A Business Identification Number (BIN) is a core element of corporate identity. It is the unique code that links a legal entity to state registers, tax authorities, and supervisory bodies. When founders search “what is a business identification number?” they usually guess how this number is assigned, where it appears in documents, and how it affects day-to-day operations and cross-border activity. Understanding the structure and function of a business identification number (B

Definition of a Multi-Currency Account A multi-currency account (also known as a bank account with multiple currencies) is a type of financial account that allows you to manage funds in several currencies within a single account without the need to open separate accounts for each currency. Multi-currency accounts are commonly offered by electronic money institutions (EMIs). They significantly simplify business operations, as customers from all over the world can pay into a si

What Are Nominee Services? Nominee services are legal arrangements in which a third party formally appears as the director or shareholder of a company while the actual owner retains full control behind the scenes. Nominee Services Definition and Meaning The concept of nominee services definition refers to a legal arrangement in which an individual or corporate entity is formally appointed to act on behalf of the real owner of a business, while the beneficial owner remains und

What Is a Transaction Monitoring System? Transaction Monitoring System Definition It is easy to answer what is a transaction monitoring system — it is a technological/compliance system or infrastructure designed for continuous or periodic analysis of financial transactions made by clients of banks or financial institutions in order to detect suspicious, unusual, or high-risk payments. It analyzes transaction data, counterparties, account history, behavioral patterns, and, bas

Company Constitution Definition The Company Constitution is a set of internal documents (or a single document in some jurisdictions) required for its operation. For those searching “what is the constitution of a company”, it is the foundational legal document regulating how a company is structured and governed. The purpose of a company constitution is to establish unified internal rules for organising work within the company and to ensure clear, effective, and legally certain

What Is Corporate Governance? Corporate governance is not just a set of rules for a company, but an entire system that defines how a company makes decisions, controls activities, and protects the interests of shareholders. It helps establish a balance between owners, management, and external investors, reducing the risk of errors and abuses. Corporate Governance Definition and Meaning According to the corporate governance definition, this is a set of norms and mechanisms that

What Are Board Resolutions? A common question in corporate governance is, “What are board resolutions and why do companies rely on them?” In essence, it is the official written confirmation of a choice made by the board. It records what was approved, who participated, and shows that the organisation acted according to its internal rules and applicable law. Board Resolutions Meaning and Purpose In practical terms, board resolutions' meaning refers to a formal “yes” or “no” fro

What Are Corporate Bylaws? Corporate Bylaws, usually called bylaws, are a legal document. It’s core to set up rules and regulations which govern the corporation’s day-to-day operations. Purpose of Bylaws in a Corp To be an efficient company, one does need such a doc, meaning that all described procedures will be followed by management. As a result, it runs effectively. What It Typically Includes There is no unique requirement or approach for the content of one. Typically, req

What Is a Payment Settlement? A payment settlement is the final step in a transaction, where the money officially moves from the customer's bank to the business's bank. The phrase settlements payments refers directly to these fund transfers. The Payment Settlement Process Step-by-Step Authorization of a transaction Payment settlement process begins with authorization of a transaction. When you buy something, the machine (POS) sends a request with the sale details. This reques

Definition and Meaning PEP is an abbreviation from the English language: PEP stands for Politically Exposed Person, that is, a “politically significant person.” This PEP acronym business is widely used in financial compliance to refer to high-risk clients. Politically exposed person (PEP) definition and examples Politically Exposed Person—is a person who holds or has held a prominent public position. For example, PEPs include presidents, prime ministers, ministers, deputies a

What Is a Business License? Business license definition So, what is a business license? Simply put, it’s a government-issued authorization that allows a company to legally operate within a specific jurisdiction or industry. Without it, even a properly registered business could face fines or closure. Why every company needs a business license A business license confirms that your company complies with local rules, pays taxes, and meets safety or professional standards. It’s al

What Are Liquidity Ratios? Liquidity ratio definition in accounting Accounting liquidity ratios show how easily companies can pay their short-term bills. It measures how quickly assets like cash, receivables, or inventory can be turned into cash. Common examples are the current ratio and quick ratio. These ratios help see if a company has enough liquid assets to cover short-term debts and check its financial strength over time or compared to other companies. Importance of liq

Unrstanding Source of Funds (SOF) Source of funds meaning and definition In compliance work, the source of funds meaning refers to where the money for a specific transaction actually comes from — its immediate origin and the path it followed into the account used. A concise source of funds definition is the verifiable funding route for a payment or investment, evidenced by documents that show ownership and control of the money at each step. What does the source of funds mean

What Is a Fiscal Year? Fiscal year definition and purpose A fiscal year refers to a 12-month accounting cycle used by businesses and governments to produce reports, budgets, and tax filings. A fiscal year may begin on any date the company selects, provided it covers 12 consecutive months, unless a shorter transitional period is approved. Such flexibility is instrumental in harmonizing reporting with the actual business operations providing management with clearer insight into

Understanding Voting Rights in Corporate Governance The concept of voting rights explained In corporate governance, the concept of voting rights is based on shareholders’ or members’ ability to influence key company decisions through voting. This means that the owner of company shares or equity receives shareholder voting rights, allowing them to vote at general meetings or other corporate governance events. With such rights, shareholders can participate in deciding on key co

What Are VAT and GST? If you’re wondering what is VAT/GST, both refer to types of consumption taxes applied to goods and services. VAT stands for Value Added Tax, while GST stands for Goods and Services Tax. GST meaning and what GST stands for If you’ve ever googled “what is GST mean”, the short answer is: GST stands for Goods and Services Tax. The GST meaning is simply that it’s a type of value-added tax used by many countries. It was designed as a single tax to replace mult

Understanding ESG Compliance ESG compliance meaning and definition So, by googling “ESG compliance meaning”, what are everyone talking about? Is it just a formality, or a real effort to do the right thing day by day? At its core, ESG compliance means following environmental, social, and governance standards in everything a business does. Strong ESG and compliance programs turn values into habits, such as reducing waste, treating people fairly, and keeping leadership accounta

Tax Haven Definition and Meaning A tax haven definition is often perceived like something suspicious or even illegal. But in the modern world, this concept is much more complicated and significant than it can look at first glance. Tax haven countries are usually very well-developed places that help different types of businesses lower their tax bills through overseas tax planning. What is a tax haven in simple terms Basically the tax haven meaning refers to a place with low ta

So, what does AGM mean? In the corporate arena, knowing it isn’t just theory — it is an essential part of business. The Annual General Meeting (AGM) is the yearly «roll call», when shareholders and directors gather to discuss results and future direction. The question of “what is an AGM?” often comes up — and answers go far beyond a simple yearly meeting. AGM Meaning and Definition The AGM meaning goes beyond mere procedure — it’s the foundation of corporate integrity. By law

This article provides a clear explanation of letters of credit in simple terms. Understanding Letters of Credit What is a letter of credit from a bank? If you’re wondering what is the meaning of letter of credit, it’s a financial guarantee from a bank. A letter of credit (LC) is a bank’s written undertaking to pay the seller upon presentation of documents that comply with the LC terms. In simple terms, it’s a secure method of payment used in global trade. This shifts the risk