In this interview with GTR, Heather Lee, Director of Risk and Compliance Strategy at Accuity, discusses how institutions involved in trade finance can better understand the minutiae of the trades they are financing. Fines and legal actions against companies in breach of international sanctions are very often headline material, but there has been a recent shift in the approach that regulators take to combat financial crime: now, institutions financing these trades are increasingly in the firing line for failing to carry out their due diligence. With higher pressure to comply and the cost of compliance on the rise, what can banks due to ensure that they are not inadvertently financing terrorism?
For Heather, there are three essential elements to trade finance screening best practice:
- Screening for dual-use goods
- Screening continuously
- Screening data points across all documentation, not just SWIFT messages