Who you are doing business with can greatly affect your enterprise. If your organization transacts with a restricted entity, individual, or enterprise, it will be subject to sanction violations with penalties of up to $1,000,000 per transaction and 20 years imprisonment.
Regularly screening parties, however, is not an easy task. It requires thorough entity investigation, laborious data processing, and keen monitoring of all transactions the party makes. Doing all this manually can be extremely overwhelming.
You can automate the screening process using a cutting-edge solutions. SAP offers different tools under its Governance, Risk, Compliance (GRC), and Cybersecurity suite — including SAP Business Integrity Screening (formerly SAP Fraud Management), SAP Global Trade Services Sanctioned Party List Screening (SAP GTS SPL), and SAP Watch List Screening.
Each SAP screening tool has its competitive advantages and limitations. So which do you think can best cater to the unique needs of your enterprise? Here are some key factors to consider:
SAP Business Integrity Screening can be deployed either on-premise (client-hosted – perpetual license) or via Cloud (SAP hosted – subscription license). SAP GTS SPL can be run in the cloud, alongside SAP S/4HANA, or using a traditional database. SAP Watch List Screening, on the other hand, is cloud-native. It is available as Software-as-a-Service or as an added capability within SAP S/4HANA.
SAP Business Integrity Screening lets you use a pre-made detection strategy, create a new one, and refine and calibrate the strategy to simulate what-if scenarios. You may integrate it with SAP Predictive Analytics to detect suspicious behaviors and patterns not covered by existing rules going beyond simply screening business partners against denied entities list.
SAP GTS SPL and SAP Watch List Screening offer fully automated screening. But they also allow for manual input of parameters and ad-hoc screenings for extended use cases. Both solutions let compliance associates do further investigation to determine false positives and decide whether to confirm blocking or releasing the item. SAP Watch List Screening leverages embedded intelligence to minimize repetitive decisions on matches for more streamlined screening. However, SAP Watchlist Screening is delivered with a pre-set screening algorithm that applies to all subscribers, on the other hand SAP GTS SPL solution being a single tenant/on-prem solution allows for tweaking the algorithm and controlling match percentages to better reflect the risk appetite of the customer.
SAP Business Integrity Screening comes with pre-delivered content. It allows you to use external lists provided by the government and international agencies and create your internal list for ad-hoc screening.
SAP GTS SPL lets you import denied party lists from various external sources using the XML interface and create internal sanctioned party lists in SAP GTS. It enables you to choose which list to use during a screening process. It also lets you create legal regulations in SAP GTS to determine which sanctioned party lists are relevant for a particular screening process.The mature ecosystem of denied party content providers that service the SAP GTS solution ensures if there is a particular list that poses a specific risk to your enterprise, you can rest assured there is a content provider that aggregates and supplies that data.
SAP Watch List Screening simplifies content-related decisions by providing you with a single predefined content provider (Mendel-Verlag). It also provides Excel integration for uploading a list of trade partners that you want to screen. It remembers and uses the result to automatically block or release an item the next time you make a transaction.
Unlike SAP Business Integrity Screening and SAP Watch List Screening, SAP GTS SPL is not a stand-alone solution from a licensing standpoint. If you want to leverage SAP GTS SPL, you will need to license the export or import modules or the entire bundle of the SAP GTS suite. This can be a wiser move if you are looking to take advantage of a holistic solution for global trade compliance with denied party screening being a component of that need.
But if you are already operating in SAP S/4HANA, using SAP S/4HANA International Trade Management, or just want to take advantage of SaaS, then SAP Watch List Screening can be a great option to consider. Unlike on-premise and cloud deployments of SAP GTS and SAP Business Integrity Screening, an SAP Watch List Screening implementation is relatively faster and simpler — saving you enormous resources. You can even check out the software straight from the SAP store and ask for some integration help from a trusted partner like Ropaar to maximize its capabilities, which points us to the last point.
SAP Business Integrity Screening has built-in integration with SAP Analytics. It can be integrated with other GRC solutions for enhanced control and automated audit. SAP GTS, on the other hand, can be integrated with SAP S/4HANA, SAP ERP, other SAP solutions (such as SAP Transportation Management) out of the box, while non-SAP integration is supported via robust set of web services exposed from the SAP GTS’s denied party screening capability.
SAP Watch List Screening, on the other hand, is engineered for extensibility and integration with existing SAP and non-SAP systems. It comes with out-of-the-box integration with SAP S4/HANA and provides published APIs that can be integrated with other systems.
Regardless of what solution you choose, the success of your SAP project depends on your implementation team.
Using its TradeBlazers Approach, Ropaar can help your team overcome the complexities of selecting the right denied party screening solution, implementing and integrating it with other systems, and ensuring a high adoption rate. To get started, feel free to contact us.