Denied Party Screening: 7 Things You Must Know About the Regulations

Don’t go frantic. Don’t invite laze. Just follow the rules!

Over the time, much has been spoken about the denied parties list and so on. Still, the awareness drive is still short in some areas. When businesses get dried out of information about the rules and regulations, there’s no stopping for disaster. Besides, the catastrophic damages are sustainable in nature, especially when it comes to reputation.

As an exporter, you must be aware how the US Government prohibits dealing with unscrupulous or undesirable entities listed on the federal denied party listings. Though the OFAC holds the central repository of these lists administered by several government agencies, it’s tough to accumulate overall information at the same time. Moreover, the denied party screening is not just limited to the BIS and OFAC lists.

In the following, you would learn about certain facts that you cannot afford to be impervious about. Read to know more.

1. Guidance from Governmental Departments. Being prompt is a necessity. Since technology is always on its edge, there’s no way back to the slower methods. You can check into the Internet for browsing the BIS website and extract vital information. The US Department of Commerce and Treasury offer guidance on restricted party screening and related details.

1. Steps to deal with trade partners. You could be doing business with any one – individual or company. However, you just can’t put on a spectacle of suspicion for everyone. It is rather easier to follow a standard procedure with a "Know Your Consumer" kind of evaluation. It prevents you from transacting with the denied entities.

1. Red flag indications. Are you aware that your partner could be doing illegal business? Indeed, several exporters have paid hefty penalties for not complying with the US export regulations for that. If there are red flag indicators about a party, stick to the procedures for a proposed transaction. If doubtful, refrain from dealing with them.

1. International list of denied parties. Not just the US Government, there are denied party lists from various countries. You can refresh your knowledge about the international treaties and agreements regarding the same. Put your first priority on updating the information.

1. Confidential communication with the BIS. The Bureau of Industry and Security allows you to communicate any information about a possible illegal transaction in a highly confidential manner. Contact the BIS’s Office of Export Enforcement for the same.

1. Denied party screening software. Several software companies have developed screening software for companies to evaluate their trade partners. You can draw references from these and seek a solution yourself.

1. Cloud-based screening system. Small-sized exporters have been facing financial problems for installing a high-end software system for watch list screening of trade parties. This is the major reason why cloud-based solutions were innovated and provided to empower the exporters. It is reasonable and fast.

While surfing the Internet, you can also find real-life cases regarding flouting of the US export regulations and penalties.

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Refer to: https://www.intredex.net/ if you would like to know more about Denied Party screening, Restricted Party screening and Watch List Screening.

Linqs software helps you with an accurate KYC screening of customers or trading partners before entering a deal with them.