Organizations still struggling to meet sanction screening requirements, survey finds

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.