Restricted Party Screening

Overview

Restricted Party Screening (RPS) is a screening process to ensure that engagement with a prohibited, sanctioned, or otherwise denied party is managed according to the terms of the sanction.

The terms, "Restricted Party Screening," "Denied Party Screening," "Sanctioned Party Lists," "Debarred Party," are often used interchangeably. We will use the term RPS to refer to any of these or similar lists. Some of these terms are content specific, but generally all these terms are to identify an individual or entity that has been identified as one that a government agency has flagged or sanctioned from being a party to a transaction for a variety of reasons. Engaging with such individuals or entities can result in significant fines, penalties, denial of export privileges, negative media attention, or other sanctions that the government assess based on the circumstances of the

RPS should be conducted for every transaction, and every party involved in the transaction. The screening should be performed on any party to which a product, information/data or service is provided. This includes employees, contractors, supply chain partners, vendors, students, freight forwarders, end− users, businesses, government officials, visitors, etc. In short − due diligence is necessary for every party and every transaction. It would be incorrect of an organization to assume a third−party (such as a shipping or freight forward) is responsible to do the screening, or that because no exporting is being done that RPS is not required. Even if a product is designated as EAR99, selling that product to a denied party is still subject to penalties. Screenings is not a one−time event. To ensure compliance, it is a best practice to screen all transactions at multiple points throughout the workflow because these government lists change frequently.

The cost for non−compliance can be significant. Fines should not be viewed as a cost of doing business. Organizations have closed their doors and individuals have been incarcerated because of violations in engaging with a prohibited party. Consider the following examples:

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September 11, 2020
EAR amended to implement changes made at the 2018 WA Plenary.
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September 9, 2020
FedEx loses Challenge to Export Control Regulations
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August 17, 2020
Huawei: More Restrictions
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August 13, 2020
FAR 52.204-25 Interim Rule Published 14-July-2020
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