# Sanctions Screening

> Checking that the people and addresses involved in a transaction are not on a sanctions list.

Canonical URL: https://fudfomo.co/glossary/sanctions-screening
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

Sanctions screening is the process of checking customer identities and on-chain addresses against official lists of sanctioned individuals, entities, and wallets. Crypto firms typically run automated screening at onboarding and on every withdrawal.

A hit can mean the transaction is blocked, the funds are frozen, and the case is reported to the relevant authority. The most-watched lists come from OFAC in the US, the UK's OFSI, and the EU.

## Regulatory context

Failing to screen properly can lead to large fines and licence revocation. Most exchanges use specialised compliance tools rather than building this in-house.

## Related terms

- [AML](https://fudfomo.co/glossary/aml): Anti-money laundering. The rules and checks that stop crypto being used to hide the origin of dirty money.
- [KYC](https://fudfomo.co/glossary/kyc): Know Your Customer. The identity checks an exchange runs before letting you trade.
- [VASP](https://fudfomo.co/glossary/vasp): Virtual Asset Service Provider. A FATF term for any business that handles crypto on behalf of customers.
- [Custody](https://fudfomo.co/glossary/custody): Who holds your crypto and the keys to it. Self-custody means you do, custodial means a company does.

## See the full catalogue

What The Block! covers more than 2,000 plain-English crypto terms, delivered as embeddable hover-state tooltips for crypto exchanges. https://wtb.fudfomo.co