Frequently Asked Questions

OFAC sanction list search (also referred to as OFAC screening, OFAC checking, OFAC search, and OFAC scrubbing) is the process of identifying whether or not any entity or party you are engaged in a financial transaction with can be found on watch lists maintained by the Office of Foreign Assets Control (OFAC), a division of U.S. Department of the Treasury. This helps organizations ensure they do not do business with a sanctioned entity, individual, or business.

OFAC sanctions list searches can also extend to identifying sanctions and embargoes placed on nations and geographic and political jurisdictions, further allowing organizations to be confident they are not engaging in transactions with parties facing trade restrictions.

Denied Party Screening is the process of identifying whether or not any parties involved in a transaction can be found on watch lists maintained by multiple U.S. government and international agencies. It helps to ensure organizations are not conducting business with a debarred party—be it an individual or a business entity.

Depending on the methodology or screening solution used (e.g., Descartes Visual Compliance™), screening for denied parties can also help to ensure organizations are not unlawfully doing business with someone located in a sanctioned or embargoed country.

To get your sanctions compliance right, check out this resource with tips on how the best denied party screening software solutions are set up.

EAR99 is a designation on the BIS’ CCL. It acknowledges that an item is not on the CCL, but still subject to the EAR. EAR99 items can usually be exported without license, unless they are being exported to a sanctioned/embargoed country (such as Iran or North Korea), or a restricted/denied party.

Government agencies and bodies regulate and control exports by assigning unique export codes or numbers to individual items and components. These classification codes typically denote which restrictions apply to each item, and organizations that import or export are expected to correctly classify their products, as well as adhere to the restrictions that come with them.

The simple answer is that there is no best way to maintain export compliance. For an organization to be truly export compliant, there should be a program in place that includes the following export compliance best practices:

This varies from organization to organization. It depends on the location, or locations, in which a business operates, where they export, the nature of the products, technologies, and services, and the various parties involved with the transaction.

Some of the more common lists organizations screen against are:

As mentioned already, organizations should pick the lists it screens against based on the specific needs of the business. This is an area in which Descartes Visual Compliance™ can assist.

This can vary from organization to organization. Some may choose to screen potential customers or vendors at first contact. Some screen again when orders or finances change hands, and repeat this process with each order up until the time an order is shipped. Other organizations have an automated rescreening system in place instead of rescreening manually. Visitors may be screened when they sign up for a tour, and again when they arrive.

What is really important about when screening takes place is that it should fit the regulatory goals or risk objectives, of the organization—ensuring that finances, technology, information, or goods are not transferred in violation of regulations.

The specifics of this can vary from organization to organization, and on occasion, even from transaction to transaction. Some organizations may choose to screen potential customers or vendors at first contact. Some screen at every step of a transaction, while others screen right before delivery of an order is scheduled. Many organizations have automated screening solutions that are integrated with their ERP, CRM, and/or other business systems, to screen and re-screen entities on a schedule determined by the organization.

The important thing is that your screening activities help keep your organization in the clear. Exactly how that is achieved is, as mentioned, variable.

Generally speaking, screening should be performed for every export or financial transaction, domestic and foreign. Ideally, screening should include every party involved in the transaction, including the final end user, and the chain of individuals and businesses in-between.

Screening should also be take place for any type of contact, including visitors, employees, business associates, re-sellers, etc.—though the lists screened may vary for each of these purposes. Countries where exports are destined should also be screened to ensure they are not currently facing sanctions or embargoes.