Guide
What is AML screening?
AML screening is the set of checks used to identify customers and counterparties that may pose financial crime risk. In practice, most teams start with sanctions screening and PEP screening, then expand into ongoing monitoring as transaction volume grows.
What AML screening covers
AML screening is not one single check. It usually includes:
- Sanctions screening against sources like OFAC, the UN, the EU, and national lists.
- PEP screening to identify politically exposed persons and apply risk-based controls.
- Watchlist checks (list sources vary by jurisdiction and business model).
Onboarding vs ongoing monitoring
Screening typically happens at onboarding, but regulators and bank partners often expect ongoing monitoring too. Ongoing monitoring commonly means re-screening customers when lists update or on a schedule, plus monitoring transactions for suspicious activity.
What “good” looks like: audit-friendly evidence
The difference between a demo and a regulator-ready program is documentation. Practical requirements include:
- Match evidence (why a hit was or was not a true match)
- Disposition reasons and reviewer notes
- Re-screening cadence and list update timestamps
- Exportable audit logs
Implementation shortcuts (without cutting corners)
If you are building your first screening flow, start small:
- Screen names at onboarding
- Collect at least country and date of birth where relevant
- Use consistent thresholds and reviewer steps
- Add periodic re-screening and alerts once volumes increase