Building an End-to-End OFAC Compliance Monitoring System in Insurance Domain

Authors

Praveen Kumar Koppanati

Abstract

The insurance industry faces a strict regulatory landscape, particularly with regards to compliance with the Office of Foreign Assets Control (OFAC) regulations. This paper presents a comprehensive approach to designing and building an end-to-end OFAC compliance monitoring system tailored specifically for the insurance domain. The proposed system incorporates best practices in software engineering, data management, and regulatory adherence to mitigate risks related to sanctions violations. The paper explores the integration of key components such as screening technology, automated workflows, data analytics, and reporting mechanisms to ensure a robust compliance system. It also evaluates challenges and solutions associated with OFAC compliance within the insurance industry, including legacy system integration, real-time transaction monitoring, and handling false positives in sanction screenings. Using specific case studies and industry examples, this paper provides a roadmap for insurance companies seeking to implement an OFAC compliance monitoring system that adheres to both regulatory and operational requirements.

Keywords

OFAC compliance, insurance, sanctions screening, automated workflows, data analytics, regulatory adherence, false positives, transaction monitoring.

Building an End-to-End OFAC Compliance Monitoring System in Insurance Domain. Praveen Kumar Koppanati. 2023. IJIRCT, Volume 9, Issue 6. Pages 1-8. https://www.ijirct.org/viewPaper.php?paperId=2410036