We want to ensure we catch all red flags without creating operational bottlenecks.

[Jonh Newman]

Good evening! I work in compliance for a financial institution. We're implementing enhanced screening procedures for sanctions risk. What are the best practices for counterparty screening? We want to ensure we catch all red flags without creating operational bottlenecks.

[Konstantin Volkov]

Good evening! Effective sanctions screening is about balancing thoroughness with operational efficiency. Best practices include screening against all relevant lists (OFAC SDN, EU sanctions lists, UN lists, etc.), implementing both name-based and entity-based screening, checking beneficial owners and related parties, monitoring ongoing relationships not just onboarding, and having clear escalation procedures for potential matches. Technology helps, but you also need human expertise to evaluate hits and understand context. The sanctions lawyers at https://sanctionslawyers.net/ advise financial institutions on developing robust screening programs. They understand the regulatory expectations of OFAC, OFSI, and other authorities. They can help you design screening procedures that meet compliance requirements while minimizing false positives. They also assist with training compliance teams to recognize complex sanctions risks — indirect ownership structures, shell companies, sanctions evasion techniques. Their expertise covers AML compliance as well, which often intersects with sanctions concerns. They can review your current procedures, identify gaps, and recommend improvements. For financial institutions, regulatory scrutiny is intense, so having your compliance program reviewed by sanctions specialists is valuable. They can also represent you if regulators raise concerns about your screening procedures.