Glossary

Glossary.

Plain-English definitions for the compliance terms that sit behind risk intelligence.

A1 certificate

An A1 certificate confirms the social security legislation that applies to a worker temporarily working in another country.

CDD is customer due diligence: the checks used to identify customers, understand relationships, and assess risk.

DBS refers to the Disclosure and Barring Service, which provides criminal record and barring checks.

A DPIA is a data protection impact assessment used to identify, assess, and reduce privacy risks.

A DPO is a data protection officer responsible for advising, monitoring compliance, and acting as a point of contact.

EDD means enhanced due diligence for higher-risk relationships, transactions, customers, or jurisdictions.

The EU AI Act regulates AI systems, including prohibited practices, high-risk systems, transparency duties, and governance requirements.

The FCA is the UK regulator for conduct in financial services and certain markets.

GDPR is the general data protection framework governing personal data processing, retained in UK law as UK GDPR.

The ICO is the UK regulator for data protection, privacy, and information rights.

KYC is the process of identifying a customer, understanding the relationship, and assessing financial crime risk.

MLR commonly refers to the UK Money Laundering Regulations, which set customer due diligence and AML obligations.

An MLRO is the money laundering reporting officer responsible for receiving internal reports and managing external suspicious activity reporting.

NIS2 is the EU directive expanding cyber risk management and incident reporting obligations for important and essential entities.

A politically exposed person is someone entrusted with a prominent public function, plus certain family members and close associates.

SDD is simplified due diligence applied where a customer or transaction presents lower money laundering risk.

SMCR is the UK financial services regime for senior manager accountability, certification, and conduct rules.

A sponsor licence lets a UK organisation sponsor eligible overseas workers under the immigration system.

The SRA regulates solicitors and law firms in England and Wales.

A UBO is the natural person who ultimately owns or controls a company, trust, or other legal entity.