Future trends in sanctions – Can automation, artificial intelligence and outsourcing resolve inefficiencies?
As political leaders discuss relaxing – or in some cases tightening – sanctions regimes, financial institutions are struggling under the weight of fragmented lists and requirements, outdated technology and millions of false positive alerts. New sanction regime structures that require an understanding of ownership structures and not just names on a list have increased the burden and heightened ambiguity. With profit margins shrinking and the correspondent banking model under siege by new entrants and a retrenchment in globalisation, could automation, artificial intelligence and outsourcing provide cost relief? As utility solutions gain currency, will regulators provide assurance that banks can count on third-party or outsourced models to operationalise sanctions compliance?