Which term describes the process of screening parties against sanctions lists?

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Multiple Choice

Which term describes the process of screening parties against sanctions lists?

Sanctions screening is the process of checking parties against official lists to prevent doing business with restricted individuals or entities. The term that precisely describes this practice is OFAC screening, which targets the Office of Foreign Assets Control’s lists (and similar sanctions lists from other regimes). Banks use OFAC screening to compare customers, counterparties, and often beneficial owners and related transactions to detect any matches. When a match is found, the transaction is typically blocked or subjected to enhanced due diligence, and the relationship may be restricted or terminated as required. The other options don’t describe this specific control—one relates to payment rails, another to onboarding steps, and the last to an unrelated concept—so OFAC screening is the correct term.

Sanctions screening is the process of checking parties against official lists to prevent doing business with restricted individuals or entities. The term that precisely describes this practice is OFAC screening, which targets the Office of Foreign Assets Control’s lists (and similar sanctions lists from other regimes). Banks use OFAC screening to compare customers, counterparties, and often beneficial owners and related transactions to detect any matches. When a match is found, the transaction is typically blocked or subjected to enhanced due diligence, and the relationship may be restricted or terminated as required. The other options don’t describe this specific control—one relates to payment rails, another to onboarding steps, and the last to an unrelated concept—so OFAC screening is the correct term.

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