Watchlists are the databases. These databases include checks against suspected terrorists and terrorist activities, money launderers, fraudsters, or PEPs (Potentially Exposed Person’s list). The state, national, and international governments keep the watchlist database. The watchlist database helps reduce crimes because it contains essential information about prohibited individuals or corporations in different sectors like healthcare, finance, eCommerce, agriculture, etc. Today, money laundering is the most challenging problem that many companies are facing. Because of this, there is a significant requirement for watchlist screening solutions for insurance companies, eCommerce companies, financial services, etc.
The people on the watchlist are generally criminals like money launderers, specifically designated nationals, human traffickers, arms traffickers, drug traffickers, traffickers of weapons for mass destruction.
Working Principle of a Watchlist Screening System
The watchlist screening solutions software makes identity verification from various independent resources using reliable data. The software performs this check before giving your institution a notification. After that, the watchlist screening software for financial services, insurance companies, eCommerce companies, etc., scans individuals from different watchlists. These watchlists include the data from the Government list at both national and international levels.
After scanning from different watchlist databases, the software, then notifies your institution whether it is listed on any one of the watchlists or not. The watchlist services perform a scan on the watchlist databases of different organizations’ consolidated lists.
Some of these organizations include:
- European Union Consolidated List
- Specifically Designated Nationals and Blocked Persons List of OFAC’s
- Sanctions List by the Bank of England
- Terrorism List by European Union
- HM Treasury
- Work Bank Ineligible Firms List
- FBI Most Wanted terrorist List
- Denied Individuals List
- Non-Cooperative Countries
- PEP Lists
What are the Advantages of the Best Watchlist Screening Solutions?
The organizations that have listed themselves on the watchlist screening software benefitted largely in terms of effort, time, and convenience. Have a look at the following advantages that watchlist screening solutions provide.
- The lists that Governments collect worldwide features the denied trading partners’ names. This makes it easy to search by name. Besides this, the watchlist screening solutions for eCommerce companies, financial services, insurance companies, etc., have efficient features that prevent repetitive checking on the lists. Hence, it also saves time in scanning.
- The watchlist screening solutions software users can also select the lists of the third parties for effective screening. The best part of the software is that it provides users with the information having the highest levels of accuracy. This means the software presents only genuine information.
- The lists also get updated regularly regarding denied, restricted, and barred parties, which offers great convenience for the users because it is almost to do manually.
- The watchlist screening solutions software for financial services, insurance companies, eCommerce companies, etc., make it possible to check the organizations with ITAR compliance. Regarding the matters of national security, it is among the most significant advantages that the software serves.
- The regulations for export and customs control of the United States are subjected to change as, or whenever required. The software is flexible regarding this because it allows the organizations to keep in compliance with new rules and regulations. This eliminates the unnecessary headache of tracking every change in the rules and regulations.
- When any changes are made on the watchlist database, your organization will receive a notification. This keeps you and your organization updated with all the recent changes in the standards.
- Your organization will also get protection against frauds, terrorists, criminals, and specifically designated nationals against the reputation of your organization.
- Because the software is automated, it makes the customer onboarding process easy and fast by eliminating the manual work to a great extent.
The most significant factor in strengthening a business’s reputation is to ensure the presence of a strong compliance system. The organizations with strong compliance programs have strong internal policies and practices to ensure the highest level of security.
The watchlist screening solutions for eCommerce companies, insurance companies, financial services, etc., provide the organizations with a facility to run audit trials with ease. Along with the audit trails and reports, the organizations can also configure the automated alerts.
Most of the watchlist screening solutions software is integrated with third-party ERP systems. This integration makes all the compliance processes streamlined and simplified. Hence, it saves the overall time and cost by reducing the delays when working with different clients.