FinScan, an Innovative Systems, Inc. solution, has launched one of the compliance industry’s first financial instrument screening solutions, FinScan Securities. Harnessing the latest technology that uses securities data from leading providers and FinScan’s proprietary, AI-powered matching engine, FinScan Securities helps capital markets players tackle the growing problem of investors holding financial interests in sanctioned companies. The solution ensures compliance with the latest regulations and prepares 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 the ability 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 for all business operations.
“Regulators worldwide are acutely aware of the escalating risk to investors who unknowingly trade securities of sanctioned companies or countries and are intensifying their efforts to combat this,” comments Becki LaPorte, Strategic Advisor in the Fraud & AML Practice at Datos Insights. “Capital markets players must have robust systems and processes in place to prevent investments in a sanctioned jurisdiction or entity. FinScan Securities is helping to fill the void of limited options that currently 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 the results,” said Steve Marshall, Director of Advisory Services at FinScan, “FinScan Securities provides a complete, 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 homegrown solution.”
FinScan Securities covers a range of jurisdictions and sanctioning authorities, including the UN and 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.
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