Sanctions screening: how to check your trading partners

Trading with sanctioned individuals, companies, or countries can result in severe criminal and financial penalties. Sanctions screening is not optional — it is a legal obligation in most jurisdictions.

What Are Sanctions?

Sanctions are restrictions imposed by governments or international bodies that prohibit or limit trade, financial transactions, or travel with specific targets. The main lists are maintained by OFAC (US), the EU, the UN Security Council, and the UK (OFSI).

Who Should You Screen?

• Buyers and suppliers (the company and its beneficial owners).
• Freight forwarders and intermediaries.
• End users of the goods (especially for dual-use or controlled items).
• Banks involved in the payment chain.

How to Screen on Faktorist

Faktorist runs an automated screening check when you initiate a deal with a new counterparty. You will see a green checkmark if no matches are found, or a yellow alert with details if a potential match exists. You can also manually screen any company name from Tools → Sanctions Check.

What If There Is a Match?

Do not proceed with the transaction. Contact your compliance officer or legal counsel. False positives do occur (common names), so review the full listing details before making a final decision.