Enhancing Financial Security: Advanced Geolocation for Comprehensive Sanctions Compliance Skip to content

Enhancing Financial Security: Advanced Geolocation for Comprehensive Sanctions Compliance

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Digital transactions are the future of finance, yet they create significant compliance challenges for financial institutions; complying with location-based financial regulations, online, requires accurate location data. 

Comprehensive sanctions, administered by the U.S. Treasury Department, are essential elements of U.S. national security policy and are among the most important regulations for financial institutions. These sanctions mandate U.S. companies to restrict services to users in  targeted countries. Relying on inaccurate location data for sanctions compliance severely undermines the effectiveness of these programs, exposing financial institutions to legal and reputational risk. 

Generally, financial institutions rely on IP addresses to determine the location of participants in a transaction. However, IP addresses are often inaccurate and prone to manipulation, offering bad actors opportunities to bypass traditional security measures with advanced spoofing techniques and VPNs. The time has come for a more dependable solution. New geolocation technologies can ensure transactions meet the highest security standards and comply with strict regulations.

IP inaccuracy

GeoComply analyzed thousands of mobile connections to identify general trends in IP address accuracy. We discovered that the average variance between the location associated with the mobile IP address connection and the actual user location is over 100 miles.

Additionally, IP addresses are vulnerable to manipulation through various tools and techniques, ranging from cheap and accessible VPNs to sophisticated forms of device manipulation. 

GeoComply analyzed thousands of attempted transactions originating from comprehensively sanctioned jurisdictions.¹ Astonishingly, 95.3% of these transactions had IP addresses outside the sanctioned jurisdiction. 48.5% involved advanced spoofing techniques, including downloadable software, compromised device configurations and tampered network connections.

¹Determined through GeoComply’s proprietary analysis techniques, involving advanced analytics and multiple alternative location data points, including GPS, Wi-Fi, and Cellular data.

Geocomply sanctions and ip addresses

The remaining 46.8% of misattributed IP address locations were due to a number of factors, including generally inaccurate mobile IP connections and connections associated with satellite internet service providers (ISPs). In short, any compliance program based on IP data risks allowing a significant number of prohibited transactions. 

The revelation serves as a wake-up call for the financial sector to pivot towards more sophisticated solutions. Advanced geolocation for compliance that harness data from cell towers, Wi-Fi, and GPS, offers the required precision and reliability. This shift isn’t just about keeping pace with regulations; it’s about setting a new benchmark in transaction security and compliance.

Geolocation average accuracy

Enter GeoComply’s geolocation technology, a game-changer in the landscape of financial compliance. By leveraging advanced data analysis and real-time monitoring, GeoComply actively prevents threats, making a pivotal evolution in sanctions compliance and ensuring a secure, regulated digital transaction environment for all stakeholders involved.

GeoComply: Leading the charge

GeoComply specializes in advanced geolocation technology, offering a robust solution that integrates cell tower data, Wi-Fi signals, and GPS for precise location verification. This approach enhances the accuracy and reliability of transaction monitoring, ensuring compliance with strict regulatory standards and protecting against fraud.

Our platform is tailored to address the dynamic challenges of financial compliance, using real-time analytics to accurately monitor transactions and prevent sanction violations. With GeoComply, businesses can confidently navigate regulatory requirements and uphold a secure digital transaction environment.  

Looking forward

Advancing compliance solutions presents both challenges and opportunities. As location standards evolve, advanced geolocation’s role in the future of financial security becomes evident. For compliance officers, security professionals, and all stakeholders in digital transactions, the message is clear: reliance on outdated and easily manipulated systems is ending. Precision, security, and innovation are at the forefront, with GeoComply leading the charge.

Get in touch to discover GeoComply’s solutions and enhance your compliance strategy. For an overview of our approach to redefining sanctions compliance, access our one-pager.

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