The war in Ukraine and the recent economic and financial sanctions taken against Russia are prompting many companies to consider implementing exclusion rules in payment processes.
Indeed, 8 Russian banks are today excluded from the SWIFT network and several Russian personalities and companies are also subject to a financial embargo.
These sanctions evolve every day and impact all financial transactions carried out with Russia. They have consequences on payment flows and inevitably on the work of treasurers:
- Need to control financial transactions and transfers issued to Russian banks or Russian beneficiaries
- Need to set up blocking rules in the IS (treasury and ERP) to avoid any risk of sending funds to these banks and beneficiaries, exposing the company to sanctions.
To prevent companies from accidentally initiating payments and exposing themselves to sanctions, NEOFI offers the Compliance which makes it possible to identify beneficiaries domiciled in Russia but using a bank account domiciled in a Western bank.
NEOFI Compliance solution is equipped with a rules engine which allows you to filter transactions to be banned by setting up exclusion rules, which can easily be modified depending on the evolution of restrictive measures.
Once these rules are activated, the payment files from the business ERPs are analyzed and doubtful transactions or those positive for the exclusion rules are isolated while awaiting the action of the validator (for validation or deletion). Authorized transactions continue their normal path through the validation/signature/banking process.
- Management of international sanctions lists and their updating: United Nations, OFAC, HMT, EU, national register of asset freezes
- Fully customizable filtering and settings, providing great flexibility for this intuitive tool that adapts to the needs of your business
- Smooth integration into your IS and connection with all your ERPs.
