Frequently Asked Questions

Organizations engaging in international trade and exports are responsible for complying with export regulations and controls. Companies are still subject to export controls and the laws governing them regardless of their awareness of them.

Having a solution in place that assists organizations with helping to determine export classifications, as well as managing licenses, where required, is a good step in the direction towards being export compliant.

As detailed above, export compliance is comprised of a multifaceted and broad set of responsibilities. Organizations looking to get started on their compliance journey should typically look at starting with screening the parties with whom they do business. Screening should then be integrated into a larger compliance process that also includes classification of items and technologies (the latter to prevent deemed export violations from occurring).

Documents pertaining to export compliance should be also maintained, filed, and archived properly. This helps to ensure proper recordkeeping that proves due diligence, as proving your compliance is just as important as the act of complying in the case of a government audit.

While these activities can be performed manually, such as visiting government websites to perform denied party, and sanctioned and embargoed country screening, as well as searching for the appropriate classification codes, and the like, these can be time consuming and complex. This type of process also comes with a high probability for error and potentially erroneous recordkeeping. Export compliance solutions, such as the ones offered by Descartes Visual Compliance, save time and resources, reduce the scope for error, increase the comprehensiveness of a compliance program, and are generally an organization’s best bet at getting—and staying—compliant.

Simply fill out our contact form or give us a call at 877-328-7866. We will spend a few minutes getting to know about more about your organization and the export compliance challenges you face. From there, we will recommend a solution to help meet those challenges head on—or even schedule a demo so you can see Visual Compliance in action.

Also check out these 6 key features to help you evaluate and select the best denied party screening solution for your business.

Yes. A number of companies have been fined for knowingly and unknowingly violating trade, export and financial compliance regulations. In 2018, 30 individuals and businesses were convicted; and $1,101,431,225 in fines, $9,642,496 in forfeitures, and 506 months of imprisonment were handed down by the Bureau of Industry and Security (BIS) alone. A list of recent OFAC actions can be found here.

Yes. There are a number of denied party lists of individuals, entities and countries that, for a variety of reasons, the U.S. Departments of State, Commerce and Treasury, and international governmental agencies, have placed restrictions upon conducting business. U.S. regulations generally apply to U.S. exporters, while international regulations may apply to U.S. and foreign exporters doing business in those respective jurisdictions. Screening watch lists against which organizations are expected to screen include:

If an organization conducts business with entities on these watch lists, they are risking an export violation that could result in fines and other penalties. By making sure that to avoid doing business with anyone on a government watch list, companies are helping to protect themselves against said fines, other criminal and civil penalties, denial of export privileges, and negative media coverage.

Yes. Every transaction facilitated in U.S. Dollars is processed through the U.S., and is therefore subject to OFAC regulations. Banks processing the transaction have an obligation to freeze funds from being transferred to sanctioned parties or face penalties themselves. To avoid this possibility, and a potential OFAC violation, screening is recommended.

International financial agencies also have their own lists, so screening can help avoid fines and other penalties from global regulatory and enforcement bodies.

Yes. All organizations doing business in the United States must adhere to U.S. regulations regarding export compliance. Organizations doing business in other countries may be subject to additional export regulations based on those countries’ jurisdictions as well.

Yes. There are a number of denied party lists of individuals, entities, and countries that, for a variety of reasons, the U.S. Departments of State, Commerce, and others, as well as international governmental agencies, have placed trade restrictions upon. Watch lists against which organizations are expected to screen include:

If an organization conducts business with entities on these watch lists, they are risking an export violation that could result in fines and other penalties. By making sure that they avoid doing business with anyone on a government watch list, companies are helping to protect themselves against said fines, other criminal and civil penalties, denial of export privileges, and negative media coverage.

Yes. For several reasons ranging from supporting terrorism to narcotics, the U.S. Department of Treasury has placed restrictions upon numerous entities. Doing business with any entity on an OFAC watch list is a violation of U.S. export regulations, and punishable with civil and criminal penalties and monetary fines. In 2019, OFAC fines exceeded $1.3 billion.

Making sure you are not doing business with a sanctioned entity—a process that includes screening and OFAC sanctions list searches—is essential to help ensure your organization is complying with international trade regulations, and to help protect it from fines, penalties, and the negative media coverage that often follows.