Russian Sanctions Pose Compliance Risk to Banks and Fintech Firms


Reykjavik, Iceland -- (SBWIRE) -- 09/16/2022 -- The wave of sanctions that has been imposed on Russia since the invasion of Ukraine have presented a very broad range of challenges - and compliance risk - to banks and fintech firms on a global level. Export controls, sanctions and blocks on providing certain corporate services have made it vital for businesses in this sector to get more efficient when it comes to know your customer checks so as to avoid dealing with unsanctioned parties in the country. For many, the compliance risk has been so high that the decision has been taken to avoid Russia entirely. But for others, there is no option to do this and so the challenge has been to navigate what many have described as the most complex economic punishment that has ever been implemented by the USA.

One of the key ways in which Russian sanctions pose compliance risk to banks and fintech firms is simply due to the lack of headcount available to help process regulatory requirements. Many firms are finding it challenging to hire the right people to meet demand and this is creating significant compliance risk. A lack of resources and talent to address the weight of the sanctions is leaving many firms exposed. There are other problems to process too, including the range of new obstacles, such as reputation launderers who are working with Russian oligarchs to help them avoid sanctions and the fact that many organizations already have significant gaps in their approach to compliance risk. It's clear that action is required for many to avoid the legal, regulatory and reputational risks that can result where compliance risk is poorly managed.

The sudden rise in regulatory requirements as a result of the Russian sanctions has made it even more difficult for many banks and fintech firms to deal with compliance risk. This is something that Lucinity is well informed about - the firm's platform is already designed to help simplify the challenges that are involved in better managing compliance risk. Faster tech solutions are vital in this climate where there is very little margin for error. The effectiveness of Lucinity's anti money laundering compliance software comes from the fact that it has been created on the basis that a combination of human intelligence and technological innovation can be optimized to help improve compliance risk monitoring and make preventative measures easier to implement. The team at Lucinity has also worked on using the software to help businesses achieve productivity improvements too.

Since Lucinity was founded in 2018 it has grown significantly and, today, the business has a reach that extends far beyond the Nordic region. Offices in Brussels, New York, London and Reykjavik ensure genuine international reach and make it simple for global organizations to benefit from improved compliance risk. Part of the effectiveness of Lucinity's approach is the firm's belief in the potential to Make Money Good - and the empowering nature of technology when it comes to compliance risk. Lucinity has built its business around key values that matter, including shared intelligence, human respect, empathy and understanding and leveraging a quiet strength to empower businesses against financial crime.

About Lucinity
Lucinity is an anti-money laundering (AML) software developer on a mission to Make Money Good. Lucinity aims to solve productivity and efficiency issues for financial institutions through the company's 'Human AI' approach, a toolset that combines next-generation AI with human insights and expertise.

By leveraging AI, the AML software learns from every interaction and continues to improve indefinitely, providing fewer false positives and saving time. This is on top of its best-in-class interface and visualizations that put users first. Professionals can experience Lucinity's AML compliance solution, including transaction monitoring, through a free demo environment available on

Lucinity operates globally, with headquarters in Reykjavík, and serves customers ranging from Tier-1 banks to FinTechs.

Company Quote
Founder and CEO, Guðmundur Kristjánsson, comments, "Lucinity's unique experience in banking, compliance, regulation, and data science has helped us develop a new approach to tackling money laundering—harnessing the best of human intelligence and augmenting it with advanced AI.

Our simple-to-use systems work with analysts, not against them, complementing their skills and making them superheroes so they can take on financial crime, saving institutions time and money in the process.

We believe that by transforming AML, we can have a tremendous positive impact on society. Money laundering is a crime that fuels crime. That is why we set out on the mission of Making Money Good."

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Lucinity is an AML software company, founded in 2018, with offices in Reykjavík, New York, London and Brussels. Using advanced AI systems, we help banks discover money laundering and really know their customers, more efficiently – to stop the funding of serious crime across the world.