workflow-kyc-sanctions-screening

# KYC — Sanctions Screening ## What this skill covers Sanctions screening of all relevant parties (entity, UBOs, directors, authorised signatories) against the five mandatory lists, fuzzy-match scoring, true/false positive determination, disposition decision, and SAR filing triage. A confirmed sanctions match is an absolute red line — it blocks onboarding regardless of all other factors. ## Tool references | Tool | Use | |------|-----| | `sanctions_screening` | Levenshtein fuzzy matching against OFAC SDN, EU consolidated, UK HMT, UN consolidated, FATF blacklist; returns 0-100 match score per candidate | ## Lists screened | List | Jurisdiction | Scope | |------|-------------|-------| | OFAC SDN | US | Individuals and entities; US-nexus mandatory | | EU Consolidated | EU | All EU-member institutions; broad geographic scope | | UK HMT | UK | Post-Brexit UK regime; often aligns with EU but diverges on Russia/Iran | | UN Consolidated | Global | Al-Qaeda, ISIL/Da'esh, Taliban; universal jurisdiction | | FATF Blacklist | Global | Jurisdictions subject to call for action (currently: Iran, North Korea, Myanmar, Russian Federation for EDD) | Supplementary (optional): PEP-specific databases, adverse-media screening platforms, targeted financial sanctions from individual jurisdictions (OFAC sectoral, OFAC secondary sanctions). ## Screening inputs per party | Party type | Required inputs | |------------|----------------| | Individual | Full name, all known aliases/maiden names, date of birth, country of citizenship/residence, nationality | | Entity | Legal name, all trading names/DBAs, country of incorporation, registration number, LEI if available | ## Workflow ### Step 1 — Compile the screening list Identify every party to be screened: - The customer entity itself. - Every UBO (natural persons from `workflow-kyc-beneficial-ownership`). - Every director and authorised signatory. - For funds: every general partner entity and controlling individual. ### Step 2 — Call `sanctions_screening` For each party, call `sanctions_screening` with the party's full inputs. The tool applies Levenshtein fuzzy matching against all five mandatory lists. Output per party: list of candidates with match scores (0-100). ### Step 3 — Score interpretation and triage | Score range | Action | |-------------|--------| | 0-69 | Clear — document the clear result | | 70-89 | Manual review required — compare attributes | | 90-100 | High-likelihood true positive — escalate immediately | ### Step 4 — True / false positive determination For every candidate with a score ≥70: 1. Compare: full name, date of birth (for individuals), country of incorporation/residence, known aliases, and any unique identifiers (passport number, registration number, LEI). 2. Identify a specific, documented differentiating attribute that distinguishes the screened party from the list entry (e.g., different date of birth, different country, different middle name). 3. Classify: - **True positive**: no reliable differentiating attribute; party matches the list entry. - **False positive**: specific documented differentiating attribute exists; attributes confirm two different persons/entities. - **Borderline (ambiguous)**: score 70-89 with insufficient attribute data to distinguish → escalate to MLRO; do not proceed. False positives must document the specific differentiating attribute — they cannot be discarded silently. ### Step 5 — Disposition | Determination | Action | |--------------|--------| | True positive | Block onboarding / freeze relationship immediately. File SAR within 24 hours (terrorism financing) or 30 days (other) per jurisdiction. Do not tip off the customer (tipping-off prohibition applies). | | False positive | Document the differentiating attribute. Obtain MLRO clearance. Clear in the KYC file. | | Borderline | Escalate to MLRO. Do not proceed until MLRO provides clearance or escalates further. | | Clear | Record clean result in the KYC file. | ### Step 6 — Produce the screening table For every screened party, produce an entry in the output table regardless of result (clean results must be documented, not omitted). ## Output format ``` SANCTIONS SCREENING TABLE -------------------------- Screening date: [DD-Mon-YYYY] Lists screened: OFAC SDN, EU Consolidated, UK HMT, UN Consolidated, FATF Blacklist | Party | Party type | List | Top match | Match score | Candidate DOB/Reg | List entry DOB/Reg | Differentiating attribute | Disposition | MLRO ref | |-------|-----------|------|-----------|-------------|------------------|-------------------|--------------------------|-------------|----------| | Alice Smith | UBO | OFAC SDN | Alice Smith (Iran) | 82 | DOB: 1978-03-14, UK | DOB: 1975-11-02, IR | Different DOB and nationality | False positive | MLRO-2026-0312 | | Bob Jones | UBO | All lists | — | <70 | — | — | — | Clear | — | | Customer Corp | Entity | All lists | — | <70 | — | — | — | Clear | — | OVERALL DISPOSITION: Clear / Blocked / Pending MLRO ``` ## Quality gates - Every party (entity + all UBOs + all directors + all signatories) screened — no skipped parties. - Every screened party has a result in the output table, including clean results. - Score ≥70 always triggers manual attribute comparison — no score-only verdicts. - False positives document the specific differentiating attribute — "different person" is not sufficient. - Borderline cases go to MLRO — no unilateral clearance by the analyst. - SAR filing triage documented for every true positive. ## Related skills - `workflow-kyc-customer-intake` — calls this skill in Step 4 of the master onboarding pipeline - `workflow-kyc-beneficial-ownership` — provides the list of UBOs to be screened - `workflow-kyc-monitoring-triggers` — sanctions list updates are an event-driven monitoring trigger requiring re-screening ## Routing **Primary agent:** `cfa-esg-regulatory-analyst`