In an increasingly complex geopolitical world, staying on top of the myriad of continually evolving sanctions has proved a challenge for compliance officers globally. The partnership between SIX and SimCorp, aims to address and streamline compliance processes around sanctions, eliminating the risk of breaches, which can be damaging to financial institutions. As a result, SimCorp’s clients can now access up to date global sanctions data directly from SIX, integrated into the Compliance Manager module of SimCorp Dimension. This enables compliance officers to detect breaches against the supported sanction regimes pre and post-trade.
The Sanctioned Securities Monitoring Service from SIX provides a list of entities and issued securities related to ‘watched’ individuals or organizations that have been sanctioned by regulators or government bodies. The service identifies the regimes under which each is sanctioned, drawing from various international regulatory bodies, including those of the European Union, Switzerland, Singapore, Hong Kong, Australia, Canada, the United Kingdom and the United States, as well as the United Nations.
“As a partner to over 190 clients across the world, SimCorp’s Regulatory Center of Excellence, has successfully supported its clients with standardized solutions for a variety of regulatory challenges. The partnership with SIX continues our mission to deliver integrated solutions that tackle the real-world issues our clients are facing,” said Carsten Kunkel, Global Head of Regulatory Center of Excellence at SimCorp.
Ronald Knecht, Global Solutions Owner at SimCorp adds, “With an award-winning global sanctions service from SIX, integrated directly in our core front-to-back platform, SimCorp Dimension, our clients are able to manage portfolio risk more accurately and effectively.”
“As globalization continues, sanctions compliance has become increasingly complex. Many have limited their exposure by simply avoiding transactions with the sanctioned entities listed by global regulators, but firms also need to ensure they aren’t getting tangled up with associated entities and financial instruments,” said Phil Lynch, Head Markets, Products & Partners at SIX. “Expanding our relationship with SimCorp, an established global provider, delivers a data service that empowers clients to adapt quickly to regulatory demands and sanctions activity, helping them to trade with confidence.”
The SIX Sanctioned Securities Monitoring Service monitors 6.7 million active instruments and over 26,000 changes a week, including regulator updates and shareholder changes, making it one of the most comprehensive sanctions and watchlist checks in the market. The integration to SimCorp’s Compliance Manager, a powerful and customizable front-office module used by more than 100 SimCorp clients, will see the data service streamlined within key automated workflows. This includes compliance monitoring alerts, customizable compliance rule sets, a real-time overview of key compliance metrics, enhanced risk analytics, as well as, pre-trade, post-trade, and end of day checks.