In our ongoing commitment to enhancing fraud and error prevention for our customers, we are thrilled to introduce the latest feature to our Fraud & Error Prevention Suite: Sanctions Screening.
This powerful tool is designed to assist organisations in determining the eligibility of their creditors before they receive funds, ensuring compliance with Sanctions and preventing potential legal breaches.
Why you need Sanctions Screening
As global regulations become increasingly stringent, it is imperative that organisations take proactive measures to adhere to sanctions and anti-money laundering (AML) laws. Sanctions are not merely instruments of foreign policy; they are legally binding and require strict compliance. Failure to comply with these regulations can result in severe consequences, including criminal and civil prosecutions, often accompanied by substantial fines. Even if a company is unaware of its violation, the legal repercussions can be devastating.
Key players embrace Sanctions Screening
Large corporate organisations involved in frequent international transactions stand to benefit significantly from this solution, ensuring their operations remain in full compliance with Sanctions and anti-money laundering regulations.
FCA regulated companies
Highly regulated businesses, particularly those operating in the finance sector, can elevate their compliance standards by leveraging the capabilities of Sanctions Screening, thereby strengthening their position within a tightly controlled industry.
Regulated businesses must conduct Sanctions Risk Screening as a mandatory practice for effective Sanctions compliance. Many leading financial institutions have already taken a proactive stance by implementing Sanctions Screening as a crucial step in their payment process. With the impending implementation of the new corporate governance regime, known as UK SOX, (Sarbanes-Oxley) coming into force next year, the need for stringent controls in financial operations has never been more pressing.
Even international giants like Fortune 500 companies, and prominent players listed on the US stock market have seen the advantages of Sanctions Screening. By incorporating sanctions checking into their internal processes, they not only ensure compliance with regulations, but also safeguard their standing and credibility in a competitive global market.
The wider impact of Sanctions Screening
Sanctions are complex, multi-faceted tools, encompassing both foreign policy and legal dimensions. Companies operating in areas affected by the Sanctions and Anti-Money Laundering Act (SAMLA) need to stay alert.
Failure to implement Sanctions Screening can pose numerous challenges for customers, including:
- Resource intensity: Manually identifying whether an individual is on a Sanctions list is a resource-intensive process, consuming time and manpower.
- Legal reporting: Any breaches of Sanctions must be reported by law, adding further administrative burdens for the finance team.
- Government co-ordination: Multiple governmental bodies are involved in Sanctions enforcement, requiring intricate coordination and communication.
Implementing Sanctions Screening
There are various options available in the market that perform sanctions checks, especially tailored for financial institutions and organisations subject to strict regulatory compliance but these are often robust, and expensive options. For corporate entities that require adherence to Sanctions laws, but do not necessitate a comprehensive Anti-Money Laundering (AML) tool, the choices appear somewhat limited, until now.
Sanctions Screening tools – Your options
Treasury Management System (TMS):
A TMS is primarily needed within a sizable Treasury function. While the latter is a viable choice, it introduces the complexity of integrating and managing yet another external supplier. Plus, if you don’t manage the complexities seen in larger Finance & Treasury teams, a TMS is an expensive, unnecessary investment.
Bank Portals:Banks are legally obligated to screen customer payments against Sanctions lists before processing them. Any transactions resembling Sanctioned terms are held and investigated by specialised AML teams through communication with both the payer and beneficiary, and only released if found legitimate. The issue with this is that this can potentially cause weeks of payment delays. Detecting transactions susceptible to bank Sanctions checks prior to processing a payment through a bank portal offers organisations the opportunity to internally assess their legitimacy before payment processing, and notify the bank in advance about valid transactions at risk of being flagged. Sanctions Screening proactively addresses potential delays or expedite the bank’s investigation process.
With Sanctions Screening now embedded within the platform, AccessPay offers organisations an opportunity to consolidate their internal controls effectively. This integration not only streamlines process, but also provides the necessary screening checks to support internal finance and treasury policies.
AccessPay offers a seamless and efficient solution that mitigates risk, simplifies compliance, and enhances overall operational effectiveness for corporations navigating the complex landscape of Sanctions Screening without the need for an expensive TMS, and reducing the risk associated with bank portals.
Bridging the gap in Fraud & Error Prevention
Sanctions Screening represents a pivotal addition to our Fraud & Error prevention arsenal. It seamlessly integrates within the AccessPay platform, and is easily accessible within our Fraud & Error Suite, alongside Payment Screening and Confirmation of Payee (CoP).
In a rapidly evolving regulatory landscape, Sanctions Screening is the missing piece that ensures your organisation remains compliant and secure.
Stay ahead of the compliance curve, safeguard your operations and revolutionise the way you navigate the complex world of financial regulations and Sanctions.
Check out our Fraud & Error Prevention Suite.