Understand the importance of sanctions screening in AML/CFT compliance. Learn about key global sanctions regimes (OFAC, UN, EU) and implement effective screening processes using automated systems to minimize false positives.

Learning Objectives:

• Understand the role of sanctions screening in the context of AML/CFT compliance.
• Learn about key global sanctions regimes, including OFAC, UN, EU, and country-specific sanctions.
• Develop skills to implement an effective sanctions screening process for customers, transactions, and third parties.
• Understand how to use automated screening systems and reduce false positives.
• Learn best practices for managing and updating sanctions lists to ensure real-time compliance.
• Master the process of investigating and escalating potential sanctions hits and ensuring proper reporting.
• Explore the consequences of non-compliance with sanctions and how to mitigate risk.

Course Outline:

Introduction to Sanctions Screening:

• Overview of sanctions screening and its importance in financial institutions and other regulated entities.
• Key sanctions regimes: OFAC, UN, EU, and local authorities.

Sanctions Screening Process:

• Designing an effective screening process for customers, transactions, and third parties.
• Setting up risk-based approaches to screening based on customer and transaction profiles.

Automated Sanctions Screening Systems:

• Leveraging technology to perform real-time screening.
• Reducing false positives through fine-tuning of system parameters and threshold setting.

Handling Sanctions Hits:

• Investigating potential hits and assessing whether they are true matches or false positives.
• Escalating confirmed sanctions hits and filing necessary reports with regulatory bodies.

Sanctions List Management:

• Best practices for maintaining up-to-date sanctions lists and integrating new regulatory updates.
• Importance of ongoing monitoring and periodic reviews of screening systems.

Compliance and Risk Mitigation:

• Understanding penalties for non-compliance with sanctions regulations.
• Implementing strong internal controls to ensure sanctions screening effectiveness.

Case Studies and Best Practices:

• Real-world examples of successful sanctions screening programs.
• Lessons learned from enforcement actions related to sanctions breaches.

Duration:

2 Days (including practical exercises and case study analysis).

Level: Intermediate to Advanced

• Suitable for compliance officers, AML professionals, risk managers, and IT professionals responsible for sanctions screening.

Prerequisite:

Basic knowledge of AML/CFT principles and sanctions regimes.

Category:

• Sanctions Compliance/AML
• Risk Management/Financial Crime Prevention