Negative File / Denylist
Overview
A negative file or denylist is a database of individuals, businesses, or accounts that are prohibited from accessing services due to past fraud, compliance breaches, or regulatory restrictions.Financial institutions maintain denylists internally and also rely on external sources like industry consortiums or regulators. Denylists prevent repeat offenders from exploiting financial systems and help organizations comply with AML and fraud prevention requirements. Automated screening ensures that entities on denylists are flagged at onboarding or during transactions. By using denylists, banks, fintechs, and insurers reduce financial crime exposure, protect customer trust, and demonstrate proactive risk management.
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Criminal Screening
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Database Verification
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FAQ
What is a denylist?
A database of individuals or entities barred due to risk or fraud.
Why is it useful?
It prevents repeat offenders from exploiting financial systems.
Who maintains it?
Institutions, regulators, and industry consortiums.
How is it applied?
Through automated checks during onboarding and monitoring.