Along with all other providers of financial services to the public, advisers are required by law to check whether their client is on the UK Treasury’s “Sanctions List” because of money laundering activities.
All UK firms are forbidden from doing business with any individuals on the list
Currently company directors can face lengthy prison terms if they are caught working with clients on the government’s Sanctions List.
Chris Clare, director at SacntionsSearch, said: “Up to now compliance has been patchy, but feedback from clients suggests that impromptu checks from the likes of the Financial Services Authority into whether sanctions lists are up to date are becoming more and more frequent. And that means spotless, up to the minute, compliance is as essential to a financial adviser as being properly regulated.
“We all know client screening can be a laborious and time-consuming process, not to mention a costly one – but our new software gives a fast, affordable way to stay legal.”
Clare added that carrying out a manual search of a client’s name in the Sanctions List typically takes about two minutes.
He said: “That may not sound a lot but if a mortgage broker has 100 clients, nearly three and a half hours of his day will be spent trawling the list.
“A manual search of the Sanctions List using our software takes less than 30 seconds instead of two minutes.”
The Treasury has been known to update the Sanctions List as often as once a day.
As it does not specify what changes it has made, a mortgage broker can find himself screening his entire client list on a daily basis to make sure he is not breaking the law.
