Which entities' lists are commonly used in AML sanctions screening?

The selection of government and international organizations' lists for AML (Anti-Money Laundering) sanctions screening is pivotal due to their authoritative nature and the centralized information they provide. These organizations, such as the United Nations, the Office of Foreign Assets Control (OFAC) in the United States, and similar entities in various countries, maintain lists of individuals and entities known or suspected to be involved in activities such as terrorism, drug trafficking, or other forms of financial crime.

Using these lists during sanctions screening helps financial institutions and businesses to ensure compliance with international laws and regulations, mitigating risks associated with facilitating money laundering or related actions. By screening against these lists, organizations can identify and report suspicious transactions and relationships, helping to prevent illicit financial flows.

In contrast, local banks, trade associations, and individual customers do not provide the same level of comprehensive oversight or authority as government and international organizations. Local banks may have their internal lists, but they are generally not as widely recognized or mandated as those from government bodies. Trade associations primarily focus on industry standards and guidelines rather than sanction lists, and individual customers, while significant to AML procedures, do not serve as authoritative sources for sanctions screening.