AML Screening
AML (Anti-Money Laundering) screening is the process of checking customers, beneficiaries, and transactions against known risk databases before — and sometimes during — financial activity. It is one of the primary ways financial institutions detect and prevent money laundering, terrorist financing, and other financial crime.
Fraudspect runs AML checks automatically as part of your transaction monitoring pipeline, so you do not need a separate tool or manual lookup process.
What gets screened?​
Fraudspect screens against the following risk categories:
Sanctions lists​
Sanctions are restrictions imposed by governments or international bodies (such as the UN, EU, OFAC, or OFSI) that prohibit financial dealings with specific individuals, organisations, or countries. Transacting with a sanctioned party is illegal in most jurisdictions, regardless of whether the underlying transaction appears suspicious.
Fraudspect checks your customers and transaction parties against major global sanctions lists in real time. A match puts the transaction on hold immediately, pending review by your compliance team.
PEP — Politically Exposed Persons​
A PEP is someone who holds or has held a prominent public position — such as a government official, senior military officer, or judge — as well as their close family members and known associates. PEPs are not necessarily criminals, but their position creates a higher risk of bribery and corruption.
Fraudspect identifies PEP-linked parties and flags them for enhanced due diligence (EDD) rather than automatic rejection. Your team decides whether the relationship is low-risk (e.g. a retired local official) or warrants deeper investigation.
Criminal records​
Fraudspect also screens against criminal databases that track individuals with convictions or ongoing investigations related to financial crime, fraud, drug trafficking, and other serious offences.
Adverse media​
Beyond structured databases, Fraudspect scans news sources and online publications for negative coverage linked to a person or entity. This catches risk that hasn't yet been formalised into a sanctions list — for example, a company director who has been publicly accused of fraud but not yet charged.
When does screening happen?​
| Trigger | What's screened |
|---|---|
| Customer onboarding | Customer name, identity, and any connected parties |
| Transaction processing | Sender, recipient, and beneficiary details |
| Ongoing monitoring | Customers previously enrolled in continuous watch — re-screened when database updates occur |
Ongoing monitoring is particularly important for sanctions compliance. A customer who was clean at onboarding may be added to a sanctions list months later. Fraudspect re-screens monitored customers automatically and alerts your team when a new match is detected.
What happens when there's a match?​
Not all matches are genuine hits. Name collisions are common — especially for common names or transliterations from other scripts. Fraudspect returns a match score (0 to 1) alongside each result so your compliance team can quickly assess confidence:
| Score range | Interpretation |
|---|---|
| 0.9 – 1.0 | Very high confidence — treat as a confirmed match |
| 0.7 – 0.89 | Likely match — requires manual review |
| 0.6 – 0.69 | Possible match — review in context of other risk factors |
| Below 0.6 | Low confidence — typically a false positive |
When a match is detected, the transaction is placed in AML Hold (status 4) and surfaced to your MLRO (Money Laundering Reporting Officer) for review. From there, your team can:
- Clear the match — confirm it is a false positive and release the transaction
- Reject the transaction — decline processing and record the reason
- File an STR — if the match, combined with transaction context, raises a suspicion of money laundering or terrorism financing
How AML screening feeds into reports​
AML screening and regulatory reporting work together:
- A sanctions match on a transaction typically leads to an immediate hold and, if confirmed, an STR filing.
- A PEP match triggers enhanced due diligence. If the PEP-linked transaction is unusual or unexplained, an STR may follow.
- A clean screening result on a large transfer does not remove the obligation to file a CTR or FTR if the amount thresholds are met — those are separate requirements.
Think of AML screening as the detection layer, and reports (STR, CTR, FTR) as the disclosure layer. Both are required, and Fraudspect handles both within the same workflow.
Need help?​
For questions about configuring screening thresholds, enrolling customers in ongoing monitoring, or understanding match results, contact us at support@getfraudspect.com.