Watchlist Screening

Watchlist screening is the practice of checking customers and business partners against various government, regulatory, and commercial lists beyond just sanctions lists.

Types of Watchlists

Sanctions: OFAC SDN, EU, UN, UK lists

PEP: Politically exposed persons databases

Law Enforcement: FBI wanted lists, Interpol notices

Regulatory: Debarment lists, enforcement actions

Adverse Media: Negative news compilations

Watchlist Screening in KYB

For KYB, watchlist screening covers:

• The legal entity itself
• Beneficial owners
• Directors and officers
• Authorized signers

Handling Matches

Watchlist hits don't automatically mean rejection—they trigger investigation:

True positive: Match confirmed—apply EDD or reject

False positive: Different person/entity—document and clear

Potential match: Investigate further before determining

Technical Challenges

Fuzzy Matching

Names vary—screening must account for:

• Transliterations
• Aliases and AKAs
• Spelling variations
• Name order differences

Alert Volume

Aggressive matching generates many false positives. Tuning match sensitivity is critical.

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Related: Sanctions Screening | PEP | Adverse Media