Although most businesses focus on verifying identities, Tax IDs, and sources of funds as part of their standard Anti-Money Laundering (AML) compliance efforts, they often overlook a critical aspect—sanctions screenings. Let’s explore the role of sanctions screenings in mitigating risk, ensuring compliance with global and federal regulations, and protecting businesses from engaging with individuals or entities involved in illegal activities

Sanctions screenings are designed to prevent businesses from engaging with
individuals, companies, or entities involved in illegal activities like money laundering, terrorist financing, or drug trafficking. These checks compare potential customers, partners, or employees against global sanctions lists, such as the one maintained by the Office of Foreign Assets Control (OFAC) in the United States. Regular sanctions checks are crucial for maintaining the integrity of a company’s operations and ensuring compliance with global AML regulations. Failing to conduct sanctions screenings can expose businesses to serious legal and financial risks, including hefty penalties, fines, and damage to their reputatio .