Does sanctions checking work during testing or only on live sites?

We've created a scheme, StoreAndInsure, and added a rule to check the contact name exists in the HMRC sanctions list and to cause a referral if there's a match. Looking at the activity log I can see it ran the rule but passed it with no referral even though the name is on the sanctions list. We added an extra standard text field to test the referral rule in case there was an issue in using the contact name fields but that also didn't refer despite the rule running and the name being in the sanctions list. 

I've read the help instructions but can't see we're doing anything wrong. I took a look on the scheme you're building for us to see how you implemented it on there but can't see any sanctions checking rules. Does this process definitely work or is it that it only works on live schemes? Is the sanctions list something central on SchemeServe that you update or are we meant to import it to a specific area of our scheme in order to use it? Perhaps there's a check-box somewhere that we need to check in order to activate the sanctions checking functionality. Any help gratefully appreciated.