OFAC screening for remittance services

Remittance providers must screen both sender and recipient against the SDN List before moving cross-border funds.

TL;DR

TL;DR: Remittance providers must check both the sender and the recipient against the SDN List before authorizing a transfer, and block payments to sanctioned jurisdictions or parties.

Why remittances are sensitive

Remittances move value across borders in high volume, often to individuals rather than businesses. That makes sender and recipient screening essential. OFAC applies strict liability, so the provider does not need intent to violate. A cross-border transfer to a sanctioned region is a violation even if the amount is small.

What to screen

• Sender: check the name and source of funds.
• Recipient: check the name and destination wallet or account.
• Jurisdiction: block transfers to sanctioned regions.

Controls

Screen at initiation and again before settlement. Run the check under 100 ms so the transfer flow stays fast. Log every screen, and block the transaction on any match. Apply the 50 Percent Rule to entities majority owned by a blocked person.

Corridor risk

Some corridors carry higher sanctions risk because they run toward or through sanctioned jurisdictions. Screen the sender and recipient on every transfer, and pay attention to the destination region, not just the names. A transfer to a sanctioned area is a violation even when both parties are not on the SDN List, so jurisdiction blocking is part of the same gate. Regularly review which corridors you serve and confirm the screening logic covers each one, because a corridor added later is often the one that goes unscreened.