This dictionary is a glossary of key banking words/phrases and terms.
As well as generic banking terms the Bankers' Almanac dictionary also provides definitions of terminologies specifically associated with Bankersalmanac.com products and services, denoted by (*).
Financial items that are not a full set of Financial statements e.g. Balance sheets.
Type of corporate action wherein an institution is no longer operational as it has been absorbed by another.
Type of corporate action wherein an institution is no longer operational as it has been acquired by another.
Letter confirming who the agent is for the USA PATRIOT Act.
Independent auditor used by a bank or financial institution to test their Anti-Money Laundering (AML) policies and processes.
Comprehensive report issued at the end of an institution's financial year detailing their financial and other activities over the preceding year.
Legal controls required by banks and financial institutions to prevent or report money laundering activities.
Statement on the financial report (letter format) without any financials.
A payment clearing system in which payment orders are exchanged among financial institutions electronically.
A primarily domestic standard for identifying financial institutions and their branches.
The international standard for identifying financial institutions and their branches. BIC codes are always 8 or 11 characters with positions 1-4 representing the bank, 5&6 the country of operation, 7&8 the location and 9-11 branch/function/department.
Document issued by financial services authority giving permission for financial institution to conduct banking business.
Law which prevents banks or financial institutions from disclosing information about their customers without the customer's consent.
Type of corporate action wherein a bank's banking business has been acquired by another institution. (After loss of the banking business the institution will either cease to operate or continue as another type of institution).
Type of corporate action wherein a bank no longer conducts banking business and will either cease to operate or continue as another type of institution.
Type of corporate action wherein a bank has had its banking licence removed by the Central Bank/Monetary Authority. (The bank's operations will be suspended at this time, if the licence is not re-instated the bank will either cease to operate or continue as another type of institution).
Type of corporate action wherein a bank has voluntarily given up its banking licence. (The bank may cease to operate at this time or continue as another type of institution).
Type of corporate action wherein a bank has had its banking licence removed by the Central Bank/Monetary Authority. (The bank will suspend operations at this time. The licence may be regained after "abnormalities" have been rectified. If not, the bank will either cease to operate or continue as another type of institution).
Type of corporate action wherein the institution has ceased to operate as it has insufficient funds to continue trading.
The processing of incoming payment orders or outgoing payment orders in bulk.
Up to thirty alphanumeric characters which define the domestic bank account number and bank code sometimes including check digits which allow for the validation of the number.
Type of corporate action wherein a bank no longer operates as it has become a branch (office) of another bank.
Person identified as benefiting from the ownership of a company or account.
The final recipient of the payment in a funds transfer.
The address that is officially listed against a BIC code (required because SWIFT codes are often used at multiple locations of a financial institution but only registered at one of these).
Biographies of board members or other senior executives.
Countries, entities or individuals with whom a bank or financial institution are prohibited from conducting business with.
USA PATRIOT Act/Foreign Bank Certificate that covers branches.
Information that relates to branch only.
Licences that covers a bank or financial institutions' branches.
Document issued by financial services authority giving permission for financial institution to conduct brokerage business.
Similar function as Memorandum/Articles of Association.
Type of corporate action wherein the institution no longer operates.
(or reserve bank or monetary authority) The entity responsible for the monetary policy in specific countries or trading blocks.
Legal document relating to the formation of a company or corporation.
Legally binding document incorporating an organisation or institution and specifying its purpose, remit or bylaws.
The process of transmitting, reconciling and confirming payment instructions.
The address that is listed against a clearing code by the issuer of clearing codes in that country (required because clearing codes are often used at multiple locations of a financial institution but only registered at one of these).
Set of rules outlining the responsibilities of or proper practices for an individual or organization.
Document issued by financial services authority giving permission for financial institution to act as a commercial bank.
Act of ensuring a bank, financial institution or company is following the rules and regulations associated with their industry.
Names and job titles of individuals responsible for compliance within a bank or financial institution.
The process of notifying counterparts and/or customers of the details of a trade or payment and seeking their agreement that these are correct.
Date that the document was last checked by a bank or financial institution.
Similar function as Memorandum/Articles of Association.
A bank that supplies products or performs services for another bank.
A contractual arrangement where one bank provides products and/or services to another bank. Correspondent banking services are primarily provided to financial institutions without a domestic presence in the country concerned although correspondent relationships can also occur in the domestic context. The agreement normally focuses on the sending and receipt of payments but can include the provision of other products and services.
Legal controls required by banks and financial institutions to prevent individuals or organisations accessing the financial system to fund terrorist activities.
The opposite party in any financial transaction.
Entity that a bank or financial institution has entered into an agreement with.
Process that is taken to re-evaluate a counterparty in order to assess their money laundering risk. The time between reviews is dependent on the risk associated with a counterparty e.g. high risk counterparties may be reviewed every 6 months.
An instruction to request the placing of funds within an account.
Document issued by financial services authority giving permission for financial institution to act as a credit institution.
The risk that a counterpart will not settle an obligation.
A one-off payment instruction that places funds in the payees account.
An entity which is responsible for the administration of financial assets on behalf of other entities or individuals (most commonly a bank).
A process required by law that banks and financial institutions must implement to identify their customers.
Date that a document expires (if applicable).
Date that a document was supplied by the issuing body e.g. central bank or financial services regulator (if applicable).
An instruction to request the removal of funds from an account.
A financial institution which makes payments on behalf of other entities.
A pre-authorised debit on a payers bank account initiated by the payee.
Bankersalmanac.com has received the document directly from a named contact at the source bank or financial institution.
(or Participant) a participant in a payment system that is able to send and receive payments on its own behalf.
Document has been approved by Bankersalmanac.com as fit to be published on the Due Diligence Repository.
History of the document, showing contact between Bankersalmanac.com and the bank or financial institution in order to obtain the document or confirm that the document is still current, and date that this contact took place. It also shows the status of the document within Bankersalmanac.com's process and the associated dates.
Bank of financial institution has advised that the requested document will not be available until a specified date.
Document that meets Bankersalmanac.com's specified criteria has been received from a bank or financial institution.
Document has been requested from the bank or financial institution by Bankersalmanac.com.
Payments which take place within the country in which both counterparts are located.
Performance of an investigation or evaluation of a bank or financial institution.
Informal group of financial intelligence units (FIUs) who work together to facilitate international cooperation in the areas of training and information exchange.
Names and job titles of individuals who hold a position on the Management or Supervisory Board for a bank or financial institution or have controlling management for that institution.
Updated document when there have been changes to an entity after its initial registration.
Extracts from Central Bank or financial services regulator.
Type of corporate action wherein an institution no longer operates as it has been unsuccessful (see also: bankrupt).
Inter-governmental body whose purpose is to develop and promote national and international policies to combat money laundering and terrorist financing.
Central national agency responsible for receiving, analysing and transmitting disclosures on suspicious transactions to the appropriate authorities.
Institution's full accounting statements that provide specific information about their financial position including the Profit and Loss or Income Statement, Balance Sheet, and the Statement of Cash Flows.
Licence to carry out payments and foreign exchange.
Bankersalmanac.com has received permission from the source to take the document directly from bank or financial institution's website.
Non-specific governance information.
For financial institutions where more than one licence is required. Can also be other non-specific document.
Group/Holding Company Annual Reports.
USA PATRIOT Act/Foreign Bank Certificate that covers a group of entities.
An international standard for identifying bank accounts across national borders primarily used in Europe. The IBAN consists of a 2 character country code, 2 check digits and up to thirty further alphanumeric characters which define the domestic bank account number and bank code (defined as the BBAN or Basic Bank Account Number).
The BIC issued with IBANs that originate from a specific clearing code, bank branch/location.
Type of corporate action wherein an institution no longer operates, its assets are sold off and payment of outstanding obligations are met where possible.
Type of corporate action wherein the institution's operations have been suspended. (The business can continue for a limited period if the court has appointed an Administrative Receiver).
A participant in a payment system that requires the services of a direct participant in the system to send or receive payments on its behalf.
Bank or financial institution has declined to supply a document into the Due Diligence Repository.
Document issued by financial services authority giving permission for financial institution to sell insurance.
Report that does not relate to the institution's financial year end.
Any recipient of a payment in transit that is not the final recipient (beneficiary) of the funds transfer.
Payments which take place in a country other than the one in which one or both counterparts are located.
Method taken by banks and financial institutions to identify a client, whether they are individuals, corporates or other financial institutions.
Language in which the document has been supplied.
A payment system which facilitates the exchange of large and/or high priority payments between participants (usually financial institutions).
Formal, written rules of a country or state, written and enacted by its legislative authority or highest central authority.
A promise by the issuer (usually a bank) to make payment on behalf of a customer in accordance with specified conditions.
Document issued by a financial services authority giving permission to trade. Can also be other non-specific document.
The risk that a counterpart will not settle an obligation for full value when due.
List of banks and financial institutions, subsidiaries, branches that are covered by the USA PATRIOT Act/ Foreign Bank Certificate.
List of entities regulated by Central Bank or financial services regulator.
Internal rules and regulations which govern the relationship between the company and the members.
Type of corporate action wherein the business of one or more institutions has merged into another existing institution and the merged institution no longer operates.
Type of corporate action wherein the business of two or more institutions have merged together to form a new institution and the merged institutions no longer operate.
Document explaining any merger or name change information related to the bank or financial institution.
Process of disguising the original source of illegally obtained funds so that they appear to be legitimate.
Type of corporate action wherein the institution continues to operate under a new registered name.
The person at the bank or financial institution, usually located within the compliance department, who supplies their institution's documents and/or data to be included in the Due Diligence Repository.
There is no date shown on the document.
List of countries or territories deemed as not complying with FATF's given criteria to prevent money laundering and terrorist financing.
A BIC (Bank Identifier Code) that is not attached to the SWIFT network of computers and to which messages cannot be received at or sent from. Non SWIFT-BICs can be easily identified by the presence of the digit 1 in the 8th position of the code.
USA PATRIOT Act that only covers one named entity (not a global certificate).
Bank of financial institution confirms that they do not have a USA PATRIOT Act/Foreign Bank Certificate.
Bank of financial institution has not provided a bank licence as their financial services regulator does not issue a physical document.
Bank or financial institution does not have this document but there is an equivalent document of an alternative type.
License to conduct banking activities which, as a condition of the license, prohibits the licensed entity from conducting banking activities with the citizens of, or with the local currency of, the country which issued the license.
Process of acquiring a new counterparty.
The risk that one counterpart does not meet their payment obligations as a result of errors in the processing of the payment.
The payers transfer of funds to the payee.
A financial communication detailing single or multiple funds transfers.
An infrastructure and set of procedures which facilitate the transfer of funds between payers and payees.
Person who may be or has recently held a position within the political arena of a country.
The settlement of payment obligations as and when they are due on an instruction by instruction basis.
Bank or financial institution has provided Bankersalmanac.com with a statement in place of a document.
Bankersalmanac.com has approved the reason supplied by the bank or financial institution.
Bank or financial institution has provided Bankersalmanac.com with a reason why they have not supplied a document.
A financial institution which takes payments on behalf of other entities.
Appendix B is the re-certification for USA PATRIOT Act when the original Certificate Appendix A has expired after 3 years.
Organisation responsible for issuing and monitoring the rules and processes that banks and financial institutions must comply with in order to do business.
The institution is now operating. (The business may previously have been suspended or ceased and operations have recommenced).
Bankersalmanac.com has requested that the bank or financial institution confirms whether the reason they have not supplied a document is still applicable.
Bankersalmanac.com has requested that the bank or financial institution confirms their document is still current.
A payment system which facilitates the exchange of small and/or low priority payments between participants (usually business and individuals).
Method in which banks or financial institutions identify and manage the money laundering and terrorist financing risk posed to them.
A connected SWIFT-BIC that can be used to make a payment to a Non SWIFT-BIC.
Issued by the institution itself, summarises the bank's policies and procedures for Corporate Governance.
Restrictions imposed by a government or body to exert pressure on individuals, countries or regimes in order that they comply with political objectives.
Act of checking an individual, entity or transaction against given lists.
Document issued by financial services authority giving permission for financial institution to trade securities.
A European Union initiative creating a zone of countries and a set of financial instruments and infrastructures in which all payments are considered domestic and are governed by a single set of rules.
A one-off payment instruction that places funds in the payees account, occurs within the SEPA area, conforms to the SEPA standards and is processed using a SEPA compliant payment mechanism.
A pre-authorised debit on a payers bank account initiated by the payee that occurs within the SEPA area, conforms to the SEPA standards and is processed using a SEPA compliant payment mechanism.
A payment within the zone of countries covered by SEPA which conforms with the relevant regulations and is made using a SEPA compliant payment mechanism.
The process of recording debits and credits to the accounts of parties involved in a payment. Net settlement indicates that mutual obligations are settled in bulk at a specified time after netting the value of all payments between the parties. Gross settlement indicates that each payment is made individually.
The risk that a counterpart will not be able to meet their payment obligations due to solvency issues.
Document outlining the entities shareholder and ownership information.
Name of the bank or financial institution that supplied the document.
Bank or financial institution has confirmed that the reason they have not supplied a document is still applicable.
Bank or financial institution has confirmed that the document is still current.
Type of corporate action wherein a business has been divided to form a new institution(s) and the original institution is no longer operational.
The set of details which defines how a financial institution (or part thereof) makes and receives payments in a specific currency and for specific type or set of transactions.
A list of standard settlement instructions covering all of the currencies that a financial institution (or part thereof) is able to make or receive payments for.
The BIC code which defines the part of the institution that an SSI list relates to. This will usually be a SWIFT-BIC in order to allow payment messages or instructions to be sent to the correct part of the institution related to payments it is required to make or expected to receive.
A payment instruction which involves the regular payment of a fixed amount to a specific payee.
Similar function as Memorandum/Articles of Association.
Name of the recognised stock exchange that the bank or financial institution's shares are traded on.
The automated processing of payment instructions from origination by the payer to receipt by the payee.
Date that the document was first published on the Due Diligence Repository.
Any summary/abridged item that does not fit into Abbreviated accounts.
Type of corporate action wherein a bank fails and payments are suspended. This means any money deposited with the bank cannot be withdrawn.
Report outlining suspect or potentially suspect activity filed with a financial services regulator or equivalent body.
Report outlining suspect or potentially suspect financial transaction filed with a financial services regulator or equivalent body.
A co-operative organisation which operates a network of computers designed to facilitate the exchange of payment and other financial messages.
A BIC (Bank Identifier Code) that is attached to the SWIFT network of computers and to which messages can be received at or sent from.
The address that is officially listed against a SWIFT-BIC code (required because SWIFT codes are often used at multiple locations of a financial institution but only registered at one of these).
Type of corporate action wherein an institution no longer operates as it has been taken over by another.
Number used to identify a bank or financial institution to its government.
Bank or financial institution has confirmed that this document should no longer be used and has provided a replacement.
The date on which any trade is agreed.
Type of corporate action wherein an insolvency practitioner is appointed by the court as an administrator and takes over the day to day running of the institution. The institution can continue to operateduring this time. After administration the institution may become solvent or go into liquidation.
Certificate completed by any foreign bank that maintains a correspondent account with a US bank.
The date on which a payment is due to be credited to the payee.
An association of the following leading international financial institutions: Banco Santander, Bank of Tokyo-Mitsubishi UFJ, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan Chase, Société Générale and UBS which aim to develop financial services industry standards, and related products, for Know Your Customer, Anti-Money Laundering and Counter Terrorist Financing policies.
