Question 1

What sanctions lists does my business need to screen against?

Accepted Answer

The sanctions lists your business must screen against depend on your jurisdiction, industry, and customer geography. At a minimum, most regulated businesses must screen against the UN Security Council Consolidated List. US-nexus businesses must also screen against OFAC SDN and Non-SDN lists. UK businesses require the HMT/OFSI Consolidated List. EU businesses require the EU Consolidated Sanctions List. The sanctions.io Global Risk Exposure Calculator identifies your specific mandatory and recommended lists based on your profile.

Question 2

What is sanctions screening and why is it required?

Accepted Answer

Sanctions screening is the process of checking customers, suppliers, and business partners against government-maintained lists of sanctioned individuals, entities, and countries. It is legally required for regulated financial institutions and businesses in most jurisdictions under AML and counter-terrorism financing laws. Failure to screen can result in significant fines, frozen transactions, license revocation, and in serious cases criminal prosecution.

Question 3

What is the difference between sanctions screening and PEP screening?

Accepted Answer

Sanctions screening checks counterparties against official government lists of sanctioned individuals and entities. PEP screening identifies Politically Exposed Persons — government officials, politicians, and public figures — who require enhanced due diligence under AML regulations. Both are typically required for regulated financial businesses, but they use different databases and serve different compliance purposes.

Question 4

How often should I screen my customers for sanctions?

Accepted Answer

Most regulatory frameworks require ongoing monitoring, not just point-in-time screening at onboarding. Sanctions lists are updated daily across multiple regimes, meaning a counterparty that was clean at onboarding can be designated the following day. Best practice — and regulatory expectation in the US, UK, EU, and most APAC jurisdictions — is continuous or daily re-screening of your entire customer base.

Question 5

What happens if my business fails to screen for sanctions?

Accepted Answer

Consequences of failing to screen for sanctions include regulatory fines (which have reached billions of dollars in major enforcement actions), frozen or blocked transactions, revocation of financial licenses, reputational damage, failed investor due diligence, and in the most serious cases, civil or criminal prosecution of company officers. The severity depends on your jurisdiction, regulatory status, and the nature of the violation.

Question 6

Does my fintech or payments company need sanctions screening?

Accepted Answer

Yes. Fintech companies, payment service providers, e-money institutions, and money services businesses are subject to mandatory AML and sanctions screening obligations in virtually all major jurisdictions. This includes OFAC obligations in the US, FCA/OFSI requirements in the UK, and national AML regulations across the EU and APAC. The sanctions.io risk calculator can identify your specific obligations based on your registration country and customer geography.

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