Why would a remitter's payment service provider use sanctions filtering when reviewing a payment instruction?

A remitter's payment service provider uses sanctions filtering when reviewing a payment instruction primarily to identify any information that might arouse suspicion of terrorist financing. Sanctions filtering is a key component in the compliance framework of payment service providers to prevent illegal activities such as money laundering and financing terrorism. This involves checking transaction details against lists of sanctioned individuals, organizations, and countries.

By employing sanctions filtering, the payment service provider ensures that it adheres to legal and regulatory obligations, minimizing the risk of processing transactions that could inadvertently fund terrorism or violate sanctions imposed by governments. This proactive approach not only protects the payment service provider from potential legal repercussions but also helps maintain the integrity of the financial system as a whole.

While the other options discuss various aspects of regulatory compliance and customer experience, they do not directly correlate with the primary objective of sanctions filtering in the context of payment reviews.