In today’s fast-paced financial landscape, instant payments are no longer optional – they are essential! The Single Euro Payments Area (SEPA) Instant Credit Transfer (SCT Inst) scheme has transformed how money moves across Europe, enabling 24/7 real-time transfers across 36 countries. But with great speed comes great responsibility: compliance with stringent EU sanctions regulations. 

The Dual Challenge: Speed and Precision in Sanctions Screening 

Financial institutions are now required to screen SEPA instant payments against EU sanctions lists in real time. This is not just a regulatory necessity – it is vital for preventing financial crime and protecting the integrity of the global financial system. But here’s the challenge: How do you achieve lightning-fast processing without compromising accuracy? 

Traditional compliance systems often falter under the demands of real-time payments. Sanctions screening isn’t a simple name-matching exercise. It involves deciphering complex, multilingual data from varied sources, such as EU Journals, which are often unstructured and published in multiple languages, including Arabic and Russian. Legacy systems are ill-equipped to manage this complexity at scale. 

 Facctum’s AI-Powered Compliance Solution 

Facctum leverages the power of Artificial Intelligence (AI) and Large Language Models (LLMs) to address the intricacies of SEPA Instant Payment compliance. Our cutting-edge approach is designed to meet the demands of speed, accuracy, and complexity head-on. 

Real-Time Monitoring and Insights 

Our AI continuously monitors EU Journals, using sophisticated language models to quickly extract critical sanctions-related details. With the ability to process multilingual content, including native script names in Arabic and Cyrillic, the system ensures no essential information is overlooked. 

Smart Data Extraction 

Our specialized LLMs are designed to decode the nuanced structure of EU Journals, extracting vital information, such as names, aliases, and dates of birth, regardless of how they are formatted. 

Automated Context Recognition 

Our AI goes beyond simple data extraction by identifying patterns and recognising the type of sanctions update, whether it is a new addition, amendment, or deletion. This capability eliminates the need for extensive manual analysis, dramatically improving efficiency. 

Human–AI Collaboration 

To ensure accuracy without compromising speed, we have integrated a Human-in-the-Loop validation system. This approach combines the speed of AI with the precision of human expertise, ensuring the highest levels of compliance. 

Achieving Seamless SEPA Compliance with Facctum 

Facctum transforms SEPA compliance from a hurdle into a competitive edge, ensuring financial institutions thrive in the real-time payment landscape: 

• Mitigating Compliance Risk: Real-time monitoring of EU Journals ensures timely updates to sanctions lists, eliminating the risk of regulatory breaches and protecting reputation. 

• Enhancing Screening Accuracy: Our multilingual data processing reduces false positives, enabling accurate, swift action on sanctions-related insights. 

• Streamlining Operations: Automating data extraction and context recognition removes bottlenecks, allowing seamless processing of high transaction volumes in real time. 

• Human-AI Synergy: Expert oversight ensures precise compliance decisions, blending AI speed with human judgment. 

• Reinforced Trust: Preventing sanctions breaches builds customer trust and strengthens market reputation.

Shaping the Future of Financial Compliance 

The SEPA Instant Payment regulation signals a broader trend in financial services: as payment systems move toward real-time processing, compliance must follow suit. The future of financial compliance lies in intelligent, AI-powered solutions capable of adapting to ever-changing regulations and operational demands. 

At Facctum, we are proud to lead this transformation. By blending state-of-the-art AI technology with deep domain expertise, we are equipping financial institutions with the tools they need to meet regulatory challenges head-on, combat financial crime, and drive the future of secure, efficient transactions. 

Together, we are building a smarter, safer financial ecosystem – one instant payment at a time!