Banks in UK and Switzerland missing out on opportunities in green finance while risking sanctions infringement

New research by one of the world’s leading providers of vessel-tracking, sanctions screening and regulatory solutions endeavours to explain why banks, financial organisations, carriers, and shippers in the UK and Switzerland are losing out on big opportunities in green finance while risking sanctions infringement.

Pole Star’s research, which focuses on green finance and sanctions compliance, surveyed 350 decision-makers in banking and finance and 152 senior executives in the shipping industry in the UK and Switzerland, two important hubs for maritime trade and finance.

Technology needed

The research concludes that in both countries, digital solutions are either absent or inadequate and that there is an urgent need for the trade finance industry, shipping organisations, and the entire maritime supply chain to enhance their technology to save time and achieve greater accuracy.

For example, compliance departments in UK banks reported they spend 50 per cent of their time on sanctions screening and monitoring, compared with 43 per cent in Swiss banks.

Banks and vessel screening

Most banks in both countries reported that they have some capability to screen carriers and vessels when assessing a transaction.

But 38 per cent of banks in the UK and 31 per cent in Switzerland say one of their biggest sanctions screening and monitoring challenges is inadequate in-house technology.

This technology shortfall leaves almost all organisations unable to screen adequately for compliance with international sanctions the research concludes.

Major banking challenges

For 42 per cent of UK banks and 27 per cent of Swiss banks, having to use multiple solutions is one of their biggest challenges in sanctions screening. Around one-third of banks in both countries also view keeping pace with regulation as a major challenge.

More than three-in-ten financial organisations across the two countries find that poor visibility of an entire trade transaction and its ecosystem is one of their major challenges in sanctions compliance monitoring and screening.

Pole Star’s research paper, Maritime Matters: The Finance Opportunities & Sanctions Risks Affecting Financial Institutions & Shipping Companies, can be downloaded on request from here.



Categories: Trade Based Financial crimes News

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