Frequently Asked Questions

Whether you are starting your compliance journey or just trying to learn more, these frequently asked questions will help answer questions about Descartes compliance solutions and trade regulations.

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:

Export-related restricted, denied and blocked persons lists such as the Department of Commerce Denied Persons (BIS), the Department of State Designated Terrorist Organizations, the Department of State Arms Export Control Act Debarred Parties (DDTC), and the Weapons of Mass Destruction Trade Control Designations (OFAC) lists.
Sanctions programs-related blocked persons lists, including the U.S. Treasury Department’s Specially Designated Nationals and Blocked Persons, Foreign Sanctions Evaders and Sectoral Sanctions Identifications Lists, and the United Nations Consolidated List.
General Services Administration lists help organizations that depend on government contracts (i.e., SAM and EPLS) search multiple U.S. General Services Administration Lists of Parties to help identify those (e.g., suppliers and vendors) excluded from receiving Federal contracts.
Law enforcement-related wanted persons lists, such as the FBI Ten Most Wanted Fugitives, FBI Most Wanted Terrorists, Department of Homeland Security Investigations Most Wanted, U.S. Immigration and Customs Enforcement and Removal Operations Most Wanted, and the U.S. Secret Service Most Wanted List, to name just a few.
Politically Exposed Persons and Office of Inspector General Lists.
International Terrorist, Blocked Person, Wanted, and Entity Lists, such as the European Union Consolidated List, Interpol Recently Wanted, OSFI Consolidated Lists, HM Treasury Consolidated List, and additional international lists from other countries, including Australia and Japan.

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, for all intents, when it comes to export, trade and financial compliance—with which businesses in both the U.S. and abroad have the obligation to comply—those commonly-used terms can be considered relatively interchangeable.

Other terms common in the export compliance industry include: debarred party screening, OFAC screening, watch list screening, sanctions screening, embargoed country screening, Sanctioned Party List Screening (SPL), and Specially Designated Nationals (SDN) and Blocked Persons screening.

However, while similar in nature, there are some differences, primarily in that some terms are associated with specific regulations:

Denied parties: having a denied party designation typically means that entity has been denied export privileges. In some circumstances, it’s possible to do business with them, but if they happen to export (or reexport) what they’ve purchased, that’s potentially an export violation in the making. End User Statements, which certify on the buyer’s end that they won’t export or re-export goods or materials, can be an effective way to manage risk when dealing with denied parties.
Restricted parties: these are individuals or entities upon which restrictions—either whole or partial—have been placed. For example, they are prohibited from receiving some items subject to the Export Administration Regulations (EAR), or a license is required in order to conduct business with them. In other cases, it may be prohibited to transact with them altogether. A restricted party is sometimes referred to as a blocked party or entity.
Debarred parties: these are individuals or organizations that have been blocked on account of a violation of the Arms Export Control Act administered by the Directorate of Defense Trade Controls.
OFAC-related parties: these parties have been blocked as a result of the enforcement of U.S. economic sanctions. Individuals and entities, as well as sanctioned and embargoed countries, fall under the purview of the Office of Foreign Assets Controls (OFAC). Some of OFAC’s watch lists include Specially Designated Nationals (SDN) and Blocked Persons, Sectoral Sanctions, and Foreign Sanctions Evaders, among others.

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