Before Onboarding: Screening Customers Against Government Watchlists in Real Time

The Challenge:

Financial institutions can make onboarding more efficient when watchlist screening happens inside the same workflow instead of in a separate system. This reduces manual handoffs between application review, screening, and onboarding.

FinCEN says banks need risk-based procedures for verifying customer identity, while FFIEC guidance says new accounts should be compared with OFAC lists before opening or shortly afterward. These checks remain part of the institution’s broader compliance responsibilities.

Third parties can support OFAC screening, but the institution still owns the review, controls, and final decision. Bringing results into the onboarding record simply makes that review easier to manage before the application moves forward.

The Solutions:

Searchbug’s AML API brings watchlist screening into the onboarding workflow through real-time XML or JSON, checking against data sourced from OFAC, the FBI, and Interpol. It supports the institution’s review process, but it does not approve customers, score fraud risk, or replace KYC, AML, sanctions, or compliance procedures.

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