In an increasingly complex global risk landscape, the quality and timeliness of screening data have become central to compliance strategies. A new research paper from LSEG, based on insights from 400 senior compliance professionals, reveals that many financial institutions and designated non-financial businesses and professions (DNFBPs) are rethinking their risk management frameworks to ensure data can keep pace with evolving regulatory demands.
Against a backdrop of economic uncertainty, rising financial crime, and geopolitical instability, the research highlights that organisations are struggling with data that is either out of date or incomplete. These shortcomings significantly increase the risk of breaching sanctions or anti-money laundering (AML) regulations and result in inefficient workflows and higher costs.
Three key challenges stand out in the findings. First, timeliness is a persistent issue. Over half of the respondents said they receive sanctions updates only after 24 hours or more—far too slow to meet increasingly stringent regulatory expectations. Second, false positives remain a major burden. Around 32% of respondents reported experiencing false positive rates of 20–30% in their AML and sanctions screening each month, contributing to unnecessary investigative work and spiralling compliance costs. Third, 44% believe the most impactful change they could make is improving data completeness and accuracy.
To address these issues, many firms are turning to technological solutions. The report shows growing optimism around the role of AI in screening processes. While 31% already see value in AI and machine learning to improve their compliance programmes, a much larger 93% believe such tools will have an impact by 2025. A majority—65%—expect AI to play a major role, with over half planning to invest in generative AI and natural language processing models within the next three years.
However, the report cautions that AI must be implemented responsibly. Automation offers speed and efficiency, but only when paired with trustworthy data and robust governance. Poor-quality data can undermine the very systems meant to improve compliance, leading to misinformed decisions and missed regulatory obligations.
The key takeaway from the report is clear: access to accurate, complete, and real-time data is non-negotiable. In today’s fast-moving regulatory environment, “every second counts”—and data is the foundation on which effective compliance must be built. For organisations investing in new technologies, data integrity must remain at the centre of any compliance strategy.
Read the full story here.
Keep up with all the latest FinTech news here
Copyright © 2025 FinTech Global
Copyright © 2018 RegTech Analyst
