Glossary

Layered ownership is a structure in which a company is owned through several intermediate companies, trusts or nominees, often across countries, which can make the real owner difficult to see.

Layering is the middle stage of money laundering, in which criminals move funds through many transactions, accounts or entities to hide their origin and make the trail hard to follow.

Likelihood and impact are the two basic measures used to rate a risk: how probable it is that the event happens, and how serious the effect would be if it does.

Loss given default is the share of an exposure a lender expects to lose if the borrower defaults, after counting what can be recovered from collateral, guarantees and the borrower's remaining assets.