Glossary

CAATSA, or the Countering America's Adversaries Through Sanctions Act, is a U.S. law enacted in 2017 aimed at imposing sanctions on Iran, North Korea, and Russia for activities like election interference, cyberattacks, and military aggression. It authorizes both primary and secondary sanctions, targeting foreign individuals and entities that engage in significant transactions with sanctioned sectors.

U.S. law imposing on Iran, North Korea, and Russia with secondary sanctions.

If sudden irregular price moves or rumors arise, NSE can trigger a call auction?pausing continuous trading to allow participants to recalibrate orders and discover fair value, restoring market stability.

Law permitting Canadian sanctions against foreign nations.

Canadian Sanctions are measures implemented by the Government of Canada to restrict economic and diplomatic relations with countries, organizations, or individuals that pose threats to international peace, security, or human rights. These sanctions include asset freezes, trade restrictions, and travel bans, aligning with Canada’s foreign policy and international obligations.

RBI may cancel a CIC’s registration if it ceases operations, violates conditions, fails compliance, or disregards RBI directions. The RBI can even appoint observers to monitor its affairs

To curb social-engineering attacks via collect payments, NPCI limits P2P collect requests to ?2,000 unless the merchant is verified. This prevents misuse?such as fraudulent pull?requests disguised as legitimate transactions.

Capacity refers to a person's legal ability to enter into a binding contract. To have capacity, an individual must generally be of legal age, mentally competent, and not under the influence of substances or coercion. If a party lacks capacity, the contract may be void or voidable.

A "Capital Account Transaction" involves transactions that alter the assets or liabilities, including contingent liabilities, outside India of persons resident in India or assets or liabilities in India of persons resident outside India. These transactions are regulated by the RBI.

Capital requirements are regulatory standards that ensure banks and depository institutions maintain a sufficient level of capital relative to their risk exposures. These requirements are designed to prevent institutions from becoming overly reliant on high-risk investments that could increase the likelihood of default.

OFAC list identifying foreign financial institutions subject to restrictions.

Captive insurance is an insurance company created and owned by a non-insurance business or group to insure the risks of its owner(s). It allows the owner to manage risk more directly, reduce insurance costs, and customize coverage tailored to their specific needs.

CNP fraud involves unauthorized use of credit or debit card information in transactions where the physical card is not present, such as online or over-the-phone purchases. Fraudsters exploit stolen card details to make purchases, leading to financial losses for merchants and consumers.

Platforms for sanctions investigations, escalations, and documentation management.

Cash-intensive businesses are those that regularly handle large amounts of cash, with customers typically paying for goods, services, or products in cash. These businesses can be found across multiple sectors, including retail, hospitality, and transportation. Due to the high volume of cash transactions, they are vulnerable to financial crimes like money laundering and terrorist financing, as illicit funds can easily be introduced and disguised through legitimate cash flows.

To tackle shutter-overlay and ATM cash-skimming frauds, NPCI has reinstated “cash retraction” controls?allowing teller or collector machines to retract uncollected notes?based on rtc and ATM OEM advisories, strengthening ATM security.

Catastrophic risk refers to the possibility of very large losses resulting from major events such as natural disasters, pandemics, or large-scale accidents. These events can cause significant financial damage to insurers and policyholders due to their widespread impact and severity.

IRDAI classifies fraud into: (1)?internal (by staff/board), (2)?distribution channel (agents/brokers), (3)?policyholder/claims, and (4)?external/vendor fraud. Each requires targeted detection, control, and resolution strategies.

Through its central repository, IIB maintains lists of blacklisted agents, hospitals, TPAs, and vendors with fraud flags. Insurers must reference this and update entries continuously?preserving sector-wide integrity and enabling pre-employment or onboarding checks.

A caveat is a formal warning or notice in legal documents that sets conditions or limitations. It alerts parties to potential risks or requirements they must consider, often used to protect rights or prevent certain actions until further notice.

a Latin phrase meaning "let the buyer beware," is a legal principle that places the responsibility on buyers to examine and assess a product before purchasing. Under this rule, the seller is not liable for any defects or issues after the sale unless they deliberately concealed them or made false claims.

California state consumer data privacy law and consumer protection rights.

Customer due diligence process for customer identification and risk assessment before entering a business relationship.

The Central Government, in consultation with SEBI, can frame rules to implement this Act. These rules cover fees, forms, and procedural aspects.

CRA regulations now require audit, fraud prevention, exit planning, cyber-security, and minimum technology/staffing norms (e.g. ?100?cr net worth, 100+ professionals). CRAs must clearly define roles like compliance officer, key personnel, and cybersecurity leads.

Amendments require CRAs to have net worth ? ?100?cr, 100+ professionals, and defined roles like Cybersecurity Head, Compliance Officer, KMP, and auditors. Audited annual reports?including CEO’s confirmation on digital/financial controls?plus exit plans ensure subscriber protection, readiness, and regulatory traceability.

The Act allows data fiduciaries to process personal data without consent for specific legitimate purposes?like state functions, legal obligations, disaster response, medical emergencies, or employment?provided these are identified in law. This ensures essential societal or state functions can continue without consent delays.

To operate legally, a CIC must obtain a Certificate of Registration from the RBI. The approval process considers factors like capital adequacy, promoter credibility, and business plan feasibility, ensuring reliable and secure credit data handling.

These rules mandate certification for individuals ("associated persons") performing functions such as trading, advising, or fund management. They establish qualification standards, require periodic renewal, and enforce codes of conduct. This ensures that professionals in intermediaries have competence and integrity to conduct market operations.

Shifting assets between multiple blockchains for concealment of origin.

An individual declared as an FEO can appeal the decision to a higher court. However, unless overturned, the declaration remains valid, and all consequences including confiscation and disqualification from civil claims continue.

Change management refers to the structured approach used to guide individuals, teams, and organizations through transitions or transformations, such as adopting new technologies or processes. It aims to minimize resistance, ensure stakeholder alignment, and support successful implementation. Effective change management reduces disruption, enhances engagement, and improves the overall success rate of digital transformation initiatives.

Chargeback fraud, also known as friendly fraud, happens when a consumer makes a purchase and then disputes the charge with their bank, claiming it was unauthorized or that the product was not received, despite having received the goods or services. This leads to financial losses for merchants and increased scrutiny of legitimate disputes.

Check fraud encompasses various illegal activities involving the use of checks, such as forging signatures, altering check details, or issuing checks from closed accounts. Perpetrators aim to unlawfully acquire funds, causing financial harm to individuals and institutions.

Chit Fund Companies manage or supervise chit funds as defined under the Chit Funds Act, 1982. Under the PMLA, these companies are treated as financial institutions and are required to comply with anti-money laundering laws, including record-keeping and reporting suspicious transactions.

Churning is the unethical practice where a broker excessively buys and sells securities in a client’s account primarily to generate commissions, without regard for the client’s investment goals or best interests. This activity can lead to unnecessary trading costs and potential financial harm to the client. Churning is prohibited by financial regulations.

Efforts to evade or get around sanctions by indirect means.

The CISG (United Nations Convention on Contracts for the International Sale of Goods) is an international treaty that standardizes the rules for buying and selling goods between businesses in different countries. It aims to reduce legal barriers and uncertainties by providing a uniform framework, covering contract formation, obligations of buyers and sellers, and remedies for breach of contract.

An individual declared as a Fugitive Economic Offender is disqualified from pursuing or defending civil suits. This unique penalty pressures the accused to submit to Indian jurisdiction rather than enjoying legal benefits while absconding.

Civil penalties for insider trading typically include monetary fines imposed by regulatory authorities like the SEC. These fines can be up to three times the profits gained or losses avoided through the illegal trades (known as “treble damages”). Additionally, the court may order disgorgement, requiring the offender to give up any ill-gotten gains. Civil penalties aim to deter misconduct and compensate harmed investors.

Financial fine for non-compliance with sanctions rules.

A claim is a formal request made by the policyholder to the insurance company asking for payment or services covered under their insurance policy. It is submitted when a loss or damage occurs, and the insurer reviews the claim to determine if it qualifies for compensation according to the policy terms.

A claims adjuster is a professional who investigates insurance claims to determine the extent of the insurer’s liability. They assess damages, verify facts, and negotiate settlements to ensure fair compensation according to the policy terms.

Clear Accountability Define structured accountability frameworks to assign responsibility for AI-driven decisions, ensuring legal clarity and operational oversight. This helps mitigate risks, support transparency, and address complex challenges related to AI governance and liability.

Blocking access to international securities depositories for sanctioned securities.

The Act applies even if the bribery occurred outside the UK, provided the individual or entity is UK-incorporated, domiciled, a UK citizen/resident, or a UK partnership. Non-UK companies that trade in the UK may also fall within scope. It establishes a broad jurisdictional reach aimed at combating international corruption.

Closing is the final step in a merger or acquisition where all legal documents are signed, funds are transferred, and ownership officially changes hands. It marks the completion of the deal, allowing the buyer to take control of the target company and begin integration according to the agreed terms.

Cloud Access Security Broker (CASB) risk involves potential vulnerabilities in tools that monitor and enforce security policies for cloud services. Risks include misconfigurations, insufficient visibility, and inadequate policy enforcement, which can expose sensitive data and increase compliance challenges during cloud adoption.

Cloud migration risk refers to the potential challenges and failures that may occur when moving data, applications, or infrastructure to cloud environments. These risks include data loss, service downtime, security vulnerabilities, compliance issues, and integration problems. Effective planning, vendor evaluation, and robust security measures are essential to manage these risks successfully.

A cloud mining scam involves fake platforms that claim to rent out cryptocurrency mining power to users. Victims pay upfront fees expecting returns from mining profits, but the mining operation either doesn’t exist or never pays. These scams exploit the complexity of mining and promise guaranteed profits.

Registered intermediaries?including POPs, Trusts, and CRAs?must treat cloud usage as outsourcing. They need a formal cloud policy, implement secure architectures, ensure data encryption, comply with PFRDA IT norms, and follow due diligence and monitoring over service providers.

Compliance tools with scalability and cloud infrastructure hosting.

Cloud-native security focuses on protecting applications and data designed to run in cloud environments using technologies like containers and microservices. Risks include misconfigurations, insecure APIs, and vulnerabilities in cloud infrastructure. Ensuring strong cloud-native security requires automation, continuous monitoring, and adherence to best practices.

Co-insurance is a cost-sharing arrangement where the insured and the insurer split the covered expenses after the deductible is met, usually by a specified percentage. This helps share the financial responsibility for losses, encouraging policyholders to avoid unnecessary claims and control costs.

Values and principles that govern ethical behavior and compliance with regulations.

Cognizable offence allows authorities to investigate without prior permission, facilitating prompt action against money laundering. Non-cognizable offences require approval before investigation. Treating money laundering as a cognizable offense helps streamline enforcement and reduces procedural delays in effectively tackling financial crimes.

An offence under PMLA is cognizable, meaning police and investigating agencies have the authority to register a case and start investigation without prior approval. This accelerates the enforcement process against money laundering.

Insurers are mandated to integrate IIB’s analytics into their fraud frameworks?sharing policy and claims data to identify suspicious patterns, flag blacklisted agents or entities, and enable early detection through shared intelligence.

Combating the Financing of Terrorism (CFT) refers to a collection of laws, regulations, and practices implemented by governments to prevent terrorists from accessing funds and financial services. By identifying and tracking the sources of funds used to support terrorist activities, law enforcement can potentially disrupt and prevent these activities from taking place.

Pioneer code for pension funds, endorsed jointly with SEBI and IRDAI, calls on PFs to engage with investee companies on governance matters and voting, enhance transparency, and act as responsible institutional investors?protecting long-term interests of pension subscribers.

Clear Accountability Define structured accountability frameworks to assign responsibility for AI-driven decisions, ensuring legal clarity and operational oversight. This helps mitigate risks, support transparency, and address complex challenges related to AI governance and liability.

Individuals or firms that specialize in creating corporate entities, such as shell or shelf companies. While often legitimate, these services can be exploited to establish anonymous companies used in financial crimes

Remedial measures imposed by the regulators under the settlements.

Compliance controls are the policies, procedures, and activities designed to ensure an organization adheres to laws, regulations, and internal standards. These controls help prevent legal violations, reduce risks, and maintain ethical business practices.

Compliance management involves ensuring that an organization adheres to the standards and regulations set by authorities such as GDPR, HIPAA, NIST, and ISO 27001. These frameworks are designed to enforce the use of proper security measures to safeguard sensitive data from cyber threats. As cyberattacks become more frequent and sophisticated, regulatory requirements have become increasingly strict.

Program designed to measure and ensure compliance with organizational activity.

A Compliance Officer ensures an organization follows laws, regulations, and internal policies. They manage compliance programs, investigate reports of misconduct, and promote ethical behavior. Compliance Officers often oversee whistleblower systems, helping protect reporters from retaliation and ensuring that issues are addressed properly to maintain the organization’s integrity and legal standing.

A Compliance Program is an organization’s set of policies, procedures, and practices designed to ensure adherence to legal regulations and ethical standards. It helps prevent, detect, and respond to misconduct, fostering a culture of integrity. Effective programs often include training, monitoring, and whistleblower reporting mechanisms.

Compliance risk assessment is the process of identifying, evaluating, and prioritizing risks related to violations of laws, regulations, or internal policies. It helps organizations understand their compliance exposure, allocate resources effectively, and implement controls to reduce the likelihood and impact of non-compliance, ensuring adherence to legal and ethical standards.

Financial advisors who knowingly assist clients in illegal activities such as money laundering, tax evasion, or fraud. Their professional expertise can be misused to create complex financial structures that conceal illicit funds.

Compounding allows individuals to voluntarily admit FEMA violations and settle them by paying a penalty, avoiding prolonged litigation or prosecution. The Reserve Bank of India handles most compounding applications. This system promotes compliance through a simplified resolution process, easing the burden on courts while ensuring monetary penalties reflect the seriousness of the offence committed.

General restrictions that cover a whole country, economy, or government.

Concealment refers to hiding or misrepresenting the nature or whereabouts of property derived from corruption. UNCAC requires States to criminalize acts that facilitate the movement or disguise of illicit assets.

A condition precedent is an event or action that must occur before a contract becomes effective or before a party is required to perform their obligations. If the condition is not met, the related duties in the contract may not arise or be enforceable.

Conditional reserves are funds that insurance companies set aside to cover potential future obligations under specific regulatory or financial conditions. These reserves act as a financial safeguard, ensuring the insurer can meet unexpected claims or losses, especially during periods of economic stress or higher-than-expected payouts. They are often required by regulators to maintain solvency.

The CoSP is the formal assembly of all UNCAC signatory countries. It meets biennially to review implementation progress, adopt procedures, address emerging corruption trends, encourage technical cooperation, and guide UNODC’s work. Decisions are largely consensus-based, with one dissent allowed. This structure ensures collective oversight and accountability for delivering anti-corruption commitments.

A Confidential Information Memorandum (CIM) is a detailed document prepared by the seller during a merger or acquisition process. It provides potential buyers with comprehensive information about the company’s business, financials, operations, and growth prospects, helping them evaluate the opportunity while maintaining confidentiality.

Confidentiality refers to the obligation to keep a whistleblower’s identity and the details of their report private. It protects individuals from retaliation, encourages honest reporting, and maintains trust in the reporting system. Maintaining confidentiality is a key part of effective whistleblower protection and is often required by law or company policy.

A confidentiality agreement (NDA) is a legally binding contract that ensures parties in a business deal keep sensitive information private. During mergers or acquisitions, it protects proprietary data, financial details, and trade secrets from being shared with outsiders, helping maintain trust and security throughout the negotiation process.

Confiscation refers to the permanent transfer of property to the central government after a court concludes it was involved in money laundering. This follows confirmation of attachment and prosecution, thereby depriving the offender of the illicit gain.

Under Article?3, countries must empower courts to seize or confiscate the bribe itself, bribe proceeds, or property of equivalent value. Penalties must be effective, dissuasive, and proportionate, and they may include fines or seizures of illicit gains to deter foreign bribery behaviors.

If a property is found to be involved in a benami transaction, authorities can confiscate it without compensating the benamidar or real owner. This confiscation aims to deter use of benami transactions for hiding illicit wealth or illegal assets.

A confiscation order under the Benami Transactions (Prohibition) Act is issued after a property is declared benami by the Adjudicating Authority. It permanently transfers ownership of the property to the Central Government. The real and benami owners lose all rights over it. This legal measure deters illicit ownership and enables recovery of black money.

A confiscation order allows authorities to seize properties owned by a declared Fugitive Economic Offender. This includes both proceeds of crime and other assets, even without conviction. The purpose is to ensure that the offender does not benefit from unlawful gains while evading prosecution.

Under FEOA, the court can confiscate properties of a declared offender without waiting for a criminal conviction. The aim is to prevent evaders from enjoying illegal wealth simply by staying abroad.

Monitoring and regulation of sourcing of conflict minerals.

Policy that discourages staff members from developing conflicts among personal and professional interests.

A conglomerate merger occurs when two companies in completely unrelated businesses combine. Unlike horizontal or vertical mergers, this type does not involve firms in the same industry or supply chain. The goal is often diversification, risk reduction, or expanding into new markets. Conglomerate mergers can help stabilize earnings by reducing dependence on a single sector.

Under GDPR, consent must be freely given, specific, informed, and unambiguous. Financial institutions must record when, how, and what individuals were told, and support ongoing withdrawal of consent. Recording consent events helps demonstrate legal compliance across banking and investment products.

A Significant Data Fiduciary (SDF) is designated by the Central Government based on data volume, sensitivity, or risk level. SDFs are subject to stricter obligations?such as appointing a Data Protection Officer, conducting audits and impact assessments, and following enhanced transparency and compliance requirements?to protect personal data effectively.

A new role called “Consent Manager” may be authorised by Data Principals to manage, grant, or withdraw consent on their behalf. Consent Managers must register with the Data Protection Board and act in the best interest of the Principal. They streamline consent flows while upholding data rights.

Consideration is something of value exchanged between parties in a contract, such as money, services, or a promise. It is a necessary element that makes an agreement legally enforceable. Both parties must provide consideration, ensuring that each gains and gives something in return for the contract to be valid.

When multiple Parties have overlapping jurisdiction over an offence, they must consult to decide which country should prosecute. This avoids duplication and ensures that the jurisdiction best positioned takes lead enforcement.

consumer protection laws are designed to safeguard the interests of consumers by promoting fair trade practices and ensuring product quality standards. The Consumer Protection Act, 2019, along with its associated rules, governs consumer rights and outlines the responsibilities of manufacturers, sellers, and e-commerce platforms

NPCI helps raise public awareness through campaigns warning users against QR tampering, vishing, fake cashback links, and Trojan apps. They publish user do's/don?ts guides on their site to reduce social-engineering fraud, which contributes significantly to UPI fraud.

Contingency planning involves preparing alternative actions and strategies to respond effectively to unexpected events or disruptions. It ensures that organizations have backup plans in place to manage risks, minimize impact, and maintain operations when the original plan cannot be followed.

Continuing customer and transaction review to identify sanctions risks.

Contra proferentem is a legal principle used in contract interpretation, meaning that if a contract term is ambiguous, it will be interpreted against the party that drafted or imposed it. This rule protects the non-drafting party by resolving unclear language in their favor.

Contravention under FEMA refers to any violation of its provisions, rules, or directions issued by the Reserve Bank of India. It includes unauthorized forex transactions, non-reporting of foreign assets, or delays in repatriation. Penalties include fines up to thrice the amount involved. Such enforcement ensures India's foreign exchange regulations are strictly followed to protect economic stability.

Control activities are the policies and procedures put in place to help ensure that management’s risk responses are carried out effectively. These activities can include approvals, authorizations, verifications, reconciliations, and segregation of duties, designed to prevent or detect errors and irregularities that could impact the achievement of objectives.

Control deficiency happens when a control is either absent, improperly designed, or fails to operate as intended. This weakness increases the likelihood that risks, errors, or fraudulent activities may go undetected or unprevented. Identifying and addressing control deficiencies is essential for maintaining effective risk management and ensuring organizational objectives are met with minimal disruption or loss.

Control environment is the foundation of an organization’s internal control system. It includes the company’s culture, values, management philosophy, organizational structure, and the way authority and responsibility are assigned. A strong control environment sets the tone at the top and influences the effectiveness of all other controls within the risk and control framework.

While India does not yet have formal CFC rules, the Black Money Act functions similarly by taxing undisclosed interests in foreign companies controlled by Indian residents. If income is routed through such entities and not disclosed, it is taxed with penalties and potential prosecution under the Act.

Controlling persons are natural individuals with significant control or ownership in an entity. FATCA aligns with AML/KYC principles by requiring identification of these persons, especially in Passive NFFEs, to prevent tax evasion through corporate structures.

States must criminalize actions that hide or recycle property derived from corruption?for example, transferring, disguising, or converting illicit funds. These offences target key laundering stages?displacing value into new assets, layering ownership, or undermining transparency?helping authorities track corrupt wealth through complex financial systems.

If a trading member’s order-to-trade ratio exceeds 2,000 on three separate days in a month, they are barred from placing orders for the first 15 minutes of the next trading day?preventing excessive noise and system strain.

Cornering the market is a manipulation strategy where an individual or group acquires enough control over a particular security or commodity to dominate its supply. This control allows them to influence or set prices artificially, often leading to unfair market conditions and potential losses for other investors. It is illegal under most securities laws.

The depository enables processing corporate actions like dividends, bonus issues, stock splits, or rights issues electronically by passing instructions to DPs and beneficial owners, ensuring smooth automated updates.

Corporate deviance refers to illegal, unethical, or socially harmful actions committed by a corporation or its employees to gain economic advantage. These behaviors can include fraud, environmental violations, insider trading, and corruption. Corporate deviance often results from pressures to meet financial goals and can cause significant damage to society and stakeholders.

A UK company or partnership will face an offence if someone associated with it (e.g., employee, agent, subsidiary) commits bribery to gain a business advantage and the organisation fails to prevent it. The only defence is demonstrating that “adequate procedures” to prevent bribery were in place.

Corporate fraud refers to illegal and dishonest activities committed by a company or individuals acting on its behalf. This includes falsifying financial statements, insider trading, and other deceptive practices intended to give an unfair advantage or mislead stakeholders.

Set of practices, procedures, and rules that govern and control a firm.

While hospitality per se isn't prohibited, lavish or excessive hospitality intended to induce improper conduct may be considered bribery. The Ministry of Justice emphasizes assessing the reasonableness and proportionality of such expenses, along with the inference of intent. Firms should have clear, monitored policies to ensure hospitality within acceptable commercial norms.

Hospitality is permitted if it’s reasonable, proportionate, transparent, and intended for bona fide business purposes. However, lavish hospitality intended to influence improperly may breach S1/S6. Organisations must reconcile hospitality spending within “adequate procedures” and ensure senior oversight to remain defensible.

The Convention mandates that countries establish legal frameworks to hold companies?legal persons?liable for foreign bribery. If corporate law doesn't allow criminal prosecution of entities, jurisdictions must impose other penalties, such as hefty fines or asset forfeiture, thereby closing corporate accountability gaps.

Corporate raiding involves acquiring a company, often through hostile takeover, to profit by selling off its assets or restructuring it for financial gain. This aggressive strategy can harm the target company’s operations, employees, and long-term value. Corporate raiders seek quick returns, sometimes at the expense of the company’s sustainability.

Company obligation to conduct business in a socially responsible, environmentally responsible, and ethical manner.

Data Principals have the right to correct inaccurate or incomplete personal data, complete missing information, or request erasure. Fiduciaries must comply promptly unless retention is legally necessary.

Correspondent account monitoring for anomalous activity related to sanctions.

Given their elevated risk, correspondent banking relationships require rigorous due diligence?including understanding the respondent’s AML controls, testing their transaction monitoring, and ongoing relationship reviews. Wolfsberg’s 2022 guidelines provide detailed frameworks for screening and continuous oversight of these bank-to-bank links.

The Wolfsberg CBDDQ is a comprehensive, standardized questionnaire used by correspondent banks for onboarding and periodic reviews. It covers over 100 points related to AML controls, governance, and compliance. Its adoption promotes harmonisation, cost-efficiency, and improved transparency in correspondent relationships.

Corresponding Law refers to laws in foreign countries that align with the provisions of the PMLA or deal with offences similar to those scheduled under it. This concept facilitates cross-border cooperation for investigating and prosecuting money laundering offences involving multiple jurisdictions.

The COSO Framework is a widely accepted model for designing, implementing, and evaluating internal controls within an organization. It helps organizations manage risks and achieve objectives by focusing on five components: control environment, risk assessment, control activities, information and communication, and monitoring.

Procedures and laws targeted at terrorist financing.

A counterclaim is a claim made by a defendant against the plaintiff in response to the original lawsuit. It allows the defendant to assert their own cause of action arising from the same event or transaction, effectively turning the tables and seeking relief from the plaintiff.

Counterfeiting involves illegally creating fake goods, currency, or documents that imitate genuine items to deceive others. The goal is usually financial gain or to undermine legitimate businesses. This crime harms consumers, damages brand reputations, and disrupts markets. Authorities consider counterfeiting a serious offense, punishable by fines and imprisonment.

Covenants are promises or agreements made by parties during a transaction, specifying actions they must or must not take. In mergers and acquisitions, covenants can restrict activities like selling assets or incurring debt before closing, ensuring both sides meet obligations and protect the deal’s value.

A coverage limit is the maximum amount an insurance company will pay for a covered loss under a policy. It sets a cap on the insurer’s financial responsibility, and any costs beyond this limit must be paid by the policyholder. Coverage limits can apply per claim, per year, or for the entire policy term.

CRAs must design and adopt a comprehensive risk framework within 120 days?covering internal controls, due diligence, vendor oversight, cyber resilience, and subscriber protection. It must be board-approved and backed by regular risk reviews to uphold CRA operational integrity.

The RBI’s upcoming Public Credit Registry (PCR) will complement CICs by making data accessible for public policy and regulatory prudence?but CICs remain market-facing credit data providers.

Creative accounting involves using accounting techniques that comply with legal standards but misrepresent a company’s financial condition. Companies may manipulate earnings, shift expenses, or alter depreciation methods to present a more favorable financial picture. Though technically legal, it can mislead stakeholders and erode trust if discovered.

Credit card fraud involves unauthorized use of a credit card or card information to make purchases or withdraw funds. This can occur through physical theft of the card or by obtaining card details through phishing or data breaches.

Through NABARD, NBFC?MFIs access credit guarantee schemes to support lending during stress or growth periods?encouraging outreach while sharing portfolio risk.

NBFC?MFIs can tap into NABARD’s Credit Guarantee Facilities, which cover portfolio or growth stress?encouraging confidence and expansion in microfinance while risk is shared.

This term includes details like loan amounts, repayment history, credit card status, and any defaults. CICs gather and update this data from member banks and NBFCs to provide reliable credit reports that lenders use for decision-making.

A CIC is an RBI-licensed entity that gathers, maintains, and shares individuals' and companies? credit histories. These companies support financial institutions in assessing creditworthiness and managing risk. Only registered CICs can legally operate under this framework in India.

Any bank, NBFC, housing finance company, public financial institution, or RBI?specified entity that extends credit. CICRA includes them under the definition, making it mandatory for them to share credit data with CICs

Upon borrower request, credit institutions must provide, free or for nominal fee, the credit report obtained from a CIC within the timeframe specified by RBI .

Credit scoring is a method where CICs assign a numeric value based on a borrower’s financial history, including repayments, defaults, and credit utilization. Lenders use these scores to assess the likelihood of repayment.

The four CICs licensed by RBI are TransUnion?CIBIL, Experian, Equifax, and CRIF High Mark?operational as per CICRA and under periodic RBI oversight

An act involving unlawful possession or use of property that rightfully belongs to someone else, which underlies many money laundering offences when proceeds of such crimes are laundered.

Statutory sanction with imprisonment or criminal sanctions for deliberate sanctions breaches.

Crisis management is the process of preparing for, responding to, and recovering from unexpected events that threaten an organization’s operations, reputation, or stakeholders. It involves coordinated actions to minimize damage, ensure safety, and maintain business continuity. Effective crisis management includes clear communication, rapid decision-making, and predefined plans to handle emergencies and restore normal operations as quickly as possible.

Cross Border Implications refer to money laundering activities that involve the transfer or movement of funds, property, or benefits across national borders. PMLA addresses these activities by enabling cooperation with foreign jurisdictions to investigate and prosecute offences that transcend geographic boundaries, ensuring a global approach to tackling money laundering.

Fiduciaries may transfer personal data outside India unless the Central Government restricts the destination via notification (blacklist approach). Transfers must still meet local Act requirements, and sector-specific laws (like RBI’s payment data rules) may impose stricter conditions.

Compliance obligations with regards to sending or receiving money between regions.

A cross-chain bridge enables the transfer of tokens, assets, or data between two separate blockchain networks. These bridges facilitate interoperability, allowing users to move value across chains like Ethereum and Binance Smart Chain. They are crucial for expanding functionality and liquidity in the Web3 ecosystem but often come with security risks.

Screening hits validation by researching negative news and OSINT.

A cross-claim is a claim filed by one defendant against another defendant or by one plaintiff against another plaintiff within the same legal proceeding. It typically arises when the co-parties have related claims that should be resolved together in the interest of judicial efficiency.

NPCI correlates transaction activity across UPI, RuPay, FASTag, and NACH?flagging unusual multi-channel patterns. For example, simultaneous high-value transfers and toll payments from the same account trigger risk scoring and investigation.

Cross-trade occurs when a broker matches a buy order and a sell order for the same security from different clients without exposing the trade to the open market. While sometimes legitimate, it can be used to manipulate prices or create misleading market activity if not properly disclosed or regulated.

Data Fiduciaries may transfer personal data internationally unless specifically restricted by a Central Government notification (“blacklist” approach). Even then, sectoral laws (e.g., RBI rules) may impose additional conditions. This approach strikes a balance between data protection and business continuity.

IRDAI requires consistent anti-fraud standards across multiple channels?agents, digital platforms, call centers. This includes cross-verifying KYC and transactions, monitoring for deviations, and closing process loopholes to ensure no channel becomes an easy fraud entry point.

NPCI correlates transaction data across UPI, RuPay, FASTag, and NACH. For example, simultaneous high-value UPI transfers and FASTag top-ups from one account may trigger investigation for coordinated fraud across channels.

The Common Reporting Standard (CRS), developed by the OECD, is an international agreement that enables the automatic exchange of financial account information among participating countries. Its goal is to enhance transparency in global taxation and prevent tax evasion by ensuring that financial data is shared across borders to identify unreported assets and income.

Regulatory ceiling on price at which oil from sanctioned origin can be sold.

Tools/techniques for tracking and assigning blockchain transactions.

Cryptocurrency fraud includes deceptive practices involving digital currencies, such as Ponzi schemes, fake initial coin offerings (ICOs), and hacking of crypto wallets or exchanges. These scams exploit the anonymity and lack of regulation in the crypto market.

A cryptocurrency tumbler, or mixer, is a service that mixes users? coins with others to obscure the origin and destination of funds. This enhances privacy by breaking transaction trails, making it harder to trace illicit activities like money laundering. While legal in some cases, tumblers are often misused to hide criminal proceeds.

Cryptojacking is a type of cybercrime where malware secretly hijacks your computer’s processing power to mine cryptocurrency without your knowledge or permission. Cryptocurrency mining involves solving complex mathematical problems to validate transactions on the blockchain, which demands significant computing resources?resources stolen from the victim’s device in a cryptojacking attack.

Cuckoo smurfing is a form of money laundering where illicit funds are transferred into the bank accounts of unwitting recipients, disguised as legitimate deposits. This method exploits the banking system to clean dirty money, making it challenging for authorities to trace the origins.

Cultural criminology is a theoretical approach that examines the relationship between culture and crime. It explores how cultural dynamics?such as values, emotions, symbols, and media representations?influence criminal behavior and public perceptions of crime. This perspective emphasizes the role of meaning and identity in crime, often focusing on subcultures, resistance, and the aesthetic aspects of deviance.

Under FEMA, "Currency" includes all currency notes, postal notes, postal orders, money orders, cheques, drafts, travelers' cheques, letters of credit, bills of exchange, and promissory notes. It encompasses various instruments used in financial transactions.

"Currency Notes" refer to cash in the form of coins and banknotes that are legal tender. These are physical forms of money issued by a country's monetary authority.

Many FIUs (e.g., United?States, Canada) also require bulk?cash disclosures?CTR or Threshold Transaction Reports?for cash movements above a statutory limit (often?US?$10?000). CTRs complement STRs by highlighting high?value cash flows that may warrant analysis even without explicit suspicion, helping FIUs spot placement?stage laundering schemes.

A "Current Account Transaction" encompasses all transactions other than capital account transactions. These include payments due in connection with foreign trade, services, short-term banking and credit facilities, and remittances for living expenses. The Central Government may impose reasonable restrictions on these transactions.

These regulate custodians who hold securities (domestic and overseas) on behalf of clients. The regulations prescribe registration criteria, net-worth, reporting standards, audit obligations, and safeguarding protocols. Custodians must maintain trust accounts, segregated records, and follow prescribed risk and compliance procedures to ensure the safety of investor assets.

When fraud is suspected, NPCI guidelines require banks to contact customers via SMS, call, or email to confirm the transaction. If no confirmation is received, transactions are held, reversed, or blocked?protecting customers from unauthorized debits.

RBI mandates CIR access notification: SMS/email alerts are sent to subscribers when their credit report is accessed or updated by specified users or institutions

Insurers must perform KYC for all new relationships and periodic re-verification: Simplified CDD for low-risk customers (<?10?k premium) and Enhanced DD for high-risk groups like PEPs, non-residents, or unusual financial transactions.

The CIP requires financial institutions to verify the identity of individuals opening accounts. Introduced under Section 326 of the USA PATRIOT Act, it mandates procedures to collect, verify, and maintain customer information to prevent money laundering and terrorist financing through anonymous financial activity.

Under Section?326, financial institutions are required to implement a Customer Identification Program (CIP) at account opening?verifying identity (e.g., name, address), maintaining records of verification steps, and cross-checking against terrorist-designated lists. CIP protocols are crucial to combat identity fraud, money laundering, and terror financing.

Onboarding and relationship customer risk assessment procedure.

Customs valuation is the process of determining the value of imported goods for the purpose of applying duties and taxes. It ensures fair and consistent treatment in international trade by using standardized methods, primarily based on the transaction value of the goods, as outlined by the World Trade Organization.

Cyber espionage, also known as cyber spying, is a form of cyberattack where an unauthorized individual or group attempts to access sensitive, classified, or proprietary information. The motive is often economic gain, competitive advantage, or political objectives, and the targets may include governments, corporations, or research institutions

IRDAI mandates robust cyber frameworks to detect fraud such as identity theft, phishing, or system intrusions. This includes regular vulnerability assessments, breach incident logging, and emergency response protocols?especially since customer KYC, financial, and health data are high-value targets.

yber insurance risk refers to the challenges and uncertainties related to obtaining and managing insurance coverage for cyber-related incidents. It includes risks of inadequate coverage, claim disputes, and evolving cyber threats that may exceed policy limits, impacting an organization's financial protection.

Fraud conducted via digital or cyber means?such as data theft, hacking, identity fraud, or cyber-enabled claim filing. IRDAI mandates enhanced cybersecurity, digital transaction monitoring, and awareness training to mitigate evolving online threats.

This Master Direction mandates non-bank Payment System Operators (PSOs) to strengthen IT infrastructure with multi-factor authentication, real-time fraud monitoring, secure messaging, incident response teams, and audit-log retention for at least five years. Issued under the Payment and Settlement Systems Act, it enforces board oversight and compliance to ensure cyber resilience in India’s retail digital finance ecosystem.

Per a 2020 circular, PoPs and Non-Individual Retirement Advisers (RAs) must annually certify compliance with PFRDA’s cybersecurity policy. They must report cyber incidents immediately, and submit compliance certificates within 30 days of the financial year-end.

PFRDA formed a standing committee on Information Systems, Technology, and Cyber Security to guide CRAs, trustees, and intermediaries. They recommend alignment to global cyber frameworks, annual security audits, and IT governance?ensuring subscriber data protection and fraud resilience.

is the process of identifying, assessing, and mitigating cybersecurity risks within the supply chain. It focuses on protecting hardware, software, and services from cyber threats that could compromise the integrity, confidentiality, or availability of systems throughout the supply network.

Following recent cybersecurity breaches, IRDAI mandates a board-approved anti-fraud policy including cyber risk teams, data protection systems, fraud detection technology on digital channels, and structured staff, agent, and policyholder awareness programs to close digital fraud vulnerabilities.

NPCI collaborates with CERT-IN, RBI, and banks to share real-time cyber threat intelligence?like malware signatures and phishing URLs?so ecosystem participants can update filters, revoke credentials, block fraud campaigns proactively.

PFRDA established a permanent body to advise on adopting MIS, cyber controls, fintech, and IT governance best practices. It meets at least twice a year and shapes security norms across the pension ecosystem to protect subscriber data and ensure system resilience.

Cybersecurity risk is the potential threat of unauthorized access, data breaches, or cyberattacks that can disrupt systems, compromise sensitive data, or damage reputation. As organizations increasingly rely on digital technologies, managing this risk involves implementing robust security measures, monitoring threats, and ensuring compliance with cybersecurity standards to protect critical information and maintain business continuity.