Naked Trust
See Bare Trust.
NCCT
See Non-Cooperative Countries and Territories (NCCT) List.
NCCT Criteria
Criteria published in the FATF Report on Non-Cooperative Countries and Territories issued in February 2000 used to determine which countries to designate as NCCTs. See Non- Cooperative Countries or Territories (NCCTs) list.
Nesting
The practice that involves the use of a foreign correspondent bank account by another foreign bank to conduct its own transactions.
Nominee Account
See Benami Account.
Nominee Company
A corporation that is formed for the express purpose of holding securities and other assets in its name on behalf of others, or providing nominee directors and/or officers on behalf of clients.
Non-Cooperative Countries and Territories (NCCT) List
Countries and territories that were designated starting In 1999 by the Financial Action Task Force as being non-cooperative in the global anti-money laundering effort or as lacking adequate anti-money laundering controls. The last country was removed from this list in October 2006.
Non-Financial Trades and Businesses
See Designated Non-Financial Businesses and Professions.
Non-Governmental Organization (NGO)
International organizations that are not directly linked to the governments of specific countries, such as Doctors without Borders and the International Red Cross. Some countries’ anti- money laundering regulations for NGOs still have loopholes that some worry could be exploited by terrorists or terrorist sympathizers trying to secretly move money.
Non-Profit Organizations (NPO)
These can take on a variety of forms, depending on the jurisdiction and legal system, including associations, foundations, fund-raising committees, community service organizations, corporations of public interest, limited companies and public benevolent institutions. FATF has suggested practices to help authorities protect organizations that raise or disburse funds for charitable, religious, cultural, educational, social or fraternal purposes from being misused or exploited by financiers of terrorism.
Nostro Account
Nostro and vostro accounts are mirror correspondent accounts maintained by two banks in different jurisdictions to facilitate transactions in each other’s local currency—essentially, clearing accounts that balance foreign currency transactions between the two institutions. For example, Bank X from Brazil might open a U.S.-dollar account at Bank Y in the U.S., called a “nostro” (literally “our”) account; Bank Y might open a mirror account in Brazilian reals with Bank X in Brazil—a“vostro” (“your”) account. Financial regulators have expressed concern over the transparency of nostro and vostro account relationships, especially when there are multiple layers of accounts within primary relationships.