The global sanctions landscape is characterised by complexity and ongoing change, both of which can quickly create compliance challenges for trading and data professionals tasked with identifying sanctioned securities.
- Trading and data professionals must take care that they do not violate global sanctions regulations because they have failed to identify individually sanctioned securities.
- Refinitiv’s DataScope Select enables professionals to make informed decisions and to adhere to sanctions-related trade regulations.
- DataScope Select uses the World-Check risk intelligence database to provide users with sanctions coverage of more than 250 lists.
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Sanctions definitions:
Specially Designated Nationals (SDN) sanctions freeze any business or trading activity associated with an individual or company.
Sectoral Sanctions Identifications (SSI) sanctions restrict transactions in securities created by specific businesses, groups or individuals.
Sanctions, often imposed on countries in an effort to bring about social or political change, are complex at the best of times. They may be comprehensive, freezing any activity with a sanctioned country or individual, or sectoral (targeted), restricting transactions in securities issued by entities or individuals.
This means that identifying and responding effectively to top line sanctions is not enough, as institutions must also identify individually sanctioned securities, including those issued by the subsidiaries of sanctioned companies and those where sanctioned individuals enjoy beneficial ownership.
Trading and data professionals who fail to accurately identify such securities are at risk of violating sanctions regulations, and the consequences can be severe – extending to potentially significant financial and reputational damage.
Targeted help to identify individually sanctioned securities
Refinitiv’s DataScope Select offers a targeted instrument sanctions service to overcome these challenges and enable smooth and effective sanctions-related trade compliance.
Housed within Refinitiv’s extensive Pricing and Reference Service (PRS) business, our pre-trade compliance solution delivers current lists of sanctioned entities and their subsidiaries (50 percent ownership or more), including affiliates, but importantly, also lists the individual securities issued by those entities.
This targeted and specific information helps professionals to make informed decisions based on up-to-date, trusted data. To ensure that information remains relevant and accurate, we closely monitor all EU, OFAC and UK published data, and we also regularly expand our service to include new areas and jurisdictions.
Sanctions and financial instrument expertise
The service leverages the advanced functionality of our market-leading World-Check risk intelligence database to deliver a combination of sanctions and financial instrument expertise.
World-Check offers market-leading sanctions coverage of over 250 sanctions lists, with all major sanctions lists monitored and covered on an ongoing basis. This means that we are consistently able to deliver superior sanctions data and value-added insights to help protect against regulatory and reputational fallout.
Our detailed reports include identifiers and reference data for all equities and fixed income securities issued by the sanctioned entities, and detail both the effective and (where applicable) end dates of sanctions.
Additionally, our Chinese report covers derivatives, warrants, indices and ETFs, with the file updated on a daily basis.
Jurisdictions covered include:
- Iran and North Korea – sanctions imposed by the U.S. and the EU.
- Russia – sanctions imposed by the U.S. and the EU.
- Russia – additional sanctions imposed by the UK.
- Venezuela – sanctions imposed by U.S.
- China – sanctions imposed by U.S.
Tailored for efficiency
We are able to access support from our hundreds of market analysts across the globe, and tap into our extensive legal entity database. This means that the depth and breadth of our data covers more than six million entities in over 240 market locations.
Moreover, we guarantee transparency, only use auditable sources, and carry out strict data quality control procedures.
Importantly, the service is highly cost-effective, since clients are able to select sanctions-related data on only the countries that are relevant to their needs.
This streamlined and selective approach also boosts efficiency by filtering noise, so that users can focus on the information most pertinent to their needs.
In a strict regulatory environment, where ongoing changes to global sanctions continue to change the compliance landscape, access to targeted, trusted data has become a critical requirement for effective compliance.
Not only does detailed and specific information about sanctioned securities save time and boost efficiency, but it also minimises any risk of inadvertently buying, or continuing to hold, a prohibited security.
