Sanctions Screening Best Practices
Comprehensive guide to implementing effective sanctions screening workflows
Table of Contents
Overview
Sanctions screening is a critical compliance control that prevents businesses from engaging with prohibited individuals, entities, or countries designated by government authorities.
Why Sanctions Screening Matters
Legal Obligation: Required by OFAC, EU, UN, and other regulatory bodies
Severe Penalties: Violations can result in millions in fines and criminal charges
Reputational Risk: Sanctions violations damage brand trust and business relationships
Sanctions Lists
US Sanctions (OFAC)
Key Lists:
- • SDN List (Specially Designated Nationals)
- • SSI List (Sectoral Sanctions Identifications)
- • FSE List (Foreign Sanctions Evaders)
- • NS-MBS List (Non-SDN Menu-Based Sanctions)
Updated daily by OFAC
EU Sanctions
Key Lists:
- • EU Consolidated List
- • Country-specific sanctions programs
- • Asset freeze lists
- • Travel ban lists
Updated by EU Council
UN Sanctions
Key Lists:
- • UN Consolidated List
- • Al-Qaida Sanctions List
- • ISIL (Da'esh) & Al-Qaida Sanctions List
- • Country-specific sanctions committees
Other Jurisdictions
Additional Sources:
- • UK HM Treasury sanctions
- • Canada Global Affairs
- • Australia DFAT
- • Japan METI
Screening Process
When to Screen
Customer Onboarding
Screen all new customers before establishing business relationship
Transaction Monitoring
Real-time screening of all transaction counterparties (recommended)
Periodic Re-screening
Batch screen existing customers daily or weekly against updated lists
Event-Driven Screening
Screen when lists update, customer data changes, or new risk factors emerge
Data Points to Screen
Individual Screening:
- • Full name (all variations)
- • Date of birth
- • Nationality
- • Passport/ID numbers
- • Address
Entity Screening:
- • Legal name
- • Doing Business As (DBA) names
- • Registration numbers
- • Address/jurisdiction
- • Beneficial owners
Name Matching Techniques
1. Exact Matching
Approach: Exact character-by-character comparison
Pros: Fast, no false positives | Cons: Misses variations, typos, aliases
2. Fuzzy Matching
Approach: Similarity scoring using algorithms (Levenshtein, Jaro-Winkler, Soundex)
Pros: Catches typos and variations | Cons: Higher false positive rate
3. Phonetic Matching
Approach: Match names that sound similar (Soundex, Metaphone, Double Metaphone)
Pros: Catches pronunciation variations | Cons: Language-dependent
Best Practice: Hybrid Approach
Combine exact, fuzzy, and phonetic matching with configurable thresholds. Use 85-95% similarity for automatic matches, 70-85% for manual review, below 70% for automatic pass.
Workflow & Escalation
Automated Screening
System screens against all relevant sanctions lists in real-time
Match Scoring
Algorithm assigns confidence score to potential matches
Manual Review
Compliance analyst reviews matches in 70-95% confidence range
Escalation & Blocking
Confirmed matches escalated to MLRO, transaction blocked, authorities notified if required
Documentation
All screening results, decisions, and rationale documented for audit trail
How Veria Simplifies Sanctions Screening
Real-Time API Screening
Sub-100ms API response times for real-time transaction screening without impacting user experience.
Always-Updated Lists
Automatic daily updates from OFAC, EU, UN, and 15+ global sanctions authorities.
Smart Matching Engine
Hybrid fuzzy/phonetic matching with ML-optimized thresholds to minimize false positives.
Automated Workflows
Configurable escalation rules, auto-blocking, and case management for compliance teams.
Audit-Ready Reports
Immutable screening records with full audit trails for regulatory examinations.
Batch Re-screening
Automatically re-screen entire customer base when sanctions lists update.
Implement World-Class Sanctions Screening
See how Veria's sanctions screening API can protect your business from compliance violations.