In AML practices, who is primarily responsible for conducting sanctions screening?

In anti-money laundering (AML) practices, compliance officers play a critical role in ensuring that an organization adheres to legal and regulatory requirements, including conducting sanctions screening. Sanctions screening involves checking individuals and entities against various sanctions lists to identify potential risks of doing business with those who might be involved in illegal activities or are subject to financial restrictions imposed by the government.

Compliance officers are trained to manage this process, which includes understanding the regulatory frameworks that govern sanctions, setting up appropriate policies and procedures, and overseeing the implementation of screening tools. They are responsible for ensuring that compliance measures are integrated into the organization's operations effectively, thus safeguarding the institution from potential legal penalties and reputational damage associated with non-compliance.

Other roles, such as external auditors, marketing teams, and financial analysts, may play important functions within an organization, but they do not have the primary responsibility for sanctions screening. External auditors typically review compliance and operational processes rather than conduct screenings themselves. Marketing teams focus on business development and outreach, and financial analysts usually deal with financial data and investment decisions, but they are not tasked with the compliance and regulatory aspects that fall under the responsibilities of compliance officers.