Sanctions Screening is the process of reviewing sanctions lists to check if any user/customer in your business process is involved in financing crime or terrorism, so that you can take the appropriate action.

What is a Sanctions List?

A sanctions list contains names of individuals who are known to be involved in financing crime or terrorism.

There is still unawareness of the existence of the sanctions list amongst many business firms– more importantly – they are unaware of THEIR LEGAL OBLIGATION (under EC legislation and the relevant statutory instrument as enforced by the HM Treasury) make sure that clients with whom they do business are not on the sanctions list. Business firms should be able to check if their clients are not on the Sanctions List both today and tomorrow i.e. in future.

Every search carried out within any online financing system should be logged and along with a certificate for the client file, the system should produce and maintain a permanent record of all clients searched against the list.

Why should Sanctions Screening take place?

Sanctions Screening helps you comply with the law in the jurisdiction of your Fund and General Partner. You should know if anyone connected to your Fund structure is involved with

financing crime or terrorism and take the action defined by the regulator.

Screening requirements in each jurisdiction are set out either in legislation or, more often in each regulator’s guidance and best practice protocols.

What can happen if Sanctions Screening does not takes place?

If you do not undertake Sanctions Screening, you will not be able to identify those who are involved in financing crime or terrorism. Failure to do so could result in regulatory sanction. This could result in financial penalties or restrictions applied to operating practices.

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