Rise Career Glossary | Legal, Compliance Terms and Definitions

Legal and Compliance Department Terms and Definitions

1. Anti-Money Laundering (AML)

   AML refers to a set of regulations and practices designed to prevent the illegal generation of income through illicit activities. It involves measures to detect and deter money laundering, such as thorough customer due diligence, transaction monitoring, and reporting suspicious activities to authorities.

2. Compliance

   Compliance refers to the adherence to laws, regulations, and internal company policies. It involves implementing processes, systems, and controls to ensure that a company operates within legal and ethical boundaries. Compliance aims to minimize legal risks and maintain the company's reputation and integrity.

3. Conflicts of Interest

   Conflicts of interest occur when an individual's personal interests or relationships interfere or have the potential to interfere with their obligation to act in the best interest of the company or its clients. Proper disclosure and management of conflicts of interest are essential to maintain integrity and avoid any negative impact.

4. Data Privacy

   Data privacy refers to the protection and proper handling of personal information collected by a company. It involves implementing policies and procedures to ensure that data is collected, used, stored, and shared in compliance with applicable data protection laws. Protection of customer privacy is paramount in maintaining trust and avoiding legal repercussions.

5. Due Diligence

   Due diligence is the process of investigating and verifying the accuracy of information to assess potential risks and comply with regulatory requirements before entering into business relationships or transactions. It involves conducting background checks, evaluating financial records, and assessing legal and reputational risks.

6. Ethics

   Ethics refers to the principles and standards of behavior that guide individuals or organizations in making morally and socially responsible decisions. It involves promoting honesty, integrity, and transparency in business operations and interactions. Upholding ethical standards helps maintain trust and credibility with stakeholders.

7. Insider Trading

   Insider trading refers to the illegal practice of trading securities based on material and non-public information. It involves individuals using privileged information to gain an unfair advantage. Effective control measures, such as strict trading policies and reporting requirements, aim to prevent insider trading and protect market integrity.

8. KYC (Know Your Customer)

   KYC is a process that financial institutions and other entities follow to identify and verify the identity of their clients. It helps assess customer risk, prevent fraud, and comply with regulations. KYC involves collecting information, verifying identities, and periodically updating customer records to ensure compliance with anti-money laundering laws.

9. Regulatory Compliance

   Regulatory compliance refers to the adherence to laws, rules, and regulations set by regulatory bodies. It ensures that companies conduct business in a manner that meets legal requirements and protects the interests of stakeholders. Compliance includes ongoing monitoring, reporting, and implementing necessary measures to address regulatory changes.

10. Risk Assessment

Risk assessment involves identifying and evaluating potential risks that could impact a company's operations, financial stability, and reputation. It helps prioritize and determine the appropriate controls and mitigation strategies to manage risks effectively. Regular risk assessments ensure proactive risk management and compliance with relevant regulations.

11. Whistleblower

A whistleblower is an individual who exposes illegal or unethical activities within an organization. Whistleblowers provide information that may assist in investigations, regulatory actions, or legal proceedings. Companies should have appropriate mechanisms and policies in place to protect whistleblowers from retaliation and encourage reporting of wrongdoing.