Survey: Companies bullish on new tech amid enhanced sanctions scrutiny

Digital data

If sanctions are the top enforcement priority for the Department of Justice (DOJ), companies have got the message, according to a recent study.

Nearly half the respondents (43 percent) to a survey conducted by Compliance Week and third-party risk management (TPRM) software provider Certa said increasing regulatory scrutiny was the main factor driving their organization’s adoption of technology for third-party due diligence and sanctions compliance. Businesses also indicated keeping pace with the rate of regulatory change as the biggest challenge to ensuring sanctions compliance (59 percent), ahead of budget constraints (44 percent), training third parties (37 percent), and lack of data (32 percent). More than one answer was permitted.

Though organizations understand and are taking seriously the DOJ’s current mantra that sanctions are the new Foreign Corrupt Practices Act, some still believe the cost of standing up an enterprise-grade sanctions compliance program is more expensive than any potential fine, said Dave Crozier, senior vice president of digital transformation and partnerships and alliances at Certa. That said, those organizations understand sanctions compliance demands are not slowing down and will only get more complicated, he added.

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