Effective Approaches to Reducing False Positives in Sanctions Screening

The sanctions screening process enables businesses to identify, avoid, and report sanctioned individuals, ensuring compliance with Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) regulations.

However, the effectiveness of the sanctions screening process can be compromised by the issue of high false positives. A high number of false positives occur due to several reasons.

High false positives can result in consequences such as increased workload, delay in customer onboarding, etc. Therefore, false positives must be reduced for an efficient sanctions screening process.

Here are some effective and practical approaches to reducing false positives in sanctions screening:

• Ensuring Data Quality
• Adopting Case Management Tools
• Integrating Screening Tools with Machine Learning and Artificial Intelligence
• Algorithmic Fine-Tuning
• Ensuring Contextual Clarity
• Adopting a Risk-Based Approach
• Training Employees
• Incorporating Human Input and Experience
• Continuous Monitoring and Improvement

Watch our video for a detailed discussion of these approaches and learn how to optimise your sanctions screening process effectively.