Sanctions are restrictions that countries impose on other countries, companies, or individuals who have broken the law. There are thousands of sanctions in place in the U.S. — and companies must take heed of these sanctions to conduct business legally.
Of course, checking all the sanctions lists can be a tedious, overwhelming, and stressful process. Missing a name on the list can lead to serious consequences for your business which is why it’s so important to work with a reputable sanction screening service.
Importance of Checking Sanction Lists
Failing to check sanctions lists can lead to tremendous problems for your business. Violating sanctions can result in fines of up to $1 million and 20 years in prison per violation. Companies simply cannot afford to make a mistake and do business with a sanctioned count, person, or organization.
Additionally, it’s important to remember that these entities were sanctioned for a reason. In many cases, an individual or business may be sanctioned due to financial crimes — and if you do business with them, you could become one of their victims. Complying with sanctions lists and conducting sanction screenings can help you avoid fines and legal action, but it also protects your business from potential bad actors.
Benefits of Hiring a Sanction Screening Provider
It is clear that sanctions screening is beneficial for your business, but that doesn’t mean the process is easy. Sanctions lists are constantly being updated, and a business must often check several lists to do proper due diligence.
Luckily, there are several third-party vendors you can hire to do sanction screenings for you. These vendors can help minimize errors by using software to cross-reference and thoroughly check each list, which protects your business from any slip-ups. A third-party sanction screening provider also helps you avoid overloading your employees, so they can concentrate more fully on their daily tasks.
What to Look For
Contracting a sanction screening provider is a great way to ensure your business operates safely and within the law. But what should you look for when choosing a vendor?
Initial Screening
Your sanctions screening service should screen anyone that does business with you before you agree to anything. This means they’re screening companies before you do business with them, screening clients before you open an account for them, and potential new hires before you give them an employment contract to sign. This will prevent sanctioned parties from getting anywhere near your organization.
Ongoing Screening
As we mentioned earlier, sanctions lists are constantly changing. Therefore, a quality sanctions screening service will conduct regular checks and confirm that your business isn’t associating with anyone on any sanctions lists.
Data/ Reporting
Your sanctions screening provider’s main objective is screening your employees and clients to check for sanctioned parties. However, the provider should also tailor the data they collect to fit your company’s purposes and give you regular reports on their screenings. This helps you use the data more effectively and have a record of the due diligence your company is doing to avoid sanctions violations.
Company Certifications/ Affiliations
Finally, your sanctions screening provider should have the proper certifications and affiliations for success in the field. These credentials prove that the provider you work with is both highly educated and trained on sanctions screening and that in turn ensures that you will be in good hands.
Sanctions screening is an important part of protecting your company and running a legal and ethical business. Therefore, companies must take special care to choose the right provider. ComplianceLine offers top-of-the-line sanction screening services from skilled professionals who will keep your business safe.
Contact our team today to learn more about our sanctions screening services. We are happy to answer any questions you may have and to help you find the right service for your organization.
