We're revamping our payments architecture and looking for practical advice on minimizing false positives without creating significant latency. What's the current thinking on balancing speed and accuracy for OFAC/sanctions checks during live transactions, especially for cross-border flows? Are pre-screening or tiered approaches proving effective?
That's a tough balance to strike. For cross-border, especially with diverse sender/receiver names, it feels like a tiered approach with an initial quick check and then more thorough async screening for hits is almost unavoidable to keep latency down. Are you looking at any specific third-party solutions for the initial pass?
Integrating sanctions screening in real-time is always a trade-off. Pre-screening can certainly help, but the regulatory landscape changes too frequently to make it a perfect solution. Tiered approaches have shown some promise, but the implementation complexity often outweighs the benefits for most institutions.