Balancing Tradition and Technology in a Complex Sanctions Compliance Landscape

Article

Global sanctions compliance is under increasing scrutiny as organizations balance advanced technologies like AI and ML with traditional methods. While these tools hold promise, challenges such as false positives, legacy systems, and evolving policies highlight the need for a balanced, data-driven approach to compliance.

Jan 29, 2025

Tags: Financial Crime

Balancing Tradition and Technology in a Complex Sanctions Compliance Landscape

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Sanctions compliance requires a balanced approach, combining advanced technologies like AI and ML with traditional risk management methods.
Poor data quality and legacy systems hinder the effectiveness of cutting-edge tools, emphasizing the importance of ongoing calibration and skilled personnel.
False positives in sanctions screening remain a major challenge, requiring continuous refinement to reduce errors and detect critical violations.
Cross-border complexities and evolving sanctions policies demand strategic planning, data integration, and collaborative intelligence sharing.