Fast and reliable payments are crucial for the financial system. To understand the movement of funds between different banks, it is important to understand the concepts of clearing and settlement. Let's not waste any time, and Icon.Partners  will explain in more detail! Understanding Clearing and Settlement What does “clearing” mean in payments? Let's answer the question “what does clearing mean”. In payments, clearing is the stage between making a payment and completing it.

Comfort Letter Explained Definition and meaning of a comfort letter If you are planning a major transaction, investment, or international deal, you may have come across the term “comfort letter”. But what is a bank comfort letter, and why do financial institutions and corporations rely on it so often? A comfort letter is an official written statement usually issued by an auditor, parent company, or bank that provides assurance about a company’s financial standing or credibili

The modern banking system has many branches. Some banks focus on everyday clients, while others serve large companies that move millions every day. By exploring retail vs corporate banking, it becomes clear how financial institutions separate services for individual customers and for companies.  What Is Retail Banking? Define retail banking When we define retail banking, we mean the part of the financial sector that serves individual customers, rather than businesses. Retail

Company expansion, market entry, privatization, and development can bring certain challenges in addition to advantages. Sometimes governments and companies do not want to give ordinary shareholders leverage, and that is when golden shares come into play. A golden share is a special type of share that grants its holder extraordinary rights – such as veto power – that exceed those normally associated with share ownership. Today,  Icon.Partners  will reveal the answer to the que

Poison Pill Explained Poison pill definition and meaning A poison pill is a defensive mechanism designed to discourage or delay a hostile takeover by making it more expensive or less attractive. In corporate law, the poison pill meaning is a rights plan letting shareholders buy cheap stock when someone buys too much. The plan grants existing shareholders rights to purchase additional shares at a steep discount if any investor acquires more than a specified threshold (typicall

A charter is one of a company’s two foundational documents, along with its memorandum of association, which creates the company as a legal entity. Understanding the corporate charter may be helpful for founders, investors, and legal advisors because it represents a picture of the framework and purpose of the corporation as well as its management. A legal charter could be defined as a document issued to a company by the state or government agency as a license to engage in busi

STR Meaning and Definition A Suspicious Transaction Report (STR) is an official document that obligated financial institutions submit to the relevant government agencies in cases of suspected illegal activity. These reports are a special monitoring mechanism for any financial sector activity that is outside the norm or shows signs of being illegal. What does STR stand for? The main purpose of suspicious transaction reporting is to prevent financial crime. It is a special tool

What is a Closed Corporation (CC)? What is a closed corporation? A Closed Corporation (CC) means a small private company owned by a few people. To define closed corporation, it is a business where ownership and control stay within a close group, such as family or friends. The meaning of a closed corporation is that its shares are not sold on the public market, only privately. The owners usually manage the company themselves and make decisions together. It offers legal protect

Corporate Spin-Off Explained Spinoff definition in business In business, a spinoff definition means creating a new company by separating a part of assets, a division, or a business line from the parent corporation. This is done to increase operational efficiency and focus on key objectives. When a business forms an independent structure, it gets its own management, financial statements, and strategic priorities. Thus, the separated division can adapt more quickly to market ch

Understanding Nostro Accounts and Vostro Accounts In the current globalized economic system, there are innumerable financial exchanges made on a daily basis among people, companies and institutions that are located in various corners of the world. The fact that money today travels across borders with a lot of ease is due to decades of development of international banking systems. In order to understand how these cross-border transfers became the smooth aspect of modern financ

Understanding Multinational Enterprises Definition of Multinational Companies and Corporations: What does MNE Stand For? To define a multinational corporation, one may describe it as a company that operates and manages business activities in more than one country. It usually has a parent company in one place and subsidiaries or branches in other locations. The very existence of this type of business setup helps the MNEs to сombine local markets along with global management a

Certificate of Incumbency Explained What is a Certificate of Incumbency: definition and meaning If you are a company director or other executive, or if you own a company, this certificate acts as your ID card in the corporate world. You can present it to anyone to confirm your status and the powers granted to you to act on behalf of, and for the benefit of, the company. In a nutshell, it officially confirms that you are legally authorized to perform certain actions. Purpose o

What Are Crypto-Friendly Banks? What banks allow crypto purchases? Crypto-friendly banks are financial institutions that support digital currencies rather than restrict their use. These banks let you purchase, trade, and store cryptocurrencies like Bitcoin right through your account. Some even allow you to hold balances in BTC or earn rewards in satoshis (the tiniest Bitcoin fraction). You can obtain loans secured by your cryptocurrency without the need to sell it.  Differenc

It is difficult to imagine today's world without Web3 solutions, and the number of chains for which is growing. A blockchain bridge is a technology that allows transferring data, assets, and smart contracts between different blockchain networks. So today, together with Icon.Partners , we are diving into the topic of blockchain bridges on the web3.  What Are Blockchain Bridges? Definition and meaning of blockchain bridging Blockchain bridging is the process of connecting diffe

Understanding Economic Sanctions Definition and purpose of economic sanctions Economic sanctions are intentional limitations on trade or...

Understanding Globalization and Localization In today’s fast-changing world, no business operates in isolation. Companies constantly...

Understanding Business Continuity Planning Definition of BCP There are many different Business Continuity Plan definitions. Most of them...

Understanding FATCA The FATCA meaning goes far beyond just a tax rule — it represents a major legislative initiative that has evolved...

FCC (Financial Crime Compliance) means rules and actions that banks and businesses use to stop illegal money activity. It protects...

Understanding Surety Bonds Surety bond meaning and purpose A surety bond is a legally binding three-party agreement among the principal,...