ACAMS Today Magazine (September-November 2017) Vol. 16 No. 4 - Page 38

PRACTICAL SOLUTIONS The three building blocks of a centralized compliance system W hen it comes to watchlist screening, what is at stake in today’s high-risk business environment? Well, in 2016, nonbank institutions received 90 percent of all Office of Foreign Assets Control (OFAC) fines, with 50 per- 1 cent of those fines totaling $500,000 or more. Those numbers are the most recent evidence of an emerging trend that poses a unique threat to these organizations. While sanctions screening fines have always been part of the regu- latory environment, the upward trend indicates that OFAC is beginning to specifically target nonbank institutions, with insurance, logistics and money services businesses among the hardest hit. With this sobering thought in mind, these businesses must prepare their internal systems for increased regulatory scrutiny. However, that is easier said than done. Many of these organi- zations have separate teams managing various functions, so sanctions screening efforts are tedious and manual. Further- more, data streams flow into the organization and collect in disparate systems that never connect, and customer data resides in disconnected platforms that never merge for a con- solidated customer risk profile. But this problem is not specific to nonbanks. According to a recent ACAMS poll, 73 percent of the respondents said they use two or more solutions for automated screening. This might be one of the reasons why 58 percent of respondents said a regulator or internal auditor challenged their methodol- ogy for conducting a sanctions risk assessment. 2 While every organization faces its own particular obstacles, they all face three main business challenges toward establish- ing a centralized compliance platform: creating a unified vision and corporate buy-in for compliance management; connecting disparate departments, systems and data feeds; and uniting all compliance functions into a single platform without having to start from scratch. Creating a unified vision As regulatory expectations ₯ΉΙ•…Ν”°„½ΉΝΡ…ΉΠΡ՜΅½˜΅έ…Θ)•ΉΝՕ́‰•Ρέ••Έ…Έ½Ι…Ή₯ι…Ρ₯½»Šé½΅Α±₯…Ή”…Ή½Α•Ι…Ρ₯½ΉΜ)Ι½ΥΑΜΈQ‘₯́Ή••ΝΝ₯хѕ́„ΥΉ₯™₯•Ω₯Ν₯½Έ™½Θ΅…Ή…₯Ήœ½΄΄)Α±₯…Ή”™Ι½΄…Έ½Ι…Ή₯ι…Ρ₯½Ή…°Α•ΙΝΑ•Ρ₯Ω”Έ)9…ΡΥΙ…±±δ°Ρ‘”½΅Α±₯…Ή”Ι½Υΐέ₯±°‘…Ω”„±½έ•ΘΙ₯Ν¬…ΑΑ”΄)Ρ₯Ρ”έ‘₯±”Ι•΅…₯Ή₯Ήœ΅½Ι”…Ω•ΙΝ”ΡΌΙ₯Ν¬Έ½Θ•α…΅Α±”°Ρ‘•δ)έ₯±°έ…ΉΠΡ‘”½Ι…Ή₯ι…Ρ₯½»Šé½΅Α±₯…Ή”ΝεΝΡ•΄ΡΌ…ΝЁ„)έ₯‘”Ή•Π°₯‘•ΉΡ₯™ε₯Ήœ…́΅…Ήδ΅…э‘•Μ…́Α½ΝΝ₯‰±”ΈQ‘₯Μ)Ι•ΕΥ₯ɕ́„Ν₯Ή₯™₯…ΉΠ₯ΉΙ•…Ν”₯ΈΡ‘”Ω½±Υ΅”½˜‘…Ρ„™±½έ₯Ήœ)ёɽ՝ Ρ‘”ΝεΝΡ•΄°…́ݕ±°…́…‘‘₯Ρ₯½Ή…°±…ε•Ί½˜½Ω•ΙΝ₯‘ΠΈ)!½έ•Ω•Θ°Ρ‘₯́₯ΉΙ•…Ν”₯ΈΩ½±Υ΅”Ι•…ѕ́„‰ΥΙ‘•Έ™½ΘΡ‘”)½Α•Ι…Ρ₯½ΉΜΝ₯‘”°…́•αΡΙ„±…ε•Ί½˜½Ω•ΙΝ₯‘ЁɕΕΥ₯Ι”„ΝΡ••ΐ)ΥΑΡ₯¬₯ΈΡ‘”ΉΥ΅‰•Θ½˜₯ΉΩ•ΝΡ₯…Ρ₯½ΉΜ½˜…±°½˜Ρ‘”…‘‘₯Ρ₯½Ή…°)΅…э‘•ΜΈ)Q‘•Ι•™½Ι”°„½ΉΝ•ΉΝΎ΅ΥΝЁ‰”™½Ι΅•θ ½΅Α±₯…Ή”…Ή)½Α•Ι…Ρ₯½ΉΜ΅ΥΝЁ½΅”Ρ½•Ρ‘•ΘΡΌ…Ή…±ε锁‘…Ρ„…Ή΅•ΡΙ₯Μ)…ΉΡΌ‘•Ρ•Ι΅₯Ή”‘½άΡΌ•™™₯₯•ΉΡ±δ…Ή‘½±₯ΝΡ₯…±±δ΅…Ή…”)½΅Α±₯…Ή”ΈQ‘”Ι•ΝձЁ΅ΥΝЁ₯ΉΝΡ₯±°½Ή™₯‘•Ή”…Ι½Ν́‰ΥΝ€΄)Ή•Ν́₯ΉΡ•Ι•ΝΡΜ°™Ι½΄½΅Α±₯…Ή”ΡΌ±•…°…ΉΡ‘”•α•ΥΡ₯Ω”)±•Ω•°°…±±½έ₯Ήœ•… „ΥΝΡ½΅₯镐Ω₯•ά½˜Ρ‘•₯ȁ½΅Α±₯…Ή”)‘…Ρ„…Ή½΅΅½ΈΙ½ΥΉέ₯Ρ έ‘₯ ΡΌ΅…­”Ι₯Ν¬΅…Ή…”΄)΅•ΉΠ‘•₯Ν₯½ΉΜΈ) ½ΉΉ•Ρ₯Ήœ‘₯ΝΑ…Ι…Ρ”ΝεΝΡ•΅Μ)UΉ™½ΙΡΥΉ…Ρ•±δ°΅…Ήδ½΅Α…Ή₯•Μ™₯ΉΡ‘…Ёё”Ι•ΝΑ½ΉΝ₯‰₯±₯Ρ₯•Μ)…ΝΝ½₯…Ρ•έ₯Ρ ½΅Α±₯…Ή”±•…ΡΌ„™Ι…ΡΥΙ•₯ΉΡ•ΙΉ…°½΄΄)Α±₯…Ή”±…Ή‘͍…Α”μ₯Ё₯́Ή½ΠΥΉ½΅΅½Έ™½Θ½Ι…Ή₯ι…Ρ₯½ΉΜΡΌ)ΙΥΈ΅Υ±Ρ₯Α±”‰ΥΝ₯Ή•Ν́™ΥΉΡ₯½ΉΜΡ‘…Ё‘…Ω”Ν•Α…Ι…Ρ”½΅Α±€΄)…Ή”‘•Α…ΙΡ΅•ΉΡΜ°ΑΙ½•Ν͕́…ΉΙ•½Ι΅…Ή…•΅•ΉΠΝεΜ΄)Ρ•΅ΜΈ]‘₯±”•… ‘•Α…ΙΡ΅•ΉΠ΅…䁑…Ω”₯Ρ́½έΈ™Υ±±δ)™ΥΉΡ₯½Ή₯ΉœΝ…ΉΡ₯½ΉΜΝεΝΡ•΄°Ρ‘•₯ȁ‘…Ρ„΅…䁉”₯Ή…•ΝΝ₯‰±”°)₯Ή½΅Α…Ρ₯‰±”½Θ‘₯™™₯Υ±ΠΡΌ…Ι•…Ρ”έ‘•Έ„΅½Ι”½΅ΑΙ”΄)‘•ΉΝ₯Ω”Ω₯•ά½Θ…ΑΑΙ½… ₯́Ή••‘•Έ($ƒŠqUΉ‘•ΙΝΡ…Ή‘₯Ήœ= 聁 •ΝЁAΙ…Ρ₯•Μ ½΅Α±₯…Ή”Υ₯‘”™½Θ ΥΝ₯Ή•ΝΝ•Μ³Št M$°)‘ΡΡΐθΌ½Ν₯έ•ˆΉ½΄½Ι•Ν½Υɍ•Μ½έ‘₯Ρ”΅Α…Α•ΙΜ½ΥΉ‘•ΙΝΡ…Ή‘₯Ήœ΅½™…Œ΅„΅‰•ΝΠ΅ΑΙ…Ρ₯•Μ΅½΅Α±₯…Ή”΅Υ₯‘”΅™½Θ΄)‰ΥΝ₯Ή•ΝΝ•ΜύΥΡ΅}Ν½Υɍ”υ1₯Ή¬™ΥΡ΅}΅•‘₯Υ΄υΙΡ₯±”™ΥΡ΅}…΅Α…₯Έυ…΅Ν}%I₯Ν­!Υ‰}I |ΐΩ}dΔΰ(Δ(Θ$(Μΰ+ŠqQ‘”€ΘΐΔ܁!½±±εέ½½ ½Ή™•Ι•Ή”A½±±₯ΉœI•ΝΥ±Ρ́Ι”%Έ³Št 5LQ½‘…䰁ΑΙ₯°€ΘΠ°€ΘΐΔά°)‘ΡΡΐθΌ½έέάΉ……΅ΝΡ½‘…δΉ½ΙœΌΘΐΔά΅‘½±±εέ½½΅½Ή™•Ι•Ή”΅Α½±±₯Ήœ΅Ι•ΝΥ±ΡΜΌ) 5LQ=gŠ σŠ MAQ5 KŠM9=Y5 H€ΘΐΔߊ σŠ  5LΉ=IŠ σŠ  5MQ=dΉ=I