Anti-Money Laundering (AML) and Know Your Customer (KYC) obligations require organisations to implement robust procedures to identify politically exposed persons (PEPs) and other high-risk individuals. To comply with local and global AML and KYC obligations, organisations are required to conduct screening of customers against watchlists.

Globalradar’s watchlist screening solution helps e-commerce and crypto companies prudently manage the risks of financial crime and comply with complex international regulations. It offers comprehensive coverage of global AML risk data sources and a range of screening options appropriate to different business needs and compliance obligations. The screening solution takes information from an applicant’s registration data and queries watchlist sources in the background. It simply confirms whether that person’s name appears on watchlists and generates a report to guide further action or investigation.

The service has no effect on the overall identity verification status of the person being screened. Globalradar is the leader in client onboarding, customer due diligence and transaction surveillance. We make it easier to open accounts in a secure digital environment while ensuring compliance with global regulatory requirements and leverage sophisticated analytics to ensure suitability of clients profiles.

Global RADAR is built on four solid pillars of compliance: Watchlist screening solutions, Customer Due Diligence, Document Management, and Transaction Surveillance. Outdated compliance technology, fragmented screening and customer due diligence processes generate hours of manual work for compliance teams. To facilitate this process and minimize the unnecessary risk we have created a free tool for companies of all business types and sizes. Global RADAR’s cutting edge compliance software combines Artificial Intelligence, advanced machine learning and intelligent analytics to keep your organization compliant with global KYC and Anti-Money Laundering (AML) regulations.

Keeping the tainted funds of corrupt politicians and their networks out of the legitimate financial system is a vital outcome of effective Know Your Customer (KYC) procedures. Organizations need to perform a detailed politically exposed person (PEP) and sanction check when onboarding new customers, as well as during the ongoing review of clients, to ensure that the organization’s reputation, revenue and capital are protected.

Financial institutions (FIs) that neglect to identify PEPs and breach sanctions put themselves at risk of fines, which can be quite significant. Between 2008 and 2018, regulators around the globe levied almost $27 billion in fines related to watchlist screening. Notable offenders include BNP Paribas (fined $9 billion in 2014), Societe Generale (settled for $1.3 billion in 2018) and Standard Chartered (fined $1.1 billion in 2019).

Types of screening

A thorough screening program includes two types of checks:

  • Sanctions screening to ensure that no individuals on global law enforcement and sanctions lists are allowed to make financial transactions
  • PEP screening solutions for e-commerce, crypto and other financial companies to identify and conduct CDD on any PEPs or other high-risk customers

These watch lists are continually updated with new names. So both the sanctions and PEP screening solutions for e-commerce, crypto, and others should be done in real time to adhere to KYC requirements and to create a seamless customer onboarding process.

What are the sanctions lists?

Sanctions lists are established to help reduce financial crime by flagging people, businesses and countries that have committed illegal acts (or are suspected of committing them). By screening customers against sanctions lists, organizations can lower their risk of doing business with sanctioned entities.

These sanctions lists are a compilation of various regulatory and enhanced due diligence lists from major sanctioning bodies around the globe, such as the Office of Foreign Assets Control (OFAC), UN sanctions, EU sanctions, Her Majesty’s Treasury and thousands of other regulatory and law enforcement lists like Interpol.

Transacting with customers who appear on PEPs and sanctions lists puts organizations at greater risk:

  • Non-compliance with watch list screening may expose an FI to steep regulatory fines
  • Failure to identify sanctions evasion, bad actors or a PEP involved in organized crime may lead to potential reputational damage

Standard compliance procedures don’t generally involve “high-risk individuals and entities.” Running watchlist checks that examine occurrences on PEP or other sanction lists helps protect your organization.

At Globalradar, we employ the best practices for watchlist screening solutions for e-commerce and crypto companies which include integrating with high quality and wide range of trusted data sources, performing a risk-based approach, conducting ongoing monitoring and relying on best-in-class technology platforms.

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