A
Adverse Media
Negative news or public information about an individual or entity, often related to criminal activity, regulatory violations or unethical behaviour.
Anti-Money Laundering (AML)
AML refers to practices and regulations that prevent illegal activities like money laundering, typically involving transaction monitoring.
Asset Tracing
The process of tracking down the location, ownership, or movement of assets that may be hidden, transferred, or concealed, often during investigations or legal disputes.
B
Background Check
A background check reviews a person’s criminal, financial, and employment history to ensure informed decision-making when hiring or partnering.
Beneficial Ownership
Refers to the individuals who ultimately own or control a company, even if the ownership is held through other people or legal entities
C
Compliance Risk
The risk of legal or regulatory penalties, financial loss, or reputation damage that a company may face if it fails to follow laws, regulations, or internal policies.
Confidentiality
The obligation to protect sensitive information from being disclosed to unauthorized parties.
Conflict of Interest
A situation where an individual or organization has competing interests or loyalties that could improperly influence decisions or actions.
Conflict Resolution
Conflict resolution involves resolving disputes between parties in a fair and peaceful manner to maintain positive relationships.
Corporate Governance
Corporate governance is the system of rules and practices that ensure accountability, transparency, and fairness in a company’s operations.
Corporate Investigations
Internal or external inquiries into allegations of misconduct, fraud, corruption, or other corporate wrongdoing.
Cross-Border Compliance
Adhering to legal and regulatory requirements when operating across multiple countries or regions.
D
Data Security
The protection of digital information from unauthorized access, breaches, or theft.
Discreet Inquiries
Quiet, confidential checks on a person or company, often to gather background information without alerting the subject.
DPDP (Digital Personal Data Protection Act)
An Indian law that governs how personal data is collected, stored, and used. It aims to protect individuals’ digital privacy while allowing organizations to process data responsibly and transparently.
Due Diligence
A structured process of evaluating a person, company, or deal to assess risk, verify information, and make informed decisions.
E
Escrow Agreement
A legal arrangement where funds or assets are held by a third party until specific conditions are met.
F
Financial Due Diligence
Financial due diligence examines a company’s financial health, including debts and revenue, to ensure it’s a reliable partner or investment.
Forensic Accounting
Forensic accounting investigates financial discrepancies, fraud, or misconduct to uncover hidden risks and support legal matters.
Fraud Investigation
An examination to uncover evidence of deception intended to result in financial or personal gain.
G
Global Sanctions
International restrictions imposed by governments or bodies to limit trade or financial activity with specific individuals, entities, or countries.
H
Hidden Asset Discovery
The process of uncovering assets that have been intentionally concealed, often during legal proceedings or debt recovery efforts.
I
Indemnification Clause
A contract term where one party agrees to compensate the other for certain losses or damages.
Integrity Due Diligence
A deeper review of individuals or companies to uncover hidden risks, such as past misconduct, unethical behaviour, or reputation concerns.
K
Know Your Customer (KYC)
KYC is the process of verifying the identity of clients to meet legal requirements and prevent financial crime.
L
Litigation History
A record of past or ongoing lawsuits involving a person or company, which may reveal patterns of legal risk.
M
MAC Clause (Material Adverse Change)
A contract clause allowing one party to withdraw or renegotiate a deal if a significant negative change occurs in the other party’s situation
N
Network of Trusted Associates
A vetted group of professional partners or experts who can support sensitive investigations, verifications, or intelligence gathering.
Nominee Director
An agreement where a person is listed as a company director on behalf of another, often used to conceal the identity of the real controller.
Non-Disclosure Agreement
A legal contract that requires parties to keep certain information confidential and not share it with others.
P
PEP (Politically Exposed Person)
The risk associated with individuals in prominent public positions who may be more vulnerable to corruption or influence.
Professional Credentials
Qualifications, certifications, or licenses that verify a person's expertise or professional standing.
R
Regulatory Compliance
Ensuring that a business follows all relevant laws, regulations, and standards in the regions where it operates.
Regulatory Risk
The potential for a business to face legal or financial consequences due to non-compliance with industry regulations.
Regulatory Threshold
The point at which a certain activity triggers legal or compliance obligations, such as financial reporting or disclosure.
Reputation Risk
The potential for loss or harm to a company’s reputation due to negative public opinion, customer dissatisfaction, or adverse events, which can impact trust, brand value, and business performance.
Risk Assessment
Risk assessment identifies and evaluates potential risks to a business, helping to manage or reduce them proactively.
Risk Mitigation
The process of identifying, evaluating, and taking steps to reduce or manage potential risks to minimize their impact on a business or project.
S
Sanctions Evasion
Attempts to bypass or avoid international sanctions through deceptive practices, hidden transactions, or front companies.
Sanction Screening
A process to check if individuals or businesses are listed on global sanctions lists, ensuring compliance with international regulations.
Senior Professional Screening
Background evaluations of high-level executives or board members to assess integrity, reputation, and risks.
Shadow Banking
Financial activities carried out by non-bank entities that fall outside traditional regulatory frameworks, potentially increasing risk and opacity.
T
Third-Party Risk Management
The practice of assessing and managing the risks that come from working with third-party partners or vendors.
TPRM Framework
A structured process to identify, assess, and manage risks from third-party vendors, ensuring they meet compliance, security, and performance standards.
Transaction Monitoring
Transaction monitoring tracks financial transactions in real-time to detect suspicious activity and prevent fraud.
U
Ultimate Beneficial Owner
The individual who ultimately owns or controls a company, regardless of how many layers of ownership are in place.
W
Whistle-blower Fraud
Fraud uncovered or reported by an insider, often an employee or associate, who exposes wrongdoing within an organization.
White-collar Crime
Non-violent, financially motivated crimes typically committed by business professionals or officials.