Identity Theft
The assumption of another person’s identity without authorization for use in fraudulent transactions that results in a loss to the financial institution or the victim whose identity was used.
Informal Value Transfer System (IVTS)
See Alternative Remittance System.
Integration
The integration phase, often referred to as the third and last stage of the classic money laundering process, places laundered funds back into the economy by re-entering the funds into the financial system and giving them the appearance of legitimacy.
Intermediary Financial Institution
Receives funds from a wire transfer transmitter’s financial institution and relays or transmits the order of payment to the recipient’s financial institution. In an international funds transmission, intermediary financial institutions are usually located in different countries.
Internal Controls
Policies and procedures in place within an institution that are designed to detect suspicious activity and criminal activity of a financial nature, including money laundering. Internal controls are one of the essential components of an effective anti-money laundering compliance program.
International Association of Insurance Supervisors (IAIS)
The IAIS issues global insurance principles, standards and guidance papers on issues, including money laundering. Established in 1994, IAIS represents insurance supervisory authorities in about 180 jurisdictions. See www.iaisweb.org.
International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA)
See World Bank.
International Business Company (IBC)
A variety of offshore corporate structures, alternately called “exempt companies,” which are dedicated to business use outside the incorporating jurisdiction, rapid formation, secrecy, broad powers, low cost, low to zero taxation, and minimal filing and reporting requirements.
International Finance Corporation (IFC)
Established in 1956, IFC is the largest multilateral source of loan and equity financing for private sector projects in the developing world. It is a member of the World Bank Group and is headquartered in Washington, D.C. The IFC promotes sustainable private sector investment in developing countries as a way to reduce poverty. Its contribution to anti-money laundering efforts includes helping countries address structural and institutional weaknesses that may contribute to the lack of market integrity and potential for financial abuse. See www.ifc.org.
International Financial Institutions (IFIs)
IFIs are financial institutions that have been established or chartered by more than one country. The best known IFIs are the International Monetary Fund and the World Bank. IFIs have an important role in protecting the integrity of the international financial system from abuse. Strengthening a country’s capacity to combat money laundering is an integral part of their agenda.
International Monetary Fund (IMF)
An organization of more than 180 member countries, the IMF was established to promote monetary cooperation, to foster economic growth and high levels of employment, and to provide countries with temporary financial assistance. The organization’s objectives have remained unchanged since it was established. Its operations, which involve surveillance, financial assistance and technical support, have adjusted to meet the changing needs of member countries. Since 1999, the IMF has taken a more active role in the global anti-money laundering effort, primarily through helping assess the progress of member countries in meeting laundering control standards, such as those issued by FATF.
International Money Laundering Abatement and Anti-Terrorist Financing Act
The Act represents Title III of the USA Patriot Act of 2001, which contains most, but not all, of the provisions of that landmark law that deal directly with anti-money laundering matters.
International Narcotics Control Strategy Report (INCSR)
Issued annually by the U.S. Department of State, the report includes a lengthy section on the status of money laundering efforts in most nations.
International Police Organization (Interpol)
Based in Lyon, France, Interpol provides services to national law enforcement agencies in international criminal and money laundering matters, through such means as issuance of alerts or “flags” that seek the assistance of member countries in locating fugitives or identifying financial activity connected to international crimes. Each member nation of Interpol designates a National Central Bureau (NCB) through which requests for assistance are processed.
Internet Banking
A banking business model that uses the Internet to execute its business plan, and whose marketing efforts, execution of transactions and customer service functions are heavily reliant on advanced electronic technology. The main money laundering concern that arises in Internet banking is the difficulty of identifying the “faceless” customer that establishes a relationship with a financial institution, and in applying Customer Due Diligence procedures.
Investment Banking
Self-standing department or unit within a financial institution that provides strategic capitalizations, amassing huge amounts from diverse sources for corporate deal making, and other alternatives to traditional banking instruments.
IVTS
Informal Value Transfer System. See Alternative Remittance System.