5 Challenges With Denied Party Screening That You Should Be Aware Of

By Author: Linqs Inc
Total Articles: 59
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Denied party screening averts critical risks hovering around a business transaction or deal. If exporters or companies get to learn the compliance risks, it’d be inevitable of managing at different points in time. In the following, we will focus on the challenges with denied party screening.

1. Complexity in compliance and reporting

From regulatory frameworks to customs procedures, the handsoffs of physical goods undergoes various complicated set of chains to make it ‘through’ for final delivery. Only with time, increasing risks has led to dramatic measures of denied party screening lists, penalties on violations, audit trails, etc.

In the nutshell, one doesn’t get through the series of export activities without following a set of protocols that include prevention and reporting of denied party screening and watch list screening violations. New sanctions have increased the dependency on compliance staff and professionals along with immediate need of automation.

2. Constant updates on denied party screening lists

Updated lists from countries and sanction programs may contain 25000+ entities. ...
... Recent geopolitical storm-offs have led to a whole new situation of sanctions against countries, affecting major operations for different industries like apparel, technology, contract manufacturing, etc. Plus, retaliatory actions and relocating production, logistics, quality, cost, etc. has turned it all red.

The amount of uncertainty in situations like these and enactment of legislation or laws offer fair enough problems to businesses. So, even though restricted party screening follows the lines of compliance to mitigate risks, one cannot consistently fathom geopolitical and legal hurdles in the long-term.

3. Change of trading requirements in global arena

Changing global requirements of trade after various major events like Brexit implementation, US-Mexico-Canada agreement renegotiation, etc. has impacted business a lot. Besides, serious disruptions like climate change, environmental challenges, dynamic changes around policies and practices, amendments, labor-intensive markets, e-commerce, etc. pose hard-to-avoid obstacles.

If faltering appearances of organizations due to those trading requirements is possible through this, then this is quite disturbing for world economies and its future of growth.

4. Struggle with denied party screening is REAL

Companies put out all-in efforts for safeguarding their reputation and monetary damage. As ugly as it gets, manually scourging through new rules, screening criteria, denied party lists, due diligence and regulatory lists have increased workloads, costs and impending risks on the future development progress of a company. Some sophisticated queries and search engines can together help reduce a bit of that, but it would only make a patchwork.

5. False positives and dismal communications

Has it occurred to businesses that too many false positives and poor communications prove hurtful for businesses, not just in the short-term but years ahead as well? How to prevent that if myriads of false positives tap into just one moment, which is a crucial one?

Of course, a comprehensive denied party screening solution plays a pivotal role in reducing compliance risks through the help of cutting-edge technology that enables faster screening, due diligence, standardized reports, built-in email features, algorithm updates and more.

Author Informations:-

Linqs Inc describes the latest challenges with denied party screening amid free trade years and global challenges. His focus on geopolitical shifts and trading changes along with watch list screening gives a viewpoint on the current scenario. He recommends a comprehensive denied and restricted party screening solution for businesses to stay on track with compliance and reporting.

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