Sanctions Screening
What sanctions screening is, which lists to check, and how sanctions compliance applies to KYB verification.
2 min read
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
| List | Administrator | Scope |
|---|---|---|
| SDN List | OFAC (US) | Individuals and entities blocked from US transactions |
| Consolidated List | EU | EU sanctions across all programs |
| UK Sanctions List | OFSI | UK sanctions designations |
| UN Consolidated List | UN | 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