Kos

Front 1

Key Operating Standards,

KOS

Back 1

File of knowledgeable insights into the KYC process

Front 2

CLM, Client Lifecycle Mangament

Back 2

The processs of new client adoption to regular review and exiting

Front 3

Types of processes in KYC

Back 3

New client adoption

Regular review

Event driven review

Cross jurisdictional divisional adoptions, CJDA

MUlti-Jurosdictional adoption

New product extension

Front 4

Four eye review

Back 4

Checker, second person

Front 5

Roles in KYC

Back 5

Business unit heads - accountable for ensuring their division adheres to the KYC policy.

Accountable client owner

Business senior manager - Above ACO

CLM Client on boarding

Head of anti financial crime

Front 6

SOE

Back 6

State owned entity

Front 7

Db recognized regulated entity

Back 7

Partially or fully traded on a Db recognized stock exchanges

Front 8

Db recognized branch

Back 8

The entity itself is owned by a company traded on a Db recognized exchange

Front 9

SPV , spécial purposes vehicle

Back 9

Corporate body to fulfill narrow or specific objectives

Front 10

PIV private investment vehicle

Back 10

Setup by a single or group of individuals for the sole purpose of investing their wealth

Front 11

CRR , client risk rating

Back 11

Assigned at initially NCA and again at RR and EDR

low medium or high

Front 12

CRRM, Client risk rating methodology, 5 pillars

Back 12

Country, industry , product , entity type , delivery channel

Delivery channel - how does the money get from us to them

Front 13

Plausibility check

Back 13

Determine whether ownership and controls structure is credible and in line with expectations

Front 14

Validation

Back 14

Check information given against public and private information

Front 15

Normal business activity

Back 15

SoF term, basically normal, okay wealth based on information, income

Front 16

CSM, client senior managers

Back 16

Natural or non natural person show holds special executive powers. Identified using IDV matrix

Front 17

UBO, ultimate beneficial owner

Back 17

Person at entity who holds a percentage of entity or a natural person on whose behalf a transaction is being conducted

Front 18

Common

Preferred

Bearer shares

Family and group ownership

Nominee shareholder

Back 18

Preferred shares have no voting rights

Bearer shares - no record of ownership is maintained by the issuing company

Nominee shareholder legal owner acting in a nominee capacity

Front 19

ACO accountable client owner

Back 19

People at DB in charge of a client

Front 20

Ownership chart

Back 20

Can be requested form entity

Different group of people and their ownership

Two methods to determining methodology - accumulation and domination

Front 21

NLS, name list screening

Back 21

Screening against sanctions , terrorist lists, adverse media, internal DB lists of unwanted individuals

Front 22

Ficrosoft

Back 22

NLS software

Front 23

Group Review

Back 23

Performed when a client subject to RR is part of a group of clients of the bank

Front 24

AAR, account activity review

EDR , Event driven review

Back 24

AAR, scrutinizing product usage and account behavior Over a time period

EDR, an event that triggers a review

Front 25

One off transaction

Back 25

Single exchange, not onboarded as client but required for specific due diligence

Front 26

MSB, Money Services Business / FinTech

Back 26

Natural or non natural person undertaking business in

Currency dealings

Chèque casher

Money transmitter

Issuers or traveler checks

Payment aggregators

Front 27

Correspondent relationship

Back 27

Banking services to institutions which are themselves providing banking services to their own clients

Front 28

Syndicated lending or secondary loan trading

Back 28

Term loans letters of credits ,

Involves one or more institution contracting to provide credit to a group.

secondary loan trading - trading activity following completion of syndicated loan trading.

Front 29

Correspondent banking

Back 29

Provision of banking services by one bank (correspondent ) to another (respondent ) bank

Front 30

CIS, collective investment scheme

Back 30

Mutual funds, hedge funds, private equity funds

Front 31

NCA,

Principal vs Agent

Back 31

Principal - assets belong to the client

Agent - transacting for the benefit of one or more UPs , underlying principals. Assets involved belong to the UPs not the agent.

Front 32

Identification

Back 32

Identifying CSMs for example

Front 33

Vérification

Back 33

Process of confirming the accuracy of this information based upon reliable information sources.

Front 34

Underlying principal (UP)

Back 34

When a client is acting as an agent is transacting for the benefit of one or more UPs

Front 35

Principal vs Agent clients

Back 35

Principal is a client acting on its own behalf and it’s own benefit

Agent - transacting for the benefit of one or more UPs

Front 36

Guarantor

Back 36

Guaranteeing a loan, are subject to KYC requirements of a client when Db is acting as a lender.

Front 37

Intermediary

Back 37

All people involved in establishing a client relationship. Introducing business or clients.

Front 38

Distributor or arranger

Back 38

Account holders with DB that plan to distribute Db products.

Front 39

Nature of business and purpose of relationship

Back 39

Why are they dealing with DB and how will the products be used? Are the services provided in line with the understanding of the nature of the business and purpose of the relationship.

Front 40

Nature of business

Back 40

Refers to the clients activity and profile , - nature of primary operations (banking , construction )

Legal structure

Products and services offered by client

Front 41

Db recognized listed entity

Back 41

Entities that have some or all of their share capital admitted to trading on a DB recognized stock exchange

Front 42

Private entity

Back 42

Not listed on a Db recognized exchange

Front 43

ID&V

Back 43

Identification and vérification

Front 44

TCC True Copy Certification

Back 44

True copy, reproduced from original

Certified true copy - true copy authenticated by a reputable third party or DB staff

Front 45

CJDA

Back 45

Adoption of an existing client that wants to extend its business with the bank to another jurisdiction or division -

Jurisdiction example - Singapore

Front 46

Material trigger event

Back 46

Increases risk rating , EDR

Material meaning something of importance

Front 47

Partial trigger event

Back 47

Doesn’t result in increase to the financial crime risk

Front 48

Insolvency

Back 48

Bankruptcy

Front 49

PoA

Back 49

Power of attorney - acting on behalf of persons engaging in one off transaction are treated as clients and are subject to due diligence.

Front 50

Split transactions

Linked transactions

Back 50

Split- full amount is divided by transaction

Linked- two or more transactions linked by inherent characteristics

Front 51

IBO

Intermediate Beneficial Owners

Back 51

Natural or non natural person indirectly or directly owns or controls any part of a prospective client. More than 25 %

Front 52

BSF - Business Sponsorship Form

Back 52

Form that business submits to CLM with info to help determinining client risk classification

Front 53

Adverse information

Back 53

Negative info on a entity

Front 54

Business

Back 54

Distinct body within the bank characterized by a particular type of client or market segment

Front 55

Business sponsor

Back 55

DB employee who proposes that the client should be adopted