In plain English
Sanctions screening compares names and other data against lists of designated persons and entities. It usually takes place at onboarding, when customer details or the lists change, and on payments.
When there is a possible match, someone must review the alert, decide whether it is a true match and escalate. Confirmed matches typically require assets to be frozen and the matter reported to the competent authority, depending on the law that applies.
Why it matters to a board
Sanctions breaches can carry severe consequences. The board should know which lists the institution screens against, how fast updates are applied, and how screening is tested.
Common mistakes
- Relying on a vendor's default matching settings without tuning and testing them.
- Slow updates when lists change.
- Screening only customers and missing owners, controllers and payment parties.
- No evidence of how false positives were cleared.
What the standards and regulators say
- UAE Executive Office for Control and Non-Proliferation: targeted financial sanctions and the Local Terrorist List
- UAE: Federal Decree-Law No. 10 of 2025 on anti-money laundering and combating the financing of terrorism and proliferation, and its executive regulations (Cabinet Resolution No. 134 of 2025)
- FATF Recommendations: international standards on combating money laundering and the financing of terrorism and proliferation