Denied Party Screening
It is a violation of U.S. export control rules to engage in activities that violate the terms and conditions of a denial order. Furthermore, it is a violation of the export control rules to export to prohibited end-users or end-uses without U.S. Government authorization. The U.S. government recommends screening of all parties to an export transaction against all of the U.S. prohibited lists.
“Prohibited” parties identified by the U.S. Government have included the parties to an agreement, 3rd parties and other incidental beneficiaries to an export transaction. Screening all parties to an export transaction will help reduce the risk of exporting to a prohibited party. The government also recommends that company employees be aware of certain situations (“red flags”) that may suggest actual or potential violations of the export control rules. The government developed these “red flags” specifically to assist companies in determining potential diversion risks.
Global Trade Expertise can assist clients in determining whether they adequately screen export transactions to comply with export control laws and regulations. We can also assist clients with evaluating automated screening solutions and developing compliance processes and procedures to deal specifically with export screening.