Denied Parties Screening
It is illegal to transact with a person on a Denied Parties list.
WHAT IS A DENIED PARTY?
A denied party is a sanctioned individual, company or organisation upon which government authorities have imposed restrictions or bans on their right to trade.
This is often due to engagement in illegal activity of some kind. Obvious restricted organisations include terrorism, arms or drugs trafficking, human trafficking, etc.
UNDERSTANDING THE LAW
The law states in general (not just in the USA) that it is illegal to provide economic benefit or resource to a person or entity that appears on one of the many lists that exist globally.
Any dealings with a party on this list that would violate the terms of its denial order are prohibited.
OBLIGATION TO SCREEN
All businesses have an obligation to screen. Every time money changes hands, there is a responsibility to ensure that the goods are not destined for an individual, company or entity on a government watch list.
Typically, depending on which list the match was found, a match would indicate one of the following scenarios:
A strict export prohibition
A specific licence requirement
A possible red flag in relation to the transaction
UNDERSTANDING
DENIED PARTIES SCREENING
Failure to comply and even conducting business with denied parties in ignorance may result in denial of export privileges, as well as criminal or civil prosecution that can result in significant fines or even jail time.
Hurricane sources current information on denied parties, accessing information from over 250 key global and national lists to grow and maintain our database.
Hurricane uses geographical and personal information to determine the likelihood of a customer or supply chain partner being a denied party, by providing a risk score and any matches made, including the list and type of match.
This gives you the ability to refuse or cancel a sale of products or services.
It is important to note that while Hurricane uses the customer information, it does not store it. Hurricane keeps a unique record of transactions for audit purposes.
KEY
TAKEAWAYS
In summary, the key takeaways for Denied Parties Screening include:
Compliance is not optional. It is a legal requirement
The decision to accept or decline a customer is totally at the discretion of the sender or retailer
Virtually every country has debarred individuals / organisations inside their borders
Fines can be substantial – as can the damage to your reputation
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