How data and technology are transforming sanctions compliance

Ever-changing global sanctions rules, black-list databases and cargo restrictions mean denied party screening can now be as important to cargo export as creating the air waybill or printing the labels.

From loss of export privileges to expensive fines and sometimes even criminal penalties, failure to comply can put the shipment, your business and your team at serious risk.

CargoWise helps you stay compliant with direct, real-time access to hundreds of restricted party lists, significantly reducing the risk of your goods being sold to individuals or entities on banned lists.

For example, CargoWise’s powerful denied party screening solution now seamlessly integrates with Dow Jones’ comprehensive Sanctions Ownership Research.

This means you can be confident you can comply with the US Treasury’s Office of Foreign Assets Control (OFAC) and the European Unions’ regulations on sanctions against foreign entities, including the complex 50 Percent Rule.

For exporters, the 50 Percent Rule requires much more work than just checking a list of restricted companies and individuals. It involves digging deeper to determine if the sum of the sanctioned owners adds up to a majority stake or not, as defined by US and EU regulators.

Dow Jones’ Sanctions Ownership Research has identified more than 21,000 entities across 180 countries not complying with the 50 Percent Rule, including companies with a sanctioned party in senior management or on the board of directors, along with state owned companies of comprehensively sanctioned governments, such as Syria, Iran and North Korea.

With direct, real-time access to the Sanctions Ownership Research in CargoWise, you can automate the complex, manual, time intensive process of cross-checking global sanction subjects, helping you better manage your labour resources, control costs and minimise risks.

What’s more, CargoWise’s deep integration throughout your operations means each time a screening process takes place there is a comprehensive audit trail, so you know which members of staff performed the search and accepted the responses. This allows you to comply with both internal and external audit regulations.

For extra security, you can also restrict the generation of certain documents that would enable the cargo to be exported – such as bill of lading or pick-up requests – unless the user has the appropriate security rights to let it proceed.

This makes sure every operational file is screened prior to export. If any changes or additions are made to the record after creation, Cargowise can automatically rescreen the entity without any user interaction at all.

Source: https://cargowise.com/news/how-data-and-technology-are-transforming-sanctions-compliance/

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