossary/#enhanced-due-diligence), a higher level of customer or business investigation applied when elevated risk is identified. ### Enhanced Due Diligence A deeper level of customer or business investigation applied where higher risk is identified. ### Excess of Loss A reinsurance structure where coverage applies above a specified loss threshold. ### Exposure Management The process of identifying, measuring, and controlling risk exposure within a business. ## F ### Fair Value An estimate of an asset’s worth based on market conditions and rational assumptions. See [Fair Value insights](https://regplatform.com/fair-value-consumer-duty/). ### Financial Crime Illegal activities involving money, including fraud, [money laundering](https://regplatform.com/news/tackling-money-laundering-safeguarding-the-financial-services-market/), bribery, and sanctions breaches. ### FCA Short for Financial Conduct Authority, the UK regulator responsible for financial services firms. ### Financial Conduct Authority The UK regulatory body overseeing conduct in financial services markets. ### Fraud Detection Systems and processes used to identify potentially fraudulent behaviour or transactions. ## G ### GDPR Short for General Data Protection Regulation, governing data privacy and protection in the UK and EU. ### General Data Protection Regulation European and UK regulation governing how personal data must be handled and protected. ### Governance The framework of rules, practices, and processes by which a company is directed and controlled. ## H ### High Risk Customer A client that presents an elevated level of regulatory, financial crime, or compliance risk. ### Horizon Scanning The systematic process of identifying emerging risks, regulatory changes, and market developments that may impact future operations or compliance obligations. ## I ### Identity Verification The process of confirming that an individual is who they claim to be. ### IDV Short for [Identity Verification](https://regplatform.com/glossary/#identity-verification), the process of confirming identity. ### Inherent Risk The level of risk present before controls or mitigation measures are applied. ### Insurance Carrier The insurer that underwrites and assumes insurance risk. ### Insurance Intermediary A firm or individual that facilitates insurance contracts between customers and insurers. ## K ### KYB Short for [Know Your Business](https://regplatform.com/glossary/#know-your-business), the process of verifying and assessing a business entity. Related: [KYB insights](https://regplatform.com/kyc-kyb/). ### Know Your Business The process of verifying and assessing a business entity. See also [KYB](https://regplatform.com/glossary/#kyb). Related: [KYB insights](https://regplatform.com/kyc-kyb/). ### KYC Short for [Know Your Customer](https://regplatform.com/glossary/#know-your-customer), the process of verifying a customer’s identity and assessing risk. Related: [KYC insights](https://regplatform.com/kyc-kyb/). ### Know Your Customer The process of verifying a customer’s identity and assessing risk. See also [KYC](https://regplatform.com/glossary/#kyc). Related: [KYC insights](https://regplatform.com/kyc-kyb/). ### KRI Short for Key Risk Indicator, a metric used to measure increasing risk exposure. ### Key Risk Indicator A measurable value used to monitor risk levels and trigger early warning signals. ## M ### MGA Short for [Managing General Agents](https://regplatform.com/glossary/#managing-general-agents), insurance intermediaries authorised to underwrite and manage policies on behalf of insurers. Related: [MGA insights](https://regplatform.com/mgas/). ### Managing General Agents Insurance intermediaries authorised to underwrite and manage policies on behalf of insurers. See also [MGA](https://regplatform.com/glossary/#mga). Related: [MGA insights](https://regplatform.com/mgas/). ### Market Facing Entity An organisation that interacts directly with financial markets or regulatory systems. ### MLRO Short for [Money Laundering Reporting Officer](https://regplatform.com/glossary/#money-laundering-reporting-officer), responsible for AML oversight. ### Money Laundering Reporting Officer The individual responsible for overseeing [anti-money laundering compliance](https://regplatform.com/anti-money-laundering) within a firm. See also [MLRO](https://regplatform.com/glossary/#mlro). ## N ### Non Financial Risk Risk arising from operational, conduct, or regulatory issues rather than financial market movements. ## O ### Onboarding The process of bringing new clients or partners into a system, including verification and compliance checks. ## P ### PEP Short for [Politically Exposed Person](https://regplatform.com/glossary/#politically-exposed-person), an individual who holds or has held a prominent public position and presents higher financial crime risk. See [PEP insights](https://regplatform.com/peps-sanctions/). ### Politically Exposed Person An individual who holds or has held a prominent public position and presents higher financial crime risk. See also [PEP](https://regplatform.com/glossary/#pep). See [PEP insights](https://regplatform.com/peps-sanctions/). ### Prudential Regulation Authority UK regulator responsible for supervising banks, insurers, and major financial firms. ## R ### REG Exchanges A data and intelligence exchange environment enabling secure regulatory information sharing. See [REG Exchanges](https://regplatform.com/reg-exchanges/). ### REG Network A connected ecosystem for sharing [regulatory intelligence and compliance insights](https://regplatform.com/regtech). See [REG Network](https://regplatform.com/reg-network/). ### REG Platform Core compliance and regulatory infrastructure platform supporting onboarding, monitoring, and risk management. See [REG Platform](https://regplatform.com/reg-network/). ### REG Reviews Insights, analysis, and updates relating to REG product and industry reviews. See [REG Reviews](https://regplatform.com/news/subjects/reg-reviews/). ### REG Risk 365 A continuous risk monitoring solution designed to provide year-round regulatory and risk intelligence. See [REG Risk 365](https://regplatform.com/reg-risk-365/). ### RegTech Short for Regulatory Technology, the use of technology to help businesses manage compliance, regulatory requirements, and risk more efficiently. ### Regulatory Compliance Ensuring a business operates in accordance with applicable laws and regulations. ### Regulatory Risk The risk of financial loss or penalties due to non-compliance with regulations. ### Regulatory Reporting The submission of required data and reports to regulatory authorities. ### Risk Appetite The level of risk an organisation is willing to accept in pursuit of its objectives. ### Risk Assessment The process of identifying and evaluating risks within an organisation or activity. ### Risk Management The identification, assessment, and control of risks to an organisation’s capital and operations. ## S ### SAR Short for [Suspicious Activity Report](https://regplatform.com/glossary/#suspicious-activity-report), filed for suspected financial crime activity. ### Sanctions Restrictions imposed by governments or international bodies against individuals, entities, or countries. See [Sanctions insights](https://regplatform.com/peps-sanctions/). ### Sanctions Screening The process of checking individuals and entities against global sanctions lists. See [Sanctions insights](https://regplatform.com/peps-sanctions/). ### Suspicious Activity Report A report submitted to authorities when suspicious financial activity is identified. See also [SAR](https://regplatform.com/glossary/#sar). ### SMCR Short for Senior Managers and Certification Regime, a UK framework increasing accountability for senior individuals. ### Senior Managers and Certification Regime A UK regulatory framework increasing accountability for senior individuals in financial services. ### Scenario Analysis The process of assessing potential future risk scenarios and their impact on an organisation. ### Transaction Monitoring Ongoing surveillance of financial transactions to detect suspicious or unusual activity. ### Supply Chain Risk Risk arising from dependencies on third-party suppliers or service providers. ## T ### TOBA Short for Terms of Business Agreement, a contract setting out the responsibilities, obligations, and commercial terms between two firms working together. ## U ### UBO Short for [Ultimate Beneficial Owner](https://regplatform.com/glossary/#ultimate-beneficial-owner), the natural person who ultimately owns or controls a legal entity. ### Ultimate Beneficial Owner The natural person who ultimately owns or controls a legal entity. See also [UBO](https://regplatform.com/glossary/#ubo). ## V ### Verification The process of confirming the accuracy of provided information or identity. ### Vulnerability Assessment The process of identifying weaknesses that could be exploited within systems or processes. ## W ### Whistleblowing Reporting misconduct, illegal activity, or unethical behaviour within an organisation. ## X ### XoL Short for Excess of Loss, a reinsurance structure where coverage applies above a defined threshold.