5 Common Myths Around Denied Party Screening You Should Ignore

We’ll put an apt description of these common misconceptions for businesses and brands.

1. Denied Party Screening (DPS) applies for arms export only.

The obligation is the same for all industries to perform screening of trade partners, customers, suppliers, consultants, and so on. Any business, not falling within the ambit of security-sensitive industries, doesn’t get a license to export/import products. Hence, denied party screening isn’t the joke here.

2. DPS doesn’t apply to the ‘service’ industry.

Money paid for any product/service has to be accountable under financial compliance laws. The authorities would want to know that the business isn’t offering a ‘service’ to some entity that features on the watch list or denied party list.

3. DPS doesn’t apply to domestic orders.

A significant count of US nationals and people living in the country have been found guilty of violating export laws. Therefore, all the organizations must comply with laws, irrespective of shipment destination.

4. DPS applies only once.

No, it doesn’t. The denied party and watch lists receive frequent updates and that is the major reason why total compliance is ensured through multiple-point screening. This comes out in the entire business workflow.

5. The monetary penalty doesn’t affect much.

Though a business may survive monetary penalties, outcomes like rigorous imprisonment, denial of export privileges, and negative media reputation don’t showcase an ideal illustration.

Therefore, you should install restricted party screening for preventing your business or brand from getting adversely affected by the circumstances.