Financial Crime World

Demystifying Financial Crime Terminology in Ghana: A Comprehensive Glossary

The financial sector in Ghana has become increasingly vigilant in combating the menace of financial crime, leading to a slew of jargon that can leave even the most astute individual scratching their head. Fear not, dear reader, as this comprehensive glossary aims to demystify the complex world of financial crime terminology in Ghana.

Intergovernmental Bodies

  • Financial Action Task Force (FATF): An intergovernmental body tasked with setting global standards for combating money laundering and terrorist financing.
  • Inter-Governmental Action Group against Money Laundering in West Africa (GIABA): A regional organization that coordinates efforts to combat money laundering and terrorist financing in West Africa.

Anti-Money Laundering and Countering the Financing of Terrorism

  • Anti-Money Laundering (AML): Measures designed to prevent the concealment of illegally obtained funds through financial transactions.
  • Combating the Financing of Terrorism (CFT): Efforts aimed at disrupting and preventing the flow of funds to terrorist organizations.
  • Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT): A comprehensive approach that combines AML and CFT measures to tackle financial crime.

Financial Instruments

  • Bearer-Negotiable Instrument (BNI): A type of negotiable instrument that can be endorsed by its holder without requiring identification or verification.
  • Money or Value Transfer Service(s) (MVTS): Services that facilitate the transfer of funds, such as money remittance companies and wire transfer services.

Customer Due Diligence

  • Customer Due Diligence (CDD): The process of verifying the identity of customers and conducting ongoing monitoring to ensure compliance with AML/CFT regulations.

Designated Non-Financial Business or Profession

  • Designated Non-Financial Business or Profession (DNFBP): A business or profession designated as high-risk due to its potential for money laundering or terrorist financing, such as real estate agents and lawyers.

Financial Intelligence Unit

  • Financial Intelligence Unit (FIU): A specialized unit that collects, analyzes, and disseminates financial intelligence to support law enforcement agencies in investigating and prosecuting financial crimes.

Interpretive Note

  • Interpretive Note (IN): Supplementary guidance provided by regulatory bodies to clarify the application of AML/CFT regulations.

Financial Crime Definitions

  • Money Laundering (ML): The process of concealing illegally obtained funds through a complex network of transactions to make them appear legitimate.
  • Politically Exposed Person (PEP): An individual who holds or has held a significant public position, such as a head of state or government minister, due to their potential risk of being involved in corruption and money laundering.

Risk-Based Approach

  • Risk-Based Approach (RBA): A method of assessing and mitigating risks associated with financial transactions, taking into account factors such as customer risk profiles and transaction amounts.

Special Recommendation

  • Special Recommendation (SR): Guidelines issued by the FATF to combat specific forms of financial crime, such as terrorist financing.

Self-Regulatory Bodies

  • Self-Regulatory Bodies (SRB): Industry organizations that establish standards and guidelines for their members to comply with AML/CFT regulations.

Reporting Obligations

  • Suspicious Transaction Report (STR): A report filed with the FIU when a financial institution suspects a transaction may be related to money laundering or terrorist financing.
  • Cash Transaction Report (CTR): A report filed with the FIU when a cash transaction exceeds a certain threshold amount.
  • Electronic Currency Transaction Report (ECTR): A report filed with the FIU when an electronic currency transaction exceeds a certain threshold amount.
  • Currency Declaration Report (CDR): A report filed with the FIU when a customer declares a large amount of currency.

Other Key Terms

  • Trust and Company Service Provider (TCSP): Companies that offer services such as trust, company formation, and management.
  • Anti-Money Laundering Reporting Officer (AMLRO): An individual responsible for reporting suspicious transactions to the FIU.
  • Mutual Legal Assistance (MLA): A mechanism for countries to cooperate in investigations and prosecutions of financial crimes.
  • Executive Instruments (EI): Instruments used by government agencies to investigate and prosecute financial crimes.
  • Beneficial Owner (BO): The individual who ultimately owns or controls a company or entity.
  • Memorandum of Understanding (MOU): An agreement between countries or organizations outlining the terms of cooperation in combating financial crime.

Ghana’s fight against financial crime has led to cooperation with regional and international organizations, including GIABA. This comprehensive glossary aims to provide a clear understanding of the complex terminology used in Ghana’s fight against financial crime.