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Sanctions Screening Tools and Technologies in Ghana: A Critical Review
In a bid to combat illicit financial activities, Ghanaian financial institutions are increasingly relying on sanctions screening tools and technologies. However, the effectiveness of these solutions is often hampered by inadequate testing and evaluation methods.
Identifying Key Challenges
A nuanced understanding of sanctions screening filter performance is crucial for identifying potential risks. Financial institutions need to continuously test their filters on real sanctioned names to gauge their exposure to risk. This requires a tailored approach that incorporates multiple lists, entity types, and fuzzy algorithms.
The Role of Analytics in Sanctions Screening
Analytics plays a critical role in sanctions screening by providing financial institutions with clarity on their potential exposure to risk. By analyzing performance metrics across various dimensions, institutions can identify areas for improvement and optimize their filters accordingly.
Optimizing Sanctions Screening Filters
Test results enable financial institutions to refine their filters and increase efficiency. This involves addressing issues such as:
- List management problems: failure to update lists correctly or missing incremental updates
- Ineffective fuzzy matching: high exact match rates but poor performance on derived names
- Configuration errors: improper settings for entity name screening and special character handling
Experience with Sanctions Screening Tools
Our experience with sanctions screening tools has revealed several key challenges. By addressing these issues through continuous testing and evaluation, Ghanaian financial institutions can ensure the effectiveness of their sanctions screening tools and technologies.
By continuously refining their filters and optimizing their sanctions screening processes, Ghanaian financial institutions can effectively combat illicit financial activities and maintain a strong reputation in the global financial community.