The war in Ukraine and the recent economic and financial sanctions against Russia are prompting many companies to consider implementing exclusion rules in payment processes.
Indeed, 8 Russian banks are currently excluded from the SWIFT network and several Russian personalities and companies are also subject to a financial embargo.
These sanctions are evolving daily and impacting all financial transactions with Russia. They affect payment flows and, inevitably, the work of treasurers:
- Need to monitor financial transactions and transfers made to Russian banks or Russian beneficiaries
- Need to implement 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 has a rules engine that allows you to filter transactions to be banned by setting up exclusion rules, which can be easily modified according to changes in restrictive measures.
Once these rules are activated, payment files from the business ERP systems are analyzed, and transactions that are suspicious or meet the exclusion rules are isolated pending action from the validator (for validation or deletion). Authorized transactions continue their normal path through the validation/signature/banking process.
- Management and updating of international sanctions lists: United Nations, OFAC, HMT, EU, national asset freeze register
- Fully customizable filtering and settings provide exceptional flexibility for this intuitive tool that adapts to your company's needs
- Seamless integration into your IT system and connection with all your ERP systems.
