Need Of Watch List Screening – Why The Rant Is Getting Bigger

Illegitimacy, frauds, lawlessness – some of the popular terms that people these days are quite acquainted with. In fact, some are terrorized in certain regions of the world due to heinous criminal activities. Amidst all of these, the US Govt., especially the Bureau of Industry and Security, a component of US Dept. of Commerce have buckled up and stays vigilant on international transactions.

At this juncture, no business organizations can resort to ignorance, especially in the fear of inviting rigorous imprisonment or penalties. And the rub to the injury will be in the form of massive damage to reputation. If such things happen to any business/organization, the chances of finding stability are very low. Consequently, these organizations and their hierarchical heads will rarely find any courage to establish themselves in another field.

Fortunately, the watch list screening helps prevent an individual/business from suffering a predicament. Indeed, the denied party lists, sanctioned lists and similar lists allow the businesses to verify against their clients/customers/partners.

However, a common problem erupts everywhere due to an ineffective assemblage of lists. Does an organization have that much amount of spare time in finding lists and then searching against them for every client or customer or partner they come across? Lists like BIS and OFAC are restricted to only a few undesirable entities and not the whole of it.

The software companies identified this major problem and came up with a plausible solution. Popularized as an automation tool, the software allows screening via multiple lists in a short period. Now the companies requiring Export classification numbers for exporting a product would find it easier for determining the ECCN of an item. Though license is not required for most of the commercial exports, finding the correct classification of an item would be a start.

Advantages of the Trade Compliance Solutions:

While a few have kept themselves aloof from this topic, various valuable inputs have come from a majority of organizations/individuals. Being myopic to the frequently changing US trade regulations won’t help either. That’s the prominent reason why people seek trade compliance consultants, who would advise against the wrongs of export transactions.

The import/export classification and license check software gives an edge to its users. Let us elaborate it further in the following points:

The definitions of ECCN/UML and HTS Classification proves advantageous in classifying the products and technologies, with respect to license eligibility norms and regulations.

The integrated trade compliance software solutions enlist several libraries of export control regulations, such as the BIS, OFAC, ITAR, FTR, NRC and other foreign sanctioned party lists.

Accurate searches and minimized false positives ensure a seamless application of this automated tool. Not just that, the businesses would have the flexibility to accommodate the software as per their requirements, well aligned with the screening policies.

Some of the software solutions also generate audit reports and offer reporting tools for suitable demonstration of compliance management.

Currently, with these many features, the problems of businesses in classifying denied parties are expected to come down.