10.1 This section provides an explanation of certain key terms that are used throughout the Core Principles. These explanations should be read only in the context of this document, and they do not apply across, or modify any aspect of, the Basel Framework.

(1) Applicable Basel standards: the references to "applicable Basel standards" in specific principles refer to the most recent Committee standard or guideline that is effective in relation to that principle.

(2) Bank: when the Core Principles use the term "bank" this should be read as "bank and banking group", except where "bank" is explicitly referred to on a solo basis.

(3) Banking group: includes the holding company, the bank and its offices, subsidiaries, affiliates and joint ventures, both domestic and foreign. Risks from other entities in the wider group, for example non-bank (including non-financial) entities, may also be relevant. This group-wide approach to supervision goes beyond accounting consolidation. The scope of consolidation used as the basis for all other Basel requirements is set out in the SCO standard.

(4) Basel Framework: refers to those Committee standards that are applicable to internationally active banks and are consolidated in the Basel Framework.

(5) Beneficial owner(s)/beneficial ownership: refers to the natural person(s) who ultimately owns or controls a customer and/or natural person on whose behalf a transaction is being conducted. It also includes those persons who exercise ultimate effective control over a legal person or arrangement.