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BREAKING: SPC Audit Finds Deficiencies in Sanctions Screening and Risk Assessment

A recent audit has revealed significant weaknesses in the sanctions screening processes and risk assessment mechanisms of a Licensed Financial Institution (LFI). The independent audit, conducted by a team of experts, identified several deficiencies that could potentially compromise the institution’s ability to comply with international sanctions and anti-money laundering regulations.

Deficiencies Revealed

The audit found that:

  • The SPC failed to adequately screen its customer databases against the UN Consolidated List and Local Terrorist List, leading to a high risk of sanctions breaches.
  • The institution’s risk assessment mechanisms were inadequate, lacking critical information on high-risk jurisdictions and customers.
  • Accurate records of sanctions screening processes were not being maintained, making it difficult to track and monitor compliance with international regulations.

Response from the LFI

“We are deeply concerned about these findings,” said a spokesperson for the LFI. “We take our responsibilities as a licensed financial institution very seriously, and we are committed to ensuring that our operations are in full compliance with international sanctions and anti-money laundering regulations.”

Action Plan

The audit has prompted the SPC to take immediate action to address the identified deficiencies. This includes:

  • Implementing new sanctions screening processes
  • Upgrading risk assessment mechanisms
  • Providing additional training to staff on sanctions compliance

“We will be working closely with our regulators to ensure that we are fully compliant with all applicable regulations,” said the spokesperson. “We are committed to protecting the integrity of our financial institution and maintaining public trust.”

Conclusion

The findings of this audit serve as a stark reminder of the importance of robust sanctions screening processes and risk assessment mechanisms in preventing breaches of international sanctions.

Related Stories

  • UAE Cabinet Issues Guidance on Sanctions Compliance for Licensed Financial Institutions
  • Executive Office Publishes Typologies on Circumvention of Targeted Sanctions against Terrorism and Proliferation of Weapons of Mass Destruction

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