SWIFT will partner with Omnicision to
deliver its Sanctions Testing service, an application that integrates the
testing and tuning of sanctions filters to help banks operate a more effective
and efficient sanctions environment.
The need to comply with sanctions
requirements has never been so visible. Banks can be exposed to significant
fines and costly remedial actions for sanctions control failures. For global
organizations, multiple sanctions lists are needed that evolve daily, and
screening systems have to be precisely tuned in order to deliver operational
and detection effectiveness.
The SWIFT Sanctions Testing enables
banks to measure the effectiveness of their systems and reduce their number of
false positives. Through a repeatable process that integrates testing and
tuning, users will be able to verify that their systems work as expected and
are aligned with their risk appetite.
Users will be able to manage their
own testing program and produce performance reports down to the smallest
detail. The application also provides real-time alerts and navigation on
changes to sanctions lists. The service is scheduled to go live in September 2012.
Nicolas Stuckens, Manager AML &
Sanctions Initiatives, SWIFT, says, "The Sanctions Testing service
addresses the growing operational challenges of global organizations that have
to strike a careful balance between the amount of resources reviewing alerts
and the risks of not meeting regulatory requirements."
Ian Horobin, CEO and founder,
Omnicision, adds, "Automating the testing process is a natural evolution
for organizations wishing to enhance compliance whilst reducing operational
costs. Covering both customer and payment screening, an appropriate testing
program can be implemented quickly and without the need to install software
Earlier this year, SWIFT launched
Sanctions Screening, a centralized service for small- and medium-sized
financial institutions in need of a cost-effective, easy route to compliance
with sanctions regulations.
[This article was posted on July 30, 2012, on the website of ABA Banking Journal, www.ababj.com.]