Export Screening and OFAC Screening: Two Must-To-Know Terms for all Exporters
Due to the increase in terrorist activities globally, the identity and profile of every applicant interested to start a business in the United States must be thoroughly examined. This check procedures consist of several trades and economic consents and sanctions as per the US foreign policies. In this check, also known as OFAC screening, the candidate must have to meet US security goals against other nations, their government, international criminals, and terrorists.
The Office of Foreign Assets Control (OFAC) is an important wing of the United States Treasury. This group scrutinizes whether an organization or an individual is eligible to operate a business in the country. No employer wants to be penalized by the States Treasury. So an OFAC check is an essential procedure to be practiced while hiring a person in any FinTech organization, financial institution, or an export/import industry.
Export screening is the last step in the export process after classification and determination of license. This is also an important activity for businesses to avoid reputational risk, administrative penalties, the prohibition of availing export privileges, and financial difficulties.
Every exporter comes in contact with many types of businesses, suppliers, visitors, employees, and various trade partners. But, they are bound by law to comply with the US regulations to restrict any business with denied party lists. The list includes individuals, agencies, organized groups, businesses, and other foreign governments. Due to any threat to national security, corrupt business practices, or any such malicious activities, these individuals, and organizations are added to the list.
Effective use of reliable business trade compliance software helps exporters to adhere to such regulation easily, securely, and timely. These software packages are designed to simplify the complicated process of searching, and identifying the long lists of the restricted party.