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Sanctions screening fintech GSS raises $45 million

Jan 23, 2023
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Illustration: Sarah Grillo/Axios

GSS, a compliance tech company focused on sanctions screening, raised $45 million in its first round of funding.

Why it's the BFD: The increased use of sanctions by the U.S. has created a pile of new compliance work for financial services companies — and an opportunity for businesses like GSS.

How it works: Incubated out of AlixPartners in 2021, GSS operates like a collaboration platform for banks and other financial institutions.

  • In a cross-border transaction, for example, three or four different banks might each be conducting the same sanction and compliance checks on the parties involved.
  • GSS would enable the banks to see what checks had already been completed by another bank, lessening the time it takes to approve a transaction, as well as the chances of human error.
  • This level of collaboration would also require that GSS' customers all approve some minimum set of compliance standards.
  • "Surely we should be doing this on a common platform available to everyone where we could share intelligence," CEO Tom Scampion tells Axios.

Background: Investors in the round included Alix, as well as Cynosure Group and MUFG.

  • GSS employs about 140 people and is in its proof-of-concept phase, Scampion says, with a fuller rollout to come this year.

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