Sanctions Screening
Sanctions screening is the checking of customers, counterparties, and transactions against government and international sanctions lists, such as those maintained by the UN, EU, OFAC, and the UK. A positive match must be blocked and, in most regimes, reported to the relevant authority.
A single processed transaction touching a sanctioned party can expose a business to severe penalties and immediate offboarding, which is why banks insist on screening before they onboard high-risk clients. Robust screening at onboarding and on every payment is non-negotiable for keeping a cross-border account open.
Anti-Money Laundering is the framework of laws, controls, and monitoring a regulated firm must run to detect and prevent the movement of illicit funds.
A Politically Exposed Person is an individual entrusted with a prominent public function, along with their close associates and family, who therefore carries a higher risk of bribery or corruption.
The Travel Rule is a FATF requirement that obliges virtual asset service providers to collect and pass on originator and beneficiary information alongside crypto transfers above a set threshold, mirroring the data long required for traditional wire transfers under FATF Recommendation 16.
Adverse media screening is the checking of a customer, owner, or counterparty against negative news sources: reports of fraud, regulatory action, sanctions, or criminal association.