Automated Sanctions Screening in Accounts Payable
A Practical Guide for Business Central Teams
Accounts Payable teams play a quiet but critical role in managing an organization’s vendor risk and trust.
With government watchlists changing regularly, sanctions screening has become increasingly important. Busy AP teams are expected to keep payments moving without introducing unnecessary risk, but periodic or one-time vendor screening often isn’t enough to ensure compliance.
The question is not whether an AP team should screen vendors against sanctions lists; it’s how to do it in a way that fits naturally into daily AP workflows.
The importance of sanctions screening in Accounts Payable
Sanctions screening is the process of checking vendors against government-issued watchlists, such as those maintained by the U.S. Office of Foreign Assets Control (OFAC), before payments are issued.
As the final control point before money leaves the organization, AP is responsible for ensuring compliance and may be liable for any issues that are missed. Even well-established vendors can become sanctioned over time, change ownership, or appear on updated lists without warning. To reduce risk, it’s vital for AP to screen vendors regularly.
Sanctions screening in AP is about ensuring that every vendor is reviewed against current regulations consistently and defensibly before payment is released.
Why sanctions screening belongs inside the AP workflow
In many organizations, sanctions checks are handled manually or performed outside the ERP. This often leads to gaps:
Vendors are screened only at onboarding, not over time
Checks are inconsistent across companies or locations
AP teams discover issues late in the payment cycle
Compliance becomes a disruptive, last-minute step
The most reliable approach is to treat sanctions screening as a built-in part of the AP process, not a separate task.
Screening doesn’t have to slow down payment runs or create extra work for AP staff. When regular sanctions screening is automated and embedded into the AP workflow it supports earlier visibility into potential issues.
Where sanctions screening fits in a modern AP process
In a well-designed AP workflow, sanctions screening typically aligns with three key moments:
Vendor creation and updates
When a new vendor is added or an existing vendor record changes, screening helps ensure the data is valid before that vendor becomes eligible for payment.Payment readiness
Before payments are finalized, screening serves as a safeguard, ensuring that vendors remain clear, even as OFAC lists evolve.Ongoing vendor maintenance
Vendors are not static. Names, ownership, and regulatory status can change. Continuous screening ensures AP teams are not relying on outdated assumptions.
By aligning sanctions screening with these natural workflow moments, compliance becomes routine instead of reactive.
Why embedded OFAC screening matters in Business Central
Microsoft Dynamics 365 Business Central provides a strong foundation for modern and future-forward finance operations. As AP teams grow and processes evolve, it’s common for workflows to span multiple tools or include manual steps that were added along the way.
If you’re still exporting vendor lists, running external checks, or manually documenting results of vendor screening, you’re leaving yourself open to risk and inconsistency.
This is where embedded, automated sanctions screening changes the game. Using a tool like Mekorma Vendor Validation supports AP teams by:
Keeping compliance checks close to vendor and payment data
Reducing reliance on manual processes
Supporting consistent controls across companies
Allowing AP teams to work within familiar Business Central workflows
The goal is fewer surprises and more efficient vendor screening processes.
The risks of manual or disconnected screening
Manual sanctions screening often breaks down under real-world conditions:
Lists are not updated frequently
Documentation is incomplete or inconsistent
Screening varies by user or location
Issues surface after payments are already queued
These gaps increase audit pressure and create unnecessary stress for AP teams, especially when problems are discovered late.
Incorporating regular screening into the AP workflow reduces these risks by making compliance part of everyday work. Embedded tools help make that ongoing screening both practical and efficient.
What effective sanctions screening looks like in practice
When sanctions screening is working well, AP teams experience:
Screening that runs automatically at the right time
Clear visibility when attention is required
Fewer last-minute payment holds
Stronger internal controls without added workload
Most importantly, AP teams gain confidence that payments are moving forward responsibly, without slowing down the business.
Building compliance into everyday AP work
Sanctions screening does not need to be complex or intrusive. When it is thoughtfully built into accounts payable workflows, it becomes a quiet safeguard, one that protects the organization while allowing AP teams to stay focused on accuracy, timing, and vendor relationships.
For Business Central users, the most effective approach is one that keeps compliance close to the work itself, ensuring every payment is issued with confidence and without unnecessary disruption to daily work.
Frequently Asked Questions About Sanctions Screening in Accounts Payable
What is sanctions screening in accounts payable?
Sanctions screening in accounts payable is the process of checking vendors against government watchlists, such as OFAC lists, before payments are issued. It helps ensure payments are not made to restricted or sanctioned entities.
Is sanctions screening required for all vendors?
Requirements vary by organization and industry, but many businesses screen all vendors to reduce risk and maintain consistent compliance practices across their AP process.
How often should vendors be screened against sanctions lists?
Sanctions lists change regularly. Best practice is to screen vendors not only at onboarding, but also during vendor updates and before payments are released.
Does sanctions screening slow down the AP process?
When screening is automated and embedded into AP workflows, it typically reduces delays by catching issues earlier. Before payments are finalized. Manual screening will slow down the process.
Why is automated screening better than manual checks?
Manual checks are time-consuming and inconsistent. Automated screening helps ensure checks are current, repeatable, and documented without adding extra steps for AP staff.
How does sanctions screening fit into Business Central workflows?
In Business Central environments, sanctions screening works best when aligned with vendor management and payment preparation, keeping compliance close to where AP teams already work.
What other sanctions lists exist besides OFAC and is Mekorma going to support them?
Mekorma is planning to add screening support for the following lists:
OIG List of Excluded Individuals/Entities (LEIE): critical for healthcare organizations and anyone receiving federal healthcare reimbursements.
System for Award Management (SAM.gov): a must for government contractors and their vendors.
Consolidated Canadian Autonomous Sanctions List — for our customers operating in Canada.
