Compliance and Sanctions Screening: Key Considerations for Financial Institutions

Compliance and Sanctions Screening: Key Considerations for Financial Institutions

This IDC Perspective details the important factors financial institutions must consider in relation to regulatory compliance, specifically sanctions screening. Because new sanctions are quickly introduced, financial entities must be able to draw on proper data sources and, more importantly, utilize technologies like machine learning to properly evaluate the names of sanctioned entities, efficiently draw conclusions to minimize the number of false positives, and reduce the possibility of being fined for non-compliance by regulatory bodies.“Financial entities must be able to react quickly and assess data from sanctions lists if they are to minimize the risks of being fined. AI technologies like natural language processing augment their capacity to spot irregularities during the onboarding of potential clients.” — Research Director George Briford, IDC Financial Insights

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