Global politics have had a big impact on name screening. So much has changed politically in the past few years –the geography of Central Europe, the situation in the Middle East and changes in Africa for starters – and this has a big effect on financial institutions and the screening solutions they use.
Why? Because the volatile nature of modern politics means that sanctions and embargoes are issued and have to be enforced very quickly and then lifted quickly again if a situation improves.
This means that financial institutions have to be in a state of constant preparedness, ready to react to shifting politics and to comply with all the necessary regulations within a matter of days. Failure to comply with those regulations can and has resulted in multi-million pound fines.
This has a huge impact on the screening solutions that financial institutions use and how they are implemented. Solutions have to be highly dynamic so that data can be updated, validated and implemented easily. Processes need to be robust, streamlined and fully automated to ensure any new rollouts are swift and seamless. Having the right technology in place is critical.
Organisations need to protect themselves by having automated agents in place that monitor regulatory websites so that any changes are immediately picked up and can be acted upon. These agents can then trigger automated processes to perform the necessary actions so that reference data is downloaded, tested and replicated. Users need to be warned about any changes and the potential impact of those changes. Plus there needs to be cross-checking of multiple sources to assess and confirm the quality of any updates.
All of this means that the reference management data of screening systems will have to move away from the largely static configurations that are used today. They will have to be dynamic, implemented as a large set of potential configurations. That way they can be pre-set to respond to a series of different crisis scenarios that can be activated and enabled on demand. Organisations have to be ready to act fast, whether it’s implementing sanctions on demand or lifting them on demand. They simply cannot afford to be caught out – systems have to be ready for action all of the time.
What’s next? Sanctions are also becoming more complex, which has a direct effect on screening solutions. Read next week’s post to find out more about indirect entity detection.
Also in our series on identity matching