Sanctions compliance

Financial sanctions are targeted economic measures aimed specifically at individuals, institutions or organisations in order to significantly restrict their access to financial means and economic resources. They serve to prevent the financial flow to and from the sanctioned actors, for example by freezing assets and blocking transactions.

The main aim of these measures is to effectively cut off those affected from international and national economic circulation in order to exert political pressure or prevent undesirable behaviour such as human rights violations or support for terrorist activities.

Sanctions compliance with a vision for the future

Adherence to financial sanctions is an essential part of compliance management for financial institutions. Institutions that disregard sanctions risk high fines, which have multiplied in recent years. There are also considerable legal, reputational and operational risks. In order to minimise such risks, financial institutions must have effective sanctions compliance systems in place that enable them to quickly identify potential cases of sanctions and respond to them with appropriate measures.

Our comprehensive range of services supports you from the first step of the inventory to operational support in the daily processing of sanctions screening hits.

Thanks to our extensive consulting experience from numerous projects and our insights from auditing activities at many financial institutions, we can integrate proven best-practice approaches and thus offer you sound and effective support that reliably fulfils your specific requirements.

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Our range of support services

Sanctions governance/preventive sanctions compliance

Improvement through analysis of sanction risks and implementation of compliance programmes
Operational support in sanctions screening

Targeted support for the efficient processing of sanction cases
Selection and introduction of sanction tools

Optimisation of business processes and efficient improvement of workflows
Training on sanction topics

Customised training concept for sustainable knowledge building

Innovative KPMG applications

In light of increasing and changing regulations, rising transaction volumes and the introduction of new sanctions systems, KPMG has developed solutions that enable both system optimisation and the verification of alerts. The aim is to improve the quality of the performance of early warning systems and to provide a faster, more accurate and more consistent review of alerts, helping financial institutions to fulfil their sanctions obligations more efficiently.

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Sanctions Navigator

KPMG's Sanctions Navigator methodology provides a comprehensive approach to highlighting the day-to-day challenges of our clients' compliance and anti-fraud functions.

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Screening Testing Platform

KPMG's sanctions screening test platform enables clients to test the effectiveness of their customer and/or payment screening systems.

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Sanctions Alert Classifier

The KPMG Sanctions Alert Classifier automates decision-making processes in the first line of defence with 99.998% accuracy, enabling faster and more cost-effective decisions.

Our support services in detail

Governance / Preventive compliance
Operational support in screening
Selection & introduction of tools
Training courses

Challenges

Process documentation is often just a compulsory exercise for auditors and regulators
Fulfilment of increasing regulatory requirements (e.g. EBA guidelines on restrictive measures, AMLA)

Our support

Conception and implementation of risk analyses and derivation of security measures
Implementation of individual compliance programmes including organisational process measures
Risk assessment and management
Reporting and documentation
Revision of guidelines and process documentation

Benefit

Enabling an individually tailored, legally and regulatory compliant organisational structure and process organisation
Creating the basis for continuous process improvement

Challenges

Very high number of sanction alerts
Strict filter criteria and very high false positive rate, which must be further investigated by the analysts

Our support

Operational support in the processing of alerts, including the definition of exceptions
Training of employees
Creation of work instructions

Benefit

Reduced effort and time savings
Compensation for lack of internal capacities
Reduction of the error rate through the use of expertise

Challenges

Cost increases in compliance departments
Comprehensive identification and integration of relevant aspects for system selection
Seamless integration of the tool into existing structures and organisation

Our support

Regular background monitoring that can be customised to the business model, risk profile and market dynamics

Benefit

Benefit from KPMG's broad network, co-operation partnerships and alliances with a large number of RegTech providers

The challenges

Complex sanction regulations that are subject to constant change
Broad range of applications in various areas of the institute

Our support

Design and creation of a training concept customised for your institute
Development of a training plan on compliance-relevant content and thematically specific areas
Realisation of training courses

Benefit