Why you need better screening data

Our latest research paper looks at the role of screening data in today’s risk environment – and finds that the quality and timeliness of your data can make all the difference. Why? Because better data helps you manage complex risk challenges efficiently and keeps you on the right side of an evolving compliance curve. 

This research report^[1]  brings you insights from 400 senior compliance leaders, and delves into the importance of timely, accurate screening data in today’s risk environment. 

While geopolitical tensions, economic pressures and rising financial crime are creating a complex and challenging risk backdrop for global players, the right data can help you navigate these challenges more easily. 

At the same time, trusted data equips you to remain compliant in a demanding regulatory environment. 

Read our white paper to discover why large numbers of financial institutions and designated non-financial businesses and professions (DNFBPs) alike are investigating new ways to manage evolving compliance risk. 

Our report looks at the top three challenges that both financial institutions and DNFBPs face today:

• A lack of timely critical data updates

More than 50% respondents only receive sanctions updates in 24 hours or more. This can lead to a very real risk of breaching regulations that require prompt action.

• High false positive rates

32% respondents say that, in a typical month, they experience false positive rates of 20 – 30% in their sanctions and AML screening processes. Why is this a problem? False positives can reduce efficiency, increase workloads and raise compliance costs. 

• Incomplete or inaccurate data 

44% respondents say that better coverage – more accurate and comprehensive data – is the most valuable improvement they could make to their current sanctions and AML compliance.

To better manage compliance risk, many organisations are investing in technology and process improvements. The use of AI is on the radar.

• 31% of survey respondents say they believe the use of AI and machine learning tools will help improve their screening programme’s effectiveness and efficiency. 
• 93% respondents believe that AI and machine learning will impact their compliance management in 2025 and beyond, and 65% expect a “major impact.”
• Looking ahead, over half (52%) say that they plan to invest in generative AI and natural language models over the next 3 years.

There is no question that AI has the potential to enhance automation, which in turn brings speed and enhanced efficiencies, but our report also highlights that any AI-enabled technologies must be adopted in a low-risk manner.

Our report concludes that there is an “urgent need” for timely, well-structured and accurate data. 

Accessing the right data at the right time is essential for several reasons. Inaccurate data leads to poor decisions, and without timely updates, organisations simply cannot remain compliant with regulatory requirements, raise efficiency levels and meet customer expectations for seamless interactions.

As more industry players turn to technology and AI-enabled tools to help them meet evolving compliance risks, there is a great deal of potential to improve decisions, speed up processes and deliver better customer experiences – so long as these tools are safely deployed with human oversight and alongside other key ingredients, including trusted and complete data. 

1. In late 2024, LSEG conducted research with senior risk and compliance professionals. A total of 402 respondents with an appropriate level of seniority (e.g. C-suite, senior SMEs), subject matter expertise and decision-making authority were surveyed. Regions covered included Asia-Pacific, EMEA and the Americas, and industries included spanned financial services (banking, investment, and wealth and advisory) and DNFBPs.