Funds transfer operations executives can reduce risks and fines with a system from Logica North America Inc., which automatically checks payments and messages against a file of blocked accounts.
High volumes of daily payment transactions make it difficult to check each transaction without incurring enormous costs and impeding the flow of transactions. Consequently, many banks use limited strategies, such as checking only selected payments. But when a bank sends a payment to a blocked account, it can be fined thousands of dollars.
This system, called HotScan, is designed to help U.S. banks comply with the regulations set forth by the Treasury Department's Office of Foreign Asset Control. It checks all transactions against a bank's data base of blocked entities and flags any transaction that contains a blocked entity.
Logica North America, Boston, is a subsidiary of Logica PLC, London.