About AML Screening (Anti-Money Laundering Screening)

AML Screening (Anti-Money Laundering Screening) is the process of checking individuals and entities against global watchlists to identify potential risks related to sanctions violations, politically exposed persons, and financial crime.

Why Screening Matters

Financial institutions and regulated businesses are legally required to screen customers before establishing business relationships. Failure to properly screen can result in:

• Regulatory penalties - Fines can reach billions of dollars for major violations
• Reputational damage - Public enforcement actions harm brand trust
• Criminal liability - Willful violations can lead to prosecution
• License revocation - Regulators can revoke operating licenses

For Compliance Officers

TrustGate provides auditable screening records that satisfy examiner requirements. Every check includes list version tracking, timestamps, and resolution documentation.

Regulatory Framework

OFAC (Office of Foreign Assets Control)

The U.S. Treasury's OFAC administers and enforces economic sanctions programs. Key requirements:

Requirement	Description
SDN Screening	Screen against the Specially Designated Nationals list
Real-time checking	Screen at onboarding and throughout the relationship
Risk-based approach	Enhanced screening for higher-risk customers
Record keeping	Maintain records for 5 years minimum

EU Anti-Money Laundering Directives

The European Union's AML framework (currently 6AMLD) requires:

• Customer Due Diligence (CDD) for all customers
• Enhanced Due Diligence (EDD) for high-risk customers
• Ongoing monitoring of business relationships
• Screening against EU Consolidated Sanctions List

FATF Recommendations

The Financial Action Task Force (FATF) sets international AML standards:

• Recommendation 10: Customer Due Diligence
• Recommendation 12: Politically Exposed Persons (PEPs)
• Recommendation 19: Higher-risk countries
• Recommendation 20: Reporting of suspicious transactions

UK Money Laundering Regulations

UK financial services must comply with:

• The Money Laundering Regulations 2017 (as amended)
• HM Treasury financial sanctions
• FCA requirements for customer screening

TrustGate Screening Capabilities

TrustGate provides comprehensive screening across three core areas:

1. Sanctions Screening (Watchlist Screening)

Screen individuals and companies against global sanctions lists:

┌─────────────────────────────────────────────────────────┐
│                  Sanctions Screening                     │
├─────────────────────────────────────────────────────────┤
│  ✓ OFAC SDN List (US)                                   │
│  ✓ EU Consolidated Sanctions List                       │
│  ✓ UN Security Council Consolidated List                │
│  ✓ UK HM Treasury Sanctions List                        │
│  ✓ 200+ additional country-specific lists               │
└─────────────────────────────────────────────────────────┘

Learn more about Sanctions Screening

2. PEP Screening (Politically Exposed Persons Screening)

Identify customers who hold or have held prominent public positions:

┌─────────────────────────────────────────────────────────┐
│                    PEP Screening                         │
├─────────────────────────────────────────────────────────┤
│  ✓ Tier 1: Heads of state, senior politicians           │
│  ✓ Tier 2: Regional officials, judges                   │
│  ✓ Tier 3: Local officials                              │
│  ✓ Tier 4: Family members and close associates          │
└─────────────────────────────────────────────────────────┘

Learn more about PEP Screening

3. Adverse Media Screening (Negative News Screening)

Monitor news and public records for negative information:

┌─────────────────────────────────────────────────────────┐
│               Adverse Media Screening                    │
├─────────────────────────────────────────────────────────┤
│  ✓ Financial crime coverage                             │
│  ✓ Fraud and corruption allegations                     │
│  ✓ Regulatory enforcement actions                       │
│  ✓ Criminal proceedings                                 │
└─────────────────────────────────────────────────────────┘

Learn more about Adverse Media Screening

How Screening Works in TrustGate

Screening Flow

┌──────────────┐     ┌─────────────────┐     ┌──────────────────┐
│   Applicant  │────▶│  Run Screening  │────▶│  Process Results │
│    Data      │     │    Checks       │     │                  │
└──────────────┘     └─────────────────┘     └──────────────────┘
                              │                       │
                              ▼                       ▼
                     ┌─────────────────┐     ┌──────────────────┐
                     │  TrustGate      │     │   Clear: Pass    │
                     │  Screening API  │     │   or             │
                     └─────────────────┘     │   Hit: Review    │
                                             └──────────────────┘

Screening Check Statuses

Status	Description
pending	Screening in progress
clear	No matches found - applicant passed
hit	Potential matches found - requires review
error	Screening failed - retry required

API Quick Start

Run a screening check:

curl -X POST https://api.bytrustgate.com/v1/screening/check \
  -H "Authorization: Bearer YOUR_API_KEY" \
  -H "Content-Type: application/json" \
  -d '{
    "applicant_id": "uuid-of-applicant",
    "check_types": ["sanctions", "pep", "adverse_media"]
  }'

Response:

{
  "id": "check-uuid",
  "entity_type": "individual",
  "screened_name": "John Smith",
  "check_types": ["sanctions", "pep", "adverse_media"],
  "status": "hit",
  "hit_count": 1,
  "hits": [
    {
      "id": "hit-uuid",
      "hit_type": "sanctions",
      "matched_name": "John A. Smith",
      "confidence": 85.5,
      "list_source": "us_ofac_sdn",
      "resolution_status": "pending"
    }
  ]
}

[Screenshot: Screening dashboard showing check results]

Key Features

Fuzzy Matching (Approximate Name Matching)

TrustGate uses sophisticated fuzzy matching algorithms to catch variations:

• Phonetic matching - Catches soundalike names (Mohammed/Muhammad)
• Transliteration - Handles different scripts and spellings
• Alias detection - Matches known aliases and alternate names
• Typo tolerance - Catches common misspellings

Confidence Scores (Match Scores)

Every potential match includes a confidence score from 0-100:

Score Range	Confidence Level	Typical Action
90-100	Very High	Likely true match, careful review
75-89	High	Probable match, thorough review
50-74	Medium	Possible match, standard review
Below 50	Low	Unlikely match, quick review

Audit Trail (Compliance Records)

Every screening action is recorded for compliance:

• List version used for each check
• Timestamp of screening
• Resolution decisions with user attribution
• Notes documenting rationale

Learn more about Screening Lists and Version Tracking

Integration Options

1. Dashboard (Manual Screening)

Use the TrustGate dashboard for:

• On-demand screening of individual applicants
• Reviewing and resolving hits
• Generating compliance reports

2. API (Automated Screening)

Integrate screening into your workflows:

• Screen applicants at onboarding
• Batch screening for existing customers
• Webhook notifications for hits

3. Ongoing Monitoring (Continuous Screening)

Enable automatic re-screening:

• Daily checks against updated lists
• Alerts when new matches appear
• Automated notification workflows

Learn more about Ongoing Monitoring

Best Practices

For Developers

1. Screen early - Run screening as part of the onboarding workflow
2. Handle errors gracefully - Implement retry logic for transient failures
3. Store check IDs - Keep references for audit trail
4. Use webhooks - Get notified when hits need review

For Compliance Officers

1. Document decisions - Always add resolution notes explaining your rationale
2. Escalate appropriately - Route high-confidence matches to senior reviewers
3. Review regularly - Monitor screening statistics and false positive rates
4. Update procedures - Keep screening policies current with regulations

Next Steps

• Sanctions Screening - Deep dive into watchlist screening
• PEP Screening - Understanding politically exposed persons
• Hit Resolution - How to resolve screening matches
• Ongoing Monitoring - Continuous screening setup