PR91336

LONDON, Aug. 26, 2021 /PRNewswire=KYODO JBN/ --

  -- Latest Survey from Accuity, a LexisNexis(R) Risk Solutions Company,

     Reveals Contrasts in How Global Banks, Corporations and Non-Banking

     Financial Institutions Manage Trade and Export Compliance

Two-thirds of banks, corporations and non-banking financial institutions

(NBFIs) still use search engines to comply with trade and export compliance

regulations, according to Accuity (https://c212.net/c/link/?t=0&l=en&o=3271471-1&h=2041845394&u=https%3A%2F%2Faccuity.com%2F&a=Accuity),

a LexisNexis(R) Risk Solutions company and a leading global provider of

financial crime screening, payment services and know your customer (KYC)

solutions. Performing due diligence in this manner leaves organizations open to

missing red flags and making misinformed decisions over whether to accept

business. This can expose them to risk and potential regulatory action and may

also result in missed opportunities to participate in safe and legitimate trade

transactions.

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Trade finance providers, as well as insurers, logistics firms and others

involved in international supply chains are responsible for conducting due

diligence on the parties and items involved in the transactions and shipments

they facilitate. This includes verifying the legitimacy of the customer and all

parties to the transaction, checking for dual-use or controlled goods (for

example, those that could have a military purpose) and ensuring funds and goods

are not going to or coming from a sanctioned location.

The trade compliance survey - conducted by Accuity during the first half of

2021 - questioned more than 120 professionals from leading banks, insurance and

fintech organizations operating in APAC, EMEA and the Americas. The study shows

how widespread manual search remains even years after the emergence of

automated solutions to detect trade compliance risks, such as sanctioned

entities and dual-use goods.

Key findings from the research:

  -- Trade compliance is not always handled by a dedicated team: Banks are

     managing trade compliance mostly through a dedicated compliance function.

     Non-banking financial institutions (NBFIs) are handling it as part of the

     KYC process and corporations as part of a central compliance function or

     general operational team.

  -- Multi-variable screening is mostly limited to banks: More than 90% of

     banks screen for five or more data points, including sanctions, goods,

     vessel names and ultimate beneficial owners (UBOs), compared to only a

     third of non-banks.

  -- Challenges posed by changing regulation: The biggest challenges for banks

     and corporations are keeping up with rapidly changing regulations and

     increasing expectations, while NBFIs find document-heavy processes the

     biggest burden.

  -- Efficiency gains planned: Sixty percent of firms revealed that they plan

     to invest in the integration/interconnectivity of systems, with 74%

     looking to improve data sharing and transparency.

  -- Compliance as an advantage: Competitive advantage is seen as the main

     benefit of trade compliance. Corporations reported less concern over

     fines, while prioritising improving the flow of business through smarter

     licence management.

Accuity customer Enas Hamed, Sanctions Unit Head at the Housing Bank for Trade

and Finance in Jordan, said, "We have prioritized digitizing and automating our

process for screening trade finance transactions against local and

international sanctions lists. In doing so, the bank increases its efficiency

levels by cutting down on time spent processing and screening potential

transactions manually, while simultaneously allowing for a clear audit trail

and increased effectiveness in its dealings with both regulatory bodies and its

customers."

Aneta Klosek, director, trade compliance, at Accuity said, "Trade compliance is

a critical function where mistakes can cost businesses millions. An area where

the smallest omission can throw off the entire strategy of a business is no

place to take a chance. On the other hand, the study has shown that getting

trade compliance right can produce a significant competitive advantage, so

there is every reason for firms across the breadth of the supply chain to make

this a focus. We are seeing more banks and other organizations turn to

comprehensive data and technology-enabled solutions to ensure their compliance

framework is absolutely watertight - and they have flourished throughout the

pandemic as a result."

Download the infographic, How Companies are Tackling Trade Compliance

(https://c212.net/c/link/?t=0&l=en&o=3271471-1&h=2562711404&u=https%3A%2F%2Faccuity.com%2Fresources%2Finfographic-how-companies-are-tackling-trade-compliance%2F&a=How+Companies+are+Tackling+Trade+Compliance).

To learn more about the issues surrounding trade and export compliance, read

the new whitepaper, Trade, Trafficking and Technology: The Ongoing Fight

Against Financial Crime (https://c212.net/c/link/?t=0&l=en&o=3271471-1&h=133461319&u=https%3A%2F%2Faccuity.com%2Fresources%2Ftrade-trafficking-and-technology-the-ongoing-fight-against-financial-crime%2F&a=Trade%2C+Trafficking+and+Technology%3A+The+Ongoing+Fight+Against+Financial+Crime).

About Accuity

Accuity (https://c212.net/c/link/?t=0&l=en&o=3271471-1&h=2041845394&u=https%3A%2F%2Faccuity.com%2F&a=Accuity), a LexisNexis Risk Solutions company, powers compliant and assured client transactions to help build an interconnected and

trusted financial ecosystem.

Our financial crime screening, payment services, and benefits compliance

solutions help enable financial inclusion while identifying criminal activity

and fraudulent players. With deep expertise and industry-leading data and

analytics solutions from the Firco and Bankers Almanac brands, Accuity provides

unmatched confidence, efficiency, and compliance for customers around the

world. Part of RELX (https://c212.net/c/link/?t=0&l=en&o=3271471-1&h=748433504&u=https%3A%2F%2Fwww.relx.com%2F&a=RELX), a global provider of information-based analytics and decision tools for professional and business customers, Accuity has been

delivering solutions to banks and businesses worldwide for 180 years.

Media Contact:

Imogen Nash

+44 (0)7789 924 920

imogen.nash@lexisnexisrisk.com

SOURCE: LexisNexis Risk Solutions