Risk and Reporting glossary
Browse the site's published reference terms and opted-in content.
12 entries in this view.
C
CPF (Counter-Proliferation Financing)Glossary term
The obligation to make sure your services are not used to help fund the development or acquisition of weapons of mass destruction. Sits alongside counter-terrorist financing as part of the broader MLTPF framework, and has become more prominent in UK AML guidance in recent years.
CRR (Client Risk Rating)Glossary term
The risk level you assign to a client after completing your risk assessment, usually expressed as low, medium, or high. The rating determines how much due diligence you apply, how frequently you review the client, and whether EDD is needed.
CTF (Counter-Terrorist Financing)Glossary term
The obligation on regulated businesses to prevent their services being used to fund terrorist activity. A parallel obligation to AML, governed by TA 2000 alongside the 2017 Regulations.
D
DAML (Defence Against Money Laundering)Glossary term
Previously called Consent. If you know or suspect that continuing to act for a client would make you complicit in a money laundering offence, you can apply to the NCA for a DAML before proceeding, by filing a SAR and flagging that consent is required. Work on the relevant activity must stop while you wait. If the NCA does not refuse within seven working days, the DAML is deemed granted.
H
High-Risk Third CountryGlossary term
A country that HM Treasury has identified as having significant weaknesses in its AML and counter-terrorist financing controls. Any client with a connection to one of these countries automatically triggers EDD, regardless of anything else about their profile.
M
MLTPF (Money Laundering, Terrorist and Proliferation Financing)Glossary term
The umbrella term covering all three financing offences your practice is required to guard against. Used throughout the CCAB guidance to capture AML, CTF, and CPF together.
Moratorium PeriodGlossary term
If the NCA refuses a DAML request, a 31-day moratorium period follows during which the relevant activity must stop. Law enforcement can use this window to take action, and courts can extend it up to 186 days.
N
NRA (National Risk Assessment)Glossary term
The government's periodic assessment of money laundering and terrorist financing risks across different sectors of the UK economy. Regulated practices are expected to be aware of the risks the NRA identifies for the accountancy sector and to reflect them in their own risk approach.
S
SAR (Suspicious Activity Report)Glossary term
The formal report you submit to the NCA when you know or suspect a client or transaction is connected to money laundering or terrorist financing. Filing a SAR as soon as suspicion arises is a legal obligation; failing to file one when you should is a criminal offence.
STR (Suspicious Transaction Report)Glossary term
An alternative term for SAR, more commonly used in international FATF guidance. In the UK the correct term is SAR, but you will encounter STR in cross-border or global compliance contexts.
T
TFS (Targeted Financial Sanctions)Glossary term
Sanctions aimed at specific named individuals or entities, requiring you to freeze their assets and refuse to make funds or services available to them. TFS obligations apply to all UK businesses, not just regulated ones, and are administered by OFSI.
Tipping OffGlossary term
The offence of disclosing to a client, or anyone connected to them, that a SAR has been filed or that a money laundering investigation is underway. Even an accidental disclosure counts. If a DAML has been requested and a client asks why work has paused, that conversation needs very careful handling.