Financial Crime

Financial Crime

Systematic and intelligent analysis and review of transaction monitoring is essential to avoid the risk of financial loss

RedCompass has made significant contributions through our Financial Crime engagements, especially in areas related to payments.  Consistent with our other services, we apply our domain expertise to meet regulatory compliance objectives in a cost-effective manner for our clients.

As financial institutions are only too aware, systematic and intelligent analysis and review of transaction monitoring is essential to avoid the risk of financial loss (both direct and through regulatory fines), customer impact and reputational damage (including censure) – all of which are unacceptable in today’s increasingly competitive and heavily regulated market.  Consequently, we find our clients enlisting our help to guard their intangible assets of trust and reputation.

Sanction Busting Payment Penetration Test

This service typically follows three stages:


“Is there a problem?”

  • Evaluate the effectiveness of the system landscape through best practice test cases and measures
  • Run Sanctions-Busting Payment Penetration Test with RedCompass Sanction Test Accelerator to measure effectiveness, vulnerability (missed positives) and cost of management (false positives)


“What is the problem?”

  • Conduct a lookback exercise and provide detailed analysis of how many transactions with key parameters have been missed
  • Provide a summary and detailed assessment report on lookback


“Fix the problem”


  • Recommend remediation (systems and operational Target Operating Model) of any deficiencies identified
  • Manage and lead system upgrades
  • Manage implementation of the updated Target Operating Model
  • On an ongoing basis, the objective is to explain emerging risks and trends and enable response to changing circumstances

Key Examination Focus Areas:

  • Filtering program
  • System performance
  • Risk assessment and matrix
  • Escalation process
  • Internal communication
  • External communication
  • Record keeping
  • Plans for improvement

Find out more about how we can put out expertise into practice to help your organisation by reading our Financial Crime case study:

PSD2 Financial Crime Testing

The Payment Services Directive 2 (PSD2) presents new challenges for financial services organisations in the world of Finance Crime through the regulatory requirement to adopt third party payment solutions. RedCompass can help them be thoroughly prepared by:
  • Using our RedCompass PSD2 Sanction-Busting Payment Penetration Test Accelerator to test the new PSD2 channel to assess whether sanctioned payments get through
  • Conducting Fraud Testing where we check the consent and authorisation process is correctly implemented
Through its detailed knowledge of PSD2, RedCompass provides testing services for:
  • Payments On Behalf Of (POBO)
  • PSD2 readiness reviews around financial crime
  • Sanction-busting testing – evaluation of systems to meet stated sanctions screening objectives
  • Consent and authorisation

Systems Selection

Over many years, RedCompass have advised our clients on the selection and implementation of financial crime systems to support payments.  We are experienced in running requirements capture, RFP processes, systems selection and procurement, and systems implementation.

Coordinated RFP for Tier 1 bank to evaluate and choose Sanction Screening system for payments platforms

Developed business requirements and bench-marking capabilities across multiple sanction screen systems

Experienced in integrating with numerous industry standard sanction system such as Fircosoft, Safewatch, Hotscan, Ofac Guard

Implemented both in-house and SaaS sanction systems including upload of multiple regulatory, and in-house sanction lists

Want to know more?

We'd love to discuss how we can enhance your organisation

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