What is an OFAC screening false positive?

A false positive in OFAC screening is a situation where a screening tool flags a counterparty as a potential SDN match, but the counterparty is not the designated individual or entity. This typically happens when a common name matches an SDN entry for a different person, or when fuzzy matching is too aggressive.

Handling false positives

1. Compare the counterparty's details (name, DOB, address, nationality) against the SDN entry. 2. If clearly different, document the false positive with a note explaining the distinction. 3. If uncertain, request additional information from the counterparty before clearing the alert.

Reducing false positives

Combine name screening with wallet, jurisdiction, and other identifiers. A name match alone has the highest false-positive rate; name + wallet + country has the lowest. SanctionsAI's multi-parameter screening automatically reduces false positives.