When using the Background Check feature in Parallel, you may encounter various labels that help categorize the findings for each person or entity screened. This guide explains what those labels mean and how they assist in Anti-Money Laundering (AML) compliance.
Parallel uses OpenSanctions' technology, which aggregates information from hundreds of sanctions lists, databases of politically exposed persons, and other information about persons in the public interest.
This robust integration enhances your ability to detect AML risks effectively during onboarding and due diligence processes.
How Labels Work
Each result in the background check may include one or more labels, appearing as short codes. Hovering with your mouse over a label will display its full name. These labels classify a person or entity according to roles, affiliations, or legal status.
Full List of Labels
Below is a table detailing the most common labels you may encounter.
Risk label | Description |
Close Associate | Family members and key business associates of politically exposed persons. They are often used as nominees or front-people when a PEP attempts to hide illicit financial gains. |
Counter-sanctioned entity | The database covers some sanctions lists from non-democratic countries which issue their own sanctions designations, often including pro-democracy activists, journalists, and human rights proponents. |
Debarred entity | Companies that have been excluded from public procurement, often because they previously committed fraud in their execution of a government contract. |
Person of interest | People where there is a public interest case for closer scrutiny, but who do not meet common definitions of a politically-exposed person and who are not sanctioned. |
Politician | Currently or previously held a position of political influence. |
Regulatory action | Companies that have been the subject of an enforcement action by an industry regulatory body. |
Regulatory warning | Companies that have placed on a warning/alert list by an industry regulatory body. |
Sanction-linked entity | Companies, people or other things that have been designated by a government in order to prohibit specific interactions with them. |
Sanctioned entity | Companies, people or other things that have a direct relationship with a sanctioned entity. The topic also covers companies which are indirect subsidiaries of sanctioned entities, irrespective of the percentage ownership stake the sanctioned entity holds in the subsidiary. |
Here you can also find other labels that may appear in the results with less frequency:
Risk Label |
Accountant |
Activist |
Bank |
Central banking and financial integrity |
Civil servant |
Civil service |
Crime |
Criminal leadership |
Cybercrime |
Diplomat |
Disqualified |
Drug trafficking |
Environmental violations |
Executive branch of government |
Export controlled |
Financial advisor |
Financial crime |
Financial services |
Forced labor |
Fraud |
Frozen asset |
Fund |
Government |
Head of government or state |
Human trafficking |
Intergovernmental organization |
Journalist |
Judge |
Judicial branch of government |
Lawyer |
Legislative branch of government |
Lobbyist |
Military |
Municipal government |
National government |
Non-PEP |
Offshore |
Oligarch |
Political party |
Public listed company |
Religion |
Security services |
Shell company |
Spy |
State government |
State-owned enterprise |
Terrorism |
Theft |
Trade risk |
Trafficking |
Union |
Wanted |
War crimes |