AI enabling banks to shift the heightened sanction checking burden onto technology
By performing automated checks and leveraging rich data sources to build informed risk profiles, artificial intelligence (AI) can transform trade finance compliance processes, improving accuracy and processing times
LONDON, 12 October 2022 – AI-based automation can relieve banks of the heavy compliance burden, according to a new whitepaper – Navigating the complex sanctions landscape: letting AI take the strain – from leading provider of technology-assisted document checking software Conpend. The paper puts forward the case for digital solutions to take on the sanctions strain, using AI and analytics to more effectively and efficiently detect criminal activity, and keep up to speed with shifting compliance requirements while outlining the current sanctions environment and the impact on banks and the trade finance industry at large.
Russia’s invasion of Ukraine has served to highlight how complicated and pressurised sanctions monitoring can be to the extreme. As the conflict continues, many financial institutions still scramble to understand and adhere to the thousands of Russia-targeted economic sanctions and export controls that are being imposed.
The disruption caused and the sheer volume of resources that banks are forced to dedicate to compliance efforts are serving to reemphasise the historical impracticality of manual checks.
“For trade finance banks, sanctions monitoring is of course nothing new. But the scale of checks and the constant diligence required to remain on top of the new sanctions, which vary from region to region, is resource draining and impractical,” says Torben Sauer, CEO, Conpend. “In parallel, the techniques being applied by criminals to evade sanctions are becoming more sophisticated. We need to fight fire with fire; equipping banks with cutting-edge, digital tools to combat fraud, deal with the complex landscape and adhere to compliance requirements.”
Discarding manual processes and opting for comprehensive, adaptable digital solutions that use AI and analytics to detect criminal activity could make a radical difference. By designating monitoring and checking to technology, the process is not only made simpler, faster and more reliable, but banks can also free up resources to deal with more value-added tasks, as they themselves navigate the complex, unpredictable trade landscape.
Marc Smith, Founder and Director, Conpend, comments: “When the Russia sanction reforms began flooding in at the end of February, Conpend’s datahub, a function of our TRADE AI solution, provided the unique ability to supply updates to all relevant watchlists overnight. In addition, within 48hours of Russia’s invasion, clients were provided with a specially developed script allowing them to perform keyword searches on their entire TRADE AI portfolio.”
AI-based automation is playing an increasingly critical role in compliance, helping banks manage their risks and improve efficiencies.
To learn more, download Conpend’s new whitepaper here: https://www.conpend.ai/news-and-insights
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About Conpend
By automating document checking using AI and machine learning, Conpend’s clients can streamline paper-based processes – providing operational efficiency as well as increasing competitiveness by freeing resources for more meaningful reallocation.
Conpend’s TRADE AI app checks against International Chamber of Commerce (ICC) rules and undertakes compliance checking against the Bankers Association for Finance and Trade (BAFT) anti-money laundering (AML) guidelines and regulatory sanctions screening, including Office for Foreign Assets Control(OFAC). Conpend strives to be part of our clients’ journey every step of the way – offering them the latest innovative solutions that will change their business for the better.
Contact
Alina Sirbu
Finn Partners for Conpend
Alina.Sirbu@finnpartners.com
+44 20 7046 8330