Let’s be honest: compliance language isn’t exactly known for its charm. Between acronyms, legalese, and terms that seem designed to confuse, it’s easy for your team to feel overwhelmed. At Comply-YES!, we believe compliance shouldn’t feel like learning a new language. It should be clear, practical, and something your entire team can understand and apply confidently.
So, let’s decode the compliance dictionary. Below, we’re breaking down some of the most commonly used compliance terms and phrases and translating them into plain language anyone can understand. Whether you’re a compliance pro or new to the field, this one’s for you:
What it sounds like: A spy movie title.
What it really is: The federal law that requires financial institutions to help detect and prevent money laundering.
Translation: Your credit union’s anti-crime toolkit. It’s what helps you spot and report suspicious activity, like unusually large cash deposits or transactions that don’t make sense.
Comply-YES! provides both staff and board BSA training, so your entire team knows what to look for and how to handle it.
What it sounds like: A laundry detergent with a mission.
What it really is: A set of laws and regulations designed to stop criminals from disguising illegally obtained funds as legitimate income.
Translation: The rules that help you catch financial “red flags” and file reports like SARs (see below) when something fishy happens.
What it sounds like: A top-secret government file.
What it really is: A report you file when you suspect a member is involved in suspicious or potentially criminal financial activity.
Translation: Your way of saying, “Hey regulators, something doesn’t feel right here.” SARs are confidential and should never be shared with the member in question.
What it sounds like: A form you file when your coffee shop finally accepts cash again.
What it really is: A report filed for cash transactions over $10,000, as required by the BSA.
Translation: “Yes, this large transaction happened—and here are the details.” It’s routine, not suspicious, but must be documented accurately.
What it sounds like: A sci-fi energy system.
What it really is: The movement of money from one account to another electronically.
Translation: Direct deposit, ATM withdrawals, online payments—all of these fall under EFT. Regulation E (see next) covers how you handle them.
What it sounds like: The fifth entry in a regulation alphabet series.
What it really is: A rule that protects consumers when it comes to electronic money movement.
Translation: When a member says, “I didn’t authorize that charge,” this is the regulation that tells you what to do next, and on what timeline.
What it sounds like: Something out of a spy thriller.
What it really is: A U.S. Treasury office that enforces economic sanctions.
Translation: You’re not allowed to do business with certain people or organizations. OFAC maintains a list (called the SDN list aka Specially Designated Nationals and Blocked Persons list) you’re required to check when opening new accounts or conducting certain transactions.
At Comply-YES!, we can review your OFAC processes as part of your compliance audit.
What it sounds like: A complicated mouthful.
What it really is: The federal agency that regulates and insures credit unions.
Translation: Your main regulator. They set the rules, conduct your exams, and protect your members’ deposits (up to $250K per account holder).
What it sounds like: A system for rating desert animals.
What it really is: A scoring system used by the NCUA to assess the safety and soundness of your credit union.
Translation: It’s your credit union’s report card. It looks at Capital adequacy, Asset quality, Management, Earnings, Liquidity, and Sensitivity to market risk. Lower scores are better, and the goal is to keep everything balanced and well-managed.
What it sounds like: Lending with a smile.
What it really is: A legal requirement to treat every borrower equally, regardless of race, gender, age, or other protected categories.
Translation: No favoritism, no discrimination. Fair lending means everyone gets the same opportunity to access credit based on their financial qualifications, not who they are.
We offer Fair Lending reviews and training to help your lending team stay aligned with best practices and expectations.
What it sounds like: Two very official things you have to get done.
What they really are: Different-but-connected ways of evaluating your compliance program.
Translation:
Think of the risk assessment as your forecast, and the audit as your check-up. You need both to keep your compliance program strong.
Our team offers both services: we can help you spot risks early and prepare for what’s coming down the regulatory pipeline.
You don’t need to speak in acronyms or legal codes to talk about compliance with confidence. With the right tools (and the right partner), you can make compliance a conversation, not a headache.
At Comply-YES!, we help credit unions like yours break down the complex stuff, simplify the process, and build a stronger, smarter approach to compliance. Whether you need training, audits, risk assessments, or a trusted partner to call when questions pop up, we’re here for it.
Ready to cut through the jargon of compliance language and strengthen your compliance program? Let’s talk. Contact us here.
