Financial Crime World

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Sanctions Screening Tools for Financial Institutions in Heard Island and McDonald Islands

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In a rapidly changing global business environment, sanctions imposed on entities and individuals have become a significant concern for financial institutions. The European Council’s recent introduction of Article 5r of Council Regulation 833 has brought new regulatory reporting requirements into effect, requiring EU credit and financial institutions to report on outgoing transfers exceeding €100,000 from EU legal entities with a qualifying Russian nexus.

Meeting Evolving Regulatory Reporting Requirements

To ensure compliance with these new regulations, financial institutions in Heard Island and McDonald Islands require robust sanctions screening tools. Moody’s offers comprehensive sanctions solutions that enable credit and financial institutions to identify sanctioned entities and individuals in their network, including those with direct or indirect links and aggregation.

Moody’s Sanctions Solutions

Our data includes comprehensive sanctions lists and watchlists to ensure international sanctions screening. Our tools provide ownership, control, and associated networks information, as well as proactive monitoring of changing risks. With Moody’s Grid, financial institutions can conduct fast, accurate screening of all relevant global sanctions and watchlists.

Four Types of Sanction Risk

To maintain effective sanctions compliance, financial institutions must consider four key types of sanction risk:

  • Sanctions Lists: Ensure coverage of all major sanction and watchlists around the world, with updates every 24 hours.
  • Ownership or Control: Analyze ownership, control, voting power, and linkages to stay compliant with laws like OFAC’s 50% and the EU’s Blocking Statute.
  • Indirect Sanctions: Identify entities that may not be directly sanctioned but have indirect connections to a sanctioned entity.
  • Economic Sanctions: Screen for economic sanctions, including trade embargoes and asset freezes.

Detecting Complex Networks

Moody’s proprietary Orbis database enables financial institutions to detect complex networks of individuals and entities involved in sanctions evasion schemes.

Sanctioned Securities Screening

Our solution has mapped data to issued securities to detect:

  • Securities that might not have appeared on a sanctions list but were issued by a sanctioned entity
  • Securities issued by an indirectly sanctioned entity

Enhancing Sanctions Awareness and Compliance

Moody’s offers expert guidance on implementing sanctions, identifying and addressing potential sanctions evasion schemes, and best practices for compliance and risk management professionals navigating the complex sanctions landscape.

Get in Touch

We would love to show you what Moody’s can do! Get a demo or keep reading to discover more about how Moody’s can help your financial institution maintain effective sanctions compliance.