Best Practices for Screening Parameters
The below listed best practices are based on our experience with customers who use our smart name-matching technology (API version 2.2+). Please see also our API documentation, which includes more detailed information and examples of different screening setups.
Our Name-Matching Scoring Model
Our smart name-matching technology helps to reduce false positives without the trade-off of a higher risk of false negatives. The API returns a Confidence Score between 0 and 1 for every search result , 1, meaning it's a 100% exact match.
The confidence score is a weighted matching score calculated based on individual field scores for all parameters used in the search request. The min_score parameter in the API request filters all results in the API response with a lower score than the defined threshold. We recommend starting with a 0.85 threshold.
Screening for Individuals
When screening individuals, a robust starting point is to use the individual's Full Name along with either their Date of Birth (DOB) or Year of Birth (YOB) for a broader search scope. Make sure to specify the Entity_Type as "Individual" in your search request. Typically, these initial data points already yield accurate results, thanks to our advanced name-matching technology.
For enhanced accuracy and a reduction in false positives, consider including additional identifiers such as the Country of Residence or Passport IDs. Note: If you're using country fields, it's crucial to adhere to the ISO 3166-1 alpha-2 country code format for consistency and accuracy.
Screening for Organizations
A recommended approach for Organizations screening is to use the Name of the Organization along with the Country of Residency ( ISO 3166-1 alpha-2 format) and Entity Type = "Entity". This will usually lead to good results, and with our name-matching algorithm, you don't need to remove legal forms like LLC, INC etc., as this will automatically cleansed in the search request.
Enhancing Search Accuracy with Additional Identifiers
To further refine your search results, you can include additional identifiers such as URLs , business registration numbers, or Passport IDs in the 'Identifier' field of your search request. When incorporating this added layer of identification, we recommend setting a value in the 'Identifier_match_boosting_threshold' field—ideally at 0.9. This threshold will trigger a match if either the name or the Identifier satisfies the set criteria, enhancing screening precision.
Screening for Vessels, Aircraft, and Crypto Wallet Addresses
Our database also contains vessel/aircraft names, IDs, and Crypto Wallet Addresses, which can be searched for in the respective fields.
Screening against Sanctioned or High-Risk Jurisdictions
With sanctions.io, you have the capability to screen your customers and business partners not just against "targeted watchlists" with individuals or entities but also against jurisdictions that have been comprehensively sanctioned—such as through embargoes—or identified as high-risk by authoritative AML regulatory bodies.
To include this feature in your screening setup, the following simple steps are necessary:
- Include the country of residence of your business partner in your search request (country_residence field)
- Specify the desired High-Risk Jurisdiction list in the data_source field (for example, OFAC-COMPREHENSIVE, FATF). See our comprehensive list of all Targeted Sanctions Lists and High-Risk Jurisdictions Lists in Sanctions & Watchlists.
It's important to understand that there is no "one-size-fits-all" solution when it comes to setting up an effective screening process. The efficacy of your setup will be shaped by various factors:
- Data Quality: The completeness and accuracy of the data you have for your business partners.
- Risk Appetite: How willing your organization is to take on higher-risk clients or work in high-risk jurisdictions.
- Compliance Resources: The human and technological resources your organization has allocated for compliance tasks.
- Exposure to High-Risk Elements: The level to which your organization interacts with high-risk customers or countries.
Each of these variables can impact the efficiency and effectiveness of your AML and sanctions screening, requiring a tailored approach to meet your unique organizational needs.