The following Risk & Compliance guidance note provides comprehensive and up to date legal information covering:
The complex nature of watch list screening creates challenges and presents risks. This Practice Note summarises the challenges watch list screening can present and the limits of screening technology and then suggests ways organisations can enhance watch list screening while avoiding additional complexity and/or cost.
Watch list screening is a complex concern for businesses for many reasons:
politically exposed person (PEP) status determination
rapid pace of regulatory/policy change
complex business structures
quality of data
volume of data
volume of transactions
multi-jurisdictional nature of transactions
subjective decision making
IT screening solutions undoubtedly improve sanctions compliance. These solutions mean that more information is available and therefore screening is more effective.
However technology is not the whole answer. Implementing the right technology to screen data and identify potential sanctioned entities is absolutely crucial. But so is putting in place the right people and processes. Each of these three components is equally important.
And technology is not foolproof. Electronic systems, networks and processes can cause problems if they don't work as planned, eg:
not screening all data
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