Jurisdiction Screening

Jurisdiction screening is the process of evaluating whether a customer, transaction, or counterparty is linked to a country or region considered high risk by regulators. This is an essential part ofAML/CFT compliance, as certain jurisdictions are identified for weak controls, inadequate enforcement, or association with money laundering and terrorist financing. Screening involves checking a client’s residency, business incorporation, or transaction flows against regulatory lists such asthe FATF high-risk jurisdictions or sanctions lists. For banks, fintechs, and payment service providers, jurisdiction screening helps mitigate exposure to financial crime and regulatory penalties. It is typically integrated into customer due diligence and transaction monitoring systems.