Sanctions checking in SchemeServe allows you to compare customer details against the built-in UK and European financial sanctions list. This article explains how the built-in sanctions checking works, how to configure your rules correctly, and the options available if you need to check additional international sanctions lists.
How SchemeServe Sanctions Checking Works
SchemeServe's rule builder includes a built-in sanctions lookup against the UK and European Financial Sanctions Consolidated List published by HM Treasury. All you need to do is create the rules.
The sanctions lookup file is automatically updated every day at 7:00am, ensuring your scheme checks against the latest published data.
Note
The built-in sanctions checking only covers the UK and European sanctions data contained within the HM Treasury consolidated list.
Checking Other International Sanctions Lists
If you need to check sanctions lists from other countries or perform broader compliance checks (such as PEP or international watchlists), this requires an integration with an external provider.
The external provider supplies:
- the sanctions data
- a lookup function
- ongoing data maintenance
The user enters into a commercial agreement directly with the provider and pays any lookup charges to them-not to SchemeServe.
One example provider is:
SchemeServe Consultancy for External Sanctions Providers
SchemeServe can assist with the initial implementation by:
- configuring the lookup files
- creating the lookup function within the rating file
- adding any required hidden questions
- storing the returned flagged/non-flagged status
- creating the required rules
Typical implementation effort:
3 days consultancy
Ongoing Lookup File Maintenance
External lookup files must be kept up to date.
There are two options:
User maintained
- The broker updates the lookup file themselves.
- SchemeServe can provide documentation explaining the update process.
SchemeServe maintained
- SchemeServe can update the lookup file on an agreed recurring schedule.
- This is a chargeable annual service and is not covered by support allowance.
Creating Your Own Lookup Function
If preferred, users can build and maintain their own lookup process using publicly available sanctions data.
One commonly used source is:
https://www.opensanctions.org/
How the Built-in Rules Work
When a sanctions checking rule runs, the value supplied in the rule is compared against every column in the sanctions lookup file (Columns A through AB).
This intentionally produces a broader search.
The philosophy behind the implementation is:
It is better to receive a false positive that can be investigated than to completely miss a genuine sanctions match.
Most schemes simply compare the customer's:
- individual name
- business name
against the sanctions list.
If a match is found, the rule can refer the case for manual review.
Improving Match Accuracy Using Date of Birth
If your scheme collects the customer's Date of Birth, it is strongly recommended that your sanctions rule also checks the year of birth.
Doing so significantly reduces false positives.
Many sanctions records only contain an approximate year of birth, with dates recorded as:
01/01/YYYY
because only an estimated age is known.
For this reason, checking the year only is normally sufficient.
Example Questions
Example question setup:
Contact Name
Date of Birth
Example Rule Formula
The rule should combine the contact name with the customer's year of birth.
Example:
[ContactName_Value] + " " + [DOB_DateValue].Year.ToString()The completed rule would resemble:
Important
There must be a space between the quotation marks in the formula:
" "Omitting the space can prevent the lookup from matching correctly.
What Happens When a Match Is Found?
If the supplied value is found anywhere within the sanctions lookup data, the rule can:
- Refer the quotation
- Prevent cover from being started
- Display a warning
- Trigger any other action appropriate to your underwriting process
The exact behaviour depends on how your rule has been configured.
Best Practice
For the most accurate results:
- Check against the customer's full name (or business name).
- Include the customer's year of birth whenever available.
- Configure the rule to refer cases for manual review rather than automatically decline.
- Remember that false positives are expected and should be reviewed by an underwriter or compliance team.
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