New and Effective Tools to Tackle Sanctions Compliance | NTT DATA

Fri, 25 August 2023

Sanctions Compliance Service: How Small Organisations are Stepping Up

As we’ve demonstrated our Sanctions Compliance Service to more organisations, we’ve discussed a broad range of user cases with businesses. One concern our customers have often raised is the number of checks those ahead of them in the insurance chain have applied to the documentation flows in the form of MRCs, Schedules, and Bordereaux: both delegated and Treaty.

Our position remains the same: all those involved in the insurance chain need to have their own robust sanctions-checking programme in place to meet their regulatory responsibilities – as we discussed during our first Compliance Officers’ Event in June.  


A Pay-As-You-Go Solution for Smaller Insurance Organisations

Although no one can rely on a check from others before them in the chain, it would be far better for all concerned to know that, as an organisation, you have comprehensively fulfilled your regulatory sanction-related responsibilities. Having a business partner or central service provider be the one to identify a potential violation may have negative reputational effects or force you to unwind coverage the effort of which will be inconvenient and expensive.

Outside the ‘big players’, hundreds of small Cover Holders, MGAs, and brokers manage significant business volumes in the market. For them, this regulatory challenge carries the same risk, but it’s harder to solve. How well do sanction screening providers serve them?

At NTT DATA UK&I, we have developed a pay-as-you-go service that smaller organisations can use out of the box, massively improving their sanctions coverage without the need for expensive licences and complex processes.

You can drop any insurance document or dataset into our portal and get an instant result on any sanctioned subjects. The Sanctions Compliance Service also allows you to work those cases and provide an audit trail, should a regulator come looking. If it sounds straightforward, that’s because it is.


Why is this important?

The Russia-Ukraine war has resulted in thousands of new designations and the regulators are strengthening their enforcement capabilities; the UK OFSI (regulator) has doubled its staff and appointed a second Director focused purely on enforcement of the regulations.

There is also now strict liability (since June 2022) regarding sanctioned subjects. Put simply, ‘if you ought to have been aware, you should have been aware’. To top it all off, the FCA are increasing their focus on sanctions and will be looking at your firm’s sanction controls and what plans are in place to improve.


Benefits of NTT Data Sanctions Compliance Service

If your own sanctions checking programme has these benefits below then great, If not come and talk to us.

  • Regulatory Compliance Confidence
  • Automated Compliance Screening
  • Risk Mitigation and Avoidance
  • Enhanced Due Diligence
  • Real-time Updates
  • Simplified Compliance Reporting
  • Customisation and Scalability
  • Cost Effectiveness
  • Training and Support 
  • Competitive Advantage


Sanctions Compliance Service

NTT DATA UK&I’s Sanction Compliance Service is a one-stop shop for organisations serious about playing their part in enforcing effective global sanctions.

If you want to know more, please get in touch with us today. We’re holding our second Compliance Officers event as a Webinar on the 7 September 2023, covering the sanctions landscape and detail on our service. You can sign up here.

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