Overview#
A bank's compliance team receives thousands of sanctions screening alerts each week. The majority are false positives: similar names, common transliterations, or unrelated entities sharing a nationality with a listed person. Chasing every alert at equal priority wastes investigator time and leads to screening fatigue, the point at which real hits start to get missed. The Compliance Sanctions and Risk Classification platform solves this by applying ML-driven risk scoring across 34 indicators to assign each entity to one of five risk tiers automatically, letting investigators focus their attention where it genuinely belongs.
The platform screens in real time against 47 global sanctions databases, applies advanced fuzzy matching to catch the name variations that simple exact-match screening misses, and monitors continuously so that risk tier changes triggered by new designations or behaviour shifts generate immediate alerts.
Key Features#
- ML-driven risk scoring correctly classifying entities across five risk tiers: Prohibited, High, Medium, Low, and Minimal
- Real-time sanctions screening across 47 global sanctions databases and watchlists including OFAC, EU, UN, UK HMT, and DFAT
- Advanced fuzzy matching with Levenshtein distance, phonetic matching, and transliteration algorithms detecting name variations and aliases
- AI-powered entity resolution distinguishing between similar names with high accuracy, reducing false positive volumes substantially
- Multi-factor risk model combining 34 risk indicators across sanctions exposure, transaction behaviour, network connections, jurisdictional risk, entity type, and behavioural factors
- Continuous monitoring triggering instant alerts when risk thresholds are breached or sanctions status changes
- Risk mitigation workflows with pre-configured procedures for 12 common risk scenarios including EDD, transaction blocking, and account closure
- Automated sanctions list synchronisation within minutes of official publication
- Network contamination detection identifying exposure through entity connections and associated intermediaries
- Dynamic jurisdiction risk scoring updated with FATF, OFAC, and FinCEN changes
- Executive compliance dashboard with real-time KPIs, risk tier distribution, and alert management metrics
- Automated regulatory reporting including SAR, CTR, and OFAC blocking reports
Use Cases#
- Real-Time Customer Screening: Financial institutions screen customers against 47 global sanctions databases during onboarding and transactions, with immediate risk tier assignment allowing proportionate response
- Continuous Risk Monitoring: Compliance teams receive instant alerts for risk threshold breaches, new sanctions matches, transaction anomalies, and network contamination events, enabling timely action
- Risk-Based Due Diligence: Organisations apply proportional due diligence based on automated risk tier assignment, concentrating compliance resources on the entities that most warrant scrutiny
- Regulatory Reporting Automation: Compliance teams generate SARs, CTRs, and OFAC blocking reports with automated data population and pre-submission validation, removing manual data entry from the filing process
Integration#
- Pre-built connectors for transaction monitoring (Actimize, Feedzai), KYC/KYB (Jumio, Onfido), and screening providers (Refinitiv World-Check, Dow Jones)
- Blockchain analytics platform connectivity with leading analytics, compliance, and risk intelligence providers
- Webhook notifications for real-time event delivery to external systems
- CRM and customer system integration for synchronised risk profiles
- SOC 2, ISO 27001, GDPR, BSA/AML, and FINRA compliance
- Role-based access controls with MFA and IP allow-listing
Open Standards#
- FATF Recommendations (Financial Action Task Force): The platform's risk-based approach to sanctions screening, proportional due diligence tiers, and mandatory audit trails are designed to satisfy the FATF Recommendations on anti-money laundering and counter-terrorist financing, which require documented screening procedures and records retention.
- EU Anti-Money Laundering Directives (4AMLD / 5AMLD / 6AMLD): Continuous monitoring, enhanced due diligence workflows, and PEP identification directly implement obligations imposed by successive EU AML Directives, which mandate risk-based customer screening and timely reporting to competent authorities.
- FollowTheMoney (FtM) Entity Format: Bulk sanctions data is ingested from OpenSanctions in the FollowTheMoney open entity schema (newline-delimited JSON), enabling interoperability with the broader open-data sanctions and investigative-journalism ecosystem.
- OFAC Sanctions Programmes (US Treasury, 31 CFR): The platform screens against the OFAC Specially Designated Nationals list and generates OFAC blocking reports in line with the regulatory requirements of the US Office of Foreign Assets Control under the International Emergency Economic Powers Act.
- UN Security Council Consolidated Sanctions List: UN-listed entities are maintained as a distinct high-priority source, consistent with member-state obligations under UN Charter Chapter VII resolutions requiring mandatory asset freezes and travel bans.
- ISO 3166-1 Alpha-2: Two-letter country codes are used throughout the jurisdiction risk model and entity nationality fields, ensuring interoperability with external data sources and regulatory reporting formats that rely on the ISO country coding standard.
- BSA / FinCEN Reporting Requirements (31 USC 5311 et seq.): Automated generation of Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs) aligns with Bank Secrecy Act obligations administered by FinCEN, with pre-submission validation to meet the electronic filing specifications.
Last Reviewed: 2026-02-23 Last Updated: 2026-04-14