International sanctions represent a critical area of regulatory risk. As a result, regulators are increasingly prescriptive about the measures to implement within sanctions compliance programmes. These measures include a set of technical, operational and organizational processes and procedures.
Solutions that offer advanced technology such as artificial intelligence are best-positioned to make sanctions screening faster, more efficient and more risk-based. In turn, these solutions need to provide an adequate level of transparency to demonstrate to regulators that the institution’s models are working as intended and can easily be explained. The explainability component becomes crucial given the growing sophistication of screening models.
A sanctions screening programme should therefore be implemented with the following goals in mind, which we refer to as the 3E’s:
- Effectiveness: describes the ability of the screening programme to detect risks through a combination of people, processes and technology.
- Efficiency: enables effective compliance in a cost-effective manner using an optimal number of resources
- Explainability: demonstrates an understanding of the sanctions screening process to regulators.
Download the white paper to explore the challenges of effective, efficient and explainable sanctions compliance programmes and learn how technology can help your institution develop dependable sanctions screening models.