Sanctions screening

Sanctions screening is the process of checking a crypto address or counterparty against government sanctions lists — such as OFAC SDN — to ensure a business does not transact with prohibited parties.

Sanctions screening is a baseline AML control: before crediting a deposit or releasing a payout, the address is checked against maintained sanctions feeds. Because lists change, an effective program uses a continuously updated feed rather than a static snapshot. Screening is usually combined with risk-scoring and KYT so a transfer is evaluated for both prohibited parties and broader illicit exposure.