Identity verification confirms who a client is. AML screening asks a separate question: should this now-verified person or company be allowed to open an account, and does anything change later that should stop them trading. That second check runs against sanctions lists, politically exposed persons registers and adverse media at onboarding, and again on an ongoing basis, because a client who was clean on day one can appear on a sanctions list a year later. This compares the tools built specifically around that check, separate from the identity-verification vendors covered in our other guides.
What AML screening actually checks
Three data categories sit behind most AML screening products. Sanctions and watchlists cover individuals, companies and vessels named by bodies such as the US Treasury's OFAC, the EU and the UN. Politically exposed persons and their relatives and close associates, RCAs, cover current and former government officials and the people around them, screened because of the corruption risk that comes with political power. Adverse media covers negative news coverage that has not necessarily produced a sanction or a listing but signals reputational or criminal risk. Ongoing monitoring re-runs all three checks against an existing client base rather than only at onboarding.
Data providers vs screening platforms
The vendors in this space split into two rough categories. Some sell the underlying data, sanctions and PEP records, as a feed a firm's own systems screen against. Others sell a packaged platform, with a screening workflow, case management and false-positive handling built on top of licensed or proprietary data.
| Vendor | Type | Coverage, by its own figures |
|---|---|---|
| World-Check (LSEG) | Structured data set, delivered via API or the World-Check One screening tool | Sanctions, PEPs and their associates, adverse media, state-owned entities and regulatory and law-enforcement lists |
| Dow Jones Risk & Compliance | Watchlist data set, licensed into third-party compliance software | Sanctions, PEPs and RCAs, persons of special interest, and adverse media, curated with human review |
| LexisNexis Risk Solutions | Screening platform (Bridger Insight XG) | 180+ global sanctions lists, roughly 1,700 enforcement lists, a PEP database the company describes as over 3.4 million profiles, with false-positive reduction tooling |
| ComplyAdvantage | Screening and monitoring platform (Mesh) | Sanctions, PEP and RCA screening, adverse media, ongoing monitoring and transaction monitoring, with an API for firms building their own workflow around it |
| Sumsub | AML module bundled with its KYC and KYB platform | Sanctions and PEP screening, transaction monitoring, a Travel Rule product for crypto transfers, and FIU reporting tools |
Buying data vs buying a platform
A firm with its own compliance engineering team can license raw sanctions and PEP data, from World-Check or the Dow Jones Watchlist, and build the matching logic, case queues and audit trail in house. That gives full control over how alerts are scored and resolved, at the cost of building and maintaining that logic. Most trading firms take the other path: a packaged platform like LexisNexis Bridger Insight XG or ComplyAdvantage Mesh, which already includes the workflow, or an AML module bundled into whichever KYC platform the firm already runs, such as Sumsub's. The trade-off is less control over the exact matching logic in exchange for a working system on day one.
Transaction monitoring
Onboarding screening is a point-in-time check. Transaction monitoring watches deposits, withdrawals and trading activity for patterns an AML policy flags as suspicious, structuring deposits under a reporting threshold, rapid deposit-and-withdraw cycles, or transfers to and from addresses linked to sanctioned entities. ComplyAdvantage sells Transaction Monitoring and Payment Screening as named products alongside its onboarding checks. LexisNexis positions Bridger Insight XG for real-time account and payment screening as well as onboarding. Sumsub's Transaction Monitoring runs as part of the same platform as its KYC and AML Screening modules. A firm that only screens at onboarding and never revisits transaction activity has a real gap in most AML frameworks, whatever KYC vendor sits at the front door.
The crypto angle
A prop firm or broker paying out in crypto has an extra AML question beyond who the client is: whether the wallet address on the other end of a payout is clean. Sumsub's Travel Rule product is built specifically for crypto transfers, and the company's own site lists Chainalysis, a blockchain analytics provider, among the platforms it integrates with. Firms that pay out in stablecoins or crypto should confirm with whichever AML vendor they pick whether wallet and transaction screening is included or needs a separate blockchain-analytics tool layered on top.
Choosing for a trading firm
Start with what your AML policy already requires. Every firm needs sanctions and PEP screening at onboarding; that is close to a regulatory floor, not a nice-to-have. Ongoing monitoring matters more the longer clients stay active and the more jurisdictions they come from. Transaction monitoring matters most for firms processing withdrawals directly rather than through a payment processor that runs its own checks. A firm already running Sumsub for KYC gets AML screening and transaction monitoring in the same platform; a firm on a different KYC vendor can still add ComplyAdvantage or a LexisNexis integration as a separate compliance layer. See KYC vs KYB providers for how identity checks and business verification fit around this, and AML policy for brokers for how a written policy ties screening, monitoring and reporting together.
Whichever combination a firm lands on, the CRM has to be able to hold an account until the check clears and act on a later hit. SGHK's Broker CRM and Prop Firm CRM integrate any KYC provider by API, and an AML screening tool connects the same way: as a compliance data source the CRM checks before an account opens or a withdrawal pays out, alongside our guides on AML basics for trading firms and AML holds on withdrawals.
"A client who passed KYC on day one is not the same question as a client who is still clean a year later. That is what ongoing screening is for."
— The SGHK Team
Key Takeaways
- AML screening checks sanctions, PEP status and adverse media, both at onboarding and on an ongoing basis, separate from identity verification.
- World-Check and the Dow Jones Watchlist sell the underlying sanctions and PEP data; LexisNexis Bridger Insight XG and ComplyAdvantage Mesh sell a packaged screening platform built on top of licensed or proprietary data.
- Sumsub bundles AML screening, transaction monitoring and a Travel Rule product for crypto into the same platform as its KYC and KYB checks.
- Transaction monitoring matters most for firms that process withdrawals directly; SGHK's CRMs integrate any KYC or AML tool by API to act on a hit before money moves.
Frequently Asked Questions
What is the difference between AML screening and KYC?
KYC verifies who a client is with a document and a biometric check. AML screening checks that verified identity, and the business behind it if there is one, against sanctions lists, PEP registers and adverse media, both when the account opens and on an ongoing basis afterward.
Should a trading firm buy raw sanctions data or a screening platform?
A firm with compliance engineering resources can license data directly from a provider like World-Check or the Dow Jones Watchlist and build its own matching workflow. Most trading firms use a packaged platform such as LexisNexis Bridger Insight XG, ComplyAdvantage or an AML module bundled into their KYC vendor instead, trading some control for a system that works on day one.
Does a broker need transaction monitoring in addition to onboarding screening?
Firms that process deposits and withdrawals directly generally need both. Onboarding screening is a point-in-time check; transaction monitoring watches ongoing deposit, withdrawal and trading activity for patterns an AML policy flags as suspicious.
Does AML screening cover crypto payouts specifically?
Some vendors do. Sumsub's Travel Rule product targets crypto transfers specifically, and its platform integrates with Chainalysis for blockchain analytics. Firms paying out in crypto should confirm wallet and transaction screening with their AML vendor rather than assume it is included.
Can SGHK's CRM connect to an AML screening tool?
Yes. The Broker CRM and Prop Firm CRM integrate any KYC provider by API, and an AML screening tool connects the same way, as a compliance check the CRM runs before an account opens or a withdrawal pays out.
About SGHK
SGHK is a FinTech company that designs and builds its own software for the trading industry: the eTrader trading platform, Launch your Broker and Launch your Prop Firm. Every product is written, hosted and supported in-house and licensed to trading firms, with the CRMs branded to them, all hosted by us in the cloud, managed by each firm and built to scale across clustered servers as our clients grow. Everything is encrypted, and each firm is the only one with access to its data and its clients' data.