Sanctions screening is the process of checking whether a person or entity is on a sanctions list. A sanctions list is a list of individuals or entities that have been identified as being involved in activities that are illegal or considered to be a threat to national security.
For example, a country may impose sanctions on a foreign government or individual for engaging in activities such as terrorism, money laundering, or human rights abuses. In the context of banking, sanctions screening typically involves checking the names of customers and their associates against relevant sanctions lists to ensure that the bank is not conducting business with any individuals or entities that are subject to sanctions.
For example, a bank may screen the names of its customers against the sanctions list maintained by the United States Office of Foreign Assets Control (OFAC) to ensure that it is not conducting business with any individuals or entities that are subject to U.S. sanctions.
This page was last updated on January 2, 2023.