Glossary

Script-normalizing name strings for improved matching (stripping accents, punctuation).

Verification of customer names against sanction and watch lists at the time of onboarding and periodic monitoring.

Fuzzy logic and linguistic techniques employed to identify close matches in screening.

National Treatment is a principle in international trade and investment that requires a country to treat foreign investors, goods, or services no less favorably than it treats its own domestic counterparts. It ensures a level playing field and is a key provision in many trade and investment agreements.

AI methodology for processing unstructured data (e.g., news, social media) for sanctions risk.

RBI enabled select non-bank brokers registered with SEBI to directly access the NDS-OM platform for government securities trading. Regulated access aims to widen market participation while maintaining security and order book integrity under RBI supervision.

Detection of concealed relationships between entities and individuals in sanctions avoidance networks.

Neutralization theory proposes that individuals justify or rationalize their criminal behavior to reduce guilt and maintain a positive self-image. Offenders use techniques such as denying harm, blaming the victim, or appealing to higher loyalties to excuse their actions. These justifications allow people to temporarily suspend moral values, making it easier to engage in deviant or illegal conduct.

An NFT is a unique digital asset stored on a blockchain that represents ownership of a specific item, like art, music, or collectibles. Unlike cryptocurrencies, NFTs are indivisible and cannot be exchanged one-for-one. They enable digital scarcity and provenance, revolutionizing how creators monetize and prove authenticity of digital content in the Web3 space.

Household repayment obligations (principal + interest) on all loans cannot exceed 50% of monthly income. Existing loans above this limit can mature but no new microfinance loans may be given until compliance.

no-shop clause is a provision in a merger or acquisition agreement that prevents the seller from seeking or negotiating alternative deals with other potential buyers for a specific period. It ensures deal exclusivity, giving the buyer confidence and protection while due diligence and final negotiations are completed. Violating this clause can lead to penalties or legal action.

Updated governance rules require Pension Fund Boards to have a formal Nomination & Remuneration Committee. This ensures transparent director selection and fair compensation?enhancing board accountability and aligning leadership incentives with subscriber interests.

Individuals appointed to act as company directors or shareholders on behalf of another person or entity, often used to obscure the true ownership and control of a company. This arrangement can be exploited for money laundering and other illicit activities

Non-agricultural land is land used for commercial or residential purposes. Benami transactions involving such land are targeted under the Act to prevent misuse of property markets for money laundering and tax evasion.

A non-bailable warrant is a court-issued order that compels the arrest of an accused individual without the option for immediate bail. It is a prerequisite under the Act to begin proceedings to declare someone a Fugitive Economic Offender and initiate asset attachment and confiscation.

NBFCs are financial institutions engaged in banking-like activities but do not hold a banking license. Under the PMLA, NBFCs are obligated to comply with anti-money laundering regulations, including identification and monitoring of suspicious transactions.

Banks are prohibited from processing UPI transactions initiated through non-compliant apps?those lacking NPCI’s security standards. NPCI issues directives to block/unlist offenders, helping prevent fraud stemming from insecure third-party apps.

If an offender holds assets in a country that doesn’t assist in financial crime enforcement or asset recovery, that country is called a non-cooperative jurisdiction. FEOA enables diplomatic and legal tools to work around such barriers.

Section 43 of the Black Money Act prescribes a penalty of ?10 lakh for failure to report foreign assets or income in the income tax return. This applies even when there is no taxable income. The penalty is meant to enforce strict compliance with foreign disclosure obligations.

Not filing an income tax return when foreign income or assets exist is a punishable offence under the Black Money Act. Even if there is no income tax liability, non-reporting of assets abroad may attract penalties and imprisonment. The law prioritizes complete and accurate foreign asset disclosures.

NPCI limits non-monetary API calls?balance checks to???50/day/user/app and account lists to???25/day/user/app?to reduce system stress and ensure UPI availability.

An NFFE refers to a foreign entity that is not an FFI and generally conducts non-financial business, such as manufacturing, services, or trading. FATCA categorizes them for reporting: passive NFFEs must disclose U.S. owners, while active ones usually do not. Understanding NFFE status helps avoid unnecessary reporting requirements.

An NPFFI is an FFI that neither registers nor has a Model 1 IGA. Such institutions are subject to a 30% FATCA withholding on U.S.-source withholdable payments. NPFFIs may also face reputational and operational consequences, encouraging most FFIs to comply.

Target actors involved in weapons of mass destruction proliferation.

An NRE account is a rupee-denominated bank account maintained by Non-Resident Indians (NRIs) to deposit foreign earnings. Regulated under FEMA, these accounts allow tax-free interest and full repatriation of funds. They’re designed to support cross-border financial activity while maintaining strict controls on the origin, use, and movement of foreign exchange in India.

NRIs are taxed in India only on income earned or received in India. However, if an NRI becomes a resident again, they must report global assets and income. Misclassifying residency to hide offshore income or not disclosing overseas assets while resident can attract scrutiny under black money provisions.

List of persons subject to certain secondary sanctions under Iran-related programs.

Non-Tariff Barriers (NTBs) are trade restrictions that do not involve tariffs but still hinder international trade. These include import quotas, licensing requirements, technical standards, and customs delays. NTBs can be used to protect domestic industries or as disguised trade protectionism.

The 2021 Recommendation encourages jurisdictions to adopt Deferred Prosecution Agreements (DPAs) or similar to resolve foreign bribery cases without full trials. These negotiated resolutions require companies to admit facts or guilt and meet conditions to avoid prosecution, aiming to boost effectiveness and corporate accountability.

A Nonparticipating FFI (NPFFI) is a foreign financial institution that refuses to comply with FATCA. Payments to NPFFIs are subject to 30% withholding, severely limiting their access to U.S. capital markets. The status is a red flag in global finance, pushing institutions toward FATCA compliance.

Actions against nuclear proliferation, arms sales, and financial networks.

Risk due to foreign currency correspondent accounts for clearing.

If the accused cannot be located, the court may order a public notice in leading newspapers. This ensures the individual is informed of proceedings and cannot later claim ignorance of being summoned under the law.

A notice of assessment is issued when the tax authority identifies undisclosed foreign income or assets. It informs the taxpayer about the proposed tax, penalty, and prosecution under the Black Money Act. The notice offers a chance to respond before final assessment and is a critical step in initiating legal proceedings.

Before collecting personal data, fiduciaries must provide clear notices detailing the contact information of their Data Protection Officer, the specific data to be collected, its purpose, retention period, disclosure parties, and grievance redress options?empowering individuals with transparency and recourse.

Novation is a legal process where an existing contract is replaced by a new one, either by substituting a new party or changing the terms. The original contract is extinguished, and the new contract takes its place, with all parties? consent. It transfers rights and obligations to the new party, releasing the original party from liability.

Issuing banks must report disputed transactions and fraud alerts using NPCI’s EFRM portal. This involves immediate blocking of UPI credentials, communication with beneficiary banks, temporary blocking of funds, and escalation to NPCI’s head?risk as per guidelines.

Amendments to NPS Trust Regulations (Feb?2024) streamline trustee appointment, clarify roles, mandate CEO appointment, and require formal board meetings. These changes align trust governance with the Companies Act 2013 and ensure transparent checks and fiduciary responsibility.

OC?115E standardizes UPI IDs to 5–7 digit numeric identifiers, promoting interoperability and preventing variable-length or alias-based UPI addresses.