Glossary

Tag-along rights are provisions that protect minority shareholders by allowing them to join a sale if majority shareholders decide to sell their stake. This ensures that minority owners can sell their shares on the same terms as the majority, preventing them from being left behind or forced to remain with new owners they did not choose.

A target company is the business that another company aims to acquire or merge with. It is the focus of takeover efforts, either friendly or hostile. The target’s assets, market position, and financial health are closely evaluated during due diligence to determine its value and potential benefits for the acquiring company.

Asset freeze actions and denial of access to funds for listed individuals/entities.

A tariff is a tax imposed by a government on imported goods and services. It is used to protect domestic industries from foreign competition, raise government revenue, or influence trade policy. Tariffs increase the cost of imported products, making them less competitive compared to local goods.

Penalties for tax evasion include monetary fines, repayment of back taxes with interest, and potential imprisonment. These consequences apply to individuals or businesses found guilty of intentionally avoiding tax obligations. Such penalties aim to deter fraudulent behavior and uphold the tax system's integrity through strict enforcement

deductions, or falsifying documents to evade taxes. It is a criminal offense with serious consequences, including fines, penalties, and imprisonment. Tax fraud undermines public trust and reduces government revenue needed for public services

A tax haven is a country that provides little to no tax liability for foreign individuals and businesses on their financial assets. These jurisdictions offer favorable tax benefits, especially for corporations and high-net-worth individuals. While legal in some contexts, tax havens are often criticized for enabling tax avoidance and being vulnerable to misuse in illegal tax evasion schemes.

Tax planning refers to the strategic use of deductions, exemptions, and careful planning of income, expenses, allowances, and rebates to reduce tax liability within a financial year. Common deductions include investments under Section 80C, such as the Public Provident Fund (PPF) and National Pension Scheme (NPS). Similarly, the Income Tax Act provides exemptions for specific allowances like House Rent Allowance (HRA) and Leave Travel Allowance (LTA)

Tax residency is the status assigned by a country to individuals or entities operating within its jurisdiction to determine their tax obligations. Based on factors like presence or economic ties, tax authorities classify them as residents, making them liable to pay taxes according to that country’s specific tax laws and regulations.

UNCAC encourages States to offer technical aid (e.g., training, IT, investigative tools) and information exchange?especially to developing countries. It builds capacity, supports effective implementation, and fosters cooperation in prevention, enforcement, and asset recovery globally.

Egmont offers capacity-building support to member and candidate FIUs?including workshops, personnel exchange, mentoring, and funding?aimed at standardizing competencies and sharing expertise across jurisdictions.

Techniques of neutralization are methods that individuals use to justify or rationalize their criminal behavior, allowing them to avoid feelings of guilt or shame. Common techniques include denying responsibility, denying harm, blaming the victim, condemning the condemners, and appealing to higher loyalties.

Technology obsolescence risk refers to the danger that existing systems or technologies become outdated or unsupported, causing inefficiencies, security vulnerabilities, and higher costs. In digital transformation, organizations must continuously update technology to stay competitive and secure.

A tender offer is a public proposal by an individual or company to purchase shares from shareholders of a target company at a specified price, usually above the current market value. It aims to gain control by encouraging shareholders to sell their shares directly, often used in takeover attempts, either friendly or hostile.

Target individuals/groups related to terrorism.

Third-party risk management (TPRM) involves assessing and controlling potential risks arising from business relationships with external entities like vendors or suppliers. This process helps organizations identify potential risks, develop strategies to mitigate economic loss, and ensure compliance with legal and ethical standards, safeguarding the company from unforeseen liabilities and ensuring long-term operational success.

A third party is any natural or legal person (other than the controller or processor) who receives personal data. GDPR requires that controllers provide transparency about third-party data access, the purpose, and ensure proper safeguards for such transfers.

New guidance urges enhanced due diligence and control over agents, intermediaries, and JV partners?requiring contracts, audit rights, and oversight mechanisms to manage bribery risk in third-party relationships.

Risk assessment and handling of risks presented by vendors, partners, or contractors.

Third-Party Risk Management (TPRM) involves identifying, assessing, and controlling risks associated with outsourcing to external vendors or service providers. It ensures that third parties meet security, compliance, and performance standards to protect the organization from potential disruptions, financial loss, or reputational damage caused by their actions or failures.

Threat hunting is the proactive process of searching for hidden cyber threats within an organization’s network before they cause harm. It involves analyzing data, identifying anomalies, and responding to potential security incidents, helping strengthen defenses during digital transformation.

Model describing business unit, compliance, and audit roles in managing risk.

OC?76C defines tiered mandate limits for merchants?daily and monthly thresholds based on merchant type. PSPs must enforce these caps and report compliantly to NPCI to avoid throttling.

Time is of the essence is a contractual term meaning that timely performance is a crucial part of the agreement. If a party fails to perform their obligations by the specified deadline, it may be considered a breach of contract, allowing the other party to seek legal remedies.

From April?1, 2023, subscribers must digitally upload withdrawal and KYC documents?ID, address proof, bank details, PRAN?for annuity processing. Transitioning from physical to digital files ensures faster annuity disbursal and better quality checks by POPs and ASPs.

Tipper refers to a person who discloses material non-public information to someone else, known as the tippee, often in violation of a fiduciary duty. The tipper can be an insider, such as an employee or executive, who shares confidential information expecting the recipient to trade on it, which can lead to legal consequences for both parties.

Tokenomics refers to the economic design and incentives behind a cryptocurrency or blockchain project’s tokens. It includes the supply, distribution, utility, and governance aspects that influence token value and user behavior. Well-designed tokenomics motivate participation, secure networks, and sustain ecosystems, playing a crucial role in the success of Web3 projects and decentralized economies.

A trade embargo is an official government order that prohibits trade with a specific country or group. It is often used as a political or economic sanction to pressure or punish nations for actions such as human rights violations or threats to security. Embargoes can restrict imports, exports, or both, significantly impacting international commerce.

Trade facilitation involves simplifying and improving the procedures, processes, and infrastructure related to cross-border trade. It aims to reduce costs, delays, and complexity in customs clearance and logistics, making international trade more efficient and accessible for businesses of all sizes.

Trade mis-invoicing involves deliberately falsifying the price, quantity, or quality of goods on trade invoices to move value illicitly across borders. This method is often used to launder money or evade taxes by disguising the true flow of funds under the guise of legitimate trade transactions.\

Using trade transactions (phony invoices, under/over-invoicing) to deliver value on behalf of sanctioned individuals.

Under GSM, ASM, or ESM, a stock may be moved to T2T mode?each transaction requires matching buy and sell orders and full upfront margin. This restricts speculative trading and curbs volatility in sensitive securities.

This offence covers intentionally promising or providing undue advantage to public officials, or other persons, to misuse their influence in official decisions. States are encouraged to criminalize the solicitation or acceptance of such undue advantage. It addresses illicit lobbying or conflict of interest scenarios.

Process of verification against sanctions and regulatory filters on payments.

Retrospective screening of previous transactions following new designations.

Applications that monitor financial activity for suspicious or sanctioned activity.

Wolfsberg guidance supports statistical methods (percentiles, rolling windows) to set alert thresholds. A Reddit professional explains testing with historical data percentiles and false-positive analysis to tune rules?balancing detection versus alert fatigue.

Real-time or batch screening of payments, messages, and trades for identification of prohibited parties.

UN? three “check transaction status” API calls?must be at least 90?sec apart, with a max of?3/call. Exceeding retries or rapid repeats leads to throttling, preserving system stability.

Under FEMA, "Transfer" encompasses the sale, purchase, exchange, mortgage, pledge, gift, loan, or any other form of transfer of right, title, possession, or lien. This broad definition ensures all modes of transferring assets or interests are regulated.

Once properties are confiscated by court order, they are vested in the central government. The Act bars any other claimants from having rights over such property, regardless of ongoing disputes or third-party ownership claims.

Transhipment, in the context of sanctions, refers to the transfer of goods through a third country or port to disguise their true origin or destination. It is a common method used to evade sanctions by obscuring supply chains. Authorities closely monitor transhipments to detect and prevent illicit trade and sanctions violations.

A Transitional Services Agreement (TSA) is a contract in which the seller agrees to provide certain support services to the buyer for a limited period after a merger or acquisition. These services may include IT, HR, finance, or operations to ensure business continuity while the buyer sets up independent systems and processes.

Rules for name conversion between scripts (Cyrillic?Latin) for matching.

This refers to transferring securities to rightful heirs following the death of a beneficial owner. DPs must process authenticated nominations, wills, or probate documents to transfer holdings.

Transparency refers to the clarity and openness regarding how AI models operate, make decisions, and impact users and stakeholders. It is essential that leaders ensure all stakeholders?including users, regulators, internal teams, customers, and suppliers?have access to relevant, comprehensible information that fosters trust in AI systems and their outcomes.

The Recommendation encourages signatories to publish core facts and parties involved in bribery resolutions?even in non-trial deals?while respecting legal constraints. This promotes transparency, deters misconduct, and enhances public trust in enforcement outcomes.

A travel ban prohibits listed individuals from entering or transiting through the territories of enforcing states. However, this does not apply to a country’s own nationals or in cases where entry or transit is required for judicial proceedings or specifically authorized by the relevant sanctions committee on a case-by-case basis.

Prohibition of entry or transit across the territory of a sanctioning country.

Originator and beneficiary information required in wire transfers.

Requirement that Virtual Asset Service Providers provide originator/beneficiary information.

An agreement among the investor, DP, and depository defining their rights and duties in depository operations. It governs account-opening, transaction execution, fees, and grievance redress.

Trojan Horse (or simply "Trojan") is a type of malicious code named after the ancient Greek story of the Trojan War. It disguises itself as legitimate software to deceive users into installing it. Once activated, it can steal data, damage files, or allow unauthorized access to the system, often giving attackers control over the device.

A screening alert that matches an individual/entity on the sanctions list.

Use of trusts or fiduciary arrangements to conceal ownership or purpose.

Firms or individuals that provide services related to the creation, administration, and management of corporate entities and trusts, which can be misused to obscure ownership and facilitate illicit activities

Trust erosion refers to the gradual loss of confidence in an individual, institution, or system due to repeated misconduct, dishonesty, or lack of transparency. In financial contexts, it can occur after scandals, fraud, or unethical behavior, weakening investor confidence, damaging reputations, and reducing participation or investment in affected markets or organizations.

The term Trustworthy AI is often used interchangeably with Responsible AI and Ethical AI, all of which emphasize principle-based AI development and governance. This includes ensuring that AI systems adhere to key principles such as security, safety, transparency, explainability, accountability, privacy, and nondiscrimination/nonbias, among others.

Tunneling is the illegal or unethical transfer of assets and profits out of a company for the benefit of insiders, often at the expense of minority shareholders. This practice involves diverting company resources, manipulating transactions, or exploiting control to enrich certain parties, leading to financial harm and loss of trust in corporate governance.

Egmont working groups publish anonymised casebooks?Best?Egmont?Case Awards (BECA) anthologies, OSINT studies, and sector typologies (e.g., diamond smuggling, business?email?compromise). These guides help FIUs recognise new laundering?/?TF patterns and improve analytic methodologies.