Understanding the Different Types of Sanctions Checks
Explore the main categories of sanctions screening—what they are, why they matter, and when to use each type in your compliance program.
2 min read
Sanctions checks are a cornerstone of modern compliance, designed to prevent businesses from engaging with individuals, entities, or countries that pose financial crime, security, or reputational risks.
In this guide, we’ll explore the main types of sanctions checks, how they differ, and when they are most relevant to your screening processes.
1. Comprehensive (Full List) Checks
A comprehensive sanctions check compares a subject’s details against an entire sanctions database, such as:
- OFAC Specially Designated Nationals (SDN) List
- EU Consolidated Financial Sanctions List
- UN Security Council Sanctions List
When to use:
- Onboarding new customers or vendors
- Screening business partners in high-risk industries
- Periodic rescreening of your customer base
Pros:
- Broad coverage
- Common in formal sanctions screening programs
Cons:
- Can generate more false positives without fuzzy matching
2. Targeted Checks
Instead of searching every sanctions list, targeted checks focus on specific jurisdictions, sectors, or list types.
Example:
If you operate only in the EU, you might target EU-only sanctions lists to reduce irrelevant matches.
When to use:
- Jurisdiction-specific compliance programs
- Sanctions regimes that change frequently (e.g., sectoral sanctions)
Pro Tip:
Targeted checks can reduce noise, but ensure your approach still meets your regulatory obligations.
3. Real-Time / Ongoing Checks
Sanctions lists change frequently—sometimes daily.
Real-time checks automatically rescreen your database whenever a list is updated.
When to use:
- High-risk industries like crypto exchanges or fintechs
- Continuous monitoring for politically exposed persons (PEPs) or adverse media
Benefits:
- Immediate alerts for new risks
- Reduces the gap between risk emergence and detection
