Name screening
Also called customer screening, watchlist screening
Name screening is the process of checking the names of customers, beneficial owners, directors and other connected parties against sanctions lists, politically exposed person lists and other watchlists. It runs at onboarding and again whenever lists or customer data change, so firms can freeze assets or apply extra checks.
How it works
A firm loads official lists such as the UK sanctions list, the EU consolidated list and the OFAC SDN list, often alongside commercial PEP and adverse media data. Its customer database is screened in full when lists update, and new or changed records are screened as they arrive. Potential matches go to analysts, who confirm or discount them using identifiers.
Name screening differs from payment screening, which checks the parties and text inside individual transactions. Both are needed. A missed match can lead to dealing with a designated person, which breaches sanctions law in most jurisdictions. Under the EU Instant Payments Regulation, payment providers in scope check their customers against EU sanctions at least daily.
The rules
Provides the legal basis for UK sanctions regulations, which prohibit dealing with funds or economic resources of designated persons.
All UK persons and businessesRequires providers to verify at least daily, and immediately after new designations, whether their customers are subject to EU targeted financial sanctions.
EU payment service providers offering instant credit transfersExpects internal controls that identify and interdict prohibited dealings, with screening tools calibrated to the firm's risk profile and tested routinely.
US persons and firms dealing in US-nexus transactionsRequires countries to freeze without delay the funds or assets of persons designated by the UN Security Council.
FATF member jurisdictionsCommon questions
What is the difference between name screening and payment screening?
Name screening checks static customer records and connected parties against watchlists. Payment screening checks the names, banks and free text inside individual transactions before they are processed. Most firms run both because each catches risks the other misses.
How often should firms rescreen their customers?
Firms typically rescreen their whole customer base each time a sanctions list changes, which can be daily. EU payment providers in scope of the Instant Payments Regulation must check customers against EU sanctions at least daily.
Who is screened besides the customer?
Firms usually screen beneficial owners, directors, authorised signatories and sometimes guarantors or key counterparties. Sanctions rules extend to entities owned or controlled by designated persons, so screening connected parties is part of identifying exposure.
