Increasingly, the US government is imposing sanctions as an integral part of its foreign policy, and financial institutions, especially those in capital markets, have been caught in the crossfire. With penalties for sanctions violations mounting, financial players within capital markets are increasingly called upon to assess and address the risks associated with their products and services that are vulnerable to exploitation by sanctions violators, and accomplishing this is not easy.
Office of Foreign Assets Control (OFAC)
New sanctions are continually being imposed, making life difficult for banks, which must comply or face stiff penalties. In the past, much of the work toward sanctions compliance involved burdensome manual tasks, but today, technology can lift off much of the load. Since compliance is not an option and pleading ignorance doesn’t work, banks are turning to tools such as intelligent process automation to do the job better and quicker.
“Trade Based Money Laundering (TBML) is an important component of the underlying system that supports all transnational crime. It’s far more complex than any other type of financial investigation and requires a lot more co-operation across agencies and across national jurisdictions,” says Mark Giuffre, former special agent for the American Drug Enforcement Administration.