London-based regulatory technology firm GSS secures $47M in funding to assist banks with global sanctions screening.

Wed Mar 27, 2024 - 9:09am GMT+0000

Global Screening Services (GSS), a regulatory compliance firm based in London that assists financial institutions in adhering to international sanctions requirements, has successfully completed a funding round, securing $47 million.

This funding achievement occurs against the backdrop of an increase in economic sanctions, including trade restrictions and the freezing of assets by the U.S. against countries such as Russia, China, and Iran.

Tom Scampion, GSS’s co-founder and CEO, formerly led Deloitte’s EMEA financial crime division before departing in 2020 to join consulting firm AlixPartner as a general partner. It was during his tenure at AlixPartner that GSS was conceived and later launched as an independent company in 2021.

Last year, GSS attracted similar funding levels from prominent investors, including Mitsubishi UFJ Financial Group (MUFG) from Japan, one of the globe’s leading banks. For its most recent financing, GSS announced support from another financial titan, the Commonwealth Bank of Australia (CBA), accompanied by contributions from Cynosure Group and AlixPartner.

Given their critical role in the global monetary system, banks are often on the frontline in enforcing sanctions. However, tracking financial transactions to ensure compliance is a complex task. For example, in 2019, Standard Chartered faced a fine of $1.1 billion from regulators in both the U.K. and the U.S. for failing to implement adequate anti-money laundering measures, including violations of sanctions against nations like Iran. Five years prior, BNP Paribas incurred an $8.9 billion penalty for facilitating financial transactions for U.S.-sanctioned countries.

This backdrop underscores the growing investor interest in regulatory compliance ventures. Last year, Droit, based in New York, raised $23 million, and shortly before, SteelEye in London secured $21 million in funding.

GSS markets a sanctions screening solution that enables banks and other financial bodies to ensure regulatory compliance. These entities input transaction data into GSS’s cloud-based system, which issues alerts for any matches found on a global sanctions list, enhanced by GSS with additional information such as birth dates, International Maritime Organization (IMO) numbers, and details from the financial transfer systems of sanctioned nations like Russia and China.

Moreover, GSS offers advanced screening lists, including entities partially owned by individuals, companies, or governments sanctioned by OFAC, the EU, or the U.K.

With an additional $47 million in funding, GSS is transitioning from its development stage to becoming fully operational, ready to serve its inaugural customers.