About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Swift Considers Client Name Screening Service Based on Sanctions Screening Managed Service Model

Subscribe to our newsletter

Swift has extended its sanctions screening service to support all financial transaction formats and is considering the feasibility of using a similar managed service model to build a client name screening solution that could support banks’ client onboarding and Know Your Customer (KYC) processes.

Extensions to Swift’s sanctions screening service cover batch SEPA payments and the Fedwire transaction format, as well as transactions sent over networks other than Swift. The service uses a screening engine and sanctions list management to screen transactions against more than 30 sanctions lists and alert banks to any concerns arising from screening.

Nicolas Stuckens, head of sanctions compliance services at Swift, explains: “Drivers behind the extension of the sanction screening service are the need to screen message types other than those using the Swift FIN messaging format and the need to screen SEPA transactions. These transactions require a different screening process to individual transactions as they come in batches and use the XML format. To screen SEPA payments we have broken down the batches into individual transactions and are screening them closer to the back office before batches are created and sent.”

The sanctions screening extensions went live at the end of last year. They can be accessed by existing users of the service and, Stuckens hopes, new subscribers that can benefit from a service that supports all transaction formats and eases the data management burden of screening by aggregating and continuously updating multiple screening lists from different sources and in different formats.

Based on the concepts behind its transactions screening model, Swift is starting to look at the design and feasibility of building a managed client name screening service in-house or on the basis of vendor technology – the organisation’s sanctions screening service is based on FircoSoft technology. Stuckens says Swift members are expressing interest in a client name screening service, but notes that while a client name is an important part of client onboarding and the KYC process, it is only one step in the process, with others including risk rating, due diligence and monitoring activities.

He explains: “We do not have plans to provide a full client onboarding and KYC service for individuals and entities, only the name screening part of it. Swift has introduced a KYC Registry that currently focuses on correspondent banking and provides the documents required for banks to perform due diligence on their correspondents. The KYC service does not provide screening capabilities, although screening would be a natural extension if we do, in future, have a name screening service.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Best practice approaches to trade surveillance for market abuse

Breaches of market abuse regulation can lead to reputational damage, eye-watering fines and, ultimately, custodial sentences of up to 10 years. Internally, market abuse triggers scrutiny of traders and trading behaviours; externally it can undermine confidence in markets and cause financial instability. This webinar will discuss market abuse of different types, such as insider trading...

BLOG

A-Team Group Data Management Summit London – Don’t Miss It!

With A-Team Group’s Data Management Summit London just two weeks away on 14 March 2024 at Hilton Canary Wharf, here is a taster of some of the keynotes, panels and practitioner journeys that will be presented by leaders and innovators in the data management field. The overall theme of the day is the evolution of...

EVENT

AI in Capital Markets Summit London

The AI in Capital Markets Summit will explore current and emerging trends in AI, the potential of Generative AI and LLMs and how AI can be applied for efficiencies and business value across a number of use cases, in the front and back office of financial institutions. The agenda will explore the risks and challenges of adopting AI and the foundational technologies and data management capabilities that underpin successful deployment.

GUIDE

A-Team Group’s Valuations Vendor Directory 2009

An indispensable guide to valuations professionals seeking providers of services in the asset valuations market. A-Team Group’s latest release in its series of directories – available for FREE download – focuses on vendors of valuations data, models and analytics. But this is not just another list of firms with their telephone numbers – you can get that...