Understanding the Different Types of Sanctions Checks

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.

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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
• High regulatory acceptance

Cons:

• Can generate more false positives without fuzzy matching

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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.

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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

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4. Batch Checks

Batch screening processes multiple records at once—usually via CSV upload or API call.
This is common when onboarding legacy data into a new compliance platform.

When to use:

• Migrations from older systems
• Large customer/vendor imports
• Periodic “whole book” reviews

MatchAudit Tip:
Our batch screening supports fuzzy matching and rich metadata output for auditability.

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5. Ad-Hoc / Manual Checks

These are single-name lookups performed outside the regular onboarding or monitoring cycle—often triggered by suspicion or a specific event.

When to use:

• Investigating a flagged transaction
• Screening a one-off supplier or donation recipient

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Why It Matters

Choosing the right type of sanctions check can help you:

• Stay compliant with evolving regulations
• Reduce operational costs from false positives
• Protect your organization from financial and reputational harm

The most effective compliance programs often combine several types—for example, comprehensive checks at onboarding and real-time monitoring thereafter.

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Quarterly Matches Trend

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Sanctions screening is only one part of a robust compliance program. Always consider complementary checks like PEP screening, adverse media monitoring, and beneficial ownership verification.