SWIFT has issued a concise (3 page) whitepaper on the challenges of watchlist screening. While it doesn’t do much to address the solutions to the quandary that regulated firms face, it lays out the problems pretty effectively. These include:
- The growth in watchlist listings in the recent past (they estimate 20% in the last year)
- New categories of entities, including aircraft
- The rise in matches due to the use of fuzzy matching technologies
- Overly strict internal guidelines for screening to avoid the remotest possibility of regulatory scrutiny
- The complexity of watchlist screening systems and their configuration
A good basic read. Of course, Mr. Watchlist has opinions on such things, which he will share in the near future.