A recent survey by UK-based regtech SmartSearch reveals that UK companies are falling behind in meeting the requirements for sanction-screening potential clients, despite increased global geopolitical unrest. The data indicates that only 25% of surveyed companies consistently check new customers against lists of sanctioned or politically exposed persons (PEPs). This marks a significant decline from the previous year, where 73% of companies adhered to stringent screening rules.
The survey results are particularly concerning given the recent geopolitical tensions between the US and China and the fallout from the Russia-Ukraine conflict, which led to the inclusion of several Russian oligarchs on sanctions lists for the first time.
The financial services sector appears to be one of the worst offenders, with compliance dropping from 66% to 22% in the past 12 months. SmartSearch warns that failing to address this decline in compliance could lead to many UK businesses becoming high-risk entities, emphasizing the dynamic and rapidly evolving nature of sanctions as tools of foreign policy.
By FCCT Editorial Team
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