What is name screening?
Name screening is part of the KYC/CDD process. It refers to taking a given individual or organization’s name and comparing it against names that occur on various watchlists (sanctions lists, PEP lists, etc.) The result of the search can influence the action that the financial institution takes going forward, depending on their risk level.
What occurs from name screening?
After screening a name, the financial institution ordinarily decides whether to do business with an organization or individual.
Most often, no match or a positive match will occur from the details given. However, financial institutions need to be aware of false positives (if someone has a similar name to a politically exposed person, for example) or false negatives (where a name may slip through the net inadvertently facilitating the criminal and leaving the bank vulnerable to regulatory fines).
It is also possible to screen names against any negative mentions in media reports.
What are the benefits of name screening?
Effective name screening ensures compliance with laws and regulations, prevents financial crime, and reduces risk for a financial institution. It also reduces the risk of any fines or legal liabilities.
