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Sanctions Risk Hiding in Plain Sight: Leveraging Advanced Adverse Media to Strengthen Your Sanctions Program

When implementing a sanctions-compliance program, the U.S. Treasury’s Office of Foreign Asset Control (OFAC) has provided an invaluable resource in its framework document

The framework emphasizes, among other things, the critical importance of controls to identify and interdict transactions that may be prohibited by OFAC.  It appears that organizations are expected to  a proactive approach as part of their Know-Your-Customer (KYC) and sanctions compliance strategies.
 
Earlier this month, OFAC expanded its sanctions program by adding  a wide-range of Russia-related entities  including companies and vessels.  The impact was profound, so much so, that it moved energy markets. 

Interestingly, many of these newly sanctioned entities had been flagged earlier through media reports and investigative research. While these entities were not initially sanctioned, they were linked to sanctionable activities and could be identified through adverse media and simple web searches.

The Role of Adverse Media Screening as Part of A Sanctions-Screening Program 

Why is adverse media screening so essential? In our webinar with OFAC in 2024, it was emphasized that robust adverse media screening is essential to an effective sanctions program, particularly sanctions evasion. Despite this many organizations have not comprehensively incorporated robust adverse media screening  into their programs.

For instance , BLACK PEARL ENERGY TRADING LLC that was designated at the end of 2024. Sigma360 flagged this much earlier, including several adverse media reports dating back to Q3 2024 across reputable English and non-English sources. While adverse media and negative news is not always definitive (e.g., short of a conviction), it can provide critical insight to support a risk-based approach for KYC and sanctions program purposes and enable risk and compliance, as well as the business, take a more informed risk-based position.

Another example, is Zakharov and Grek Technical Bureau, which is missed by nearly all screening systems our team reviewed. Although Zakharov and Grek Technical Bureau is not sanctioned, it is associated with Lavrentii Zakharov and relationally to Alexander Zakahrov both of whom are sanctioned.  

This case highlights how leveraging adverse media can uncover entities potentially used to circumvent sanctions, which might otherwise escape detection by financial institutions, payment processors, or corporate compliance teams.  

Beyond List Screening

List screening, while important and required by regulation, often misses critical contextualized data points. This can expose an organization to risk that could have/should have been able to identify.  As OFAC and thought leaders at ACAMS, ABA, and similar forums have repeatedly noted, organizations must incorporate additional data sources and advanced capabilities into their counterparty risk management processes.  

Sigma360’s Commitment to Innovation

Recognizing these issues and challenges, Sigma360 is at the forefront of providing the world’s  most accurate, contextualized and configurable for sanctions screening with full integration with adverse media screening..  Our solutions are designed to empower organizations with cutting-edge tools to enhance their compliance programs. Throughout 2025, we will be unveiling several new capabilities to further strengthen our offerings. 

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Our solutions are designed to empower organizations with cutting-edge tools to enhance their compliance programs. Throughout 2025, we will be unveiling several new capabilities to further strengthen our offerings.

Let’s Collaborate

Interested in transforming your organization’s sanctions program? Our team at Sigma360 would love to discuss how we can help you achieve your goals. Please don’t hesitate to reach out for more information.

 

About Sigma360
Sigma360's cloud-based data platform has emerged as the definitive choice for point-in-time risk screening and perpetual client monitoring. Underpinned by thousands of fully integrated and hosted data sources and proprietary resolution, risk extraction and scoring algorithms, the platform can identify and return direct and network-based entity risk at sub-second speeds. Sigma360's solutions are used by financial institutions, professional services firms, fintechs and global corporations seeking to consolidate operations into a singular risk intelligence platform and more efficiently manage the entire client lifecycle.

To find out more about Sigma360’s approach to advanced adverse media capabilities please  request your demo today.

How can Sigma360 help me stay ahead? 

Using Sigma360's risk decisioning software platform, organizations can not only get ahead of risk, but leverage unstructured data - like the screening examples highlighted in this article.  


To see Sigma360 in action, book a demo
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