As a global company, you know the importance of denied party screening. Doing business with the individuals on denied party lists can have major consequences for your company. From losing your export rights to being hit with fines to receiving bad press, the penalties of not having a customer identification program can hurt your business’s bottom line and brand image, or even mean jail time for your leadership and your employees who knowingly (or unknowingly) violate customs and trade rules and regulations.
Implementing an automated denied party screening software solution this upcoming year will not only help you to avoid the consequences of doing businesses who are on the consolidated party lists, it can help you to do business more efficiently and with less risk. Automating it with the right software, allows you to safely scale your process.
A quality restricted screening software program and plan makes your company proactive, rather than reactive. It prevents you from being caught unaware that you were dealing with a denied entity. When you know who you are doing business with, you can be confident that you won’t be blindsided by customers, business partners or the government questioning your business dealings.
A denied party screening solution can help you do business more efficiently. When clients conduct business with you, they want to receive their goods as soon as possible. Taking the time to manually run an ad-hoc denied party screening search can slow down your turnaround time, not to mention create room for error. Implementing a denied party screening solution can help you to increase the speed of your business without compromising your compliance with existing and applicable trade regulations. That can give you a competitive edge and help you to cater to more clients faster.
When it comes to verifying and screening your clients, the number and size of the restricted party lists can be overwhelming. There are multiple lists from the U.S. government, the United Nations, the European Union and many others. On top of that, all of the denied parties lists are constantly being updated and revised. It can be nearly impossible to keep up. A comprehensive denied party screening software platform can help you to check your clients against all necessary lists, while skipping the ones that are not relevant. It’s important to periodically re-screen, as these lists change frequently. A denied party screening program can also help you to check your customers as often as needed, so if there’s lag time between the initial client check and the actual shipment, you can re-screen the client’s denied party screening automatically without delaying the order.
While your primary concern with denied party screening might be trade law compliance, the right automated solution can actually protect your business in more than one way. In addition to keeping your operations legal, denied party screening ensures that you aren’t doing business with criminals or specially designated nationals. This software can protect you from financial losses, wasted resources on a bad deal, and your brand image from the damage that could come if you are found to be doing business with a denied/sanctioned company, person or organization.
The applications of denied party screening solutions go far beyond exports. Companies use their denied party screening solutions to perform background checks of potential employees, vendors or contractors. It can be used in business acquisitions to save companies from acquiring a firm with a questionable past. Companies even use it for charitable and philanthropic purposes, so they can be sure that organizations or parties they are gifting, donating or granting money to are legitimate. A denied screening solution can help you to truly know your customer.
As your business grows, you need solutions that will grow with you, helping your business to run smoothly, with less risk. Implementing a denied party screening solution this coming year can help prepare your business for the future by helping you to do business faster, more thoroughly and more efficiently, while protecting you from the legal consequences of violation of non-compliance with laws governing business with restricted/sanctioned parties.