Glossary
False Positive (Sanctions Screening)
A screening match that is mathematically similar but refers to a different person or entity than the counterparty.
Definition
A false positive in sanctions screening is a match returned by the screening engine that, on review, does not refer to the same party as the counterparty — typically because of a common name or similar alias. It is a candidate match, not a confirmed sanctions hit.
Regulatory context
False positives are an expected and accepted part of name-based screening, which is why human review is standard. OFAC expects screening to cast a wide net and for the institution to have a documented process for clearing false positives.
Who it affects
Any institution screening names. Wallet-based screening has near-zero false positives (addresses are exact); name-based screening has materially higher false-positive rates.
Relevance to AI agents
Autonomous agents must not auto-clear or auto-pay around a screening match. Any match — even a likely false positive — must route to a human reviewer. Agents that auto-clear matches are effectively running without a screen.
SanctionsAI coverage
SanctionsAI returns matches with confidence and matched-name context so a human reviewer can quickly confirm or clear. Wallet matches are near-exact; name matches carry the false-positive review burden.
FAQ
1. What is a false positive in sanctions screening?
A match that looks similar but refers to a different party. It must be reviewed and cleared by a human.
2. Do wallet matches have false positives?
Almost none. Wallet hashes are exact identifiers; the false-positive problem is concentrated in name screening.
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