How can SWIFT message screening be optimized for different types of transactions and customers?

1 Know your risks

The first step to optimize your SWIFT message screening is to assess the risks associated with your transaction types and customer segments. Different transactions may have different levels of complexity, urgency, and exposure to sanctions or illicit activities. For example, a cross-border payment may require more scrutiny than a domestic transfer, or a trade finance transaction may involve more parties and documents than a simple payment. Similarly, different customers may have different risk profiles, depending on their industry, location, activity, and reputation. For example, a customer that is on a sanctions list, or that operates in a high-risk jurisdiction, or that has a history of suspicious transactions may pose a higher risk than a customer that is well-known, reputable, and compliant. By knowing your risks, you can prioritize your screening resources and apply appropriate rules and filters to your SWIFT messages.

2 Use the right tools

The second step to optimize your SWIFT message screening is to use the right tools and technologies to automate and streamline your screening process. There are various solutions available in the market that can help you screen your SWIFT messages against multiple sources of sanctions, watchlists, and regulatory data, as well as detect anomalies, discrepancies, and red flags in your message content and structure. For example, you can use SWIFT's own screening service, which is integrated with its network and message formats, and offers a comprehensive and updated database of sanctions lists and entities. Alternatively, you can use third-party screening software or services, which may offer more flexibility, customization, and integration with your existing systems and workflows. Whatever tool you choose, make sure it is accurate, reliable, and scalable to meet your screening needs and challenges.

3 Fine-tune your screening parameters

The third step to optimize your SWIFT message screening is to fine-tune your screening parameters and settings to match your risk appetite and compliance objectives. Screening parameters include the criteria, thresholds, and rules that determine how your screening tool will match your SWIFT messages against the sanctions data and flag potential hits or issues. For example, you can adjust your screening parameters to include or exclude certain message types, fields, or values, or to use exact or fuzzy matching, or to set different confidence levels or scores for different sanctions lists or entities. By fine-tuning your screening parameters, you can reduce false positives and false negatives, and improve the effectiveness and efficiency of your screening process.

4 Monitor and review your screening results

The fourth step to optimize your SWIFT message screening is to monitor and review your screening results and performance on a regular basis. Monitoring and reviewing your screening results can help you identify and resolve any errors, gaps, or issues in your screening process, as well as measure and report on your screening outcomes and compliance status. For example, you can monitor and review the number, type, and source of your screening hits or alerts, the time and effort required to clear or escalate them, the impact and consequences of any false positives or false negatives, and the trends and patterns of your screening activity and performance. By monitoring and reviewing your screening results, you can enhance your screening quality and consistency, and demonstrate your compliance with the relevant regulations and standards.

5 Train and educate your staff

The fifth step to optimize your SWIFT message screening is to train and educate your staff on the importance, purpose, and best practices of screening your SWIFT messages. Training and educating your staff can help you increase their awareness, knowledge, and skills on how to screen your SWIFT messages effectively and efficiently, as well as how to handle any screening hits or alerts properly and promptly. For example, you can train and educate your staff on the latest sanctions regulations and requirements, the features and functions of your screening tool and parameters, the procedures and policies for clearing or escalating screening hits or alerts, and the risks and responsibilities of screening your SWIFT messages. By training and educating your staff, you can foster a culture of compliance and professionalism in your organization.

6 Learn and improve from feedback

The sixth step to optimize your SWIFT message screening is to learn and improve from feedback from your internal and external stakeholders. Feedback from your stakeholders can help you gain insights, perspectives, and suggestions on how to improve your screening process and performance, as well as how to address any challenges or opportunities in your screening environment. For example, you can learn and improve from feedback from your customers, who may have expectations or preferences on how you screen their SWIFT messages and how you communicate with them in case of any screening issues or delays. You can also learn and improve from feedback from your regulators, auditors, or peers, who may have recommendations or best practices on how to comply with the sanctions regulations and standards. By learning and improving from feedback, you can continuously enhance your screening capabilities and reputation.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?