Insurers are coming under increasing pressure to regularly screen their policyholder database as standard practice in order to ensure compliance with US sanctions and other AML and KYC legislation, according to Risk & Compliance screening and enterprise data management specialist, Datanomic. With the Office of Foreign Assets Control (OFAC) handing out public heavy fines to those insurers found to handle funds involving sanctioned individuals or entities, insurance companies are risking both significant financial penalties as well as reputational damage by their failure to screen.
OFAC has identified and named numerous foreign agents and front organizations, as well as terrorists, terrorist organizations, and narcotics traffickers, as "Specially Designated Nationals and Blocked Persons," with a master list containing over 5,000 variations on names of individuals, governmental entities, companies and merchant vessels located around the world. To assure that illicit transactions involving target countries and Specially Designated Nationals are not processed, insurers need to routinely screen their policy databases.
“It is critical that the insurance industry gains a better understanding of the gravity of the economic sanctions and embargo programmes,” said Simon Pearson, Vice President Risk & Compliance Screening for Datanomic. “Many companies are unaware that OFAC issues can arise at any point in an insurance transaction – from underwriting to policy administration to claims handling. A risk-based approach to regular systematic screening is the only way to protect themselves against a breach.”
Earlier this month, Datanomic’s calls for screening were echoed at an International Underwriting Association seminar, with Dewey & LeBoeuf urging insurers to routinely screen policyholders, premium payers, claimants, beneficiaries, brokers, insureds, additional insureds, and banks to which premiums or claims settlements are sent.
Datanomic’s dn:Sentry Customer Screening system allows effective transliteration and equivalencies matching against 45 different language scripts, handles multiple input alphabets simultaneously, and provides a solution for name variance screening even when data is held in native script. Unlike other solutions Datanomic can match against names that have been rearranged, with letters missing or switched. dn:Sentry can use all data available to find any possible links to the sanctioned individual. Datanomic’s advanced algorithms, concatenation, parsing and profiling capabilities make Datanomic the best solution for identifying sanctioned individuals.
Datanomic’s solutions have already been implemented by some of the world’s largest banks, insurers, asset and wealth managers and other financial services institutions to reduce their global Compliance risk, including insurers such as Alico, Prudential Corporation Asia, Standard Life, NFU Mutual, Sun Life, Engage Mutual, Lloyds, to name but a few.
Datanomic’s flagship enterprise Compliance Screening and Data Management software, dn:Director, helps organizations to improve compliance performance, better manage business risk, save money, streamline business processes and seize more opportunities, by identifying and eradicating problems in customer, financial and product data. Headquartered in Cambridge, UK, with offices in New York, USA, and Singapore, Datanomic was founded in 2001 and is backed by DN Capital. www.datanomic.com
For further information, please contact:
Tel: +44 (0) 1223 228418
Devonshire Marketing (PR for Datanomic)
Tel: + 44 (0)870 242 7469
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