Faster client onboarding, better risk management and sustainable growth. All financial service providers in Southern Africa, including those in Microfinance, are required by law to comply with Anti-Money-Laundering (AML) legislation.
In practical terms, you can sum up AML compliance as: Your company needs to perform Sanction Screening on all new, potential and existing clients before entering into a business agreement with them.
When regulators ask for your reports for AML, what they really mean is they want to see how and when you performed sanction screening.
But, of course, it’s not just about compliance: Performing sanction screening has specific and measurable business benefits to you in Microfinance…
What is Sanction Screening?
Sanction screening involves checking potential clients and transactions against sanctions lists issued by international bodies and national governments. These lists identify individuals and entities that are restricted from doing business due to their involvement in terrorism, money laundering, or other illegal activities.
It’s a legal requirement in Microfinance, but you can get it completely automated and for 90% less than international options with a world-class local option – see our sanction screening solution.
8 Remarkable Benefits of Sanction Screening for Your Business in Microfinance
1. Enhanced Reputation and Trust
By implementing robust sanction screening measures, Microfinance companies can demonstrate a commitment to ethical and responsible financial practices. This builds trust with regulators, donors, and clients alike.
2. Reduced Risk of Financial Crime
Sanction screening helps identify and deter individuals and entities associated with illegal activities from using Microfinance services for illicit purposes. This safeguards your institution from financial losses and reputational damage.
3. Better Internal Risk Management
Sanction screening goes beyond just identifying potential threats on a national or international level, it also helps you uncover potential red flags associated with applicants, such as unusual financial activity or connections to sanctioned individuals. This allows you in Microfinance to make even more informed lending decisions, reducing your individual business risks.
4. Local and International Regulatory Compliance
Financial and AML regulations in Southern Africa increasingly emphasise the importance of sanction screening. Quality solutions thus help ensure your business stays compliant with evolving requirements.
5. Efficient Client Onboarding
Automated screening tools streamline the client onboarding process, allowing you to quickly and efficiently verify identities and mitigate risks.
6. Operational Efficiency
Automated sanction screening also streamlines the ongoing client management process by continuously screening, creating reports etc. This saves time and resources for your staff, allowing them to focus on core activities like financial education and client support.
7. Financial Inclusion & Market Growth
By mitigating the risk of financial crime, sanction screening fosters a more secure financial environment. This can encourage new clients to feel confident using Microfinance services, ultimately promoting broader financial inclusion and growing your potential market.
8. Supporting Sustainable Growth
A secure and compliant MFI attracts investors and donors who are confident their funds are being used responsibly. This allows Microfinance institutions to access additional capital, which fuels further growth and allows them to serve more clients in the long run.
How to Get Sanction Screening in Southern Africa
STEP 1: Book a Demo with us and we'll show you how ZenDetect operates, discuss technical details, and explain integration with your admin systems.
STEP 2: Our team will assist your developer in integrating ZenDetect, or help you find a developer for this purpose.
STEP 3: As soon as it’s set up, you can bulk upload your database and screening begins immediately – the system will continuously and automatically screen, and you’ll be notified whenever the Sanction Lists are updated or if a flag requires your attention.
The Benefits of ZenDetect Sanction Screening
- Cost-Effective: Drastically reduces your AML compliance costs.
- State-of-the-Art Technology: Offers continuous and automated screening.
- Easy Reporting: Simplifies compliance reporting.
- Timely Updates: Automatically updates in sync with Sanction list changes.
- Continuous Scanning: Ensures your records are always up-to-date.
- Bulk Upload Capability: Manages large volumes of data efficiently.
- Granular Control: Provides detailed control over every record.
- Seamless Integration: Compatible with various admin and operational systems.
ZenDetect is not just a tool; it's a solution tailored to African businesses' unique needs in the global AML landscape.
By choosing ZenDetect, you're opting for affordability, efficiency, and compliance ease, ensuring your business remains competitive and compliant.
Get Sanction Screening right now
