Which activity best describes screening the parties involved in a check transaction?

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Multiple Choice

Which activity best describes screening the parties involved in a check transaction?

Screening the parties involved in a check transaction focuses on applying screening to everyone who participates in the check process—drawer, payee, endorsers, and any intermediaries. This directly describes the activity of checking identities, affiliations, and risk indicators against sanction lists, PEPs, and AML red flags to prevent illicit activity in payments. The other phrasings don’t capture the action itself as clearly: documenting screening is about keeping records of what was done rather than performing the screening; screening beneficiaries narrows the scope to beneficiaries only, missing other participants; and a risk-based decision refers to how you act after screening, not the screening step itself.

Screening the parties involved in a check transaction focuses on applying screening to everyone who participates in the check process—drawer, payee, endorsers, and any intermediaries. This directly describes the activity of checking identities, affiliations, and risk indicators against sanction lists, PEPs, and AML red flags to prevent illicit activity in payments.

The other phrasings don’t capture the action itself as clearly: documenting screening is about keeping records of what was done rather than performing the screening; screening beneficiaries narrows the scope to beneficiaries only, missing other participants; and a risk-based decision refers to how you act after screening, not the screening step itself.

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