Cash & Liquidity ManagementPaymentsOrganizations still struggling to meet sanction screening requirements, survey finds

Organizations still struggling to meet sanction screening requirements, survey finds

2019 TIS Sanction Screening Survey reveals disconnect between perception of payment screening and reality.

A new survey of treasury professionals has revealed that less than half of organizations currently screen all payments – despite knowledge of regulatory requirements and associated fines increasing.

According to the 2019 TIS Sanction Screening Survey, written and produced in association with The Global Treasurer, nearly one-third of respondents only screen a fraction of their payments, or don’t screen any at all. This is despite the majority of respondents agreeing that current levels of regulatory control are higher than historical norms.

Perhaps more worryingly, the majority of respondents to the survey indicated they are fully aware of regulatory responsibilities and that they take appropriate measures to meet sanction screening requirements. This disconnect between perception and reality potentially exposes organizations and individuals to the wide-ranging consequences and penalties of regulatory non-compliance.

On a positive note, the survey of over 150 treasurers discovered that standardization of payment and transaction processes is a rapidly developing trend.

Key findings

Additional key findings from the survey include:

  1. Organizations are increasingly feeling the burden of the wide reaching and complex regulatory landscape – the larger the organizations, the more affected they seem to be by compliance challenges.
  2. Nearly all respondents (all large organizations) agreed that they must adhere to legal obligations and will invest in an additional tool if it provides the best possible security.
  3. Larger organizations have a better understanding of what’s happening with their payments and their payment screening habits
  4. Only 46% of respondent organizations screen all outgoing payments.
  5. Technology adoption is slow. Only one third of respondents (34%) use a TMS with a dedicated online sanction screening solution.
  6. Only 21% of respondent organizations use watch list/screening tools.
  7. Just over half (57%) of respondents said their organization will consider online sanction screening in the future.

More action required

Commenting on the results of the 2019 TIS Sanction Screening Survey, Jörg Wiemer, CEO at TIS commented: “The compliance landscape faced by organizations is multifaceted, rapidly evolving and burdensome. Yet, as this survey highlights, while progress is being made across the world to ensure compliance, all too often organizations – and individuals – remain exposed to regulations and associated penalties.

Clear roadmap

Following on from the survey, a detailed report has been published to provide in-depth analysis of the findings. A sanction screening roadmap is also included, highlighting the steps an organization can take to enhance its sanction screening processes.

The full report can be downloaded here.

Want to know more?

TIS has also shared a handy factsheet explaining more about sanction screening. This resource can be downloaded for free by clicking here.

Related Articles

Xero Stripe and PwC bring seamless payments to small businesses

Accounts Receivable Xero Stripe and PwC bring seamless payments to small businesses

4w Jay Ashar
Get more from real-time payments

Liquidity Get more from real-time payments

2m Craig Ramsey
How Trek Bicycles enhanced its global operations while mitigating payment fraud

Case Studies How Trek Bicycles enhanced its global operations while mitigating payment fraud

2m Austin Clark
Mastercard delivers greater transparency for commercial cardholders

Corporate to Bank Relationships Mastercard delivers greater transparency for commercial cardholders

3m Austin Clark
Banking blockchain developments driven by customers, says Commerzbank

Blockchain Banking blockchain developments driven by customers, says Commerzbank

3m Austin Clark
SWIFT gpi momentum grows

Banking SWIFT gpi momentum grows

5m Austin Clark
Three reasons you need to streamline payments

Payments Three reasons you need to streamline payments

5m Nash Riggins
Lodge cards: The easy way to save on travel purchases?

Cash Management Lodge cards: The easy way to save on travel purchases?

5m Nash Riggins

Whitepapers & Resources

TIS Sanction Screening Survey Report

Payments TIS Sanction Screening Survey Report

1w
Sanction Screening: The risk for companies is real

Payments Sanction Screening: The risk for companies is real

2m
Enhancing your strategic position: Digitalization in Treasury

Payments Enhancing your strategic position: Digitalization in Treasury

2m
Are You Ready to Implement your GRC Solution?

Are You Ready to Implement your GRC Solution?

3m