Data Quality Issues Trip Up Sanction Screening Processes
Sanctions compliance is a critical aspect of doing business globally. However, poor data quality can lead to false positives and missed detections of sanctioned individuals and entities. In this article, we’ll explore the importance of data quality in sanctions screening processes and provide tips on how to stay compliant.
The Risks of Poor Data Quality
Inaccurate or incomplete customer information can result in matches that are not the sanctioned individual. Missing or outdated data can mean that sanctions violators slip through the cracks. It’s essential for companies to ensure that their Know Your Customer (KYC) data is compiled, cleaned, and mapped across all relevant systems.
Seeking Expert AML Advice
Companies with international exposure must seek local Anti-Money Laundering (AML) advice or hire qualified professionals to navigate the complex sanctions compliance landscape. Different industries have varying obligations depending on the jurisdictions in which they operate.
Using Sanctions Screening Technology
Sanctions lists are constantly updated, with new additions announced almost daily. Using AI-powered sanctions screening technology can help businesses stay compliant 24/7 and identify potential risks.
Choosing the Best Sanctions Databases
Not all sanctions databases are created equal. Look for technology-driven services that offer comprehensive global sanctions lists screening as part of their standard package. Sanctions.io’s standard package, for example, covers over 30 sanctions and criminal watchlists, including FBI and Interpol watchlists.
Integrating Sanctions Screening with CRM Tools
Protecting your business from sanctions violations requires identifying potential risks early on. Integrating sanctions screening with customer relationship management (CRM) tools can help flag suspicious activity before it’s too late. Sanctions.io offers seamless integration with popular CRM platforms like Hubspot, Salesforce, and Pipedrive, eliminating the need for coding expertise.
What to Do When a Red Flag is Raised
When a red flag is raised, it’s essential to have a process in place for dealing with the match. Companies should seek further information about the red flag and ensure it’s not a false positive before taking any action.
How Sanctions.io Can Help
Sanctions.io offers a comprehensive sanctions screening solution designed to help businesses stay compliant with international sanctions laws and regulations. With our free 7-day trial, you can test our solutions risk-free. For more information or to schedule an obligation-free discussion, contact us today.
Frequently Asked Questions
Q: What is sanction screening in KYC?
A: Sanctions screening is a process that identifies sanctioned individuals and entities as part of the Know Your Customer procedures.
Q: Why is sanctions screening required?
A: Sanctions screening is required to ensure compliance with national and international sanctions laws and regulations. Failure to comply may result in severe financial penalties.
Q: What is sanctions and PEP lists screening?
A: Sanctions and PEP lists screening are products offered by screening providers to help companies identify potential risks.
By staying informed about the importance of data quality, seeking expert AML advice, and utilizing cutting-edge sanctions screening technology, businesses can protect themselves from the risks associated with sanctions violations.