A terroristic act is a deliberate, unlawful action involving violence or the threat of violence, intended to instill fear, intimidate a population, or coerce a government or international organization to achieve political, ideological, religious, or social goals.

AML refers to a set of laws, regulations, policies, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. The primary goal of AML is to detect and report suspicious financial activity that may be related to crimes such as drug trafficking, corruption, tax evasion, terrorism financing, or organized crime.

AML compliance refers to the process by which financial institutions and other regulated entities ensure they adhere to anti-money laundering laws, regulations, and standards. It involves implementing a structured internal framework to prevent, detect, and report potential money laundering or terrorism financing activities

The Anti-Money Laundering Authority (AMLA) is a planned European Union body established under the EU’s AML legislative package. Its primary purpose is to enhance the effectiveness and consistency of anti-money laundering and counter-terrorist financing (AML/CFT) supervision across the EU.

A set of EU directives establishing rules and obligations for preventing money laundering and terrorist financing, applicable to obliged entities within the European Union.

A designated person responsible for overseeing AML compliance within an organization, including detecting suspicious activities and reporting them to the relevant authorities.

An independent review of an organization's AML policies, procedures, and controls to ensure compliance with AML laws and identify weaknesses or risks in the system.

An independent ranking that measures countries’ risk of money laundering and terrorist financing based on factors like AML regulations, corruption, financial transparency, and political risks. Published annually by the Basel Institute on Governance.

An international body that sets global standards for banking regulation, including guidelines on anti-money laundering, risk management, and financial stability.

Any natural person who directly or indirectly exercises control over the customer through rights resulting from legal or factual circumstances, enabling them to exercise a decisive influence over the actions or activities undertaken by the customer, or any natural person on whose behalf a business relationship is established or an occasional transaction is carried out, including:

a) in the case of a legal person other than a company whose securities are admitted to trading on a regulated market subject to disclosure requirements under the law of the European Union or equivalent provisions of the law of a third country:– a natural person who is a shareholder or stockholder holding ownership rights of more than 25% of the total number of shares or stocks of that legal person,– a natural person who holds more than 25% of the total number of votes in the governing body of that legal person, also as a pledgee or usufructuary, or based on agreements with other persons entitled to vote,– a natural person exercising control over a legal person or legal persons which together hold ownership rights of more than 25% of the total number of shares or stocks, or which together hold more than 25% of the total number of votes in the governing body of that legal person, also as a pledgee or usufructuary, or based on agreements with other persons entitled to vote,– a natural person exercising control over a legal person through the rights referred to in Article 3(1)(37) of the Act of 29 September 1994 on Accounting (Journal of Laws of 2023, items 120 and 295), or– a natural person holding a senior management position in the event of a documented inability to determine or doubts regarding the identity of the natural persons referred to in the first to fourth indents, and where no suspicion of money laundering or terrorist financing has been identified;

b) in the case of a trust:– the settlor, including the founder within the meaning of the Act of 26 January 2023 on Family Foundations (Journal of Laws, item 326),– the trustee, including a member of the management board within the meaning of the Act of 26 January 2023 on Family Foundations,– the supervisor, if appointed, including a member of the supervisory board within the meaning of the Act of 26 January 2023 on Family Foundations,– the beneficiary, including the beneficiary within the meaning of the Act of 26 January 2023 on Family Foundations, or – where the natural persons benefiting from the given trust have not yet been determined – the group of persons in whose main interest the trust was established or operates,– any other person exercising control over the trust,– any other natural person holding rights or obligations equivalent to those specified in the first to fifth indents;

c) in the case of a natural person conducting business activity, where there are no grounds or circumstances indicating that control is exercised over them by another natural person or persons, it is assumed that such a natural person is also the beneficial owner.

A money laundering technique where illicit funds are mixed with legitimate business revenues, typically cash-intensive businesses, to disguise the illegal origin of the money.

Funds obtained through illegal activities such as drug trafficking, corruption, fraud, human trafficking, illegal arms trade, or other criminal acts; often subject to money laundering to hide their illicit origin.

A set of procedures used by financial institutions and other entities to verify the identity of their clients, assess risks, and monitor transactions to prevent money laundering and terrorist financing.

Prices set for goods, services, or intangibles exchanged between related entities within a multinational company, used to allocate income and expenses across jurisdictions, which can affect tax liabilities.

Measures and regulations aimed at detecting, preventing, and combating the financing of terrorist activities to protect national and international security.

Adherence to laws, regulations, and internal policies by an organization to ensure lawful and ethical operations, including in areas such as anti-money laundering and counter-terrorism financing.

The act of delaying, suspending, or refusing to execute a financial transaction, typically due to compliance concerns such as suspicion of money laundering, terrorist financing, or violations of regulatory requirements.

A centralized government database that contains information about the ultimate beneficial owners of companies and legal entities to increase transparency and prevent money laundering and tax evasion.

Funds obtained from legal, legitimate sources that comply with all applicable laws and regulations, free from any association with criminal activities.

The practice by financial institutions of reducing or terminating business relationships with clients, sectors, or regions perceived as high-risk for money laundering or terrorist financing, to minimize regulatory and reputational risks.

Non-financial entities and professionals such as lawyers, accountants, real estate agents, casinos, and dealers in precious metals or stones, which are subject to AML/CFT regulations due to their risk of being used for money laundering or terrorist financing.

Products or technologies that can be used for both civilian and military purposes. Examples include drones (used for filming or reconnaissance/weapons), lasers (used in medicine or as weapon components), and encryption software (used for data protection but potentially for military communication).

Due Diligence — a thorough process of investigating and verifying the background, identity, and risk profile of clients or business partners to ensure compliance with legal and regulatory requirements, especially in AML/CFT contexts.

A situation where normal flows of capital between markets or sectors are disrupted, often due to economic shocks, regulatory changes, or crises, causing inefficiencies and misallocation of financial resources.

An international network of Financial Intelligence Units (FIUs) that facilitates cooperation, information exchange, and coordination among member countries to combat money laundering and terrorist financing globally.

A failure to identify or detect a suspicious activity, transaction, or risk that actually exists, leading to missed cases of money laundering or terrorist financing during monitoring or screening processes.

An alert or warning triggered by a transaction or activity incorrectly identified as suspicious, despite being legitimate, which can lead to unnecessary investigations and resource use.

A U.S. law requiring foreign financial institutions to report information about financial accounts held by U.S. taxpayers to the U.S. Internal Revenue Service (IRS), aimed at preventing tax evasion through offshore accounts.

An intergovernmental body established to develop and promote policies to combat money laundering, terrorist financing, and other related threats to the integrity of the international financial system. FATF sets global standards and monitors countries’ compliance through mutual evaluations.

Providing or collecting funds, directly or indirectly, with the intention or knowledge that they will be used to carry out terrorist acts or support terrorist organizations.

A business entity that exists only on paper without significant assets or operations, often used to conceal ownership, facilitate money laundering, or evade taxes.

A national agency responsible for receiving, analyzing, and disseminating financial information related to suspicious transactions to combat money laundering and terrorist financing.

A bank account used to collect and consolidate funds from multiple sources, often to obscure the origin of illicit money during money laundering schemes.

The Polish Financial Intelligence Unit (FIU) responsible for receiving, analyzing, and forwarding reports on suspicious financial transactions to combat money laundering and terrorist financing in Poland.

An informal value transfer system based on trust and family or community networks, used to transfer money without physical movement of cash or formal banking, often outside regulated financial channels.

A global organization of insurance regulators and supervisors that develops standards, promotes effective supervision, and fosters cooperation to ensure the stability and integrity of the insurance sector worldwide.

The process of verifying the identity of a client using reliable documents, data, or information to ensure the legitimacy of the customer and comply with AML/CFT regulations.

An annual ranking published by Transparency International that measures perceived levels of public sector corruption in countries worldwide, based on expert assessments and surveys.

Authorities overseeing AML/CFT compliance, including the head of KAS, customs and tax office chiefs, National Bank of Poland (NBP), General Inspector of Financial Information (GIIF), Polish Financial Supervision Authority (KNF), and the Supreme Audit Office (NIK).

The stage of money laundering where illicit funds are made to appear legitimate, for example, through blending with legal funds, fictitious loans, or transfer pricing.

Entities legally required to implement AML/CFT measures, including banks, financial institutions, insurance companies, auditors, lawyers, real estate agents, casinos, and other designated non-financial businesses and professions subject to anti-money laundering regulations.

A global association of securities regulators that develops, implements, and promotes international standards for securities markets to protect investors, ensure fair and efficient markets, and reduce systemic risk.

A method of transferring money outside traditional banking channels, based on trust and personal networks, often used to move funds quickly and anonymously across borders.

Authorities collaborating with the General Inspector of Financial Information (GIIF) in AML/CFT matters, including public administration, the National Bank of Poland (NBP), the Polish Financial Supervision Authority (KNF), and the Supreme Audit Office (NIK).

A natural or legal person who establishes or maintains a business relationship or conducts an occasional transaction with a financial institution or other obliged entity, subject to AML/CFT regulations.

The abuse of entrusted power for private gain, including bribery, fraud, nepotism, and other unethical or illegal actions that undermine integrity and trust in public or private institutions.

An official evaluation conducted by a country to identify, assess, and understand the risks of money laundering and terrorist financing within its jurisdiction, guiding the development of effective prevention and control measures.

A process by which financial institutions and other regulated entities verify the identity of their clients to prevent fraud, money laundering, and terrorist financing.

A process used by organizations to verify the background, qualifications, and integrity of their employees to prevent internal fraud, corruption, and compliance risks, especially in regulated industries like finance and AML/CFT.

A stage in money laundering involving complex financial transactions designed to obscure the origin of illicit funds, making them difficult to trace by separating them from their illegal source.

A register of individuals who hold or have held prominent public positions, as well as their close associates and family members, requiring enhanced due diligence in AML/CFT processes due to higher risk of corruption or bribery.

An official registry of individuals, entities, or countries subject to economic or financial restrictions imposed by governments or international organizations to prevent illegal activities such as terrorism financing, money laundering, or violations of international law.

The initial stage of money laundering when illicit funds are introduced into the financial system through deposits, purchase of securities, or other financial transactions to conceal their illegal origin.

A stage in money laundering involving complex financial transactions designed to obscure the origin of illicit funds, making them difficult to trace by separating them from their illegal source.

A designated person within an organization responsible for overseeing and ensuring compliance with anti-money laundering (AML) laws, policies, and procedures.

A permanent monitoring body of the Council of Europe that assesses member states’ compliance with international standards on anti-money laundering (AML) and counter-terrorist financing (CFT), providing evaluations and recommendations to improve national frameworks.

Services that transfer money or value outside traditional banking systems, often involving cash or payment instruments, enabling quick fund transfers through networks of agents or intermediaries, sometimes posing higher risks for money laundering and terrorism financing.

A country or jurisdiction with low or no taxes, financial secrecy, and favorable regulations that attract foreign individuals and businesses seeking to minimize tax liabilities, often used to hide assets or income.

International non-profit organization specializing in investigative journalism on organized crime and corruption to promote transparency and fight corrupt practices.

The process of identifying, analyzing, and evaluating risks related to money laundering and terrorist financing to implement effective controls and reduce the likelihood of illicit activities within an organization.

A structured group of three or more persons acting together over a period of time to commit serious crimes for financial or material gain.

A U.S. Treasury Department agency responsible for enforcing economic and trade sanctions based on U.S. foreign policy and national security goals, targeting countries, entities, and individuals involved in terrorism, narcotics trafficking, and other threats.

A term describing financial activities, accounts, or entities located outside a person’s or company’s home country, often used to benefit from favorable tax laws, privacy, or regulatory environments.

A group that uses violence, intimidation, or threats, especially against civilians, to achieve political, religious, or ideological goals.

A person responsible for ensuring that an organization complies with Anti-Money Laundering (AML) laws and regulations by implementing policies, monitoring transactions, and reporting suspicious activities.

Official notices published by the Polish Financial Supervision Authority (Komisja Nadzoru Finansowego, KNF) regarding entities or individuals suspected of conducting illegal financial activities, posing a risk to clients, or operating without required licenses. These warnings aim to inform the public and enhance financial security.

The practice of delegating Anti-Money Laundering (AML) compliance tasks to external service providers, such as transaction monitoring, customer due diligence, or reporting of suspicious activities, while retaining overall responsibility within the organization.

A non-EU country identified as having strategic deficiencies in its anti-money laundering and counter-terrorism financing regimes, posing a significant threat to the international financial system.

A very small transfer of money (typically a few cents or a nominal amount) often used to verify bank account details or payment system functionality.

An individual who holds or has held a prominent public position, as well as their close associates and family members, and is therefore considered to pose a higher risk for potential involvement in corruption or money laundering.

The financial intelligence unit of Poland operating within the Ministry of Finance. It is responsible for detecting, analyzing, and forwarding information on suspicious financial transactions as part of anti-money laundering and counter-terrorist financing efforts. Formally operates under the General Inspector of Financial Information (GIIF).

The initial stage of money laundering when illicit funds are introduced into the financial system through deposits, purchase of securities, or other financial transactions to conceal their illegal origin.

A set of laws, regulations, and procedures aimed at detecting, preventing, and combating the process of disguising the origins of illegally obtained money to make it appear legitimate.

A strategy in anti-money laundering and counter-terrorism financing that involves identifying, assessing, and prioritizing risks, allowing organizations to allocate resources more effectively by applying enhanced measures to higher-risk areas and simplified measures to lower-risk ones.

An assessment conducted by the European Commission to identify and evaluate money laundering and terrorist financing risks affecting the EU internal market. The SNRA supports member states and obligated entities in applying a risk-based approach and implementing appropriate mitigation measures.

The process of concealing the illegal origin of funds by passing them through a complex sequence of banking transfers or commercial transactions to make them appear legitimate.

A set of internal policies and actions implemented by an organization to detect, prevent, and report money laundering and terrorist financing, including customer due diligence, transaction monitoring, record-keeping, and reporting of suspicious activities.

An internal organizational process that governs the receipt, review, and response to reports from employees or other individuals regarding violations, misconduct, or risks, including potential cases of money laundering or terrorist financing.

The spread or distribution of nuclear, chemical, or biological weapons and their delivery systems, posing a threat to international security.

AML refers to a set of laws, regulations, policies, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. The primary goal of AML is to detect and report suspicious financial activity that may be related to crimes such as drug trafficking, corruption, tax evasion, terrorism financing, or organized crime.

The process of carrying out financial operations or agreements, including the initiation, processing, and completion of payments, transfers, or other forms of fund movement between parties. This process covers both routine banking activities and more complex financial actions that may be subject to monitoring under anti-money laundering and counter-terrorist financing frameworks.

A criminal act committed with the intent to cause serious harm, intimidate the public, or coerce governments or international organizations, typically involving violence and aimed at advancing political, ideological, or religious goals.

Financial operations that are recorded or reported but do not actually occur in reality, often used to mislead, manipulate records, or disguise the origin of funds in the context of fraud or money laundering.

The regular submission of financial or operational data by an organization every three months, used for regulatory compliance, performance monitoring, and transparency purposes.

Individuals closely connected to a Politically Exposed Person (PEP) through family ties or personal/professional relationships, who may also present a higher risk of involvement in corruption or money laundering due to their association.

Arrangements between banks or financial institutions, typically in different countries, that allow one institution (the respondent) to access financial services through another (the correspondent), often including account services, payments, or currency exchange. These relationships are subject to enhanced due diligence due to their potential use in money laundering or terrorist financing.

An official report submitted by a financial institution or other obligated entity to the relevant authority (such as a Financial Intelligence Unit) when there is suspicion that a transaction or activity may involve money laundering, terrorist financing, or other financial crimes.

A list maintained by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) that includes individuals, entities, and organizations subject to sanctions. Their assets are blocked, and U.S. persons are generally prohibited from dealing with them.

A pre-registered, inactive company that has no business activity or assets and is kept “on the shelf” to be sold later. It is often used to quickly obtain a company with an established history for business or, in some cases, for illicit purposes like hiding ownership or laundering money.

A money laundering technique that involves breaking down large sums of illicit money into many small transactions, often conducted by multiple individuals (“smurfs”), to avoid detection and reporting thresholds by financial institutions.

An assessment conducted by the European Commission to identify and evaluate money laundering and terrorist financing risks affecting the internal market of the European Union. It helps guide EU member states and obligated entities in applying a risk-based approach and implementing appropriate safeguards.

A legal entity or group established in a low-tax or no-tax jurisdiction (offshore), often used to gain tax advantages, reduce regulatory oversight, or conceal ownership structures. Such entities may raise concerns in the context of money laundering and tax evasion.

Actions and controls implemented by organizations to protect the financial system from abuse, such as money laundering, terrorist financing, fraud, and other financial crimes. These include customer due diligence, transaction monitoring, risk assessments, and reporting obligations.

Interactions between individuals, businesses, or countries involving the production, distribution, exchange, or consumption of goods and services, typically aimed at fostering economic cooperation, trade, and financial integration.

A formal report submitted to a Financial Intelligence Unit (FIU) when a financial institution or obligated entity detects a transaction that appears unusual or suspicious and may be linked to money laundering, terrorist financing, or other financial crimes.

A money laundering technique that involves breaking up large financial transactions into smaller, less suspicious amounts to avoid triggering reporting thresholds or regulatory scrutiny by financial institutions.

An individual who reports misconduct, illegal activities, or violations within an organization, often involving fraud, corruption, or threats to public interest, including money laundering or terrorist financing. Whistleblowers are typically protected by law from retaliation.

Funds obtained through activities that are legal but not fully transparent or properly declared for taxation or regulatory purposes, such as undeclared income or off-the-books transactions. While not always illegal, grey money can contribute to financial opacity and be used in money laundering schemes.

Educational programs and activities designed to inform employees and relevant stakeholders about anti-money laundering laws, regulations, internal procedures, and how to recognize and report suspicious activities, ensuring compliance and reducing financial crime risks.

A method of money laundering in which trade transactions are manipulated to disguise the origins of illicit funds, often through practices like over- or under-invoicing, multiple invoicing, or false shipments, exploiting international trade systems to move and legitimize criminal proceeds.

The unlawful use of violence or intimidation, especially against civilians, to pursue political, ideological, or religious objectives, often aiming to instill fear and coerce governments or societies.

A financial operation that lacks sufficient information, appears inconsistent with a customer’s profile, or raises questions regarding its purpose or origin, potentially indicating a risk of money laundering or other illicit activity.

A financial transaction that deviates from a customer's regular behavior, lacks an obvious economic or lawful purpose, or involves irregular patterns, which may indicate potential money laundering, fraud, or other financial crimes.

A single, non-recurring financial operation conducted outside the context of an ongoing business relationship, often subject to due diligence measures if it meets certain thresholds or poses a risk of money laundering or terrorist financing.

A financial operation that raises doubts due to its unusual nature, lack of clear economic purpose, inconsistency with a customer’s profile, or possible links to money laundering, terrorist financing, or other financial crimes.

A financial transaction that meets or exceeds a legally defined monetary limit, triggering mandatory reporting or enhanced due diligence under anti-money laundering and counter-terrorist financing regulations.

A financial transaction that is connected to one or more other transactions, either by timing, parties involved, purpose, or structure, and which collectively may be used to avoid detection, bypass reporting thresholds, or facilitate money laundering or other illicit activities.

The movement of money from one individual or entity to another, typically through banking systems, payment service providers, or electronic transfer methods, either domestically or across borders.

A legal arrangement in which one party (the trustee) holds and manages assets on behalf of another party (the beneficiary), based on instructions from the person who created the trust (the settlor). Trusts can be used for legitimate purposes like estate planning but may also be misused to obscure ownership and facilitate money laundering or tax evasion.

A UN agency responsible for assisting countries in the fight against illicit drugs, organized crime, corruption, terrorism, and money laundering, through policy development, technical assistance, research, and international cooperation.

Polish Act on Counteracting Money Laundering and Terrorist Financing, which sets out the legal framework, obligations, and procedures for preventing and combating money laundering and terrorism financing in Poland, in line with EU directives and international standards.

Assets or financial gains that appear disproportionate to a person’s known lawful income and cannot be adequately justified, often considered a red flag for potential corruption, money laundering, or illicit enrichment.

A digital representation of value that is not issued or guaranteed by a central bank, does not have the legal status of currency, but is accepted by individuals or entities as a means of exchange, and can be transferred, stored, or traded electronically.

The initial stage of money laundering when illicit funds are introduced into the financial system through deposits, purchase of securities, or other financial transactions to conceal their illegal origin.

Items of significant monetary worth, such as real estate, precious metals, high-value goods, or financial instruments, which can be used for investment, wealth storage, or, in some cases, money laundering or hiding illicit proceeds.

The act of reporting wrongdoing, illegal activities, or violations within an organization by an employee or other insider, often related to fraud, corruption, money laundering, or other misconduct, typically to internal authorities or external regulators.

An association of global banks that develops financial industry standards and guidelines for anti-money laundering (AML), counter-terrorist financing (CTF), and know-your-customer (KYC) practices to promote effective risk management and financial integrity.

The act of delaying, suspending, or refusing to execute a financial transaction, typically due to compliance concerns such as suspicion of money laundering, terrorist financing, or violations of regulatory requirements.

The process of conducting a more thorough examination or investigation, often used in compliance and risk management contexts to gain a clearer understanding of a customer, transaction, or risk scenario when initial information is insufficient or raises concerns.

A structured group of three or more persons acting together over a period of time to commit serious crimes for financial or material gain.