Why the use of algorithmic manipulation is essential in screening system testing

Understanding Latin American name structures

This paper aims to provide specific insight and understanding about the construction of Latin American names. It will help you to fully appreciate the high number of Latin American name variations that could potentially be used either legitimately or to avoid detection during the sanction screening process.

It also demonstrates the importance of using algorithmically manipulated datasets to test your sanction screening system. By using manipulated test sets, your screening software will be carefully tested to ensure it can match and create an alert for a sanctioned individual if they are using (or attempting to use) a variant of their name.

Individuals and entities involved in illicit financial activities will go to extreme lengths to hide and move money and do so in many ways. They may open bank accounts, create complex networks of offshore entities or purchase property overseas. During this process, they may deliberately attempt to disguise their identity by using false names, aliases, or unusual name variations.

All these eventualities increase the challenge for financial institutions and drive how thresholds are set for matching and alerting against sanctioned names and entities when routinely screening customer and transaction data. A high number of Venezuelan citizens have recently been sanctioned by the United States. These individuals are mostly high-ranking government officials associated with the Venezuelan state-owned oil company or involved with the Venezuelan Constituent Assembly elections in 2017.

Most countries in Latin America follow a traditional naming system that differs from those used in Europe, North America and Asia Pacific.

The following examples demonstrate the name structure most Latin American countries follow and accept. In Argentina, however, using a maternal surname is more unusual – normally, only the first and paternal names are used.

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