How Name Screening Helps in Fighting Money Laundering and Terrorist Financing

Name screening involves comparing the names of clients, suppliers, and other third parties against the sanctions lists and watchlists published by national and international bodies. Name screening is also known as sanctions screening.

One can use screening software, sanctions screening API, or carry out manual searches to ensure sanctions compliance.

The UNSC consolidated list and UAE local terrorist lists are the lists a regulated entity must consider while performing sanctions checks.

These sanctions list feature the names of individuals as well as organisations linked to a range of illegal acts. By running a customer’s name through these lists, one can identify criminals who are on the sanctions list.

Apart from sanctions checks, one can perform name screening to identify Politically Exposed Persons (PEPs). PEPs are generally in a position to influence governmental decisions and carry a high risk of money laundering and terrorist financing.

Regulated entities are also required to check for adverse media references related to the customers, suppliers and third parties.

Name screening helps spot potential red flags and identify suspicious customers and third parties. The reporting of the same happens with the Financial Intelligence Unit.

Both before a new client is onboarded and during the continuation of a business relationship, name screening is required. Additionally, if a customer’s KYC information is updated or changed, they must be rescreened.

Name screening forms a crucial step in the customer risk assessment and due diligence process.

Regulated entities can rely on AML software like RapidAML to automate their screening requirements.