Screening status refers to the current outcome or classification assigned to an individual person, entity or transaction after it has been checked against relevant databases during a compliance screening process - typically, against sanctions lists, politically exposed persons (PEP) databases, watchlists, adverse media sources and other risk-related data. 

This process is used to identify potential risks or connections to financial crime in Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.

Screening status helps compliance teams determine whether a customer poses a low, moderate or high risk. A clear or “pass” status typically means no matches were found, while a flagged or “review required” status indicates that the screening system has identified a potential match that needs to be investigated further. This could involve manual review, Enhanced Due Diligence (EDD) or escalation to a more senior compliance officer.

Maintaining an up-to-date screening status is also essential for Ongoing Due Diligence (ODD) and regulatory compliance. It ensures that any changes in a customer’s risk profile (such as new sanctions, criminal investigations or negative media exposure) are identified in a timely manner and addressed accordingly. Screening status is often updated automatically through transaction monitoring systems or compliance platforms as part of continuous or periodic customer reviews.