How fast must PSP sanctions screening be?

Real-time transaction screening should complete in under 500ms to avoid payment flow delays. SanctionsAI provides sub-200ms API responses for wallet and name screening.

What is correspondent banking sanctions risk?

PSPs that use correspondent banks to route international payments inherit the correspondent bank's sanctions risk. If the correspondent bank is designated or processes sanctioned transactions, the PSP can be exposed.

Do PSPs need to screen every transaction?

Yes. OFAC requires screening of all transactions involving US persons or the US financial system. PSPs must screen every payment in real-time against the SDN list.

Can PSPs use batch screening?

Batch screening is appropriate for onboarding (screening all merchants periodically) but not for real-time payments. Transaction screening must be real-time to block prohibited payments before execution.

Best sanctions screening for payment service providers

Payment service providers (PSPs) sit at the intersection of buyer and seller, making sanctions screening critical. This guide covers the screening requirements specific to PSPs.

PSP screening requirements

PSPs must screen: (1) merchant names at onboarding, (2) individual transactions in real-time, (3) beneficiary names for outbound payments, (4) correspondent banking partners. The velocity of transactions requires sub-second screening.

Screening type	When	Latency requirement	Tool recommendation
Merchant onboarding	At signup	Seconds (not blocking)	Batch screening, ComplyAdvantage or Refinitiv
Real-time transaction screening	Per transaction	Sub-second	SanctionsAI API or SumSub
Beneficiary screening	Per outbound payment	Sub-second	SanctionsAI API
Crypto wallet screening	Per crypto transaction	Sub-second	SanctionsAI wallet API

For PSP compliance teams: The bottleneck is real-time screening latency. SanctionsAI provides sub-200ms API responses for wallet and name checks, suitable for insertion into payment flows without user-perceptible delay.

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Frequently Asked Questions

How fast must PSP sanctions screening be?: Real-time transaction screening should complete in under 500ms to avoid payment flow delays. SanctionsAI provides sub-200ms API responses for wallet and name screening.
What is correspondent banking sanctions risk?: PSPs that use correspondent banks to route international payments inherit the correspondent bank's sanctions risk. If the correspondent bank is designated or processes sanctioned transactions, the PSP can be exposed.
Do PSPs need to screen every transaction?: Yes. OFAC requires screening of all transactions involving US persons or the US financial system. PSPs must screen every payment in real-time against the SDN list.
Can PSPs use batch screening?: Batch screening is appropriate for onboarding (screening all merchants periodically) but not for real-time payments. Transaction screening must be real-time to block prohibited payments before execution.