KYC vs Sanctions Screening
The difference between KYC and sanctions screening — and why agents need the continuous layer.
The distinction
| Layer | Question | When |
|---|---|---|
| KYC / KYB | Who are you? | Onboarding — once |
| Sanctions screening | May we deal with you? | Every transaction |
Why agents need screening, not just KYC
KYC happens once at onboarding. An agent pays counterparties continuously — the check must run before every payment. That is screening, and it must be automated.
The 50% rule
OFAC's 50-percent rule means entities owned 50%+ by a blocked person are also blocked — screening by name alone misses ownership structures. Screening is the continuous layer; KYC is the identity layer.
The stack
KYC platform at onboarding + SanctionsAI on the payment path. Both, in sequence, every time.