Safekeeping receipt - A document issued by a bank which requires the bank to hold specific funds (or securities, gold, etc.) unconditionally separate from other assets and return them when requested by the depositor. In this way, the funds (or securities, gold, etc.) are not an asset of the bank nor are they, directly or indirectly, subject to any of the bank’s other obligations or debts.
Seasoned - Securities owned by a participant in the secondary (retail) market.
Securities - General name for shares and bonds of all types. Shares produce a variable dividend and bonds a fixed interest.
Service Company - A company located in an offshore financial center to provide management, invoicing and other services for client companies located in other countries. Initially used to advantage double taxation treaties. Service Companies are now frequently used to facilitate flight capital outflow and are often involved in money laundering schemes.
Settlement - Exchanging money or securities for securities.
SLC - Stand-by Letter of Credit. A financial guarantee or performance bond issued by a bank on behalf of a customer and regulated by the ICC-500 rules.
Sub-account (segregated account) - When a bank acts on behalf of an intermediary, a sub-account is opened for each of the intermediaries' clients, to hold their funds in their name. The account can only be operated, and the funds can only be used, according to the terms of a written agreement (Power of Attorney) that is given to, and approved by, the bank. The deposited funds are not considered intermediary assets nor bank assets if a safekeeping receipt is issued by the bank.