OFAC/SDN Watchlist Software Application Axiom #3

3 Mar 2008 by Chetan Shah.

One of the key components of an efficient watchlist matching software application is its “matching” matrix. This matrix defines on which fields should the application match the enterprise data with the watchlist data. This matrix also defines the priority of each match. I.e. : If there is a customer in the company whose last name, first name, complete address and nationality perfectly match with what is on the watch list side then the risk analysts need to look at this customer asap. This can be done by assigning a priority for each match pattern which the software application looks for as part of the matching process between the enterprise and watchlist data.

Axiom :
The Matching Matrix should be reviewed and updated on a regular basis.

Reason #1 :
As the enterprise grows, its data characteristics change. The match patterns created last year might not be efficient this year due to data changes. Old/Outdated patterns can create a lot of false positives for Risk Analysts.

Reason #2 :
The watchlist data supplied by different agencies also undergo cleansing. Data which was harder to extract in the past might be easier to extract now. For example : prior to the SDN’s XML Format, the date of birth was in the comments field of each record and hence was not guaranteed to be in a proper format.

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