Singapore leads APAC in audit trails for screening decisions

About 72% of firms say they are very prepared for regulatory scrutiny.

Singapore leads Asia Pacific in its ability to produce audit trails for screening decisions, according to a report by LSEG Risk Intelligence.

The report, based on a survey of 600 senior decision-makers responsible for compliance, financial crime and risk intelligence, including 200 respondents across four APAC markets, found that 96% of Singapore organisations surveyed could produce a complete audit trail easily if challenged by a regulator.

The figure was ahead of Australia at 86%, Japan at 80%, and Hong Kong at 76%.

The report also found that all Singapore organisations surveyed said they were prepared for closer regulatory review.

Some 72% of Singapore respondents said they were very prepared for closer regulatory review, compared with 68% in Australia, 48% in Japan, and 58% in Hong Kong.

Singapore also recorded the highest confidence in screening data amongst the four APAC markets. Some 98% of respondents said they were confident their screening data was complete and up to date when a screening decision was made, including 64% who were very confident.

External screening data was also rated strongly in Singapore. Some 62% of Singapore respondents rated data covering sanctions, politically exposed persons (PEPs) and adverse media as very strong, compared with an APAC average of 36%.

Overall, 86% rated both their internal and external data as strong, compared with 70% across APAC and 77% globally.

Despite high confidence in screening data, manual verification remains common. Some 74% of Singapore respondents said they frequently or always check screening results against another source, whilst 22% said they always do so. No respondent said their team never verifies a screening result before deciding what action to take.

The findings come as organisations look to use AI more extensively in screening. Human review remains the leading condition for trusting AI-supported screening amongst Singapore respondents, cited by 44%, followed by having AI built on trusted, high-quality data at 42%.

No Singapore respondent reported full trust in AI for screening decisions, in line with the global figure of less than 1%.

Globally, 94% of respondents said they were confident their screening data was complete and current, but only 48% said they could produce a complete audit trail very easily if challenged by a regulator. Some 41% said they were not fully prepared for closer regulatory scrutiny.

LSEG Risk Intelligence said organisations need to connect trusted information, accurate matching, human judgement and accessible evidence to turn screening signals into decisions that can be explained and defended when required.

The report also said AI can support more consistent and efficient decision-making, provided it operates on reliable data, is explainable and tested, maintains appropriate human oversight and has clear accountability.

“The future of screening is not simply finding more potential risk or adding more data,” the report said. “It is about having the right data with the right human oversight that can help turning screening signals into decisions that can be acted on with confidence and explained, evidenced and defended when it matters most.”