Section 21: Customer Due Diligence
Verify customer identity and assess risk profile including AML screening.
AML Screening
AML screening South Africa
Run point-in-time PEP screening, sanctions list checks, watchlist screening and adverse-media searches for a South African FICA review workflow.
AML screening South Africa
Run AML checks built for South African teams.
Screen names against PEP, sanctions, watchlist and adverse-media sources and keep a clear screening result with the customer file.
- PEP and sanctions
- Potential-match detail
- Saved screening result
Point-in-time
Screening Result
Potential
Matches to Review
Dashboard
No Code Required
API
Integration
1. What is AML Screening?
AML (Anti-Money Laundering) screening is the process of checking individuals and entities against various watchlists, sanctions lists, and databases to identify potential money laundering, terrorist financing, or other financial crime risks.
In South Africa, AML screening is a legal requirement under FICA for all Schedule 1 accountable institutions. Failure to conduct proper AML screening can result in significant penalties, criminal prosecution, and reputational damage.
Why AML Screening Matters
- Prevent money laundering through your business
- Combat terrorist financing
- Support your FICA screening controls
- Avoid penalties up to R100 million
- Protect your business reputation
2. Types of AML Screening
Sanctions Screening
Screen against international and local sanctions lists to identify prohibited individuals and entities.
Lists & Sources Checked:
- UN Security Council consolidated list
- OFAC Specially Designated Nationals (SDN)
- EU consolidated sanctions list
- UK HM Treasury sanctions
- South African targeted financial sanctions
- FATF high-risk jurisdictions
Compliance: Required under FICA for all accountable institutions
PEP Screening
Identify Politically Exposed Persons who require enhanced due diligence.
Lists & Sources Checked:
- Domestic PEPs (South African government officials)
- Foreign PEPs (foreign government officials)
- International organization officials
- Family members of PEPs
- Close associates of PEPs
- Former PEPs (high-risk period)
Compliance: FICA Section 21A mandates EDD for all PEPs
Adverse Media Screening
Monitor news and media sources for negative information about customers.
Lists & Sources Checked:
- Financial crime mentions
- Fraud allegations
- Corruption cases
- Regulatory actions
- Criminal proceedings
- Reputational concerns
Compliance: Part of enhanced due diligence under FIC guidance
Watchlist Screening
Check against law enforcement and regulatory watchlists.
Lists & Sources Checked:
- Interpol wanted persons
- FBI most wanted
- Domestic law enforcement lists
- Regulatory enforcement actions
- Debarred parties lists
- Industry-specific blacklists
Compliance: Supports comprehensive risk assessment
3. FICA Requirements
FICA mandates comprehensive AML procedures for all accountable institutions:
Section 21A: Enhanced Due Diligence
Apply additional scrutiny for PEPs and high-risk customers including ongoing AML monitoring.
Section 28: Cash Threshold Reporting
Report cash transactions above R49,999.99 to the FIC no later than three business days after becoming aware of the transaction.
Section 29: Suspicious Transaction Reporting
File STRs for suspected ML/TF within 15 days of forming suspicion.
Section 28A: Terrorist Property Reporting
Report property associated with terrorist activity immediately.
Section 42: RMCP
Maintain risk management and compliance programme including AML procedures.
Penalties for Non-Compliance
Failure to comply with FICA AML requirements can result in administrative penalties up to R10 million, criminal prosecution with fines up to R100 million and imprisonment up to 15 years for money laundering offences.
4. How AML Screening Works
1
Submit Customer Data
Enter customer name, date of birth, ID number, and other identifying information.
2
Database Matching
The service checks supported watchlist, sanctions and PEP sources using fuzzy name matching.
3
Match Analysis
Potential matches are analyzed and scored based on match quality and relevance.
4
Result Review
Review matches and determine if they are true positives requiring action or false positives to be cleared.
5
Case Resolution
Document your decision and any actions taken. True matches may require EDD, STR filing, or relationship termination.
6
Repeat Screening
Run another point-in-time screen on your RMCP cadence, or enrol the customer for ongoing AML monitoring when they must stay in scope after onboarding.
5. AML Red Flags
Watch for these warning signs that may indicate money laundering or terrorist financing:
Customer on sanctions or watchlist
Customer is a PEP without disclosure
Adverse media linking customer to financial crime
Transactions with sanctioned countries
Complex ownership structures obscuring beneficial owners
Reluctance to provide required information
Transactions inconsistent with customer profile
Multiple accounts with no clear purpose
Cash-intensive business with unusual patterns
Third-party funding without explanation
6. Benefits of Automated AML
Automated Screening
A returned result from supported screening sources
Repeat Screening
Run a new point-in-time screen on your review cadence
Fuzzy Matching
Catches name variations and aliases
Screening Record
Keep the result and reference for review
Run from your dashboard
No code required — type a name and ID, get the risk outcome in seconds
Case Management
Workflow for match resolution
7. Frequently Asked Questions
What is AML screening?
AML (Anti-Money Laundering) screening is the process of checking customers against watchlists, sanctions lists, and PEP databases to identify potential money laundering or terrorist financing risks. In South Africa, AML screening is required under FICA for all accountable institutions.
What sanctions lists are checked in AML screening?
Comprehensive AML screening checks multiple sanctions lists including: UN Security Council sanctions, OFAC (US Treasury), EU consolidated list, UK HM Treasury sanctions, South African targeted financial sanctions, and various other government watchlists. Additional screening includes PEP databases and adverse media sources.
Who needs to conduct AML screening in South Africa?
Under FICA, all Schedule 1 accountable institutions must conduct AML screening. This includes banks, insurance companies, estate agents, attorneys, accountants, casino operators, motor vehicle dealers, and others. AML screening is particularly important for PEPs and high-risk customers requiring enhanced due diligence.
How often should AML screening be conducted?
Run AML screening at onboarding and repeat it at the cadence set by your RMCP. A dashboard AML/PEP check is point-in-time. For customers who must stay in scope after onboarding, VerifyNow ongoing AML monitoring enrols the identified person or company and rescreens them against refreshed lists.
What is PEP screening?
PEP (Politically Exposed Person) screening identifies individuals who hold or have held prominent public positions, as well as their family members and close associates. PEPs are considered higher risk for money laundering due to their access to public funds and influence. FICA Section 21A requires enhanced due diligence for all PEPs.
Related Resources
Start AML screening today
Screen against sanctions, PEP and watchlist sources, review potential matches, and keep the report reference for your FICA workflow.