Why Does Denied Party Screening Matter To Manufacturers?

By Author: Linqs Inc
Total Articles: 59
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Certain businesses face several issues at the time of shipment of their products. This blog reveals why automated screening software is helpful in such situations.

Every operation or logistics manager of a high tech or manufacturing business knows how crucial it is to have detailed information about the trading partners and the products being shipped to the location of authorized customers. All the trade regulatory agencies and law enforcement bodies around the world have made it mandatory for the organizations to verify the identities and profiles of their trading partners. This helps them to keep a lookout for terrorist groups and suspected criminals.

The manufacturing firms are legally bound to ensure that their trade associates are not listed as a denied party or restricted party. The businesses also need to check if the shipment of a product requires any license and if the individuals or businesses are eligible to receive them.

If the business does not comply with those regulations, they may face severe penalties. Even the manufacturers of dual-use goods, high tech instruments, and industrial products ...
... have to ensure that their funds and commodities are not being received by the corrupt businesses, anti-social individuals, or any terrorist groups. So, denied party screening is not just for exporters.

To avoid all these legal troubles, automated restricted party screening is necessary for all types of businesses. This is because verifying each shipment manually so that the recipient or business entity won’t appear in the published lists of denied parties is a very tiring and time-consuming task.

These are three foremost reasons why manufacturing business should adopt a solid and automated watchlist screening:-

1. Dual-Use Goods

Industries such as biochemical manufacturings, high tech, life sciences have complexities in the shipment procedure. This is because these commodities can also be misutilized for destructive purposes. Criminals, terrorist organizations, or any such bad actor of the state could potentially use these products for harmful activities. For example, diesel engines can be used to function both a bus and a rocket launcher.

Because of this potential dual-use, the producers need to effectively verify the identity of the trade associates.

2.Growth of E-Commerce Market

Manufacturing business and high tech industries are getting more involved in B2B e-commerce. This rapid improvement has made ensuring the products are not misplaced more challenging. In addition to this, easy access to foreign markets without personal interaction with customers is also another cause to make screening - the responsibility of the businesses.

So, these organizations can utilize automated trade compliance screening software to effectively and efficiently verify their trading partners.

3. Reputation Protection

No organization wants to be on the bad side of the law enforcement body of a nation. This is why companies must take advantage of automated denied party screening tools to prohibit themselves from having a professional relationship with trade partners involved in corrupt business practices.

Therefore, automated trade compliance screening software makes the screening process easy, fast, and watertight by accessing real-time data from published lists of sanctioned entities.

Author Bio:-

Linqs Inc discusses the varied advantages of denied party screening software and how accomplished businesses can follow compliance measures easily. He also emphasizes the importance of watch list screening in the backdrop of national security. Giving perfect feedback, he recommends restricted party screening for all businesses and organizations.

Linqs software helps you with Anti Money Laundering (AML) and KYC screening of customers or trading partners before entering a deal with them.