Transaction screening is a key process in financial crime compliance that helps institutions detect and prevent illicit activities such as money laundering, terrorist financing, and fraud. It involves the real-time or batch analysis of financial transactions against specific criteria, including sanctions lists, watchlists, and high-risk indicators. The objective is to identify and flag transactions that involve individuals, entities, or jurisdictions linked to illegal activities or those under regulatory restrictions. 

Through transaction screening, financial institutions can quickly assess and block suspicious transactions before they are processed, reducing the risk of facilitating unlawful behaviour. This proactive approach is essential for compliance with global regulations and for protecting the financial system’s integrity, while also safeguarding the institution from legal and financial penalties.