Regulated institutions are required to screen potential and existing client data against lists of people, countries and business entities they are forbidden from working with. These lists are provided by domestic and international regulatory bodies, such as the US Treasury’s Office of Foreign Asset Control (OFAC), or the UK’s Office of Financial Sanctions Implementation (OFSI).
This process of sanctions screening can create a significant operational burden between the number of potential matches that are regularly flagged, the time it can take to review each flag, and the high rates of false positives. Many organizations are left to deal with a constantly long queue for manual investigation and decisioning.
We created a use case to highlight the work we did for one of our clients, a US FinTech company who were licensed with the US Treasury’s Financial Crimes Enforcement Network (FinCEN) as a money transmitter. Our proprietary algorithms safely reduced the number of sanctions screening matches, saved thousands of hours on reviews, with significant savings. So why did we also give them 6,000 additional matches?
The use case lays out regulator’s expectations and existing tools as well as a breakdown of how IdentityMind’s solution helped our client fine-tune their matches.