X-Compliance

2023: Launch of functionality to check goods for sanctions risks

On July 5, 2023, the Interfax Group announced the launch of the updated functionality of the X-Compliance service, which is designed to check goods for sanctions risks, primarily export and import restrictions.

Business in 2022 faced a large scale of restrictions, including trade ones related to exports and imports. This is a vast sphere with its own complex legislative framework.

Understanding what goods are subject to certain restrictions is important for assessing risks when interacting with customers, counterparties and related persons. This data is needed by exporters, importers, banks and other participants in supply chains.

As of July 2023, from the United States, the EU and the United Kingdom, more than 10 thousand commodity items from various categories fall under sanctions against Russia: from microcircuits and construction cranes to truffles and tennis balls.

Unlike the lists of individuals and legal entities involved in sanctions, which foreign departments often provide in consolidated form, data on sanctioned goods are much more disparate and heterogeneous.

The updated functionality of X-Compliance combines current data from various sources into single cards and allows the user to check the product for the risk of sanctions using a large search.

The product card reflects its names, various identifiers, for example, codes of commodity nomenclature and export control, records information on sanctions restrictions of various jurisdictions on this product and information on other sanctions objects related to it - individuals, organizations, goods, countries.

The X-Compliance functionality allows you to generate reports with data on goods in PDF and XLSX formats, while the XLSX report works in a constructor format: you can upload only the necessary fields - both for one-time and mass verification.

Verified and structured information on sub-sanctioned goods will allow market participants to minimize risks associated with blocking payments, delays in the supply of goods, risks of violation of the terms of contracts and their termination, as well as financial and reputational losses.

2022: Integration with the product "Check against lists of suspicious countries, persons and organizations"

On December 22, 2022, Diasoft announced that it had automated a comprehensive check of customers and counterparties on the parameters and lists available in the X-Compliance solution created by the Interfax Group.

Through integration with X-Compliance, Diasoft's "Check on Lists of Suspicious Countries, Persons and Organizations" software now provides massive automated verification of all customers and transactions of the bank:

• according to global and Russian sanctions lists and observation lists (Russia, USA, UN, EU, Great Britain, Canada, Switzerland, Japan, Australia, Ukraine);
• according to the list of companies covered by the "50% rule."

The joint decision of Diasoft and Interfax allows you to significantly save time for bank employees to conduct the necessary inspections, as well as avoid the risk of using incomplete or inaccurate information for decision-making. As of December 2022, we are implementing a pilot project to implement a solution in a Russian bank from the top 25. As a result of the project, the bank will be able to check customers on sanctions lists and lists of suspicious persons with minimal labor costs, said Andrey Simakov, head of the Risks and Compliance product at Diasoft.

The product "Check on lists of suspicious countries, persons and organizations" is part of the Digital Q.Risk & Compliance development platform. It is created in a microservice architecture on a modern technological stack, so it can be easily integrated into any IT landscape of a credit institution. If the bank already uses the X-Compliance solution, the implementation of the product will automate the processes of checking customers directly in the IT system and reduce the processing time of large amounts of data.

The modern geopolitical and economic situation has increased the needs of banks for high-quality products for monitoring customer operations and assessing sanctions risks. The independent joint solution of Diasoft and Interfax will help solve these problems, noted Vladimir Gerasimov, executive director of the Interfax Group.

2020: X-Compliance Capabilities

X-Compliance is a service for managing compliance risks, such as revenue laundering and sanctions, created Russia by the Group's specialists. "Interfax

X-Compliance covers all areas where compliance risks can be identified: money laundering and terrorist financing, corruption, sanctions, FATCA/CRS, insider information and market manipulation.

The system allows you to detect signs of increased risk; identify public officials and their inner circle; build the ownership structure of the legal entity and determine its beneficiary; study the sources of the origin of funds of Russian civil servants using declarations of income and property; check the business reputation of the client and form a questionnaire (dossier) of the client and the counterparty.

X-Compliance makes it possible to check the data of customers, counterparties and related persons for information about them in more than 360 global and local sanctions lists.

The unique data that Interfax analysts collect from official sources around the world, modern information technologies that were used in X-Compliance, allow financial structures using the system to fulfill the requirements of Russian regulators (CBR and Rosfinmonitoring) as efficiently as possible. Thus, the system is not inferior to similar international services, but at the same time takes into account all the features of domestic legislation, allows banks and corporations to effectively reduce their risks.

See also

• Money Laundering (Money Muling)
• Corruption (fraud, bribes): Russia and the world