Description:

The product favours anonymity where something or someone is unknown, hidden or opaque.

Appears in:

• Bond Issues
• Call Loan
• Collateral Debt Obligation
• Commercial Paper (CP)
• Constant Proportion Portfolio Insurance (CPPI)
• Convertible Bond
• Credit Linked Deposit
• Credit Linked Note
• Cross Border Transfer via P2P Merchant
• Crypto Hawala
• Equities
• Equity Linked Note
• Exchange Traded Funds (ETFs) (Counterparty to Counterparty)
• Exchange Traded Funds (ETFs) (Exchange Traded)
• General Bond
• Hedge Fund Derivatives
• Leveraged Loan
• Loan Syndication
• Medium Term Note (MTN)
• P2P Merchant Crypto Trading
• Private Placement
• Structured Deposit
• Supplier Finance
• Trade Receivable Securitization
• Traditional Hawala
• Treasury Bill
• Treasury Note
• Warrant

Addressed by:

• Account Limits Set in Agreement or Contract: A product or service requires entering into a legally binding agreement or contract between specified parties, which sets account limits (payments in or payments out).
• Book Entry or DVP: The product is not easily transferable, and payment flows are restricted due to book entry (recorded electronically) and Delivery vs. Payment (DVP), a settlement system that stipulates cash payment must be made prior to or simultaneously with the delivery of the security to a specified party.
• Collateral or Payment Terms or Timeframes Defined in Agreement or Contract: A product or service requires entering into a legally binding agreement or contract between specified parties, which sets out: (1) the minimum amount of funds to be maintained in an account as collateral; (2) payment terms; and (3) timeframes.
• Currency Defined in Agreement or Contract: A product or service requires entering into a legally binding agreement or contract between specified parties that defines the currency to be used.
• Documentary Evidence to Identity Parties and Details of Transaction: Agreement supported by underlying documentation (i.e., bills of lading, invoices, shipping documents, warehouse receipts, and warrants) that contains details of all parties to the transaction, currency, value, all countries involved, and the purpose of the transaction.
• Documentary Evidence to Support Conditions of Agreement Met: Agreement supported by underlying documentation (bills of lading, invoices, shipping documents, warehouse receipts, and warrants) containing details of all parties involved in the transaction, currency, value, all countries involved, the purpose of the transaction, and allowing payment only when all conditions outlined in the terms of the instrument have been met.
• Legally Binding Standard Agreement or Contract: A product or service requires entering into a legally binding agreement or contract (which can be standard or tailored) with the relevant counterparty (i.e., ISDA, Repo Agreements).
• No Transactions Prior to CDD or EDD: Entering into a transaction before completing CDD (Customer Due Diligence) or EDD (Enhanced Due Diligence), as appropriate, is not allowed.
• Originator and Beneficiary Information: Require that originator and beneficiary information be included in the payment.
• Payment Terms Defined in Agreement or Contract: A product or service requires entering into a legally binding agreement or contract between specified parties that outlines the drawdown and repayment terms.
• Transactional Due Diligence (TDD): Conducts a detailed examination of specific transactions identified as being higher risk.