Sanctions screening is the process of checking individuals, companies, or transactions against government-issued sanctions lists. It is an essential part of AML compliance to prevent businesses from engaging with sanctioned entities.
Why Is Sanctions Screening Important?
Sanctions screening helps businesses:
- Avoid legal penalties and regulatory fines.
- Prevent financial crime and fraud.
- Protect their operations from high-risk individuals or entities.
When Should Sanctions Screening Be Conducted?
Sanctions screening should occur when:
- Onboarding new clients.
- Conducting large or unusual transactions.
- Monitoring ongoing client relationships.
How to Conduct Sanctions Screening
- Use automated tools to compare client data against sanctions lists.
- Verify matches to ensure accuracy.
- Report any positive matches to the relevant authorities.
How Red Flag Alert Can Help
Red Flag Alert offers robust sanctions screening tools that enable businesses to identify and manage risks efficiently. Our platform provides real-time updates to ensure compliance with global regulations.
Get in touch today to learn how Red Flag Alert can enhance your sanctions screening processes.
