Sanctions Screening
Quick Answer
Sanctions screening checks wallet addresses and entities against OFAC, EU, and UN sanctions lists to prevent prohibited transactions — a legal obligation for all payment providers.
Full Definition
Sanctions screening is the process of checking wallet addresses, transaction counterparties, and entities against international sanctions lists to prevent prohibited transactions. Lists include OFAC (US), EU sanctions, UN Security Council lists, and HMT (UK). In crypto payments, screening uses blockchain analytics tools that trace wallet history, identify sanctioned addresses, and flag high-risk transactions. Sanctions screening is a legal obligation for all payment providers.
Related Terms
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SDK (Software Development Kit)
An SDK is a collection of pre-built code libraries that simplifies payment integration — typically a few lines of code to add crypto payment acceptance to any website or app.
Self-Custody
Self-custody means holding your own private keys with sole control over your crypto — no third party can freeze or seize funds. Core to blockchain's 'not your keys, not your crypto' principle.
Settlement
Settlement is the final, irrevocable transfer of funds completing a transaction. Crypto settlement occurs in seconds to minutes versus 1-5 business days for traditional payments.
Slippage
Slippage is the difference between expected and actual trade execution price. In crypto payments, DEX aggregators and tolerance settings minimise slippage during settlement conversion.
Smart Contract
A smart contract is a self-executing program on blockchain that enforces agreement terms automatically — used in payments for escrow, settlement, revenue splitting, and conditional payments.