Sanctions Lists

Sanctions Lists are comprehensive databases containing individuals, organisations, and countries identified by governments or international bodies as subject to economic sanctions. These sanctions restrict business interactions with the listed entities to:

• Combat terrorism financing
• Disrupt the proliferation of weapons of mass destruction
• Punish human rights abuses
• Advance foreign policy objectives

Forms of Sanctions

Sanctions can take various forms, including:

• Trade Embargoes: Restricting or prohibiting trade with a sanctioned country.
• Asset Freezes: Blocking access to financial assets held by sanctioned entities.
• Travel Bans: Restricting the movement of sanctioned individuals.

Importance of Sanctions List Screening

Screening customers, vendors, and other business relationships against sanctions lists is a critical component of Anti-Money Laundering (AML) compliance. This process helps to:

• Prevent Violations: Ensures business is not conducted with sanctioned entities, which could result in significant penalties and reputational damage.
• Mitigate Money Laundering Risk: Sanctions lists often include individuals and organizations involved in money laundering activities. Screening helps to identify potential red flags.
• Maintain Regulatory Compliance: Financial institutions and other regulated entities are obligated by law to screen against sanctions lists.

Types of Sanctions Lists

There are various sanctions lists maintained by different governing bodies, including:

• United Nations Security Council (UNSC) Sanctions Lists: Target individuals and entities associated with threats to international peace and security.
• US Department of the Treasury's Office of Foreign Assets Control (OFAC) Sanctions Lists: Identify entities targeted by US economic sanctions.
• European Union Sanctions Lists: Target individuals and entities deemed a threat to the EU's security or foreign policy interests.

Smile ID’s AML Check Solution

Smile ID’s AML Check product provides comprehensive screening against 1,100 global and African sanctions and PEP lists, as well as over 70,000 adverse media sources. Here's how it works:

1. Collect User Information: Begin with just a name and nationality. Our system supports multiple languages, including French, Arabic, and Chinese.
2. Get AML Results: Within seconds, the system analyzes the data and returns a risk assessment result, including PEP checks, sanctions list matching, adverse media screening, and more. This helps identify suspicious activity and prevent money laundering attempts.
3. Automated Monitoring: All names queried are monitored for 12 months, ensuring continuous protection.

Our solutions provide global coverage with trusted data sources like the critical OFAC list, helping businesses protect themselves from financial losses associated with money laundering.

Conclusion

Sanctions Lists are essential tools for governments to enforce economic sanctions and combat various threats. Financial institutions and other regulated entities play a critical role in preventing sanctioned entities from accessing the financial system. By regularly screening against sanctions lists and implementing robust AML compliance programs, organizations can mitigate risks and uphold international regulations. 

Smile ID contributes to a stronger compliance environment by providing identity verification solutions that support efficient KYC/CDD processes. Consulting with legal or compliance professionals is always recommended to ensure comprehensive adherence to sanctions screening requirements. Contact us today to set your sanction screening in order.