Restricted Party Screening: A Much Needed Watchful Scenario}

Restricted Party Screening: A much-needed Watchful Scenario


Fred Danny

Global terrorism, be it in the ways of armed destructions or Cyber infringements, challenges and thwarts every subtle effort of peace. At an alarming situation, one needs to be watchful of their own activities, otherwise, a big catastrophe awaits. On its website, the Bureau of Industry and Security under US Department of Commerce highlights different trade regulations, acts of suspicion, penalties, information desk and so on. As a whole, it informs business people on the right, wrong and suspicious things.

Amidst a global showdown, one would rarely wish to bear the brunt by violating any regulations in their business. Therefore, prevention should take place well ahead of the transactions between the parties. By parties, we definitely mean the traders, suppliers, vendors, customers, buyers and others. While keeping information at one hand, a person may proceed to do businesses seamlessly. That sets a precedent, which is why restricted party screening holds such importance these days.

Trade Compliance Requirements

Quite a number of companies or entrepreneurs wouldnt even what are the exact export regulations due to various reasons. However, thats not an excuse for violating regulations at all. Trading parties need to be vigilant and the watch list parties will help in avoiding undesirable entities.

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Technically, screening shouldnt be an option for a company, rather it is a necessary activity. The questions pertaining to this topic that needs to be addressed includes:

Which denied parties list should companies use for screening?

How often should the lists be screened?

Is any documenting procedure to be done?

How much time shall it take to screen?

In a trade compliance program, the utilization of

Denied Party screening

only yields positive results.

Compliance Software Solutions

Automation leads the way in todays world. In an ingenious development, the software vendors developed a database of the denied parties list from all around the world that helps identify and verify the credentials of a trade partner. There are parties that have been denied export privileges and trading with them would invite penalties to a company. In fact, the penalties would range up to $500000 or even rigorous imprisonment.

Apart from BIS and OFAC lists, there are several international treaties that need to be checked before trading or committing transactions with any party. A large number of sanctioned party lists are to be checked for that. But, without any dynamic software, running checks against each list would consume great time. Hence, one should search for a watch list screening software that enables bulk and efficient screening of names. The results would be either in the positive, negative or the red flag area, depending on the matches.

The automated screening software relieves a business from several pain points, enables it to focus only on the business processes. Now that the software reduces redundancy and workload, concentrating on business strategy becomes easier. It is highly recommended that organizations do their research before choosing a vendor for the software. Their established records in the markets will speak a lot about their quality of end products and services.

Fred Danny has written numerous articles about trade compliance software and its benefits. Highlighting the fact that denied party screening benefited organizations in multiple ways, he recommends installation of watch list screening software for up-to-date and accurate information on import and export control standards. Moreover, he opines that

Restricted Party screening

will be a key to improve or dismantle a business reputation.

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