--- title: Sanction Screening Shouldn’t Be Your Only Action In A Risk-Based Approach | nCino KYC description: FinCEN has issued a warning around potential sanctions evasion attempts, highlighting the need for institutions to enhance their due diligence checks. image: https://blog.kycafrica.ncino.com/hubfs/nCino-KYC-Sanction-Screening-Shouldn%E2%80%99t-Be-Your-Only-Action-In-A-Risk-Based-Approach.jpg --- [![Docfox is now nCino KYC](https://blog.kycafrica.ncino.com/hubfs/nCino-KYC-Top-Web-Banner-HS.png)](https://blog.kycafrica.ncino.com/ncino-kyc-africa-a-vision-to-reinvent-the-future-of-fica-compliance) [![Ncino KYC Africa](https://blog.kycafrica.ncino.com/hs-fs/hubfs/raw_assets/public/ncino-theme-2025/images/ci/ncino-logo-color-invert-RGB.png?width=140&name=ncino-logo-color-invert-RGB.png "Ncino KYC Africa")](https://kycafrica.ncino.com/) - [Solutions](https://kycafrica.ncino.com/solutions/) - [Client Onboarding](https://kycafrica.ncino.com/solutions/customer-onboarding/) - [Watchlist Screening](https://kycafrica.ncino.com/solutions/watchlist-screening/) - 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[Press Releases](https://kycafrica.ncino.com/press/) - [Contact](https://kycafrica.ncino.com/contact/) - [Knowledge Base](https://kycafrica.ncino.com/#elementor-action%3Aaction%3Dpopup%3Aopen%26settings%3DeyJpZCI6IjI1MDkyIiwidG9nZ2xlIjpmYWxzZX0%3D) [Sign In](https://kycafrica.ncino.com/#elementor-action%3Aaction%3Dpopup%3Aopen%26settings%3DeyJpZCI6IjE2NzI3IiwidG9nZ2xlIjpmYWxzZX0%3D) [Request a Demo](https://kycafrica.ncino.com/request-a-demo/) Mar 11, 2022 # Sanction Screening Shouldn’t Be Your Only Action In A Risk-Based Approach ![Globe with sanctions](https://blog.kycafrica.ncino.com/hubfs/nCino-KYC-Sanction-Screening-Shouldn%E2%80%99t-Be-Your-Only-Action-In-A-Risk-Based-Approach.jpg) SHARE ``` On  March 7, 2022 , the Financial Crimes Enforcement Network (FinCEN) issued a warning around potential sanctions evasion attempts by Russia and Belarus, once again highlighting the need for institutions to enhance their due diligence checks and take a holistic risk-based approach when dealing with customers. ``` Following extensive updates to key sanctions regimes in the US, UK and Europe, the FinCEN have issued an [alert](https://www.fincen.gov/sites/default/files/2022-03/FinCEN%20Alert%20Russian%20Sanctions%20Evasion%20FINAL%20508.pdf) advising institutions to increase their vigilance for potential sanctions evasion attempts by Russia and Belarus. Sanctioned individuals and entities within Russia will likely attempt to evade sanctions by using **non-sanctioned financial institutions**, **financial institutions in third countries**, and **virtual currencies.** Financial institutions (FIs) should **increase awareness around their due diligence obligations** and be *mindful not to necessarily place total reliance on sanction screening as an indicator of illicit or sanctions related activity* - especially around **senior political** **figures** with links to Russia and Belarus. The alert restates previous red flags linked to Russian cybercrime and ransomware activity as it is considered likely that the threat from these will increase significantly on the back of geopolitical events. ## Red Flags The alert highlights some select red flag indicators to be mindful of, including: - **Use of legal persons** to obscure ownership, source of funds, or countries involved, particularly in sanctioned jurisdictions. - **Use of third parties** to shield the identity of sanctioned persons and/or Politically Exposed Persons  (PEPs) seeking to hide the origin or ownership of funds, for example, to hide the purchase or sale of real estate. - Accounts in **jurisdictions that are experiencing a sudden rise in value** being transferred to their respective areas or institutions. - Newly established accounts that attempt to send or receive funds to/from an **institution removed from [SWIFT](https://www.swift.com/about-us/legal/compliance-0/swift-and-sanctions)** - **Non-routine foreign exchange transactions** that are inconsistent with activity over the prior 12 months that may indirectly involve sanctioned Russian financial institutions. - A customer’s transactions initiated from or sent to potentially **suspicious Internet Protocol (IP) addresses**: non-trusted sources; locations in Russia, Belarus, FATF-identified jurisdictions with deficiencies, comprehensively sanctioned jurisdictions - A customer initiates a transfer of funds involving a **Crypto mixing service**. ### Are you Suspicious? Make a report - Log a Suspicious Report with the FIC as soon as possible and within the mandated timelines - Provide as many relevant *(but succinct)* details around the activity as possible and why it gives rise to suspicion - Consider referencing the [FIN-2022-RUSSIASANCTIONS](https://www.fincen.gov/sites/default/files/2022-03/FinCEN%20Alert%20Russian%20Sanctions%20Evasion%20FINAL%20508.pdf) alert in the [SAR/STR/CTR](https://blog.kycafrica.ncino.com/acts-and-acronyms) report and correlate the connection between the suspicious activity being reported on and the activities addressed in the alert ### Be proactive - Ensure appropriate staff are frequently trained on the evolving sanctions compliance landscape and potential red flags to be mindful of - Update any adjustments to compliance internal policies, procedures, or processes - Consider implementing a risk-based rapid response training plan to ensure staff are kept informed of sudden changes to the regulatory environment - Make use of nCino KYC to identify any potential adverse media or links to the conflict surrounding clients you may have concerns around   Need more guidance on how to effectively manage your FICA related processes ?   [![Request a Demo](https://hubspot-no-cache-eu1-prod.s3.amazonaws.com/cta/default/24906619/8ad8dd8f-6779-4e27-9d5c-9cf0ab365e9a.png)](https://hubspot-cta-redirect-eu1-prod.s3.amazonaws.com/cta/redirect/24906619/8ad8dd8f-6779-4e27-9d5c-9cf0ab365e9a)   ![Hawken McEwan](https://blog.kycafrica.ncino.com/hubfs/Hawken.png) ### About the author: ### Hawken McEwan Hawken has over 25 years’ experience in financial crime compliance, regulatory operations, banking operations, risk and change. Specialising in FICA and Anti-Money Laundering, Hawken holds a Masters from the Edinburgh University, the AMLCPrac(SA) designation, and is a Certified Anti Money Laundering Specialist, Member of the Association of International Financial Crime Investigators and South African Board member for ACAMs ## Related Articles - ### [RMCP Compliance: What Directive 10, 12 and GN 7B Require](https://blog.kycafrica.ncino.com/rmcp-compliance-what-directive-10-12-and-gn-7b-require) ![RMCP Compliance: What Directive 10, 12 and GN 7B Require](https://blog.kycafrica.ncino.com/hubfs/RMCP%20Compliance_%20What%20Directive%2010%2c%2012%20and%20GN%207B%20Require.jpg) - ### [Important FIC Regulatory Updates: Directive 10, Draft Directive 12 & Guidance Note 7B](https://blog.kycafrica.ncino.com/fic-updates-directive-10-draft-directive-12-guidance-note-7b) ![Important FIC Regulatory Updates: Directive 10, Draft Directive 12 & Guidance Note 7B](https://blog.kycafrica.ncino.com/hubfs/Important%20FIC%20Regulatory%20Updates_%20Directive%2010%2c%20Draft%20Directive%2012%20%26%20Guidance%20Note%207B.jpg) - ### [What Are The Key Requirements That Need to be Met in Order to be FICA Compliant?](https://blog.kycafrica.ncino.com/the-key-requirements-that-need-to-be-met-in-order-to-be-fica-compliant) ![What Are The Key Requirements That Need to be Met in Order to be FICA Compliant?](https://blog.kycafrica.ncino.com/hubfs/The%20Key%20Requirements%20That%20Need%20to%20be%20Met%20in%20Order%20to%20be%20FICA%20Compliant.jpg) - ### [What is the Complete list of Accountable Institutions Under FICA?](https://blog.kycafrica.ncino.com/accountable-institutions-under-fica-complete-list-and-compliance-obligations) ![What is the Complete list of Accountable Institutions Under FICA?](https://blog.kycafrica.ncino.com/hubfs/nCino-KYC-Accountable-Institutions-Under-FICA-Complete-List-and-Compliance-Obligations-1.jpg) - ### [Everything You Need to Know About Ultimate Beneficial Owners \[Part 1\]](https://blog.kycafrica.ncino.com/everything-you-need-to-know-about-ultimate-beneficial-owners) ![Everything You Need to Know About Ultimate Beneficial Owners \[Part 1\]](https://blog.kycafrica.ncino.com/hubfs/Business%20man%20looking%20through%20a%20filling%20cabinet%20with%20illustrated%20diagram%20of%20UBO%20structure.png) ![nCino Full colour Logo](https://blog.kycafrica.ncino.com/hubfs/nCino%20Full%20colour%20Logo.svg) Subscribe to our newsletter [Subscribe](https://share-eu1.hsforms.com/1EGe3layITCaXlgtYEX6fSwetu2j) - - - - ### Solutions - [Client Onboarding](https://kycafrica.ncino.com/solutions/customer-onboarding/) - [Watchlist](https://kycafrica.ncino.com/solutions/watchlist-screening/) - [Risk Rating](https://kycafrica.ncino.com/solutions/risk-rating/) - [Bank Account Verification](https://kycafrica.ncino.com/solutions/account-verification/) - [Compliance Services](https://kycafrica.ncino.com/solutions/compliance-services/) - [Training and Webinars](https://kycafrica.ncino.com/solutions/training-and-webinars/) ### Industries - [nCino for Banks](https://www.ncino.com/) - [High Value Goods Dealers](https://kycafrica.ncino.com/industries/high-value-goods-dealers/) - [Law Firms](https://kycafrica.ncino.com/industries/law-firms/) - [Real Estate Industry](https://kycafrica.ncino.com/industries/real-estate-industry/) - [Stock Brokers](https://kycafrica.ncino.com/industries/stock-brokerage/) - [Forex Traders](https://kycafrica.ncino.com/industries/forex-traders/) - [Financial Service Providers](https://kycafrica.ncino.com/industries/financial-advisors/) - [Credit and Lending](https://kycafrica.ncino.com/industries/credit-and-lending/) - [Motor Vehicle Dealers](https://kycafrica.ncino.com/industries/motor-vehicle-dealers/) - [Other Accountable Institutions](https://kycafrica.ncino.com/industries/other-accountable-institutions/) ### Company - [About](https://kycafrica.ncino.com/about/) - [Press Releases](https://kycafrica.ncino.com/press/) - [Careers](https://www.ncino.com/our-company/careers) - [Contact](https://kycafrica.ncino.com/contact/) - [Partner with us](https://kycafrica.ncino.com/industries/our-partners/) - [FICA FAQ's](https://kycafrica.ncino.com/fica-faqs/) ### Legal & Compliance - [Terms and Conditions](https://kycafrica.ncino.com/terms-and-conditions/) - [Privacy Statement](https://kycafrica.ncino.com/privacy-policy/) - [PAIA Manual](https://kycafrica.ncino.com/wp-content/uploads/2025/03/nCino-SA-PAIA-Manual-March-2025-2.pdf) - Cookie Settings © 2016 – 2026 nCino. 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