New software will allow screnning for sanctioned organisations, money laundering and those guilty of terrorism
Open GI has responded to FSA demands for tighter screening practices for financial institutions, with the launch of new broker software.
The software will be available in September, allowing brokers to screen clients against the HM Treasury sanctions list at point of sale from within the Open GI system, via a real time look-up / search.
This will avoid litigation associated with the sale of insurance to sanctioned organisations and individuals such as those guilty of terrorism and money laundering.
The news follows the announcement at the beginning of the month that the FSA had fined members of the Royal Bank of Scotland Group £5.6m for failing to have adequate systems and controls in place to prevent breaches of UK financial sanctions.
Brokers should be taking these announcements very seriously, according to Chris Guillaume, managing director, Open GI.
He said: “This is not a piece of advice from the FSA; it’s a legal requirement. Firms need to prove they have checked against the sanctions list before a policy is sold, otherwise they may face imprisonment or a fine for facilitating terrorist financing. It’s as serious as that.
“What we are doing at Open GI is giving brokers the ability to automate the screening process, so that they don’t have to manually check against thousands of records. This is beneficial both for smaller companies that lack administrative resources or larger companies with greater exposure. Having surveyed the Open GI broker base, it’s clear that the overwhelming majority are interested in a solution of this nature.
“It’s likely that the FSA will begin enforcing these requirements more aggressively, therefore it’s important brokers understand the implications now.”
