Exhaustive Banking, Legal, and Compliance Vocabulary Guide to Financial Terminology
Corporate Structure and Legal Framework
Branch (br%%%ntš): Refers to a subdivision or a local office of a larger organization. In Estonian: haru; filiaal.
Code of Conduct (koud ov kondakt): A set of rules outlining the social norms, religious rules, and responsibilities of, or proper practices for, an individual, party, or organization. In Estonian: k%%itumiskoodeks.
Provisions (provižons): In a legal context, these are specific requirements within a document. In accounting, they refer to funds set aside to cover anticipated future liabilities or losses. In Estonian: s%%tted; (raamatupidamises: eraldised).
Purpose (p%%%rpes): The reason for which something is done or created or for which something exists. In Estonian: eesm%%rk.
Subsidiaries (sabsidi%%riis): Companies controlled by a holding or parent company. In Estonian: t%%tettev%%tted.
Hereinafter (hi%%rinaaft%%): A formal legal term used in documents to mean "from this point on in this document." In Estonian: edaspidi.
Established (ist%%blišt): Having been in existence for a long time and therefore recognized and generally admired. In Estonian: loodud; asutatud.
Framework (freimv%%%k): A basic structure underlying a system, concept, or text. In Estonian: raamistik.
Obligation (obligeišen): An act or course of action to which a person is morally or legally bound; a duty or commitment. In Estonian: kohustus.
Legislation (ledžisleišen): Laws, considered collectively. In Estonian: seadusandlus.
Governance, Compliance, and Ethical Standards
Supervisory (suup%%vaiz%%ri): Relating to the job of supervising someone or something. In Estonian: j%%relevalve-.
Prevention (privenšen): The action of stopping something from happening or arising. In Estonian: ennetamine.
Prevent (privent): To keep something from happening. In Estonian: takistama; %%ra hoidma.
Sustainable (sustein%%bl): Able to be maintained at a certain rate or level; conserving an ecological balance. In Estonian: j%%tkusuutlik.
Guidelines (gaidlains): General rules, principles, or pieces of advice. In Estonian: juhised.
Ensure (inšuur): To make certain that (something) shall occur or be the case. In Estonian: tagama.
Violation (vai%%leišen): The action of violating someone or something. In Estonian: rikkumine.
Breach (briitš): An act of breaking or failing to observe a law, agreement, or code of conduct (e.g., breach of contract). In Estonian: rikkumine (nt breach of contract).
Bribe (braib): Money or favor given or promised in order to influence the judgment or conduct of a person in a position of trust. In Estonian: altk%%emaks.
Governance (gav%%nens): The action or manner of governing. In Estonian: juhtimine; valitsemine.
Compliance (k%%mplaiens): The action or fact of complying with a wish or command; in banking, adhering to laws and regulations. In Estonian: vastavus (reeglitele); n%%uetele vastavus.
Management Body (m%%nidžment bodi): The group of individuals responsible for the administration of an organization. In Estonian: juhtorgan.
Policy Permissions (polisi p%%mišens): Rights or authorizations granted under specific organizational policies. In Estonian: poliitika%%igused.
Conflict of Interest (konflikt ov intrest): A situation in which the concerns or aims of two different parties are incompatible. In Estonian: huvide konflikt.
Whistleblowing (vislblouing): The disclosure by a person, usually an employee, in an organization of confidential information relating to any aspect of public interest. In Estonian: rikkumisest teavitamine (vilepuhumine).
Transactional Operations and Operations Analysis
Transaction (tr%%ns%%kšen): An instance of buying or selling something; a business deal. In Estonian: tehing.
Remitter (rimit%%): A person who sends money to someone in another place. In Estonian: maksja; %%lekande saatja.
Payment Initiator (peiment inišieit%%): The party that starts the payment process. In Estonian: makse algataja.
Effective Date (ifektiv deit): The date on which a contract, set of regulations, or transaction becomes active. In Estonian: j%%ustumiskuup%%ev.
Issuance (išuens): The action of supplying or distributing something. In Estonian: v%%ljalase; v%%ljastamine.
Disbursement (disb%%%sment): The payment of money from a fund. In Estonian: v%%ljamakse.
Commission Fee (k%%mišen fii): A fee paid for services rendered in facilitating a transaction. In Estonian: teenustasu.
Domestic Payments (d%%mestik peiments): Payments made within the borders of a single country. In Estonian: siseriiklikud maksed.
Frequency (friikvensi): The rate at which something occurs or is repeated over a particular period of time. In Estonian: sagedus.
Granular (gr%%njul%%): Consisting of small grains or particles; in data context, refers to a high level of detail. In Estonian: detailne.
Standard Deviation (): A quantity expressing by how much the members of a group differ from the mean value for the group. In Estonian: standardh%%lve.
Ratio (): The quantitative relation between two amounts showing the number of times one value contains or is contained within the other. In Estonian: suhe; suhtarv.
Rounded to one decimal point: The practice of adjusting a number to the nearest value with only one digit after the decimal separator. In Estonian: %%mardatud %%he k%%mnendkohani.
Anti-Money Laundering (AML) and Client Relations
Due Diligence (djuu dilidžens): Reasonable steps taken by a person in order to satisfy a legal requirement, especially in buying or selling something. In Estonian: hoolsusmeetmed; taustakontroll.
Customer Due Diligence (CDD) (kast%%m%% djuu dilidžens): The process of identifying customers and checking they are who they say they are. In Estonian: kliendi hoolsusmeetmed.
Know Your Customer (KYC) (nou joo kast%%m%%): A standard in the investment industry that ensures investment advisors know detailed information about their clients' risk tolerance, investment knowledge, and financial position. In Estonian: tunne oma klienti (p%%him%%te).
Beneficial Owner (benifišl oun%%): The person or people who ultimately own or control an asset or entity. In Estonian: tegelik kasusaaja.
Politically Exposed Person (PEP) (politikli ikspouzd p%%%sn): An individual who is or has been entrusted with a prominent public function. In Estonian: riikliku taustaga isik.
Money Laundering (mani loond%%ring): The concealment of the origins of illegally obtained money. In Estonian: rahapesu.
Terrorist Financing (ter%%rist fain%%nsing): Providing funds for terrorist activities. In Estonian: terrorismi rahastamine.
Suspicious Activity Report (SAR) (s%%pišes %%ktiviti ripoot): A document that financial institutions must file with authorities following a suspected case of money laundering or fraud. In Estonian: kahtlase tegevuse teade.
Transaction Monitoring (tr%%ns%%kšen monit%%ring): The process of monitoring customer transactions in real-time or after the fact for indicators of money laundering or fraud. In Estonian: tehingute seire.
Sanctions Screening (s%%nkšens skriining): The process of checking persons or entities against lists of sanctioned individuals or countries. In Estonian: sanktsioonide kontroll.
Red Flag (red fl%%g): A warning or signal that something is wrong or needs attention. In Estonian: ohum%%rk; hoiatussignaal.
Tipping Off (tiping of): The illegal act of informing a customer that they are under investigation for money laundering or that an SAR has been filed. In Estonian: kliendi hoiatamine (keelatud AML-is).
Shell Company (%šel kamp%%ni): A company that exists only on paper and has no active business operations or significant assets. In Estonian: riiulifirma; vari%%hing.
Onboarding (onbooding): The mechanism through which new employees or customers acquire the necessary knowledge and skills to become effective members/users. In Estonian: kliendisuhte alustamine.
Client Representative (klaient reprisent%%tiv): A person acting on behalf of a client. In Estonian: kliendi esindaja.
Credit, Lending, and Debt Management
Initial Loan Amount (inišl loun %%maunt): The total amount of money originally borrowed. In Estonian: esialgne laenusumma.
Principal (prinsipl): The original sum of money lent or invested on which interest is paid. In Estonian: p%%hisumma.
Principal Balance (prinsipl b%%l%%ns): The remaining amount of the principal that has not yet been paid off. In Estonian: p%%hisaldo.
Mortgage Loan (moogidž loun - note the silent 't'): A loan used to purchase real estate or land, secured by the property itself. In Estonian: h%%poteeklaen.
Property (prop%%ti): Real estate or something owned by a person. In Estonian: kinnisvara; vara.
Down Payment (daun peiment): An initial payment made when something is bought on credit. In Estonian: sissemakse.
Collateral (k%%l%%t%%rl): Something pledged as security for repayment of a loan, to be forfeited in the event of a default. In Estonian: tagatis.
Loan-to-Value Ratio (LTV) (): A ratio used by lenders that expresses the amount of a first mortgage lien as a percentage of the total appraised value of real property. In Estonian: laenu ja tagatise suhe.
Annual Percentage Rate (APR) (): The annual rate charged for borrowing or earned through an investment. In Estonian: krediidi kulukuse aastam%%%r.
Accrued Interest (%%kruud intrest): Interest that has been incurred but not yet paid or received. In Estonian: kogunenud intress.
Amortisation (%%mootaizeišen): The action or process of gradually writing off the initial cost of an asset or paying off a debt. In Estonian: amortisatsioon; laenu j%%rkj%%rguline tagasimaksmine.
Maturity Date (m%%tju%%riti deit): The date on which the final payment on a loan or other financial instrument is due. In Estonian: l%%ppt%%htaeg.
Grace Period (greis pi%%ri%%d): A period of time after a payment becomes due, before any late fees or penalties are applied. In Estonian: maksepuhkus.
Creditor (kredit%%): A person or company to whom money is owed. In Estonian: v%%lausaldaja.
Debtor (det%% - note the silent 'b'): A person or institution that owes a sum of money. In Estonian: v%%lgnik.
Guarantor (g%%r%%ntoo): A person or organization that provides a guarantee. In Estonian: k%%endaja.
Risk Management, Defaults, and Recovery
Mitigate (mitigeit): To make less severe, serious, or painful; in finance, to reduce risk. In Estonian: leevendama; maandama (riski).
Mitigated (mitigeitid): Past tense of mitigate, as in a risk that has been reduced. In Estonian: maandatud; leevendatud.
Line of Defense (1LoD) (lain ov difens): The first level of management responsible for identifying and managing risk. In Estonian: kaitseliin (1LoD).
Probability of Default (PD) (): A financial term describing the likelihood of a borrower defaulting on their loan obligations. In Estonian: maksej%%uetuse t%%en%%osus.
Exposure (ikspouž%%): The amount of money the lender stands to lose if the borrower defaults. In Estonian: riskipositsioon.
Risk Appetite (risk %%pitait): The level of risk that an organization is prepared to accept in pursuit of its objectives. In Estonian: riskiisu; riskivalmidus.
Arrears (%%ri%%s): Money that is owed and should have been paid earlier. In Estonian: v%%lgnevus; maksmata summad.
Delinquency (dilinkvensi): Failure to pay an outstanding debt on time. In Estonian: makseviivitus.
Non-Performing Loan (NPL) (non-p%%fooming loun): A loan in which the borrower is default and has not made the scheduled payments of principal or interest for some time. In Estonian: viivislaen.
Impairment (impeament): A permanent reduction in the value of an asset. In Estonian: v%%rtuse langus; allahindlus.
Write-Off / Written-Off Contracts (ritn-of kontr%%kts): Contracts removed from the company's books because they are deemed uncollectible. In Estonian: mahakantud lepingud.
Write-Down (rait-daun): A reduction in the estimated or book value of an asset. In Estonian: allahindlus; osaline mahakandmine.
Provisioning (pr%%vižening): Setting aside money as a reserve for expected losses. In Estonian: eraldiste moodustamine.
Insolvency (insolvensi): The state of being unable to pay the debts, by a person or company, at the time they are due. In Estonian: maksej%%uetus.
Liquidation (likvideišen): The process of bringing a business to an end and distributing its assets to claimants. In Estonian: likvideerimine.
Restructuring (riistraktš%%ring): A reorganization of a company's management or financial structure. In Estonian: restruktureerimine; %%mberkorraldamine.
Forbearance (foober%%ns): A temporary postponement of mortgage payments granted by the lender or creditor in lieu of proceeding with a foreclosure or other legal action. In Estonian: makseleevendus.
Refinancing (riifain%%nsing): Paying off an existing loan with the proceeds from a new loan, usually with different terms. In Estonian: refinantseerimine.
Investigative and Legal Enforcement
Investigation (investigeišen): The action of investigating something or someone; formal or systematic examination or research. In Estonian: uurimine.
Fraud (frood): Deception intended to result in financial or personal gain. In Estonian: pettus.
Extortion (ikstooršen): The practice of obtaining something, especially money, through force or threats. In Estonian: v%%ljapressimine.
Suspicion (s%%spišen): A feeling or belief that someone is guilty of an illegal, dishonest, or unethical act. In Estonian: kahtlused.
Bailiff (beilif): An official in a court of law who keeps order, looks after prisoners, etc. In banking, often associated with debt recovery. In Estonian: kohtut%%itur.
Fine Claims (fain kleims): Demands for the payment of penalties. In Estonian: trahvin%%uded.
Audit Trail (oodit treil): A step-by-step record which provides evidence of the specific history of a transaction, operation, or event. In Estonian: auditij%%lg; kontrollj%%lg.
Internal Audit (int%%nl oodit): An independent, objective assurance and consulting activity designed to add value and improve an organization's operations. In Estonian: siseaudit.
False Positive (fools positiv): A result that indicates that a given condition is present when it is not. In Estonian: valeh%%ire; vale positiivne tulemus.
General Terminology and Financial Metrics
Liability (lai%%biliti): The state of being responsible for something, especially by law; a thing for which someone is responsible, especially a debt or financial obligation. In Estonian: vastutus; kohustis.
Mandatory (m%%nd%%t%%ri): Required by law or rules; compulsory. In Estonian: kohustuslik.
Obligatory (%%blig%%t%%ri): Required by a legal, moral, or other rule; compulsory. In Estonian: kohustuslik.
Sufficient (s%%fišent): Enough; adequate. In Estonian: piisav.
Impact (imp%%kt): The action of one object coming forcibly into contact with another; the effect or influence of one person, thing, or action, on another. In Estonian: m%%ju.
Threshold (trešhould - note the 'th' sound): A level, rate, or amount at which something comes into effect. In Estonian: k%%nnis; piirm%%%r.
Escalation (esk%%leišen): An increase in the intensity or seriousness of something; a step in a process to a higher level. In Estonian: eskaleerimine; edasisuunamine.
Remediation (rimiidieišen): The action of remedying something, in particular of reversing or stopping environmental damage or compliance failures. In Estonian: puuduste k%%rvaldamine.
Materiality (m%%ti%%ri%%liti): The quality of being relevant or significant. In Estonian: olulisus.
Regulatory Reporting (regjul%%t%%ri ripooting): The submission of data to a relevant authority in order to demonstrate compliance with regulations. In Estonian: regulatiivne aruandlus.
Stress Test (stres test): A test of how well a person, device, or system functions under difficult or severe conditions. In Estonian: stressitest.
Ascending (%%sending): Increasing in size or importance (0→9). In Estonian: kasvavalt (0→9).
Descending (disending): Moving downwards; decreasing in size or importance (9→0). In Estonian: kahanevalt (9→0).
Covenant (kav%%n%%nt): An agreement or a clause in a contract that requires or prevents certain actions. In Estonian: laenulepingu eritingimus.