A Security Token Offering (STO) is a fundraising mechanism in which a company issues digital tokens that represent ownership or other security interests in the company. These tokens are issued and traded on a blockchain, making them programmable and easily tradable.

It is an individual or business that qualifies as an accredited investor is permitted to participate in the trading of securities that are not necessarily registered with financial regulators. Their eligibility for this exclusive opportunity is determined by meeting certain criteria relating to their income, net worth, asset size, status as an organization, or professional background. 

Adverse information is simply defined as any negative information about a potential client or customer that may hamper or expose an institution to risks. Adverse information checks are usually part of Customer Due Diligence and other KYC procedures. 

Adverse information is simply defined as any negative information about a potential client or customer that may hamper or expose an institution to risks. Adverse information checks are usually part of Customer Due Diligence and other KYC procedures. 

Adverse media checks as a part-time solution to mitigate AML risks are insufficient, given that customers’ risk ratings fluctuate over time. When it comes to high-risk customers, it is necessary to adopt adverse media ongoing monitoring to mitigate potential risks to the institution’s reputation. 

Adverse media screening, also known as media monitoring or negative news screening, involves looking for negative news about a natural or legal person. This check is becoming increasingly significant in the customer due diligence (CDD) process and client onboarding which is an essential aspect of KYC, KYB, and AML procedures. 

AFM stands for Authority for the Financial Markets. It is the financial regulatory authority in the Netherlands that oversees the operation of the financial markets, including the stock exchange, securities offerings, and investment firms. The AFM is responsible for ensuring that financial markets in the Netherlands operate in a fair, transparent, and efficient manner and that investors are protected from financial fraud and abuse. 

An AML Compliance officer’s role is to be a guardian for financial institutions and one of the last gateways for identifying financial crimes like money laundering and fraud. The importance of compliance officers in combatting anti-money laundering cannot be understated. 

Spoofing is an impersonation of a customer, device or user online. Today's spoofing stretches as far as impersonation or identity theft during online identification and faking liveness. 

Anti Money Laundering (AML), also known as anti-money laundering, is the execution of transactions to eventually convert illegally obtained money into legal money. Particularly in banking and financial service business, companies run the risk that the companies or individuals with whom you they do business are not in compliance with the anti-money laundering regulations set by the government.  

Financial institutions must have a documented program in place for identifying and verifying the identity of their customers, which includes procedures for monitoring and updating customer information. 

It refers to the act of adhering to laws, regulations, and standards that are relevant to a particular industry or business. It involves ensuring that an organization's activities and operations are conducted legally and ethically, and that the organization is meeting its obligations to various stakeholders, such as customers, investors, and regulatory bodies. 

 Counter-Terrorist Financing (CTF) refers to the process of preventing terrorists and terrorist organizations from accessing and using financial resources to carry out their activities. CTF is an important component of the global fight against terrorism and is typically implemented through a range of legal, regulatory, and financial measures. 

Cryptocurrency transaction monitoring is the process of analyzing and tracking digital currency transactions to identify suspicious or illegal activity. This involves using specialized software and tools to monitor and analyze blockchain data in real-time, searching for patterns and anomalies that may indicate illicit behavior. 

Customer due diligence is the process financial institutions use to collect and evaluate relevant information about a customer or potential customer. It aims to uncover any possible risk to the financial institution of doing business with a specific organization or individual by analyzing information from various sources. 

It refers to the practice of protecting computer systems, networks, and other digital assets from unauthorized access, theft, damage, or other malicious acts. It involves a range of activities, technologies, and practices designed to ensure the confidentiality, integrity, and availability of information and digital resources. 

A digital identity is an online or networked identity used for interacting with digital resources, and online, ai powered services. In a technological context, digital identity is or should be unique to an individual, prove their existence and define their attributes. A digital identity can be an online username or screen name or a more complex digital identity that is verified and authenticated by digital means. And this directly leads to the definition of digital identity verification: It is the process of authenticating an individual's identity using digital means. This can be done through the use of digital signatures, biometrics, or other digital means. 

The Dutch Central Bank (DNB) is the central bank of the Netherlands. It is responsible for implementing monetary policy in the Netherlands, issuing currency, and maintaining price stability. The DNB is also responsible for supervising banks, insurers, pension funds, and other financial institutions operating in the Netherlands to ensure that they operate in a safe and sound manner and comply with relevant regulations. 

A domestic PEP refers to an individual who currently or previously held a high-ranking public position in their own country. This profile typically includes heads of state, senior politicians, top military officials, and executives of state-owned corporations.

The Dutch AML (Anti-Money Laundering) legislation consists of several laws and regulations designed to prevent money laundering and terrorism financing. These include the Dutch Money Laundering and Terrorist Financing (Prevention) Act, which sets out the obligations for reporting entities such as financial institutions, accountants, and notaries to perform customer due diligence, keep records, report unusual transactions to the Financial Intelligence Unit Netherlands (FIU-NL), and have adequate policies and procedures in place to prevent money laundering and terrorism financing. 

It stands for "Commission for the Financial Intelligence Unit of the Netherlands." It is an independent supervisory body in the Netherlands responsible for monitoring the country's compliance with anti-money laundering and counter-terrorism financing laws and regulations. The CFT provides guidance to financial institutions and conducts regular assessments of their compliance with Dutch AML/CFT regulations. The organization also coordinates with other national and international agencies in the fight against financial crime. 

Financial crime refers to all crimes that involve taking money or other property that belongs to someone else, to obtain a financial or professional gain. 

A foreign PEP is an individual who currently or previously held a significant public position on behalf of a foreign country.

It refers to the process of identifying and preventing fraudulent activities or behavior within an organization. This may involve using various data analysis and detection techniques to identify patterns or anomalies that could indicate fraud, such as unexpected changes in financial transactions or irregular patterns of user behavior. 

The General Data Protection Regulation (GDPR meaning) is legislation that updates and unified data privacy laws across the European Union (EU). GDPR was approved by the European Parliament on April 14, 2016 and went into effect on May 25, 2018.

The IBAN (International Bank Account Number) is a standardized numbering system that is used to identify foreign banks and facilitate the processing of international money transfers. It is widely adopted in most European nations, but has limited usage in the United States and Canada. The IBAN system provides additional details about cross-border payments, making it easier for financial institutions to process these transactions accurately. 

Identity proofing is the process of obtaining irrefutable evidence to confirm the identity of a customer. This practice is necessary in situations where the risk of identity fraud is high, such as in the case of airlines checking in passengers, banks verifying large transactions or any other service where identity verification is critical. The purpose of identity proofing is to prevent fraud and meet Anti-Money Laundering (AML) regulations. 

Identity verification, also known as authentication, is the act of confirming the accuracy of a claimed identity through the comparison of credentials such as knowledge, possession, and biometrics of the person seeking access with the credentials previously recorded and stored on the PIV Card or system, linked to the claimed identity. In this process, the information provided by the individual is verified against the stored data to determine the legitimacy of the claimed identity. 

An institutional investor is a firm or organization that manages financial assets on behalf of others. Examples include mutual funds, pension plans, and insurance companies. These investors frequently engage in large-scale purchases and sales of stocks, bonds, and other securities and are therefore considered to be major players in the financial markets. 

It refers to the use of technology to innovate and improve the insurance industry, making it more efficient, cost-effective, and customer-centric. InsurTech companies use various technologies such as artificial intelligence, big data, blockchain, and the internet of things (IoT) to develop new products, services, and business models that transform how insurance is bought, sold, underwritten, and managed. 

An international organization PEP is a high-level individual who currently or previously held a significant position or function within an international organization.

KBA, short for Knowledge-Based Authentication, is a form of identity verification that relies on an individual's knowledge of private information. This method requires individuals to provide answers to personalized questions that are either predetermined or generated by a computer in order to prove their identity. 

KYC meaning refers to the process of verifying the identity of a customer, typically in a financial or business context. The purpose of KYC is to help prevent money laundering, fraud, and other financial crimes by ensuring that businesses know who their customers are and can accurately assess their risk. 

KYB, which stands for Know Your Business, is a due diligence process designed to verify the structure, ownership, purpose, and operations of a particular company. Its objective is to allow companies to confirm the legitimacy of the entities they do business with and to ensure that they are not being exploited to mask the identities of owners for unlawful purposes. By performing KYB, companies can better safeguard themselves against potential risks and make informed decisions regarding their partnerships and transactions. 

KYC analysts, typically part of Risk Management Teams in financial institutions (and occasionally in manufacturing, technology, and consulting industries), are responsible for reviewing and verifying customer information to assess the associated risks and ensure regulatory compliance. They perform due diligence procedures, including SDD (simplified due diligence), CDD (standard due diligence), and EDD (enhanced due diligence), on both new and existing customers, verifying submitted documentation and assessing the risks associated with each private and legal entity.  

The purpose of KYC checks is to obtain and authenticate information provided by clients. These checks are mandated by numerous regulations, including those established by the Financial Action Task Force and the European Union's 4th and 5th Anti-Money Laundering Directives (AMLDs). The regulations require financial institutions and other regulated entities to establish policies and procedures for the collection and verification of customer information, including identity and financial information. By conducting KYC checks, institutions can reduce the risk of financial crimes and ensure that they remain in compliance with the applicable laws and regulations. 

KYC monitoring is the ongoing process of reviewing and updating customer information to ensure that it remains accurate and up-to-date and to detect any changes or activities that may pose a risk of financial crime. The KYC monitoring process is a critical component of anti-money laundering (AML) and counter-terrorism financing (CTF) measures that financial institutions and other regulated entities are required to implement. 

it refers to the legal procedures businesses must follow before working with a new customer. These procedures involve collecting and verifying specific customer data to ensure compliance with Anti-Money Laundering (AML) regulations. The minimum customer data required for identification typically includes the customer's name, date of birth, and address. However, the specific personal data needed may vary by country, so it's essential to consult the AML regulations and guidelines in your jurisdiction. By conducting AML-compliant customer onboarding, businesses can prevent money laundering and other financial crimes while also meeting their regulatory obligations. 

KYC (Know Your Customer) reasonable assurance is the process of verifying the identity and assessing the potential risks associated with a customer or client. It is a critical component of anti-money laundering (AML) and counter-terrorism financing (CTF) measures that financial institutions and other regulated entities are required to implement. KYC reasonable assurance refers to the level of confidence that the regulated entity has in the accuracy and completeness of the information provided by the customer. 

KYC remediation is the process of updating and verifying existing customer information that is incomplete, outdated, or inaccurate to ensure that it meets the regulatory requirements for KYC and AML/CFT (anti-money laundering/countering the financing of terrorism) compliance. The remediation process is initiated when a financial institution identifies deficiencies in its KYC records and needs to take corrective action. 

KYC risk rating is the process of assigning a risk score to a customer or client based on the likelihood and potential impact of financial crime associated with their activities. It is a key component of the KYC process, which helps financial institutions and other regulated entities to identify and manage risk effectively.  The KYC risk rating considers various factors, such as the customer's identity, source of funds, business activities, geographic location, and regulatory status. Based on these factors, the customer is assigned a risk score or rating that indicates the level of risk they pose to the financial institution. 

The Legal Entity Identifier (LEI) is a unique code that helps to identify legal entities, including corporations, individuals, and funds, that are involved in financial transactions. The LEI number is linked to the ownership structure of the legal entity, and it provides a standardized and globally accessible reference for identifying these entities.  By using the LEI, financial institutions and regulatory authorities can accurately and easily identify the legal entities involved in transactions, improving transparency in the marketplace. The LEI also helps to detect and report any suspicious or unusual activities to the regulatory authorities. 

Medical identity theft is a form of identity theft that primarily occurs in countries like the US, South Korea, and Switzerland, where health insurance costs are high. Scammers target individuals' social security numbers or insurance card information in order to steal medical treatments, buy drugs, or invoice fake treatments. In some cases, credit card information can also be endangered. Patients can protect themselves by not allowing their credit cards to be photocopied at the doctor's office and being cautious with their personal information.

Markets in Financial Instruments Directive was first introduced in 2007 and established a framework for investment services and activities across the EU. The regulation aimed to promote competition, investor protection, and efficient markets by setting out rules on market transparency, investor protection, and the organization and conduct of investment firms.

Markets in Financial Instruments Directive II is an updated version of MiFID that came into effect in January 2018. It strengthens the regulatory framework by increasing the scope of the original regulation, enhancing investor protection, and improving the functioning of financial markets.

MiFID, MiFID II, and MiFIR are European Union regulations that aim to enhance transparency and investor protection in financial markets.

Markets in Financial Instruments Regulation is a related regulation that came into effect at the same time as MiFID II. It complements MiFID II by providing a detailed framework for reporting, transparency, and trading of financial instruments. Some of the key features of MiFIR include the mandatory reporting of trades to an approved trade repository, the introduction of new transparency requirements for certain instruments, and the establishment of rules governing the operation of trading venues.

A Money Laundering Reporting Officer (MLRO) is an individual within a financial institution, such as a bank, who is responsible for ensuring that the institution is complying with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. The MLRO's main role is to oversee the institution's policies and procedures related to detecting and preventing money laundering and terrorist financing activities.

A PEP, or politically exposed person, is someone who currently holds or has previously held a high-level public position, such as a politician or judge. Due to the influence they wield, PEPs are at higher risk of being involved in activities such as money laundering, racketeering, and financial fraud. This means that dealing with PEPs poses specific risks for financial institutions and other entities.

Proof of address (PoA) is a verification method used to confirm that a user genuinely lives at the address they claim to reside. Traditionally, this involves obtaining documents such as utility bills or bank statements that require manual or semi-manual review.

Proof of income refers to the documentation or information that establishes the source and amount of a person's income. It is necessary to establish the origins of funds or assets in a business relationship, including transactions that a company needs to execute on behalf of its client, such as investments, deposits, or remittances. In some cases, verifying a customer's income is recommended to ensure compliance with regulations and manage risks associated with financial crimes such as money laundering.

Source of Funds (SoF) refers to the origin of an individual's funds at the start of a business relationship or transaction. On the other hand, Proof of Sources of Funds (PoSoF) involves one or more documents that provide details on the origin of the funds, including all deposits made through the relevant funding method.

Proof of Source of Wealth (SoW) is a document that verifies the origins of an individual's wealth and the means by which it was acquired. Examples of Source of Wealth can include employment, inheritance, investments, and business ownership.

It stands for "Payment Services Directive 2" in English, and in Dutch it is known as "Richtlijn (EU) 2015/2366 betreffende betalingsdiensten in de interne markt, ook wel bekend als PSD2". It is a European Union directive that regulates electronic payment services and aims to increase competition, transparency, and security in the financial industry.

A qualified investor, often referred to as an accredited investor, is a person or entity that is authorized by the Securities and Exchange Commission to invest in hedge funds, venture capital funds, private equity offerings, and other private placements. These investors must show evidence of a substantial income or net worth before they are granted permission to buy unregistered securities. 

A short term for regulatory technology refers to a category of technology solutions designed to help companies comply with regulatory requirements. Regtech solutions can help companies automate compliance processes, reduce the risk of non-compliance, and increase regulatory reporting efficiency. This can include solutions for anti-money laundering (AML) and know-your-customer (KYC) compliance, data protection, and fraud prevention.

The process of submitting information to regulatory bodies, such as government agencies or industry associations, to comply with legal or industry-specific requirements. The purpose of regulatory reporting is to ensure that organizations are meeting their obligations to various stakeholders and operating in a manner consistent with legal or regulatory requirements.

It known as "Maatwerk voor Innovatie" in the Netherlands, is a program introduced by the Dutch central bank and the financial market regulator, the Authority for the Financial Markets (AFM), to support financial innovation while maintaining consumer protection and financial stability.

A risk profile assessment is the process of evaluating the level and type of risk associated with a particular individual, organization, or project. The assessment typically involves gathering information and data about the entity or project, analyzing that information to identify potential risks, and determining the likelihood and potential impact of those risks.

Risk screening is a process of assessing potential risks associated with a particular activity, transaction, or individual. The aim of risk screening is to identify and mitigate potential risks that could lead to financial loss, damage to reputation, or legal liabilities. In practice, risk screening involves collecting and analyzing information from various sources such as public records, customer due diligence checks, watchlists, and other relevant databases to evaluate the risk level associated with a particular transaction or individual.

A sophisticated investor is a term used to describe an individual who possesses the necessary financial resources, investment experience, and net worth to participate in more complex investment opportunities. This designation signals that the investor has a higher level of financial literacy and is capable of taking on greater risk in their investments. 

Transaction monitoring is a continuous security process companies use to identify potentially suspicious transactions. This involves utilizing software to identify abnormal patterns and scrutinize transfers and transactions made in either digital or fiat currencies. The objective is to address the following queries: -What is the source of the funds? -Where is the money being sent to?

The "Travel Rule" refers to FATF Recommendation 16, which aims to prevent money laundering and terrorist financing (ML/TF) through a set of measures. The rule requires financial institutions that engage in virtual asset (VA) transfers and crypto companies, known as VASPs, to obtain and share accurate information about the originator and beneficiary with counterparty VASPs or financial institutions during or prior to the transaction.

An Ultimate Beneficial Owner (UBO) is a person who receives the most benefits and has the ultimate controlling power over an entity, whether it's an organization, a legal entity, or a natural person. This person is the one on whose behalf the transactions are carried out and is considered the ultimate beneficiary, regardless of the hierarchical structure of the organization. In simpler terms, the UBO is the individual who stands to gain the most from the arrangement.

Video KYC, short for video identification, enables users to verify their identities through a live video interview with an identification operator. This procedure can be conducted by a third-party service provider or identification operators working for the business. The steps involved in video identification may vary based on the user's level of risk, but typically involve a video interview, anti-money laundering (AML) screening, and document verification.

It is the list of individuals under surveillance includes both domestic and international government, law enforcement, and regulatory databases. These databases contain information on individuals who are on criminal lists or prohibited from certain industries, such as finance and healthcare. The list also includes individuals such as specially designated nationals, terrorists, narcotics traffickers, money launderers, blocked persons, and parties subject to various economic sanction programs, who are forbidden from conducting business.

Wet ter voorkoming van witwassen en financieren van terrorisme (Wwft) - This is the Dutch law for the prevention of money laundering and the financing of terrorism, which requires financial institutions to carry out customer due diligence measures.