How do you do a sanction screen?
How do you do a sanction screen?
Sanction compliance poses a challenge to organizations as not only is it an ever-changing landscape, but there is no finite sanctions list to follow and organizations must nevertheless ensure that they do not transact with any blocked entity.
Screening for sanctions risk is a mandatory requirement for regulated entities across all sectors and is a critical step in the know your customer or KYC process. Moreover, penalties for breaching sanctions can be severe. In 2020 the US Treasury Office of Foreign Assets Control meted out fines amounting to over US$ 23,million , 14 of the 16 penalties were levied at corporates. In 2019 the penalties amounted to US$1.2 billion of the 26 penalties only four were financial institutions.
Ensuring your organization has a robust sanctions-screening program in place is essential. Access to comprehensive and accurate sanctions risk data is therefore critical.
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