Moody’s has launched a new sanctioned securities screening capability aimed at enhancing investment decision-making workflows for asset managers.
The company is renowned for its comprehensive data and analytics solutions, which support financial decision-making across various sectors.
The introduction of this new product addresses the growing need for asset managers to efficiently monitor portfolios for sanctions risk. This tool helps avoid regulatory breaches and penalties, providing managers with the confidence to make informed portfolio decisions amidst a complex and dynamic geopolitical environment.
Moody’s offers a wide range of services, including credit ratings, research, tools, and analysis that contribute to transparent and integrated financial markets. The company’s expertise extends across various domains, helping clients manage risks and seize opportunities effectively.
The newly launched sanctioned securities screening tool is designed to identify and monitor sanctioned securities within investment portfolios. By leveraging one of the world’s largest and most comprehensive entity datasets, the solution provides trusted intelligence on sanction exposure at national, international, and sectoral levels. It helps investors avoid pre-trade regulatory breaches related to sanctions through perpetual portfolio monitoring and alerts when securities are newly sanctioned or appear on watchlists.
This product is particularly significant because not all sanctioned entities are explicitly named on sanctions lists. Identifying such securities involves enhanced due diligence, including analyzing ownership, control, voting power, and linkages. Moody’s solution simplifies this complex process by offering insights that ensure compliance with regulations like the Office of Foreign Assets Control’s (OFAC) 50 Percent Rule and the European Union’s “by control” rules.
Additional features of the product include continuous monitoring and real-time verification of investment choices, safeguarding investments from potential sanctions risks hidden within complex ownership structures or spread across multiple sanctioned entities.
Matthew Seymour, General Manager, Buy-Side Solutions at Moody’s, said, “The geopolitical environment is currently unstable and dynamic, which increases market and portfolio risk. To help asset managers, we’ve integrated best-in-class sanctions detection into the investment decision-making process. Managers can verify their investment choices in real-time and be assured that their portfolios are being continuously screened.”
Keith Berry, Moody’s General Manager for Compliance and Third-party Risk, added, “Moody’s is uniquely positioned to help the buy-side manage and mitigate a variety of integrated risks. When it comes to sanctions risk, we go ‘beyond the lists’ to reveal sanctions risk hidden within complex ownership structures or distributed across multiple sanctioned entities. We connect the dots for clients so that they can focus on growing their business with confidence.”
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