E-commerce platforms are at the heart of today’s digital economy, enabling millions of global transactions every day. But with rapid growth comes greater compliance responsibility. Regulators increasingly expect online marketplaces, payment providers, and digital retailers to apply the same financial crime controls as traditional financial institutions.

This means AML compliance, particularly sanctions and watchlist screening, is no longer optional. It is a critical safeguard against misuse of e-commerce platforms for money laundering, sanctions evasion, or fraudulent payments.

The Compliance Challenges Facing E-Commerce

E-commerce firms face unique compliance challenges. Unlike banks, they process large volumes of low-value, high-frequency transactions across multiple jurisdictions. This creates specific risks that regulators monitor closely.

High Transaction Volumes

The sheer scale of payments can overwhelm compliance teams if alerts are not managed effectively.

Cross-Border Payments

Transactions often involve multiple currencies and jurisdictions, raising the risk of sanctions breaches.

Diverse Customer Base

E-commerce platforms must onboard a wide range of customers, from individuals to merchants, making accurate screening essential.

The European Banking Authority (EBA) has highlighted that non-bank payment providers must strengthen AML controls to match the risks posed by digital commerce

Why Watchlist Accuracy Is Critical for E-Commerce

Accurate watchlists ensure that sanctions and politically exposed persons (PEPs) are identified without flooding compliance teams with false positives. Poor data quality in watchlists can delay legitimate transactions or, worse, allow prohibited customers to transact.

This is where strong watchlist management comes in. Solutions like FacctList, Watchlist Management provide real-time updates, data cleansing, and enrichment that improve accuracy and reduce unnecessary alerts.

For context, see our glossary entry on Sanctions Screening to understand how list quality shapes compliance outcomes.

The Role of Customer Screening in Onboarding

Onboarding is the first point of defence for e-commerce compliance. Screening customers in real time prevents sanctioned individuals, fraudsters, or high-risk entities from accessing the platform.

Customer Screening enables firms to conduct checks instantly, balancing speed and accuracy. For global e-commerce, this is vital, customers expect fast onboarding, but regulators demand thorough due diligence.

For further background, our glossary explains Customer Due Diligence and why it underpins screening in digital marketplaces.

Managing Alerts at Scale in E-Commerce

Even with accurate watchlists and screening, high transaction volumes generate alerts. Without a structured adjudication process, compliance teams risk alert fatigue and operational backlogs.

Alert Adjudication supports e-commerce platforms by standardising decisions, reducing false positives, and documenting every outcome for regulators. This makes compliance more scalable as platforms grow.

Final Thoughts

E-commerce is no longer outside the compliance spotlight. With regulators demanding stronger oversight, firms must prioritise accurate watchlist management, real-time screening, and structured alert adjudication.

Those that fail to invest in robust compliance systems risk penalties, reputational damage, and customer trust erosion.

Strengthen E-Commerce Compliance with Facctum

Facctum’s solutions are designed to help e-commerce firms meet compliance expectations at scale:

• FacctList, Watchlist Management for accurate, up-to-date lists.

• FacctView, Customer Screening for real-time onboarding checks.

• Alert Adjudication for efficient alert handling.

👉 Contact Facctum today to learn how our technology strengthens AML and sanctions compliance in the e-commerce industry.