Datos Insights, a global advisory firm providing mission-critical insights on technology, regulations, strategy, and operations to the Financial Services industry, has recognized FinScan®, an Innovative Systems, Inc. solution, as the winner of the 2024 Fraud & AML Impact Awards in the Best Sanction/Watchlist Screening Innovation category. The FinScan Enhance data quality solution was acknowledged for its innovative approach to addressing many of the long-standing data quality challenges in AML and sanctions compliance.
Data quality has been a critical challenge in AML and sanctions compliance for decades. But today, the stakes are higher as compliance professionals are responsible for the consequences of bad data, such as too many false positives, unnecessary due diligence, and the ultimate risk of missing a true hit, which can lead to fines and reputational damage. In addition, guidance from industry bodies like Wolfsberg Guidance on Data Integrity, Fed/OCC SR 11-7 and even state regulators such as NYS DFS Part 504 call for “validation of the integrity, accuracy and quality of data to ensure that accurate and complete data flows through the Transaction Monitoring and Filtering Program.”
Becki LaPorte, CFCS, FIS, and Strategic Advisor on Fraud & AML at Datos Insights, said: “Poor data quality often leads to ineffective risk detection, high false positive rates, and operational inefficiencies. FinScan Enhance effectively addresses these challenges by providing a comprehensive, compliance-specific data quality solution integrated directly into the screening process, which helps uncover hidden risks that traditional screening processes might miss. The implementation of FinScan Enhance has also yielded impressive results.”
In a recent FinScan poll of 162 compliance professionals around the world, 62% said data quality and accuracy was their compliance team’s biggest screening challenge. Another recent FinScan poll revealed that incomplete customer data was the biggest cause of false positives among 54% of the 194 compliance professionals who responded. Another recent FinScan poll of more than 300 North American compliance professionals revealed that 54% spent a significant amount of their time in 2023 on data quality – more than any other area of AML compliance.
FinScan Enhance is the only known solution in the AML/KYC space that directly addresses the continuous enhanced quality of data specifically for AML/KYC compliance. Based on decades of data management experience, FinScan Enhance helps address the issue of questionable customer data quality that can expose hidden risks within organizations. It boosts risk detection and saves time by enabling compliance teams to discover hidden records and optimize reviews and potentially apply the same remediation decisions to resolve duplicate alerts.
Deborah Overdeput, Chief Marketing Officer at FinScan, said: “Poor data quality is a principal contributor to eroding the effective performance of organizations’ AML and sanctions programs, negatively impacting risk mitigation and productivity. FinScan Enhance’s ability to persistently enhance the quality of data makes it a game-changer for compliance teams. It can save companies valuable time and resources by continuously monitoring for sanctions breaches, despite errors in customer data feeds, to deliver better results faster.”
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