Anti-Money Laundering (AML)
Laws, controls and procedures intended to detect and prevent money laundering and related financial crime.
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U3 CAPITAL NETWORK GLOSSARY
International & Cross-Border Glossary
Plain-language terminology for Cross-border counterparties. Definitions are designed to support clearer private-market conversations. Technical, legal, tax, engineering and transaction meanings can vary by agreement, reporting standard and jurisdiction.
Beneficial Owner
The natural person or persons who ultimately own or control an entity, as determined under applicable rules.
Capital Stack
The combination and priority of equity, debt and other capital used to finance a company, asset or project.
Closing
The point at which agreed transaction documents become effective and required transfers or payments are completed.
Country Risk
A broad assessment of economic, political, legal, currency and operating risks associated with a country.
Cross-Border Transaction
A transaction involving counterparties, assets, operations or capital in more than one country.
Currency Risk
The possibility that exchange-rate changes affect transaction value, payments, returns or costs.
Due Diligence
The review of a company, asset, counterparty and transaction before a final commitment.
Foreign Direct Investment (FDI)
An investment by a person or entity from one country into a business or operating asset in another country.
Foreign Exchange (FX) Risk
The risk that changes in currency exchange rates affect transaction value, cash flow, financing or returns.
Investment Mandate
The criteria defining the opportunities an investor is prepared to consider.
Jurisdiction
The country, state, province or other legal territory whose laws or regulatory authority may apply.
Know Your Customer (KYC)
Identity and related verification procedures used by regulated or risk-sensitive organizations to understand counterparties.
Local Counsel
Legal counsel qualified in a relevant jurisdiction who advises on local law and transaction requirements.
Permitting
The process of obtaining governmental or regulatory approvals required to develop, construct, own or operate an asset or project.
Political Risk
Risk arising from government, regulatory, legal or political changes that can affect an investment, asset or transaction.
Project Finance
Financing structured around a specific project and its assets, contracts, cash flows or sponsors.
Proof of Funds
Evidence intended to demonstrate that a prospective buyer, investor or capital provider has access to funds relevant to a proposed transaction.
Regulatory Approval
Authorization or clearance required from a governmental or regulatory authority before certain transactions can proceed.
Sanctions Screening
Review of parties and transactions against applicable sanctions requirements and restricted-party lists.
Source of Funds
Information describing where transaction or investment funds originate.
Sovereign Risk
Risk associated with the actions, creditworthiness or stability of a national government or jurisdiction.
Transaction Currency
The currency in which transaction consideration, financing or another obligation is denominated.
Transaction Structure
The combination of consideration and terms used to complete a transaction, potentially including cash, debt, retained equity, seller financing or contingent payments.
Ultimate Beneficial Owner (UBO)
The natural person or persons who ultimately own or control an entity under the applicable legal or compliance definition.
Withholding Tax
Tax required to be withheld from specified payments under applicable law, often relevant to cross-border transactions.