Eastern and Southern African Anti-Money Laundering Group (ESAAMLG)
A FATF-style regional body comprising countries from the Eastern region of Africa down to the Southern tip of Africa, established in 1999.
Egmont Group of Financial Intelligence Units
The Egmont Group of consists of a numerous national of financial intelligence units (FIUs) that meet regularly to find ways to promote the development of FIUs and to cooperate, especially in the area of information exchange, training and the sharing of expertise. The goal of the group is to provide a forum for FIUs to improve cooperation in the fight against money laundering and the financing of terrorism, and to foster the implementation of domestic programs in this field.
Electronic Funds Transfer (EFT)
The movement of funds between financial institutions electronically. The two most common electronic funds transfer systems in the U.S. are FedWire and CHIPS. (SWIFT is often referred to as the third EFT system, but in reality it is an international messaging system that carries instructions for wire transfers between institutions, rather than the wire transfer system itself.)
Electronic Money (E-Money)
Electronic cash represents a series of monetary value units in some electronic format, such as being stored electronically online, on the hard drive of a device, or on the microchip of a plastic card.
Enhanced Due Diligence (EDD)
In conjunction with Customer Due Diligence, EDD calls for additional measures aimed at identifying and mitigating the risk posed by higher risk customers. It requires developing a more thorough knowledge of the nature of the customer, the customer’s business and understanding of the transactions in the account than a standard or lower risk customer. A financial institution should ensure account profiles are current and monitoring should be risk-based.
Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG)
A FATF-style regional body formed in October 2004 in Moscow.
European Union (EU)
The modern EU was founded in the Treaty of Maastricht on European Union, signed in 1992 and effective in 1993. The EU is a politico-economic union of member states located primarily in Europe. Member states have set up three common institutions (the European Parliament, the European Commission, and the Council of the European Union) to which they delegate part of their sovereignty so that decisions on specific matters of collective interest can be made democratically at the European level. As a result, people, goods, services and money flow freely through the EU.
European Union Directive on Prevention of the Use of the Financial System for the Purpose of Money Laundering and Terrorist Financing
First adopted by the European Union in June 1991 and updated in 1997, 2005, and 2015, the directive requires EU member states to ensure that money laundering and terrorist financing are prohibited. The Directive applies to a broad spectrum of entities, including financial institutions, accountants, notaries, trust companies, estate agents, and some providers of gambling services. Member states are expected to identify and mitigate risks appropriately. They are to oversee financial institutions and other obliged entities, including establishing standards for customer due diligence; prohibition of shell banking relationships; establishing FIUs; developing standards for document retention; and requiring consequences for failure to comply.
Europol is the EU’s law enforcement agency. Its main goal is to help achieve a safer Europe for the benefit of all EU citizens. In the area of anti-money laundering, Europol provides member states’ law enforcement authorities with operational and analytical support via the ELOs (Europol Liaison Officers) and its analysts, as well as state of the art databases and communication channels.
Express Trust
A trust created expressly by the settlor, usually in the form of a document such as a written deed of trust. An express trust differs from trusts that do not result from the specific intent or decision of a settlor to create a trust (e.g., constructive trust established by a court of law to address undeclared property).
The surrender by one jurisdiction to another of an accused or convicted person under an agreement that specifies the terms of such exchanges.
Extraterritorial Reach
The extension of one country’s policies and laws to the citizens and institutions of another. Depending on jurisdiction, money laundering laws may extend prohibitions and sanctions into other jurisdictions.