Page 83 - CAPE Financial Services Syllabus Macmillan_Neat

WORDS/TERMS DEFINITIONS/MEANINGS
Integration
The final stage in the money laundering process, at this point the illegal
funds are effectively concealed.

International Accounting This is the independent standard-setting body of the International
Standards Board (IASB) Financial Reporting Standards (IFRS) Foundation.

International Financial International Financial Reporting Standards (IFRS) are a set
Reporting Standards of international accounting standards (IAS) that provide guidance and
(IFRS) rules stating how particular types of transactions and other events
should be reported in financial statements. IFRS are issued by the
International Accounting Standards Board

International Monetary A global organisation working to foster global monetary cooperation,
Fund (IMF) secure financial stability, facilitate international trade, promote high
employment and sustainable economic growth, and reduce poverty
around the world.

International The international body that brings together the world's securities
Organisation of Securities regulators and is recognised as the global standard setter for the
Commission (IOSCO) securities sector. IOSCO develops, implements and promotes adherence
to internationally recognised standards for securities regulation. It
works intensively with the G20 and the Financial Stability Board (FSB) on
the global regulatory reform agenda.

Investment Purchase of an asset that is expected to appreciate in value in the future.

Investment Choice It deals with the selection of particular assets from among alternative
options.

Investor Person or entity that provides capital to an endeavour with the
expectation of receiving profit (income, rent, and the appreciating value
of the investment).

Layering This is the second stage of money laundering at this point the tracks of
the illegal funds are difficult to uncover. An example would be using
illegal funds to purchase monetary instruments and then selling these
instruments recovering the legal funds.

Lending Products This deals with the choices of products that are available for customers.
For example, commercial loans, line of credit, overdraft facilities, term
Licensing loans, and mortgages.
Liquidity
This deals with granting of legal permission to operate or conduct
various financial activities.

A measure of the extent to which a person or organisation has cash to
meet immediate and short-term financial obligations, or assets that can
be quickly converted to do this. In contrast, solvency refers to an
enterprise’s capacity to meet its long-term financial commitments.

CXC A38/U2/16 78