Prevent Sanctions Compliance Risk and Prioritize Business Operations
No business can afford the cost and operations impacts of a sanctions enforcement. As the global sanctions compliance environment becomes more complex, how do you balance sanctions challenges with core business objectives?
Our whitepaper illustrates the obstacles many banks are facing and outlines industry guidance for implementing a dynamic, risk-based sanctions compliance strategy. It also details how a real-time view of digital identity intelligence can enhance and expand sanctions risk visibility.
The whitepaper walks through the global sanctions compliance challenges many banks are currently navigating:
- Governments around the world have expanded their use of targeted economic sanctions
- Sanctions are announced with short windows for institutions to react and implement a response within their internal processes
- Sanctions enforcements can be multi-jurisdictional which can multiply fines and penalties
- Bad actors are becoming more adept and using omni-channel commerce as an opportunity to evade sanctions detection
The whitepaper also illustrates how a sanctions compliance enforcement creates disruptions that can have long-term impacts on business sustainability, day-to-day operations and shareholder value:
- Significant economic impacts through fines and penalties, which have the potential to be multi-jurisdictional and cumulative
- Termination of the correspondent banking relationships that foreign financial institutions maintain in the U.S.
- Reputational damage and unfavorable publicity
- Diversion of resources to remediate the sanctions violation
- Distraction from day-to-day operations and delays that impact the bottom line
The whitepaper provides an overview into industry direction on implementing a sanctions compliance strategy that takes a risk-based approach and cites recent guidance from both the Office of Foreign Assets Control (OFAC) and The Wolfsberg Group. This guidance underscores how the onus is on banks to detect, measure and avoid sanctions compliance risk. Additionally, this guidance highlights how a culture of compliance that incorporates proactive and dynamic governance approaches with top-level senior management commitment is essential to ensure the success of a risk-based sanctions compliance program.
By combining digital identity insights with coverage of global sanctions and enforcements intelligence, businesses can capture a more inclusive and comprehensive view of sanctions compliance risk. Strengthening sanctions risk assessment with a more dynamic, near real-time view of transactional behavior patterns and digital identity intelligence expands risk visibility beyond standard screening. Digital identity intelligence and transactional behavior insights can help counteract some of the common ways bad actors evade sanctions detection, such as mule accounts, VPNs and proxies. Reinforcing your sanctions compliance strategy with digital identity intelligence can help your business proactively avoid sanctions vulnerabilities and enforcements risk and realize more effective sanctions compliance.
Explore our whitepaper to learn how to reinforce your sanctions compliance strategy by adding digital identity insights into your sanctions risk assessments.