OFAC screening is the process of checking clients, transactions, and counterparties against OFAC’s sanctions lists. This includes the SDN list, country-specific sanctions lists, and other restricted entities. Screening can be automated using specialized software to detect potential matches efficiently. It is performed both when onboarding new clients and on an ongoing basis for existing customers. OFAC screening helps prevent prohibited financial activity, including money transfers, investments, or provision of services to sanctioned parties. Organizations must document screening results and take immediate action if a match is identified to remain compliant with U.S. law.
