What is Sanctions Screening?
Definition and purpose
Sanctions screening compares customers, counterparties, and related parties against government and supranational lists to prevent prohibited relationships or transactions.
It is distinct from general credit risk assessment: the question is legal permissibility and policy adherence, not willingness to pay.
Who is in scope
Banks, payment firms, insurers, crypto service providers, and many non-financial gatekeepers may be obligated depending on local law.
Materiality is judged by exposure to listed parties, embargoed jurisdictions, and sectoral restrictions—not headline revenue alone.
How screening fits into onboarding and monitoring
Most programmes screen at onboarding, at transaction events, and on a recurring calendar for list updates.
Effective programmes document list versions used for each decision to support retrospective audits.