A true match occurs when a screening or transaction monitoring system correctly identifies a customer, transaction or activity as being linked to a verified risk, such as a sanctioned individual, politically exposed person (PEP) or a subject of adverse media. In the context of Know Your Customer (KYC) and Anti-Money Laundering (AML) processes, a true match confirms that the flagged party in the alert is genuinely associated with a known risk database entry and warrants further compliance action.

Unlike a false positive - which is an incorrect or misleading alert - a true match reflects a legitimate concern that must be addressed by the compliance team. This may involve conducting Enhanced Due Diligence (EDD), escalating the case internally, restricting or terminating the business relationship or filing a Suspicious Activity Report (SAR) with the appropriate Financial Intelligence Unit (FIU).

Identifying a true match requires careful analysis of identifying details such as full name, date of birth, nationality, geographic location, ownership ties or known affiliations. It is essential for organizations to have robust screening procedures and trained compliance professionals who can accurately distinguish between false positives and true matches to ensure appropriate and timely risk mitigation.

Confirming a true match is critical not only for meeting regulatory requirements but also for protecting the organization from legal, financial and reputational harm.