Screening is the process of systematically checking individuals, entities or transactions against risk-related databases to identify potential connections to financial crime, regulatory violations or reputational threats. Within Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance, screening is a critical control used to detect and assess risk before and during a business relationship.

Modern screening is typically conducted using automated software tools that reduce manual effort and enhance accuracy by continuously monitoring customer data against multiple sources. These include global sanctions lists, politically exposed persons (PEP) databases and adverse media sources. Effective screening helps organizations uncover hidden risks and ensure compliance with national and international financial crime prevention regulations.

To strengthen the effectiveness of a screening program, organizations should go beyond the basics and also include checks against watchlists, regulatory warning lists, fitness and probity databases and enforcement actions. Screening can be applied during onboarding and as part of Ongoing Due Diligence (ODD) to detect changes in a customer’s risk profile in real time.

Thorough and well-structured screening is essential for managing compliance risk, avoiding regulatory penalties and protecting an organization’s reputation. With increasing regulatory expectations, continuous screening using up-to-date data and robust technology has become a cornerstone of strong KYC and AML frameworks.