#QuickBiteCompliance Day 138
When a Name Match Could Mean Trouble: Understanding Hits in Sanctions Screening
Imagine you’re at an airport security checkpoint. A passenger’s name pops up on the system—same name as a wanted criminal! But is it really the bad guy, or just someone with a similar name? This is what happens in financial crime prevention when banks and businesses screen transactions against sanction lists.
A hit (or potential match) means that a name in a financial transaction matches a name on a sanctions list—like someone involved in terrorism, drug trafficking, or illegal arms deals. But it doesn’t always mean it’s the same person. It could be a false alarm!
How Bad Guys Take Advantage
Criminals exploit these name-matching challenges in clever ways:
🔸 Common Names Trick – Using widely shared names (e.g., “John Smith”) to blend in and avoid detection.
🔸 Spelling Games – Slightly changing the name (e.g., “Mohamed” vs. “Muhammad”) to slip past sanctions filters.
🔸 Identity Borrowing – Using stolen or fake identities that resemble legitimate people to open accounts and move dirty money.
🔸 Layering Through Third Parties – Sending funds through associates or shell companies to confuse investigators.
Why It Matters
Missing a real match could mean funding criminals. But blocking innocent people causes unfair financial exclusion. That’s why smarter Regtech (Regulatory Technology) and Open Source AML solutions, like Mulai Console, help balance speed and accuracy in identifying true threats while keeping financial services inclusive.
💡 Want to learn more? Check out this AML glossary: https://www.acams.org/en/resources/aml-glossary-of-terms
#FinancialCrime #SanctionsScreening #AML #KYC #RiskManagement #InclusiveRegtech #OpenSourceAML #100HariNulis
