What is AML sanctions screening?

sanctions lists to prevent financial crimes like money laundering and fraud.

What is PEP and sanctions screening?

PEP (Politically Exposed Person) and sanctions screening identify individuals in high-risk political positions and entities subject to sanctions, helping businesses avoid financial and reputational risks.

When should sanctions screening be performed?

Sanctions screening should be conducted when onboarding new customers, before processing transactions, and regularly to stay compliant with updated sanctions lists.

Is sanctions screening mandatory?

Yes, in many industries and jurisdictions, sanctions screening is legally required. Non-compliance can lead to hefty fines, frozen assets, or criminal penalties.

Who enforces sanctions screening requirements?

Regulatory bodies such as the Office of Foreign Assets Control (OFAC), the UN, the EU, and HM Treasury enforce sanctions screening requirements depending on the jurisdiction.

What happens if a company fails to conduct sanctions screening?

Failure to screen can result in financial penalties, reputational damage, loss of banking relationships, and even legal action.

What kind of data is used in sanctions screening?

Sanctions screening typically checks names, dates of birth, addresses, company names, bank details, and transaction records against official sanctions lists.

Can sanctions lists change?

Yes, sanctions lists are updated frequently to reflect new geopolitical developments, criminal activities, and policy changes. Companies must ensure they screen against the latest versions.

Does sanctions screening apply to small businesses?

Yes. While enforcement varies, any business involved in international transactions, banking, or high-risk sectors should implement screening to avoid legal and financial risks.