Sanctions screening is the process of checking individuals, entities, and transactions against government sanctions lists to ensure compliance with trade and financial restrictions.
Key Sanctions Lists
SDN List
- Administrator: OFAC (US)
- Scope: Individuals and entities blocked from US transactions
Consolidated List
- Administrator: EU
- Scope: EU sanctions across all programs
UK Sanctions List
- Administrator: OFSI
- Scope: UK sanctions designations
UN Consolidated List
- Administrator: UN
- Scope: Terrorism-related and other UN sanctions
Screening in KYB
For KYB, sanctions screening must cover:
- The business entity itself
- All beneficial owners
- Directors and officers
- Connected parties (for some programs)
Screening Requirements
At Onboarding
Screen all parties before establishing the relationship.
Ongoing Monitoring
Lists update frequently—ongoing monitoring catches new designations affecting existing customers.
Match Handling
- True positive: Confirmed match—typically requires rejection
- False positive: Name similarity but different party—document and clear
- Potential match: Requires investigation to determine
Consequences of Violations
Sanctions violations carry severe penalties:
- Civil fines of hundreds of thousands per violation
- Criminal liability for willful violations
- Reputational damage
Related: OFAC | SDN | Watchlist Screening
