Testing Sanctions and Watch List Screening Software

This guide outlines the essential steps for testing sanctions and watch list screening software as part of a Financial Crime Compliance (FCC) program. It emphasizes the importance of having an effective screening solution in place to identify sanctioned individuals and organizations. The document details key areas compliance teams should audit, including ensuring appropriate access to sanctions data, examining data flows for updates, and evaluating how potential name matches are processed. It highlights the significance of risk reference data and the need for compliance teams to understand the sources and quality of this data. Additionally, the guide discusses the management of politically exposed persons (PEPs), adverse media, and state-owned entities, stressing the necessity of having robust policies and processes in place. The document concludes with the importance of client data flow management and the need for a comprehensive approach to screening across different lines of business and geographies.