The KYC, KYB & AML Compliance Glossary
Clear, plain-English definitions of the identity, due-diligence, screening, and reporting terms compliance professionals use every day — each linked to deeper guides and the tools that put them into practice.
Adverse Media Screening
Searching news and other sources for negative information about a customer.
Read definition Due DiligenceCustomer Due Diligence (CDD)
The risk-based checks a firm performs to understand who a customer is and the risk they pose.
Read definition Due DiligenceEnhanced Due Diligence (EDD)
The deeper level of scrutiny applied to higher-risk customers and relationships.
Read definition Regulation & BodiesFATF (Financial Action Task Force)
The global standard-setter for anti-money-laundering and counter-terrorist-financing measures.
Read definition Identity & OnboardingKnow Your Business (KYB)
Verifying the identity, legitimacy, and ownership of a corporate customer rather than an individual.
Read definition Identity & OnboardingKnow Your Customer (KYC)
The regulatory process of verifying a customer's identity before and throughout a business relationship.
Read definition Identity & OnboardingLiveness Detection
Technology that confirms a real, present person is being verified — not a photo, video, or deepfake.
Read definition ScreeningPolitically Exposed Person (PEP)
An individual entrusted with a prominent public function, who therefore carries higher corruption risk.
Read definition ScreeningSanctions Screening
Checking customers and counterparties against government and international sanctions lists.
Read definition Monitoring & ReportingSuspicious Activity Report (SAR)
The formal report a firm files with its financial intelligence unit when it suspects financial crime.
Read definition Monitoring & ReportingTransaction Monitoring
Ongoing surveillance of customer transactions to detect suspicious activity.
Read definition Due DiligenceUltimate Beneficial Owner (UBO)
The real person who ultimately owns or controls a company — the individual behind the corporate structure.
Read definitionPut These Terms Into Practice
One Constellation turns the concepts in this glossary into a working compliance platform — KYC, KYB, sanctions and PEP screening, transaction monitoring, and reporting in one place.
