Is Denied Party Screening the same as Restricted Party Screening?

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 Screening :  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 Screening: 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.