What is Sanctions Screening?

Sanctions screening is the process of checking individuals, entities, or countries against government-issued sanctions lists. These lists contain names of those involved in terrorism, narcotics trafficking, or other illegal activities that global regulators have prohibited from financial transactions.

Failing to screen customers against sanctions lists can result in massive fines, criminal charges, and the loss of banking relationships. Key lists include the OFAC SDN list, the UN Security Council list, and various EU and UK consolidated lists.

Modern sanctions screening uses advanced 'fuzzy matching' algorithms to identify sanctioned parties even if their names are spelled differently, use different scripts, or contain minor variations. This ensures a high level of accuracy while minimizing false positives.