Early signals from compliance teams suggest that sanctions screening is entering a decisive phase, shaped by geopolitical instability, expanding watchlists, and a clear regulatory push towards demonstrable programme effectiveness.
This is according so far to a survey from Alessa. With 149 responses collected so far, early findings from the 2026 Sanctions, Watchlist & PEP Screening Trends Survey offer a snapshot of how institutions are assessing their readiness for the year ahead, and where the most acute pressures remain, claims the firm.
This first look focuses on areas where sentiment is most pronounced, revealing both confidence and caution as teams adapt to rising expectations. Across the responses, one theme is particularly clear: sanctions screening is no longer just about catching matches, but about proving how decisions are made, governed, and reviewed over time.
The adoption of AI and machine learning has moved decisively from an optional enhancement to an operational expectation. More than 41% of respondents are already using AI or ML within their screening programmes, while a further 38% plan to adopt these tools within the next 12 months. Taken together, more than 80% of institutions are either actively deploying or preparing to deploy AI-driven capabilities. These technologies are being used to reduce false positives, improve match quality, prioritise alerts, and strengthen explainability, all areas that regulators are scrutinising more closely as part of effectiveness testing and back-testing exercises.
Despite this progress, confidence levels reveal a more nuanced picture. Around three-quarters of respondents say they feel at least somewhat confident in their ability to meet evolving screening expectations by 2026, yet only 37% describe themselves as very confident. This gap suggests that while many teams believe they are on the right trajectory, uncertainty remains around how best to evidence compliance. Challenges around model governance, documentation standards, and alignment across regulatory regimes continue to complicate preparations.
Jurisdictional complexity is a particularly persistent strain. More than 80% of respondents describe cross-regime compliance as either very or somewhat challenging. Diverging sanctions frameworks, combined with multi-market operations and increasingly complex customer and partner relationships, are generating discrepancies between lists, new evasion typologies, and greater pressure on data governance. Regulators, in turn, are asking not only whether screening works, but whether institutions can clearly explain why specific decisions were made.
When asked to identify their single biggest challenge, data quality emerged as the most significant barrier. As sanctions lists expand and ownership structures grow more opaque, maintaining accurate, consistent, and up-to-date data is proving difficult. Beneficial ownership complexity and cross-regime compliance followed closely, reinforcing how deeply data quality underpins screening effectiveness. Operational pressures such as false positives, investigation backlogs, and skills shortages remain prevalent, highlighting why automation continues to attract investment.
Looking ahead to 2026, priorities are shifting towards outcomes that support both efficiency and governance. Faster alert triage, stronger explainability, and improved documentation ranked highest among desired improvements. While reducing false positives remains important, it is no longer the sole focus. Instead, institutions are signalling a move towards risk-based oversight, supported by evidence, consistency, and defensible decision-making.
Alessa will publish the full 2026 Screening Trends Report early next year, providing deeper benchmarking insights to help compliance teams prepare for the evolving sanctions landscape.
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