The Importance of Denied Party Screening (DPS)

The Top Reasons Companies Require an Effective Review

A review of denied, sanctioned and restricted parties is critical to minimize risk and to lessen the potential of rising and substantial penalties. Today's global regulatory environment is continuously evolving. Fine and penalty schemas are shifting, and fines are becoming larger and more frequent.

Primary Reasons Why DPS is Critical

1. Ecommerce
   With the continually growing volume of online transactions, it is critical to screen ecommerce transactions and shipments.

2. Continuous changes
   Denied, restricted and sanctioned lists are in continuous flux. It is essential for businesses to keep pace with constantly shifting DPS updates to minimize risk.

3. Review of financial transactions
   The processing of transactions to or through financial institutions is subject to DPS. Non-compliance has led to penalties into the millions of dollars.

4. Audit Trail
   Companies may be required to demonstrate that they have practiced reasonable care to avoid or reduce penalties. Leading businesses are implementing solutions that include an audit trail.

5. Historical Screening
   The need to periodically review previous DPS compliance is critical for businesses to minimize the potential of fines.

6. Large Penalties
   The frequency, number and amount of DPS fines is increasing. Average penalties are on the rise, and recent fines have been the largest on record.

Deploying systems tailored to unique risk parameters and settings

Similar to the number of lists and rate of changing data, the volume of information and records that must be screened calls for an automated solution.

Countering DPS Challenges with Technology

Market leaders are countering the above challenges and are approaching the task of DPS systematically. Best-in-class businesses are: