Country for PR: United States
Contributor: PR Newswire New York
Thursday, August 26 2021 - 20:16
Two Thirds of Organizations Still Use Manual Search for Compliance with Trade and Export Controls
LONDON, Aug. 26, 2021 /PRNewswire-AsiaNet/ --

  -- Latest Survey from Accuity, a LexisNexis(R) Risk Solutions Company,
     Reveals Contrasts in How Global Banks, Corporations and Non-Banking
     Financial Institutions Manage Trade and Export Compliance

Two-thirds of banks, corporations and non-banking financial institutions 
(NBFIs) still use search engines to comply with trade and export compliance 
regulations, according to Accuity ( 
), a LexisNexis(R) Risk Solutions company and a leading global provider of 
financial crime screening, payment services and know your customer (KYC) 
solutions. Performing due diligence in this manner leaves organizations open to 
missing red flags and making misinformed decisions over whether to accept 
business. This can expose them to risk and potential regulatory action and may 
also result in missed opportunities to participate in safe and legitimate trade 

Logo -  

 Trade finance providers, as well as insurers, logistics firms and others 
involved in international supply chains are responsible for conducting due 
diligence on the parties and items involved in the transactions and shipments 
they facilitate. This includes verifying the legitimacy of the customer and all 
parties to the transaction, checking for dual-use or controlled goods (for 
example, those that could have a military purpose) and ensuring funds and goods 
are not going to or coming from a sanctioned location.

The trade compliance survey - conducted by Accuity during the first half of 
2021 - questioned more than 120 professionals from leading banks, insurance and 
fintech organizations operating in APAC, EMEA and the Americas. The study shows 
how widespread manual search remains even years after the emergence of 
automated solutions to detect trade compliance risks, such as sanctioned 
entities and dual-use goods. 

Key findings from the research:

  -- Trade compliance is not always handled by a dedicated team: Banks are
     managing trade compliance mostly through a dedicated compliance function.
     Non-banking financial institutions (NBFIs) are handling it as part of the
     KYC process and corporations as part of a central compliance function or
     general operational team. 
  -- Multi-variable screening is mostly limited to banks: More than 90% of
     banks screen for five or more data points, including sanctions, goods,
     vessel names and ultimate beneficial owners (UBOs), compared to only a
     third of non-banks. 
  -- Challenges posed by changing regulation: The biggest challenges for banks
     and corporations are keeping up with rapidly changing regulations and
     increasing expectations, while NBFIs find document-heavy processes the
     biggest burden. 
  -- Efficiency gains planned: Sixty percent of firms revealed that they plan
     to invest in the integration/interconnectivity of systems, with 74%
     looking to improve data sharing and transparency. 
  -- Compliance as an advantage: Competitive advantage is seen as the main
     benefit of trade compliance. Corporations reported less concern over
     fines, while prioritising improving the flow of business through smarter
     licence management. 

Accuity customer Enas Hamed, Sanctions Unit Head at the Housing Bank for Trade 
and Finance in Jordan, said, "We have prioritized digitizing and automating our 
process for screening trade finance transactions against local and 
international sanctions lists. In doing so, the bank increases its efficiency 
levels by cutting down on time spent processing and screening potential 
transactions manually, while simultaneously allowing for a clear audit trail 
and increased effectiveness in its dealings with both regulatory bodies and its 

Aneta Klosek, director, trade compliance, at Accuity said, "Trade compliance is 
a critical function where mistakes can cost businesses millions. An area where 
the smallest omission can throw off the entire strategy of a business is no 
place to take a chance. On the other hand, the study has shown that getting 
trade compliance right can produce a significant competitive advantage, so 
there is every reason for firms across the breadth of the supply chain to make 
this a focus. We are seeing more banks and other organizations turn to 
comprehensive data and technology-enabled solutions to ensure their compliance 
framework is absolutely watertight - and they have flourished throughout the 
pandemic as a result." 

Download the infographic, How Companies are Tackling Trade Compliance ( 
). To learn more about the issues surrounding trade and export compliance, read 
the new whitepaper, Trade, Trafficking and Technology: The Ongoing Fight 
Against Financial Crime ( 

About Accuity

Accuity ( 
), a LexisNexis Risk Solutions company, powers compliant and assured client 
transactions to help build an interconnected and trusted financial ecosystem. 
Our financial crime screening, payment services, and benefits compliance 
solutions help enable financial inclusion while identifying criminal activity 
and fraudulent players. With deep expertise and industry-leading data and 
analytics solutions from the Firco and Bankers Almanac brands, Accuity provides 
unmatched confidence, efficiency, and compliance for customers around the 
world. Part of RELX ( 
), a global provider of information-based analytics and decision tools for 
professional and business customers, Accuity has been delivering solutions to 
banks and businesses worldwide for 180 years.

Media Contact:
Imogen Nash
+44 (0)7789 924 920 

SOURCE: LexisNexis Risk Solutions