Payment Processors
Sanctions and AML Compliance for Payment Processors
OFAC API offers real-time and batch screening solutions for payment processors and money transmitters — the industry standard for global sanctions and watchlist screening.
KYC and AML Compliance for Payment Processors and Money Transmitters
The financial services industry, including money transfer services, is highly regulated concerning compliance with global sanctions. Nearly 90% of sanctions-related penalties since 2020 targeted the financial services industry.
Customer Due Diligence (CDD) and Know Your Customer (KYC) guidelines are often complex and may vary based on transaction types, such as remittance, peer-to-peer, or e-wallet services.
OFAC API's watchlist and PEP screening services support the screening of both client onboarding and real-time financial transactions, providing a Jobs API to support ongoing bulk client due diligence.
Real-Time Transaction Screening
Screen individual payment transactions against the SDN and other watchlists before settlement or fund release.
Client Onboarding
Perform immediate sanction checks at initial enrollment. The OFAC API Screening API offers response time less than 1 second and PDF case reports for audit preparedness.
Peer-to-Peer Payments
Screen both the sending and receiving parties in P2P and mobile payment flows before funds are released.
E-Wallet and Prepaid Services
Screen wallet holders and funding sources at activation, reload, and redemption to prevent sanctions exposure at every touchpoint.
Merchant Onboarding
Screen merchants and their beneficial owners at enrollment before enabling payment acceptance.
Ongoing Client Due Diligence
Batch-rescreen active customers and merchants whenever sanctions lists update to identify newly designated parties.
Authoritative Sanctions Data and Expertise
Financial institutions are at the forefront of financial crime prevention, and evolving KYC and AML requirements present ongoing challenges. Your clients expect seamless digital experiences.
Our industry-trusted API provides flexible solutions to the most common payment processing compliance challenges, including:
- Office of Foreign Assets Control (OFAC) Regulations
- FFIEC BSA/Anti-Money Laundering (AML) guidelines
- Financial Crimes Enforcement Network (FinCEN)
- U.S. Department of Commerce – Bureau of Industry and Security (BIS DPL)
- European Union 5th Money Laundering Directive
- EU External Actions and Consolidated Sanctions List
Cost Effectiveness
OFAC API is a Tier 1 provider of U.S. Treasury SDN screening services, recognized for industry-leading value at high transaction volumes.
| Detail | |
|---|---|
| Screening cost | Less than $0.01 per counterparty, depending on volume |
| Compliance standard | Compliant with U.S. Treasury 10-21 Compliance Guidelines for money transmitters |
| Throughput | Real-time screening suitable for inline transaction processing |
| Batch processing | Supported for ongoing client due diligence and portfolio rescreening |
Screening Coverage
Flexible configuration allows you to enable only the lists relevant to your platform's risk profile, transaction types, and licensing obligations.
- OFAC SDN and Consolidated Sanctions Lists: The primary U.S. sanctions screening requirement for all payment processors handling domestic or international transactions.
- EU Consolidated Sanctions List: Required for processors supporting cross-border payments into or out of the European Union.
- UN Security Council Sanctions: Multilateral sanctions with broad applicability across international payment corridors.
- UK OFSI Financial Sanctions Targets: Relevant for processors with UK operations or participants in UK payment flows.
- Politically Exposed Persons (PEP): Enhanced due diligence screening for high-risk account holders and platform participants.
- FinCEN 314(a): Voluntary information sharing program for identifying accounts and transactions of suspected money launderers and terrorists.
See the datasets page for a complete listing of all available sanctions and risk data sources.