Sanctions screening in Asia-Pacific
When it comes to filtering payments against sanctioned entities, banks in Asia-Pacific (APAC) – many of which are only just putting AML measures in place – are finding themselves in a catch 22. As with most other forms of crime, sanctioned entities are trying to avoid detection through increasingly more sophisticated approaches, designed to keep their misconduct firmly under the radar. Banks in APAC are also advancing their own strategies to detect illegally moving money, although simply preventing it from being laundered isn’t the only challenge they face.
The following list names just a few of the challenges facing banks today when it comes to sanctions screening:
- New and increasing regulatory demands
- The threat of higher fines and higher profile penalties
- The rise of organized financial crime
- Disjointed and ambiguous regulatory approaches
- Increased volumes of payments (including remittances) that need to be scanned
- The need to manage multiple sanctions lists and languages
- Restrictions of reduced or limited budgets
- Communication breakdown between banks subsidiaries and departments
- Inefficiencies in payments filtering operations
- The risk of human error in payments filtering
- Globalization
The issues listed above are all inter-linked. As the sanctions environment in APAC presents new and increasing threats, the regulators are turning their attention to this region with stringent demands and high fines. This means tougher regimes for banks to follow and a subsequent vast operational burden. This report will explore these challenges in greater detail, before looking at how banks can best address them by increasing both their efficiency and their effectiveness.
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