FinScan has launched one of the compliance industry’s first financial instrument screening solutions, named FinScan Securities. It uses securities data from data providers and FinScan’s proprietary, AI-powered matching engine, to help capital markets players tackle the growing problem of investors holding financial interests in sanctioned companies and ensure compliance with the latest regulations, also preparing organizations for future regulatory changes.
FinScan Securities eliminates the need for organizations to take the time-consuming and expensive approach of developing an in-house, custom-built solution to screen securities for sanctioned companies. The threat of non-compliance in financial markets is persistent, with regulators continuing to modify the lists of sanctioned companies, which increases the risk of sanctions for investment advisors, private funds, custodians, and other capital markets firms.
In addition, the financial sector is highly attractive to criminals due to its international nature, convenient online trading access, and theability to execute trades at speed and move illicit funds rapidly and easily across borders. The sheer scale of the markets and a wide selection of complex products that can be exploited for sophisticated money laundering and sanctions evasion schemes are also a draw, helping bad actors evade detection.
FinScan Securities helps uncover hidden risks in financial instrument compliance. With the data organized, companies can clear AML and sanctions hits quickly by reviewing alerts forall business operations.
“Regulators worldwide are acutely aware of the escalating risk to investors who unknowingly tradesecurities of sanctioned companies or countries and are intensifying their efforts to combat this,” said Becki LaPorte, strategic advisor in the Fraud & AML Practice at Datos Insights, in a statement. “Capital markets players must have robust systems and processes in place to prevent investments in asanctioned jurisdiction or entity. FinScan Securities is helping to fill the void of limited options thatcurrently exist to address watchlist screening of securities and trading.”
“Identifying sanctioned entities in the complex web of securities, structured products, and options has traditionally been highly challenging and reliant on manual processes. Even where organizations have managed to do this, the technology has not been available to organize and manage theresults,” said Steve Marshall, director of Advisory Services at FinScan, in a statement. “FinScan Securities provides acomplete, streamlined workflow from data analysis and clean-up to audit trails and reporting. As a result, time is saved, and risk is reduced by eliminating the need to rely on spreadsheets or manual reviews, and alleviating the burden on IT departments to develop and maintain a homegrownsolution.”
FinScan Securities covers a range of jurisdictions and sanctioning authorities, including the UN and US Office of Foreign Assets Control (OFAC) and regulators in Australia, Hong Kong, Japan, New Zealand, Singapore, the EU, the Netherlands, Switzerland, the UK and California. Further additions are in the pipeline.