G20 TechSprint 2023

The Transparency Fabric: Simplify screening, increase efficiency by relying on standardized and high-quality data for sanctions and AML screening

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The challenge

According to a report by the Bank for International Settlements, an estimated $2 trillion to $5 trillion are laundered globally each year but only less than 1% of this amount is actually recovered by the authorities.


Despite the efforts by both the public and private sectors to oppose money laundering and terrorist financing, a critical challenge remains: Different data sets need to be matched efficiently, particularly in the context of cross-border and instant payments.


The Transparency Fabric is a groundbreaking collaboration between GLEIF, Open Ownership and OpenSanctions aimed to tackle this challenge by integrating high-quality, standardized data into existing sanctions and PEPs lists.

Introducing the LEI

At the heart of the 'Transparency Fabric' lies the Legal Entity Identifier ( LEI ), the 20-character global ISO standard 17442 for legal entity identification.


The LEI connects to key reference information that enables clear and unique identification of legal entities participating in financial transactions, including direct and ultimate parent entities, subsidiaries, branches, managed funds, and umbrella structures.


In addition, the LEI is mapped to other essential standards and identifiers, such as the BIC, MIC, ISIN, S&P Global Company ID, and OpenCorporates identifier, which ensures seamless integration across various financial systems.

Our partners

Open Ownership is driving the global shift towards transparency over who owns and controls companies by working with governments to make high-quality beneficial ownership data available, including through advocacy for data publishers to use its Beneficial Ownership Data Standard (BODS).

OpenSanctions builds a global watchlist product using open-source technology. By combining data from over 80 sources (including government-published sanctions lists, criminal watchlists and international databases of PEPs), OpenSanctions creates a rich graph of companies and people that pose a business risk.


Our solution

Together, the 'Transparency Fabric' is about to revolutionize the screening process, making it simpler but more effective and allowing to trace the players in money laundering, terrorist financing, and sanctions evasion, creating a more transparent and secure financial landscape for all.

Higher-quality international beneficial ownership data will be attained, as a result of the efforts of Open Ownership in reconciling the data with OpenCorporates, and the addition of the LEI as the identifier for related entities in beneficial ownership data will further enhance data usability.


Thanks to the mapping of the GLEIF and Open Ownership data to the OpenSanctions database and the graph intelligence solution developed by Linkurious, graph technology will be able to be effectively and easily used to find direct and indirect connections between businesses identified by an LEI and sanctioned persons and companies.

VTB Capital PLC is the UK subsidiary of VTB Capital, one of the top investment banks in the Russian Federation.
While VTB Capital PLC itself is not included in any sanctions list, its ties with the sanctioned VTB Bank largely influenced its activities and the company was placed into administration for insolvency issues in December 2022.
Despite its connections to sanctioned entities, the company is reported to still be able to sponsor the entry of Russian nationals in the United Kingdom through a loophole that is defined as posing a potential security risk, according to an article published by The Times on January 29th, 2023.
Our solution allows to visualize the ties of VTB Capital PLC with sanctioned entities and PEPs, providing a high degree of transparency for interested business users and third parties. Click here to display the solution full screen on Linkurious

Disclaimer

This website has been created solely for the purpose of showcasing a proof of concept (PoC) as a part of the G20 TechSprint 2023 event. The content and information embedded in this website are not intended to be exhaustive or comprehensive; rather, they are designed to illustrate a specific use case within the context of the G20 Tech Sprint. While diligent efforts have been made to ensure the accuracy and reliability of the underlying data and application, it is important to note that the organizations responsible for this website - GLEIF, OpenOwnership and OpenSanctions - cannot be held liable for any loss, damage, or inconvenience that may arise due to inaccuracies or errors in the displayed content. The textual and graphical elements presented on this page, as well as the associated application, are subject to use, printing, and distribution ONLY after obtaining written confirmation from the three aforementioned organizations. This disclaimer underscores the collaborative effort and responsibility taken by the organizations involved in presenting this PoC while also emphasizing the importance of seeking permission before utilizing the content in any manner.

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