Glossary
Definitions of key terms and acronyms used throughout TrustGate documentation.
A
Adverse Media
Negative news coverage about an individual or company from reliable media sources. Used in AML screening to identify potential risks.
AML (Anti-Money Laundering)
Regulations and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income.
Applicant
An individual undergoing identity verification in TrustGate. The primary subject of KYC processes.
API Key
A credential used to authenticate requests to the TrustGate API. Includes secret keys (server-side) and public keys (client-side).
B
Beneficial Owner
See UBO.
Biometric Verification
Identity verification using physical characteristics, primarily facial recognition to match a selfie against document photos.
BSA (Bank Secrecy Act)
U.S. law requiring financial institutions to assist government agencies in detecting and preventing money laundering.
C
Case
An investigation record in TrustGate created when screening hits, verification issues, or compliance concerns require review.
CDD (Customer Due Diligence)
The process of identifying and verifying customer identity and assessing associated risks.
Confidence Score
A percentage indicating how closely a screening hit matches the searched entity. Higher scores indicate stronger matches.
CPI (Corruption Perceptions Index)
Annual index published by Transparency International ranking countries by perceived levels of public sector corruption.
D
Deepfake
AI-generated synthetic media, particularly video or images, that realistically depict a person. Detected during biometric verification.
Document Verification
The process of validating identity documents (passports, driver's licenses) for authenticity and extracting data.
DPA (Data Processing Agreement)
A legally binding document between data controller and processor setting out terms of personal data processing under GDPR.
E
EDD (Enhanced Due Diligence)
Additional verification procedures applied to higher-risk customers, including PEPs, high-risk countries, or complex ownership structures.
EU AML Directives
European Union regulations on anti-money laundering, currently in its 6th iteration (6AMLD).
F
False Positive
A screening hit that upon investigation is determined not to be the same entity as the searched subject.
FATF (Financial Action Task Force)
Intergovernmental body setting international AML/CFT standards. Maintains lists of high-risk and non-cooperative jurisdictions.
FinCEN (Financial Crimes Enforcement Network)
U.S. Treasury bureau that collects and analyzes financial transaction information to combat financial crimes.
G
GDPR (General Data Protection Regulation)
EU regulation on data protection and privacy, granting individuals control over their personal data.
Grey List
FATF list of jurisdictions with strategic deficiencies in AML/CFT regimes but committed to addressing them.
H
Hit
A potential match found during screening against watchlists, PEP databases, or adverse media sources.
Hit Resolution
The process of investigating and determining whether a screening hit is a true match or false positive.
I
IDV (Identity Verification)
The process of confirming a person is who they claim to be, typically using documents and biometrics.
K
KYB (Know Your Business)
Due diligence process for verifying business entities, including registration, ownership, and beneficial owners.
KYC (Know Your Customer)
Regulatory requirement to verify the identity of customers before establishing a business relationship.
L
Liveness Detection
Technology that verifies a real, live person is present during biometric capture, preventing photo or video spoofing.
Legal Hold
A directive to preserve data that may be relevant to litigation or regulatory investigation, overriding normal retention policies.
M
MRZ (Machine Readable Zone)
The standardized area on identity documents containing encoded information that can be optically scanned.
MLRO (Money Laundering Reporting Officer)
Senior compliance official responsible for AML compliance and suspicious activity reporting.
O
OCR (Optical Character Recognition)
Technology that extracts text from document images, used to read information from identity documents.
OFAC (Office of Foreign Assets Control)
U.S. Treasury department that administers and enforces economic and trade sanctions.
Ongoing Monitoring
Continuous screening of customers against watchlists after initial onboarding to detect new matches.
P
PEP (Politically Exposed Person)
An individual who holds or has held a prominent public function, presenting higher corruption and bribery risks.
- PEP Tier 1: Senior political figures (heads of state, ministers)
- PEP Tier 2: Family members of Tier 1 PEPs
- PEP Tier 3: Close associates of Tier 1 PEPs
Proof of Address
Document verifying a person's residential address, such as utility bills or bank statements.
R
RCA (Relative or Close Associate)
Family members or known close associates of PEPs who may present similar risks.
Risk Score
A numerical value (0-100) quantifying the overall risk level of an applicant or company based on multiple factors.
S
Sanctions
Economic and trade restrictions imposed by governments or international bodies against countries, entities, or individuals.
SAR (Suspicious Activity Report)
Report filed with regulators when suspicious activity indicative of money laundering or other crimes is detected.
SDD (Simplified Due Diligence)
Reduced verification requirements permitted for lower-risk customers under certain conditions.
SDN (Specially Designated Nationals)
OFAC list of individuals and entities with which U.S. persons are generally prohibited from doing business.
SLA (Service Level Agreement)
Time-based performance targets, such as maximum time to resolve a case.
SOF (Source of Funds)
Documentation or declaration explaining where funds for a specific transaction originate.
SOW (Source of Wealth)
Documentation explaining how an individual accumulated their total wealth over time.
T
True Match
A screening hit that upon investigation is confirmed to be the same entity as the searched subject.
U
UBO (Ultimate Beneficial Owner)
A natural person who ultimately owns or controls a company, typically defined as 25%+ ownership or control.
V
Velocity Check
Controls that detect suspicious patterns based on frequency or speed of applications, transactions, or other activities.
Verification Level
The depth of verification performed (basic, standard, enhanced), determining which checks are required.
VoIP
Voice over Internet Protocol - phone numbers from internet-based services, often flagged as higher risk in fraud prevention.
W
Watchlist
A database of individuals or entities subject to sanctions, enforcement actions, or other restrictions.
Webhook
HTTP callback that delivers real-time notifications when events occur in TrustGate.