Your Sanctions Program and How to Clear True Hits and False Positives
Duration: 60 Minutes
This course will discuss procedures and processes your BSA department can employ when your institution is clearing and disposing alerts for potential hits identified by your screening process related to companies, individuals, and countries identified by government, international, internal, and other lists as sanctioned or of concern for money laundering, terrorist financing or other criminal activity.
Objectives of the Presentation
Why Should you Attend
- How sanctions lists are developed and why they are important
- The numerous types of sanctions lists
- Who can be included on sanctions lists
- What should a financial institution include in its sanctions list compliance program
- How to determine if a potential hit is a true hit or just a false positive
- How to clear a hit, either as a true hit or as a false positive
- How to document the final decision
There are many sanctions lists with numerous companies, individuals, and countries listed. As financial institutions conduct their reviews of these lists for the possibility that one of their customers may be identified on these lists, there is the high likelihood that some of these hits may be false positives. Since there are numerous companies and individuals with the same name, it is important that institutions know how to conduct further research and due diligence on these hits to make sure they are in fact true hits and not false positives. A financial institution must have a specific policy with procedures for employees to follow to ensure that all hits are researched and cleared and that false positives are clearly identified.
This course will discuss the many areas involved with sanction lists such as: examples of who is included on these lists, a discussion of how the lists are compiled, methods you can use to analyze hits related to your customers and the lists, and ways you can ensure that a hit is properly disposed of, either as a true hit or as a false positive.
Who will Benefit
- BSA/AML officers
- BSA/AML auditors
- BSA/AML staff
- Bank staff with onboarding responsibilities
- Bank staff with suspicious activity program responsibilities
- Staff related to the sanctions list process
- Investigators of sanctions list hits
- Researchers of sanctions list hits