Early insights from the 2026 Sanctions, Watchlist & PEP Screening Trends Survey are beginning to take shape, with 149 responses collected so far by Alessa.
Against a backdrop of geopolitical volatility, expanding sanctions regimes and a clear regulatory pivot towards programme effectiveness, compliance teams are reassessing how robust their screening frameworks really are, claims Alessa.
This first look offers an early snapshot of how prepared institutions feel, where pressure points are emerging, and how teams expect their screening programmes to evolve as 2026 approaches.
One of the clearest signals from the early data is the accelerating adoption of artificial intelligence and machine learning across sanctions screening operations. Just over 41% of respondents say they are already using AI or ML tools, while a further 38.51% plan to adopt them within the next 12 months.
Only a small minority expect adoption to come later. In total, more than 80% of compliance teams are either already deploying or actively preparing for AI-driven screening. The technology is increasingly viewed not as an experimental add-on, but as a practical necessity for reducing false positives, improving match quality, triaging alerts and supporting explainability.
Rising alert volumes, complex partner oversight requirements and growing documentation expectations are making manual processes increasingly unsustainable under regulatory scrutiny.
Despite this push towards modernisation, confidence levels remain measured. When asked about their ability to meet evolving screening expectations in 2026, roughly three-quarters of respondents reported feeling at least somewhat confident. However, only around one in three described themselves as very confident.
This cautious optimism suggests that while institutions believe they are broadly on the right path, many are still grappling with how to clearly demonstrate programme effectiveness to regulators. Challenges around model governance, documentation standards, cross-regime alignment and continuous monitoring continue to create uncertainty.
Cross-regime compliance, in particular, is emerging as a persistent operational strain. More than 80% of respondents described managing multiple sanctions regimes as either very or somewhat challenging. As sanctions frameworks diverge globally, institutions operating across jurisdictions are facing greater discrepancies between lists, more sophisticated evasion typologies and heightened demands for explainability. These pressures are also cascading into data sourcing and governance, areas that regulators increasingly scrutinise alongside screening outcomes.
Data quality stands out as the single biggest challenge identified by respondents, cited by more than a quarter of participants. As sanctions lists expand, ownership structures become more complex and adverse media sources multiply, maintaining accurate and consistent data has become a foundational issue. Beneficial ownership complexity and cross-regime compliance follow closely, reinforcing the need for integrated, high-quality data to underpin effective screening. Operational constraints, including false positives, investigation backlogs and skills shortages, remain closely linked to screening performance.
Looking ahead to 2026, respondents are prioritising faster alert triage, stronger model governance and improved documentation. While false positive reduction remains important, it is no longer the sole focus.
Instead, institutions are signalling a shift towards higher-quality decision-making, stronger auditability and more defensible governance practices. Alessa is expected to publish the full 2026 Screening Trends Report early next year, offering deeper benchmarking insights to help institutions prepare for the next phase of regulatory expectations.
Copyright © 2025 RegTech Analyst
Copyright © 2018 RegTech Analyst
