Consolidation of Multiple Sanction Screening Tools

August 16, 2017

The blending of two businesses comes with its own set of unique challenges. From the melding of different company cultures to the adoption of new operational procedures it’s easy to end up with multiple products and platforms that perform the same function.

As banks grow through mergers and acquisitions they are faced with the task of blending two different compliance departments as well as compliance processes. Different tools are used by different departments and unless the financial institutions make it a priority to consolidate the tools they can end up with multiple sanction screening tools in use throughout the company.

The Challenge

The challenge with utilizing multiple sanction tools is not just that there are multiple vendors to deal with, although that is an issue too, but that every tool works a little differently which means that the financial institution is unable to implement a uniform sanction screening program.

In addition, the institution may face:

  • Increased costs due to the sanction lists subscription and product licensing fees
  • Decreased efficiency due to a lack of expertise needed to maintain multiple products
  • Difficulty maintaining an internal blacklist across various products
  • Separate desktop procedures and teams
  • Internal audit and external validation overheads

What You Can Do

The first step towards consolidating multiple sanction products is identifying all the products used for sanction screening in the financial institution and the data that is screened in each of these products.

How ACA Can Help

ACA Telavance is experienced in working with more than 10 different sanction screening tools. Here are a few of the ways in which we can help:

  • Understand the different products in use and the data that is currently being screened by them
  • Evaluate the capabilities of the multiple products in use
  • Identify the redundancies in the process and recommend steps to eliminate them
  • Provide recommendations on the consolidation of the products and the best tool for the type of data being screened
  • Develop procedural documents that detail the data flow, frequency of screening, product configuration used

About the Author

Rukmini Pappu is a Director in the Professional Services organization at ACA Telavance. She has 23 years of overall industry experience with 16 years in the Financial Risk and Compliance domain.
Rukmini has been involved in fine tuning, system reviews, data analysis, and model validation of various compliance products. 

Rukmini is a Certified Anti Money Laundering Specialist (CAMS) who uniquely combines exceptional technical skills together with AML/OFAC domain subject matter expertise. She is recognized for providing innovative compliance solutions to a wide range of banks including those that were under regulatory enforcement action. She has been instrumental in creating the Framework and Methodology for AML System Reviews within ACA Telavance.

For More Information

For more information, please contact Mahesh Viswanathan at ACA Telavance or your regular ACA Telavance consultant.