Sanctions are restrictions imposed by governments or organizations to prevent high-risk people from engaging in suspicious and illegal activities. Governments or organizations publish these sanction decisions publicly on the sanction lists. The sanction lists are increasing day by day and the people in these lists change frequently.
All institutions, especially financial institutions, must comply with these sanction decisions and do not perform sanctioned people's transactions. Organizations have to control to sanction lists not to violate sanctions and do not mediate sanctioned people's transactions. Considering that the sanction lists are dynamic and there are thousands of sanction lists in the world, we can say that it is impossible to check the sanction lists manually.
Sanction Screening services such as Sanction Scanner enable businesses to perform sanction check processes safely in seconds. Sanction Screening services collect countries' sanction lists and offer the businesses possibility to control their clients by the search.
Advantages of Sanction Screening Service
- Sanction Screening Service reduces the workload of businesses.
- Sanction Screening Service prevents violating sanction decisions.
- Sanction Screening Service provides the detection of high risk and banned people.
- Sanction Screening Service enables the detection of suspicious transactions and financial crimes.
- Sanction Screening Service protects the company's reputation.
- Sanction Screening Service enables businesses to perform customer onboarding processes in accordance with AML regulations.
- Sanction Screening Service strengthens and speeds up AML compliance of businesses.
- With the Sanctions Screening Service, financial institutions can easily integrate into the AML Compliance Program.
Sanction Screening on Customer Onboarding
If your business under Anti-Money Laundering obligation, you have to perform your customer onboarding (client account opening) processes following AML regulations. Businesses have to identify the customer's identity and determine the customer's risk level when performing the account opening process. With the identification of customer identification, the risks that customers may pose can be measured. Sanction & PEP services enable the customer to determine the level of risk and help companies meet their "Customer Due Diligence" obligations. Businesses can check their new customers in sanctions and PEP lists in seconds, and customer account opening is carried out without delay.
Political Exposed Person (PEP) are customers who have more risk than ordinary citizens to obtain assets by illegal means such as money laundering and terrorist financing. Therefore, institutions need to know that they are doing business with these people and evaluate their risks. In addition, CDD procedures may not be sufficient for high-risk customers, so organizations apply Enhanced Due Diligence (EDD) procedures to them.
Sanction Screening on Customer Transactions
According to the announced data, millions of dollar financial crimes such as money laundering, terrorist financing, bribery, and corruption are committed every year through financial systems. Therefore, financial institutions must carefully check the payments, remittances, and money transfers of customers. Businesses scan the receiver and sender in the sanction lists during the money transfer process with the sanction screening service. If the system catches a match, the customer's financial transaction is stopped and the business does not violate sanction.
With its API support, Sanction Scanner automates companies' control of receiver and sender. Financial institutions can integrate Sanction Scanner with their own systems and automate all Sanction & PEP scanning processes. Thus, companies can meet AML obligations without delaying their customer transactions.
The Importance of Sanction Screening Specified in The Regulations
Financial crimes such as money laundering and terrorist financing are a great risk not only for financial institutions but also for other sectors. With the development of technology, the financial crime rate, and financial crime types increase. Financial criminals can now launder money over nature crimes. For this reason, companies have to take various measures in order not to suffer from these financial crimes. Regulators also have obligations at this point to help institutions avoid any crime such as money laundering and terrorist financing. Criminal sanctions are imposed on each organization that does not comply with these regulations.
There are many regulatory institutions such as FATF, Monevyal, Europe Union Directive. In their arrangements and recommendations, these institutions recommend that businesses make Sanction Screening to both customers and businesses during customer acquisition and business relationships with other businesses. Thus, the risks that both risky customers and Ultimate Beneficial Ownership (UBO) can create for the organization are determined. For suspicious transactions detected during Sanction Screening, companies' compliance officers should create a Suspicious Activity Report (SAR), then this report should be submitted to the Financial Crimes Enforcement Network (FinCEN). If suspicious transactions exceed $ 10,000, this time a Compliance Officer Currency Transaction Report (CTR) is created.
Why Should Businesses Choose Sanction Scanner?
- AML, Sanction & PEP data from more than two hundred countries
- Real-time data
- API integration
- Sanction data for aircraft and vessel
- No setup and license fee
- GDPR compatible results
- Pricing only based on the number of queries you need
- Multiple search options with name, ID number, and passport number
- Enhanced Parametric Monitoring Settings
- Local Blacklist & Whitelist Management
- No charge per user
You can contact us to discover the Sanction Scanner and get information about our AML solutions.