We Need Denied Party Screening

Restricted Party Screening is an important (and often overlooked) aspect of trade compliance

Global trade management is a complicated process that involves maintaining the entire lifecycle of global trades to make the process efficient and ensure it follows all government regulations.

Various agencies within the government maintain a variety of regulatory denied party lists, also known as restricted party lists.

A restricted or denied party is an individual or entity that is placed on a denial list by a country’s government. Anyone can end up on a restricted party list based on their previous actions, behavior, or simply by doing business with someone on a denied party list.

Entities and individuals on these lists can have any number of restrictions or prohibitions against them – everything from suspicious activity, to those parties who are restricted from all trade with the United States.

Common reasons for ending up on a restricted party list include:

  • Being Considered A Terrorist Organization
  • History Of Corrupt Business Dealings
  • Pose A Threat To National Security
  • History Of Working With Denied Parties

Every exporter must do their due diligence to confirm that the parties they are engaging in trade with are not on any restricted party list.

What Is A Denied Party Screening?

A denied party screening allows a company to check whether or not a potential business partner or customer is on one or more restricted party lists set by the US government.

If someone you are doing business with is on the denied entity list, you will be denied export privileges. Anyone working with an entity on this list would violate the denial order terms and end up with no export license and hefty fines.

The United States Government maintains dozens of restricted party lists, meaning if you skip the denied party screening process, you could find yourself on one of the restricted screening lists, causing you to lose profits and business deals.

To Screen Or Not To Screen? That Is NOT The Question!

The question of whether or not to screen for denied parties isn’t a question at all. A restricted party screening isn’t just about making sure you don’t get in trouble. It helps you avoid various compliance woes that could affect you and your company for years to come.

If your company does not do its due diligence, a simple business transaction could turn into a compliance nightmare that compromises your business.

Every U.S. company should have a denied parties screening policy. The real questions to be addressed are:

  • Which Restricted Parties List To Screen?
  • How Often Should We Screen?
  • Who In Our Database Should Be Screened?
  • How Should Our Data Be Formatted During The Screening Process?
  • Will This Export Affect Our License Requirement?
  • Which Screening Method Should We Use? (CRM Integration? Bulk? Online?)
  • What Is The Best Way To Document Our Screening Results For An Audit Trail?

Your Comprehensive Restricted Party List Screening Solution

The benefits of denied parties screening far outweigh the costs. Perhaps most importantly, by screening for denied parties, you are helping protect the United States’ national security.

Other benefits include:

  • Avoid Costly Fine And Penalties: Even if you make an innocent error, your company can still incur expensive fines and damaging non-compliance penalties.
  • Save Time And Money: By knowing which business partners you can’t engage with.
  • Automation: Our screening tool is a “must-have” for any best-practice compliance program.
  • Preservation Of Workflow And Supply Chain: Avoiding fees and disruptions will ensure your supply chain flows uninterrupted and workflow isn’t compromised for you and your employees.

Contact us today for more information on our screening and compliance solutions.