Glossary

U.S. law giving the President authority to sanction for national emergencies.

If a “check transaction status” API returns known failure codes (e.g., U48), the transaction is considered failed, and no more status checks should be initiated. This prevents excessive unnecessary API use.

Immovable property includes land, buildings, and any other fixed assets. Under the Act, immovable benami properties are scrutinized closely, as they are commonly used for hiding true ownership and unaccounted wealth.

Impersonation in benami transactions occurs when someone purchases property using a false identity or documents to hide the real owner’s name. This misrepresentation aims to disguise the actual source of funds or ownership. Under the Act, such actions constitute fraud and can attract severe penalties, including imprisonment and confiscation of the property involved.

Under Articles?63–64, each Party undergoes a peer-review process examining national laws, enforcement, and asset recovery practices. The Implementation Review Group supports CoSP by conducting two-phase evaluations followed by public reporting. The mechanism encourages transparency, identifies gaps, and fosters mutual learning among members.

An implied contract is formed by the actions, conduct, or circumstances of the parties rather than written or spoken words. It shows an intention to create a binding agreement, even if no explicit terms are stated. Courts recognize implied contracts to enforce agreements based on reasonable expectations.

Prohibitions on the importation of specific items from sanctioned states.

An action is “improper” if it breaches an expectation of good faith, impartiality, or trust placed in someone’s role. It is judged against the objective standard of what a reasonable UK person would expect, ignoring local customs unless codified in local law.

An in terrorem clause, often found in wills or trusts, is designed to deter beneficiaries from contesting the document by threatening forfeiture of their inheritance if they challenge its terms. This serves to prevent legal disputes and ensure the testator's wishes are honored without litigation

Incident management is the structured process for identifying, responding to, and resolving events that disrupt normal operations or violate policies. It helps minimize impact, restore services quickly, and prevent future occurrences.

Incident response is a planned approach for detecting, managing, and recovering from cybersecurity incidents. It includes identifying threats, containing damage, investigating root causes, and restoring affected systems. Effective incident response minimizes business disruption and data loss, making it vital during digital transformation efforts.

Recent amendments bring Pension Funds under the Prevention of Money Laundering Act (PMLA), requiring Pension Fund Managers and trustees to maintain AML/CFT protocols, KYC/CDD standards, and report suspicious activities.

Incoterms are a set of internationally recognized rules published by the International Chamber of Commerce that define the responsibilities of buyers and sellers in the delivery of goods. They clarify who pays for shipping, insurance, and customs duties, and at what point the risk transfers from seller to buyer.

Indemnity is an insurance principle that ensures the insured is restored to the same financial position they were in before a loss, without profiting from the claim. It aims to make the policyholder “whole” after a covered loss.

An indemnity clause is a provision in a contract where one party agrees to compensate or protect the other party from certain losses, damages, or liabilities that may arise during the contract. It shifts financial risk and responsibility from one party to another.

Fraud Monitoring Units must be operationally independent, with direct reporting lines to the Board or Fraud Monitoring Committee. They conduct autonomous reviews and evidence-gathering for all fraud types, offering segregation from audit or HR functions to avoid conflicts of interest.

Periodic third-party review of sanctions controls and efficacy.

These regulations govern entities that create and maintain market indices used for benchmarking funds and derivatives. They set criteria for index methodology, periodic review, data governance, conflicts of interest, and transparency. Index providers must be registered, audited, and adhere to SEBI standards to ensure indices are robust, unbiased, and reliable for investment and trading decisions.

"Indian Currency" means currency expressed or drawn in Indian rupees but does not include special bank notes and special one rupee notes issued under Section 28A of the Reserve Bank of India Act, 1934.

An Informal Value Transfer System (IVTS) transfers money or value outside of traditional banking channels, often based on trust and community networks. These systems, such as Hawala or Hundi, are widely used in regions with limited banking access.

To encourage whistleblowing, the government introduced a reward scheme for informants who provide credible details about benami transactions. Rewards are granted upon successful confiscation of the property, depending on the value involved. The scheme ensures confidentiality and incentivizes public participation in the fight against financial crime and hidden property ownership.

This provision enables financial institutions to share information with each other and with federal agencies regarding individuals suspected of terrorism or money laundering. It fosters public-private collaboration in identifying threats.

India has signed various international agreements for automatic exchange of financial information with other countries. These agreements help detect undisclosed foreign accounts and assets of Indian residents. Data obtained through these treaties is used to assess tax liability under the Black Money Act.

The Egmont “IEP” specification standardises the file structure (entities, relationships, funds?flow) for FIU?to?FIU transfers through ESW. Harmonised XML tags let receiving FIUs ingest large data sets directly into analytic tools, boosting speed and consistency while reducing manual re?keying errors.

These regulations govern InvITs that pool investor money to invest in infrastructure assets. They prescribe issuer registration, asset valuation, distribution of returns, valuation norms, trustee obligations, reporting requirements, and investor protection measures to ensure efficient and transparent fund structures for infrastructure financing.

The Initiating Officer investigates suspected benami transactions and refers such cases to the Adjudicating Authority. They gather evidence and ensure proper legal procedures are followed to enforce the Act’s provisions.

An injunction is a court order that requires a party to do or stop doing a specific act. It is used to prevent harm or preserve the status quo during litigation. Injunctions can be temporary or permanent and are powerful tools to protect rights before a final judgment.

Insider dealing, also known as insider trading, involves buying or selling a company’s securities based on confidential, non-public information. This illegal practice gives insiders an unfair advantage over other investors, undermining market integrity and trust. Authorities impose strict penalties to prevent such unethical behavior and protect fair trading.

Insider loan abuse occurs when company insiders, such as executives or board members, obtain loans on unfair or preferential terms not available to others. This misuse of position can harm the company’s financial health, violate regulations, and breach fiduciary duties, potentially leading to legal penalties and loss of stakeholder trust.

RBI reserves the right to inspect CICs, credit institutions, or specified users, with or without government directive, reviewing books, accounts, and records relating to compliance

Once a fraud alert is raised via FRM, NPCI assigns the case an ID and monitors the resolution through banks?tracking status updates from initiation to outcome, ensuring timely refunds or escalations in line with its dispute-resolution policy.

Corruption that occurs within the structures and systems of an organization, where corruption is not only practiced by individuals but becomes part of the institution’s functioning.

Large brokers (2,000+ UCCs) or Qualified Stock Brokers must maintain automated systems to flag abnormal client trading patterns (e.g., front-running, circular trading). They are required to appoint a Chief Surveillance Officer, conduct annual policy reviews, and submit alert reports quarterly to both NSE and SEBI.

An intentional act or omission meant to gain a dishonest or unlawful advantage in insurance?such as misrepresenting facts, concealment, asset misappropriation, or abuse of trust by policyholders, intermediaries, or insiders. IRDAI defines it broadly to cover internal, distribution-channel, policyholder, and external vendor frauds.

Insurance risk class is a category used by insurers to group individuals or entities with similar risk characteristics. This classification helps determine the likelihood of a claim and influences the premium rates charged. Risk classes ensure fair pricing based on factors like age, health, occupation, or property type

Intangible property includes assets without physical form, like shares, securities, patents, or digital assets. The Act covers such property if held benami, ensuring that concealed wealth is not limited to real estate or physical assets. These can be investigated, attached, and confiscated if proven to be purchased with unaccounted funds in another’s name.

Last stage of money laundering, integrating funds into legitimate economy.

Integration difficulty is a common challenge when implementing AI in organizations that rely on legacy systems for critical operations. These older systems often lack the flexibility, scalability, and processing power needed to support modern AI technologies. As a result, compatibility issues can arise, potentially delaying operations or introducing security vulnerabilities.

An integration plan is a detailed strategy developed to combine two companies after a merger or acquisition. It outlines how to merge operations, systems, cultures, and teams to maximize synergies, minimize disruptions, and achieve the intended benefits of the deal efficiently and smoothly.

Intellectual property (IP) risk involves the potential loss, theft, or misuse of proprietary assets such as patents, trademarks, copyrights, or trade secrets during digital transformation. As businesses digitize operations, IP becomes more vulnerable to cyberattacks and unauthorized access. Managing this risk requires strong data protection, legal safeguards, and employee awareness programs.

REs need a board-approved interest-rate model. Interest and fees must not be usurious. While previous margin caps are removed, RBI continues supervisory oversight. Rates must be disclosed via a standard factsheet.

An IGA is a bilateral agreement between the U.S. and foreign governments enabling FFIs to report U.S. account information via their local tax authorities (Model 1) or directly to the IRS (Model 2). IGAs prevent violations of local laws while supporting FATCA objectives.

The Special Court may pass interim orders, such as attachment of property, restraint orders, or directives to prevent dissipation of assets while proceedings are underway. These protect the state’s interests until a final confiscation decision is made.

An interlocutory appeal is an appeal of a trial court's ruling made before the trial itself has concluded. It seeks immediate review of a potentially significant legal issue that could materially affect the outcome of the case, aiming to prevent unnecessary litigation or expense.

These regulations define requirements for intermediaries like brokers, registrars, underwriters, and advisors. They cover fit-and-proper criteria, minimum capital, registration, code of conduct, audit, and supervision. SEBI uses this framework to monitor and discipline intermediaries, ensuring that they operate legitimately and in investors? best interests.

An Intermediary is any person or entity engaged in financial activities or services, such as brokers, agents, or financial institutions. Under PMLA, intermediaries must follow due diligence, maintain records, and report suspicious transactions to help detect and prevent money laundering.

Independent assessment of an organization's procedures for compliance and risk control.

Internal audits are essential for assessing and enhancing an organization’s internal controls, governance frameworks, and operational efficiency. Through independent and objective evaluations, internal audits help verify that policies and procedures are effectively implemented and aligned with the organization’s strategic goals, regulatory obligations, and risk management practices

Controls to avoid, detect, and correct compliance failure.

To curb internal fraud (by employees or management), insurers must implement background checks, reference verifications, job rotations, confidential whistle-blower reporting, segregation of duties, maker-checker approvals, and access controls. These controls reinforce a fraud-resistant internal culture.

CICs must appoint an Internal Ombudsman for dispute resolution in line with the RBI Integrated Ombudsman Scheme of 2021, enhancing accountability

Internal reporting mechanism refers to the systems and processes established within an organization that allow employees to report misconduct, unethical behavior, or violations of policies. These may include hotlines, web portals, or designated compliance officers. Effective internal mechanisms promote early detection, protect whistleblowers, and support a culture of integrity.

Recommended by RBI and outlined by KPMG, this guidance encourages banks and NBFCs to perform institution-wide Internal Risk Assessments for anti-money laundering and terrorism financing. Entities must assess services, channels, customers, and geographies, aligning with global standards to proactively mitigate financial crime risks.

This RBI guidance instructs regulated entities to perform Internal Risk Assessments for money laundering, terrorist financing, and proliferation risks. It recommends a risk-based approach, sector-specific evaluation, and alignment with global AML standards to proactively identify, monitor, and mitigate compliance vulnerabilities.

UNCAC mandates comprehensive judicial cooperation in corruption cases?covering extradition, mutual legal assistance, transfer of sentenced persons, and joint investigations. Countries must share information, facilitate legal processes, lift bank secrecy, and respond to corruption-related requests even without dual criminality, supporting global collaboration against corruption.

The 2021 Recommendation stresses enhanced cross-border cooperation among enforcement agencies?promoting early coordination, avoiding overlapping investigations (“piling on”), and sharing best practices for effective global bribery enforcement.

India can use mutual legal assistance treaties (MLATs) to recover or restrain assets of declared offenders located abroad. These treaties promote cooperation in investigation, prosecution, and recovery of assets across jurisdictions.

Egmont and its WGs run worldwide typology studies?on topics like terrorist financing, business email compromise, and fintech risks?collecting sector insights, sharing structured analysis, and enhancing global FIU detection techniques.

Interrogatories are written questions sent by one party to another during discovery. The recipient must answer them under oath within a specified time. They are used to obtain factual information, clarify issues, and gather details to build or defend a case without the need for in-person testimony.

Under the 2015 regulations, Pension Funds must initiate Board-level Investment & Risk Management Committees to approve investment and risk policies, oversee AUM asset-liability mismatch, exposure limits, audits, and business continuity plans?with semi-annual governance reporting to NPS Trust.

These regulations establish guidelines for individuals and entities offering investment advice. They mandate registration, prescribe a code of conduct, and require disclosures to ensure that advice is in the best interest of clients.

Investment fraud encompasses deceptive practices that induce investors to make purchase or sale decisions based on false information, often resulting in financial losses. This includes Ponzi schemes, pyramid schemes, and bogus investment opportunities.

Investor-State Dispute Settlement (ISDS) is a legal mechanism that allows foreign investors to sue a host country for alleged discriminatory practices or treaty violations. These disputes are typically resolved through international arbitration, offering investors a neutral forum outside the host nation’s courts.

International association of securities regulators for compliance and integrity.

IPFS is a decentralized file storage protocol that enables peer-to-peer sharing and permanent content addressing. Unlike traditional web servers, IPFS retrieves files based on their cryptographic hash, ensuring data integrity and censorship resistance. It’s widely used in Web3 for hosting websites, NFTs, and applications without relying on centralized infrastructure.

Broad sanctions on Iran's nuclear initiative, support for terrorism, and energy sector.

ISO 31000 is an international standard that provides guidelines and principles for effective risk management. It helps organizations create a structured approach to identify, assess, and treat risks, aiming to improve decision-making and enhance overall performance while increasing the likelihood of achieving objectives.

These regulations provide a framework for municipal corporations to raise capital via bonds. They prescribe issuer eligibility, disclosure obligations, trustee and credit rating requirements, and redemption timelines. Objective is to channel investments into urban development while protecting investors through structured oversight, standard documentation, and periodic filings.

These regulations detail the issuance and listing requirements for non-convertible securities such as bonds and NCDs by listed entities. They cover eligibility criteria, disclosure standards, trustee obligations, pricing, and listing rules. The aim is to enhance transparency, protect debt investors, and promote efficiency in corporate bond markets.

These regulations govern the issuance, structuring, trustee appointment, disclosure standards, and listing of securitised debt and security receipts. They aim to facilitate asset securitisation while safeguarding investor interests through transparency, performance tracking, and accountability frameworks for originators and trustees.

These regulations govern the public issuance of securities, detailing requirements for disclosures, eligibility, and procedural norms. They aim to ensure transparency and protect investors during public offerings.

An issuer is a company or entity that offers securities to the public or investors. Under the Act, issuers must cooperate with depositories to enable electronic record-keeping, ensure accurate transfers, and maintain transparency in ownership data.

IT audit is a systematic examination of an organization’s information technology infrastructure, policies, and operations. It evaluates the effectiveness of controls, security measures, and compliance with regulations to identify risks and ensure that IT systems support business objectives securely and efficiently.

IT infrastructure risk refers to potential threats arising from weaknesses or failures in hardware, software, networks, or data centers. These risks can lead to service disruptions, data loss, or security breaches. During digital transformation, outdated or poorly integrated infrastructure can hinder performance, scalability, and security, making it essential to assess and modernize IT systems effectively.