Resources
Glossary from A to Z
Plain-language definitions for the terms you meet when opening and running a business account for complex structures: compliance, payments, FX and digital assets.
44 terms · Draft definitions, pending Compliance review Placeholder
A
- AML (Anti-Money Laundering)
- The laws, controls and checks a financial institution uses to stop criminal money entering the financial system, from customer screening to ongoing transaction monitoring.
B
- Beneficial owner
- The natural person who ultimately owns or controls a company, directly or through other entities, usually above a set ownership or control threshold.
- BIC / SWIFT code
- An international code that identifies a specific bank or payment institution when money is sent across borders.
- Business account
- An account held in a company's own name, used to receive, hold and send funds for the business rather than for an individual.
C
- Chargeback
- A card payment reversed by the card issuer, typically after the cardholder disputes the transaction.
- Company formation
- The process of incorporating a new legal entity, including registration, constitutional documents and appointing directors and shareholders.
- Compliance review
- The checks a provider carries out on a customer, transaction or document to confirm it meets regulatory and internal policy requirements.
- Corporate service provider (CSP)
- A firm that forms and administers companies for clients, often providing registered office, directorship and company secretarial services.
- Correspondent bank
- A bank that processes payments on behalf of another institution, often used to reach currencies or countries the sending institution cannot access directly.
- Crypto asset
- A digital representation of value or rights recorded on a distributed ledger, such as bitcoin or ether.
- Custody
- Safekeeping of assets on behalf of a client. For digital assets this includes protecting the private keys that control them.
D
- Due diligence
- Investigation of a customer or counterparty before and during a business relationship, scaled to the risk they present.
E
- EDD (Enhanced Due Diligence)
- Additional checks applied to higher-risk customers, such as deeper source-of-wealth review or senior management approval.
F
- Fiat currency
- Government-issued money such as the euro, pound or Swiss franc, as opposed to crypto assets.
- Fiduciary
- A person or firm entrusted to hold or manage assets or companies on behalf of others, with a duty to act in their interest.
- FX (Foreign exchange)
- Converting one currency into another, for example EUR into GBP, at an agreed exchange rate.
- FX spread
- The difference between the rate at which a currency is bought and the rate at which it is sold; part of the cost of a currency conversion.
H
- Holding company
- A company whose main purpose is to own shares in other companies, often at the top of a group structure.
I
- IBAN
- International Bank Account Number: a standard format that identifies an account, used to send and receive payments across borders.
- Intermediary
- A professional, such as a fiduciary, accountant or lawyer, who introduces clients to a provider and often supports them through onboarding.
K
- KYB (Know Your Business)
- Verification of a company: its registration, ownership, directors, activity and the people who control it.
- KYC (Know Your Customer)
- Verification of an individual's identity and background before and during a business relationship.
M
- Mandate
- A formal instruction authorising someone to act on another's behalf, for example to operate an account or form a company.
- Multi-currency account
- An account that can hold and transact in several currencies, avoiding a separate account for each currency.
- Multi-jurisdiction structure
- A group of entities incorporated in different countries, for example a holding company in one country and operating companies in others.
O
- Onboarding
- The process of opening an account for a new customer, from application and document collection to compliance approval.
P
- Payment rails
- The networks and schemes that carry payments between institutions, such as SEPA, SWIFT or Faster Payments.
- PEP (Politically Exposed Person)
- Someone who holds or has held a prominent public role, or their close family and associates, who are subject to enhanced checks.
- Proof of address
- A recent document, such as a utility bill or bank statement, that confirms where a person or company is located.
R
- Reverse solicitation
- When a client approaches a provider on their own initiative, without the provider having marketed its services to them.
- Risk-based approach
- Applying stronger controls where risk is higher and simpler ones where it is lower, rather than treating every customer the same way.
S
- Sanctions screening
- Checking customers, owners and payments against official sanctions lists before allowing a relationship or transaction.
- SEPA
- Single Euro Payments Area: the scheme for euro transfers between participating European countries.
- SEPA Instant
- A SEPA scheme that settles euro transfers within seconds, at any time of day.
- Source of funds
- Where the money for a particular transaction or deposit comes from, for example a sale proceeds or a loan.
- Source of wealth
- How a person or company built its overall wealth over time, for example business income, investments or inheritance.
- SPV (Special Purpose Vehicle)
- A company set up for a single purpose, such as holding an asset or ring-fencing an investment.
- SRO (Self-Regulatory Organisation)
- In Switzerland, a body recognised to supervise financial intermediaries' anti-money-laundering compliance.
- Stablecoin
- A crypto asset designed to keep a stable value, usually by tracking a fiat currency such as the US dollar or euro.
- SWIFT
- The global messaging network banks use to send international payment instructions.
T
- Trust
- A legal arrangement in which a trustee holds assets for the benefit of beneficiaries, under terms set by the settlor.
U
- UBO (Ultimate Beneficial Owner)
- See Beneficial owner: the natural person who ultimately owns or controls an entity.
V
- Virtual card
- A card number issued for online or in-app payments without a physical card, often created and cancelled on demand.
W
- Wire transfer
- An electronic transfer of money from one account to another, domestically or internationally.
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