Why Customer Screening Pans Out Well For Businesses & Organizations
Would you want to deal with someone who is internationally banned?
Well, we are trying to address the elephant in the room. There can nothing be so direct to ask you that. Let us put it frankly that some of the organizations in the United States of America don’t even care about that. We just hope you are not one of them.
Let us tell you that certain products, services, and technologies have export control restrictions due to their technical features, functionality, and end-user applications. To know whether the product/service item belongs to export control category or not, a classification is needed to be done. It is the ECCN or USML for the product or technology.
Given the dynamic business environment, it is obvious to conduct a customer screening and monitoring procedure for preventing potential risks. This should definitely be a priority for companies and organizations.
When it comes to banned lists, a few recommendations come only to consider the government-provided lists. However, it’s not that effective. You can’t take only the BIS and OFAC lists for KYC screening at all! There are approximately 140 lists of banned parties, denied parties, politically exposed persons, internationally banned countries, terrorist organizations, and so on. Can it be ignored? No, definitely not.
Trade Compliance Solutions for Screening & Monitoring Partners
Trade partners or customers – the regular screening and monitoring mitigate any kind of risks associated with the trade.
Keeping an Internal Control Program proves effective for trade compliance needs. This is where the role of a trade compliance consultant comes into play. Several businesses and organizations have trusted their businesses with these consultants, who are actually experts in different industries from construction to education.
An ICP or compliance program keeps everything accountable by governing the actions of the senior management, sales and marketing teams, human resources, and other departments. This may well protect the organization with the help of AML screening or anti-money laundering procedures.
The impact of technology
We know that small and medium companies have to suffer a lot due to restricted funds. However, the atypical innovations made by trade compliance companies have made it reach the lower echelons of the industry as well. With cloud-based solutions, the SMB companies will never find it hard for compliance management.
From export/import classification software to export license check requirements, the technology has proven its impact on the overall success of screening and monitoring of trade partners. Not only that, the software gets regular updates for carrying out the regular screening of trade partners.
The power of automation and the fuzzy logic algorithm has proven the mettle of screening procedures as a fast, efficient, and accurate operation. It is not limited to this much only. There are methods for archiving log records, screening actions, and other details. Individual users of the software will be allowed for approval at certain stages. They can further recommend other users for their due analysis and approval needs.
Conclusively, this has panned out well for companies and organizations to prevent themselves from unnecessary criminal or civil penalties, stripping of export privileges, loss of reputation and other adverse situations.