Glossary

 

A

 

Adverse Media Screening

The process of identifying negative news or media related to individuals or organisations as part of risk assessment.
 

AML

Short for Anti Money Laundering, a framework of controls designed to prevent financial crime. Related: AML insights.
 

Anti Money Laundering

Processes and controls designed to prevent criminals from disguising illegally obtained funds as legitimate income. See also AML. Related: AML insights.
 

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.
 

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.
 

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.
 

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, 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.
 

Financial Crime

Illegal activities involving money, including fraud, money laundering, 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, 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, the process of verifying and assessing a business entity. Related: KYB insights.
 

Know Your Business

The process of verifying and assessing a business entity. See also KYB. Related: KYB insights.
 

KYC

Short for Know Your Customer, the process of verifying a customer’s identity and assessing risk. Related: KYC insights.
 

Know Your Customer

The process of verifying a customer’s identity and assessing risk. See also KYC. Related: KYC insights.
 

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, insurance intermediaries authorised to underwrite and manage policies on behalf of insurers. Related: MGA insights.
 

Managing General Agents

Insurance intermediaries authorised to underwrite and manage policies on behalf of insurers. See also MGA. Related: MGA insights.
 

Market Facing Entity

An organisation that interacts directly with financial markets or regulatory systems.
 

MLRO

Short for Money Laundering Reporting Officer, responsible for AML oversight.
 

Money Laundering Reporting Officer

The individual responsible for overseeing anti-money laundering compliance within a firm. See also 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, an individual who holds or has held a prominent public position and presents higher financial crime risk. See PEP insights.
 

Politically Exposed Person

An individual who holds or has held a prominent public position and presents higher financial crime risk. See also PEP. See PEP insights.
 

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.
 

REG Network

A connected ecosystem for sharing regulatory intelligence and compliance insights. See REG Network.
 

REG Platform

Core compliance and regulatory infrastructure platform supporting onboarding, monitoring, and risk management. See REG Platform.
 

REG Reviews

Insights, analysis, and updates relating to REG product and industry reviews. See REG Reviews.
 

REG Risk 365

A continuous risk monitoring solution designed to provide year-round regulatory and risk intelligence. See REG Risk 365.
 

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, filed for suspected financial crime activity.
 

Sanctions

Restrictions imposed by governments or international bodies against individuals, entities, or countries. See Sanctions insights.
 

Sanctions Screening

The process of checking individuals and entities against global sanctions lists. See Sanctions insights.
 

Suspicious Activity Report

A report submitted to authorities when suspicious financial activity is identified. See also 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, 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.
 

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.