What Are The Best Practices In Watch List Screening Process & Others?

By Author: Linqs Inc
Total Articles: 59
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Whether clients, trade partners, customers or any other service provider, watch list screening or other screening processes, it involves searching for name and/or address to track those restricted or banned parties. Essentially followed by party-based, transaction-based and hybrid type screening, these procedures tell a tale apart. In the following, we shall focus on these best practices and how organizations can become fully compliant to the top-notch standards.

What a daunting task would that be to search across restricted party lists manually? Reducing these intensive works into simple ones – a software solution with watch list screening process promptly does the job against up-to-date lists from source authorities.

Industry best practices hold strong when organizations start practicing it. When automated software processes trade partners against restricted parties, it scours through variances of names & addresses, applies fuzzy logic algorithm for phonetically similar sounding names.

Business teams can decrease dependency and workload by having a centralized screening activity. If, by all means, ...
... the logistics / shipping and trade compliance exercises the screening process, teams like Engineering, Sales, HR, Customer Service, Security, etc. should come to know of it when required. Of course, the software would be capable of exempting entities that are governmental or agencies functioning under them.

Responsible Functions

1. Trade Compliance: As this function has the primary importance in all sorts of dealings, screening would fall in the timings of considering new recipients and customers, existing customer order requests or quote requests, software technology disclosure, shipping or exporting, hiring, agreement with freight forwarders or brokers, fund transfers, etc.

2. Human Resources: Screening applies at the time of hiring candidates, consultants, agents and contractors. Similarly, it works when any of the above stakeholders are provided with a facility or office or site access. HR teams also screen for visitor access. And, they periodically conduct screening for all types of hired entities.

3. Shipping & Logistics: As discussed in the above, shipping & logistics is one of the most important sections for trade compliances. Since it includes pay-to and pay-from parties, ultimate consignees, end users, freight forwarders, etc. screening plays a pivotal role in determining trade compliance.

One of the best practices in export screening is to check for partial matches and put them under review. Any screening person assigned the job mustn’t skip this part even if partial matches bear no resemblance to the linked entity. Only authorized personnel should get to approve clearance on that entity after due diligence.

Modern trade compliances include OFAC screening and various screening processes to avoid penalty or punitive actions by governmental authorities. It has come to effect and provisions against any such violations may lead up to serious harm to reputation. Therefore, companies and organizations must comply with the trade compliance laws.

It is widely recommended that companies indulging in exports or any technology transfer hire a consultant to get verified information. Weighing on those objectives of business functioning shouldn’t go astray without prior diligence measures.

Author Info:-

Linqs Inc writes about the best practices for watch list screening and other screening processes. He describes why OFAC screening and export screening has proven deterrent on detecting entities that are unscrupulous or indulgent in dubious activities. He suggests companies and organizations to deploy automated screening software solutions for better results.

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