Denied Party Screening & Compliance: Some Common Misconceptions
The digital arena, integral to connectivity shares several responsibilities for total compliance. Denied party screening stays a top-notch priority for any company’s governance, risk-based approach, and compliance measures.
Identifying and mitigating risk is innate to a company. However, some companies don’t believe that compliance and denied party screening applies to them. If you are one of the new companies, then let us break the myths & misconceptions around this.
Myth – Screening doesn’t apply to us
If your company engages with the U.S. in any capacity (within or outside the country) for business transactions or uses American banks or financial services for financial transactions, you are subject to American compliance laws of export & finance.
Myth – Screening doesn’t apply to services
Offering services, are you? Yes, you’re still obligated to check with the government watch list to determine if the service is meant for a sanctioned entity or not.
Myth – Domestically-operated companies don’t require screening
Evidently, they do. Irrespective of what your company does, you are obligated to follow the regulatory compliance laws. Various individuals have been found violating these laws and received penalties as per the law.
Myth – We don’t deal with sanctioned nations or entities
That doesn’t qualify you for not conforming to restricted party screening requirements. Current geopolitics won’t assure a ceasefire over transactions. Your company must adhere to the laws.
We recommend using highly curated software for screening applications. Consulting an expert helps in this cause. Besides, a company saves mammoth time to avoid troubles & penalties associated with violations of compliance laws.