Sanctions Screening Requirements
Due to the ever changing nature of economic sanctions, financial institutions have incorporated sanctions screening software into their due diligence practices to gain greater transparency across their supply chains.
Sanctions screening is the practice of detecting high-risk areas for sanctions violations within those supply chains that could indicate financial crime or other criminal or terrorist activity.
Sanctions Screening Software Benefits
Sanctions screening enables financial institutions to identify:
- Ship movement history: Whether the ship has visited any high risk or sanctioned areas, as well as its past port calls.
- Dark activity: Whether the vessel has stopped reporting its AIS.
- Draught change: Whether goods have been loaded onto or unloaded from a vessel through ship-to-ship transfers (STS).
- Port state control history: Whether vessel deficiencies or noncompliant equipment has been reported by any port authorities.
Digital Sanctions Screening Solutions
Modern business demands, and an increased focus from regulators, have driven the emergence of digital solutions to improve efficiency and keep up with the increase in transactions.
Financial institutions now implement a risk-based approach to sanctions screening. By adopting solutions that retrieve data from multiple sources, organisations can view a vessel's history, records, movement, and the sanctions status of other parties that it is associated with. This data can then be incorporated into their sanctions compliance programme to ensure appropriate alert creation and governance over the screening process.
According to Rick McDonell, Executive Director of the Association of Certified Anti-Money Laundering Specialists (ACAMS), “The digitization of financial services has greatly improved access and convenience for everyone, but it’s also opened the doors for more opportunity, diversity and complexity in terms of financial crime”.
Pole Star’s Sanctions Screening and Compliance Solution
PurpleTRAC offers a comprehensive solution for all your sanctions screening requirements. Designed with and for companies with regulatory exposures in maritime trade and shipping, PurpleTRAC enables the automation, streamlining, and recording of regulatory processes and mitigates the risk of money laundering and terrorist financing, alongside the criminal, reputational, and commercial damage that would occur as a result of noncompliance.
PurpleTRAC is used by major international trade financing banks, trading companies, governments and flag administrations, maritime insurers, ship financing and leasing companies, and other members of the maritime supply chain to demonstrate best efforts in compliance, all within an easy-to-use, web-based solution with API and DLT node application availability.
PurpleTRAC’s maritime risk intelligence solution includes the following:
- Company watchlist checks
- Country watchlist checks
- Port state control history checks
- Ship watchlist checks
- Ship movement history checks
Contact our industry experts via purpletrac@polestarglobal.com to arrange a free demo.
