What is OFAC screening for marketplaces?

OFAC screening for marketplaces means checking every counterparty — both buyer and seller — on every transaction that involves a US person, US dollar, or US nexus. This includes the listing payment, the platform fee, and the seller payout.

Marketplace-specific risks

Unlike a simple merchant, a marketplace has two counterparties per transaction. The platform may be facilitating a prohibited transaction even if it never touches the listed goods — simply processing the payment can trigger facilitation liability.

Integration pattern

Screen at three points: (1) seller onboarding (KYA check), (2) payment processing (sanctions screen on both buyer and seller), and (3) payout disbursement (re-screen before sending funds to the seller). SanctionsAI's API handles all three.