CBA backs start-up to speed up sanctions compliance in payments

Global Screening Services, a regulatory technology company, has secured a $47m funding check from a consortium of investors including the Commonwealth Bank.

Regulatory technology start-up Global Screening Services has secured $47m in funding from investors including the Commonwealth Bank. Picture: Morgan Sette/NCA NewsWire

Global Screening Services, a regulatory technology start-up, has secured a $47m funding cheque from a consortium of investors including the Commonwealth Bank.

The London-based “regtech” firm focuses on sanctions compliance in the financial industry amid an increasingly complex geopolitical landscape.

The new funding round would fund the launch of its cloud-based platform to “inaugural clients”, which would streamline the way banks screened transactions for potential sanctions violations, the company said.

“Banks play a critical role in combating financial crime and protecting their customers, the community and integrity of the financial system,” said John Fogarty, CBA’s executive general manager of financial crime ­compliance.

“We’re excited about the potential of GSS with its global reach and look forward to seeing how CBA can potentially utilise this technology to continue to prevent sanctioned parties from accessing and moving money into or out of Australia.”

As part of the investment, Mr Fogarty would join GSS’s main board of directors as an observer, the company said.

GSS’s technology would also help speed up millions of international payments for customers, he said.

Millions of legitimate payments are delayed each year because of screening measures erroneously flagging routine transfers as suspect. GSS claims its platform can dramatically accelerate the process while improving detection rates.

The companies did not disclose CBA’s share. The bank invested alongside previous backers including global consulting firm AlixPartners and Utah-based private equity firm Cynosure.

“GSS is uniquely positioned to deliver improved regulatory compliance and an enhanced customer experience,” GSS chief executive and co-founder Tom Scampion said. 

“We’re delighted to have closed this funding round and to be working with such incredible partners to take GSS to market.”