Why Screening Matters
Before any export transaction, U.S. exporters are required to screen all parties involved — the buyer, consignee, intermediate consignee, and end-user — against multiple government-maintained restricted party lists. Failure to screen can result in severe civil and criminal penalties, including fines up to $330,000 per violation and imprisonment up to 20 years for willful violations.
The Office of Foreign Assets Control (OFAC) administers the primary sanctions programs and maintains the Specially Designated Nationals and Blocked Persons List (SDN List). BIS maintains the Entity List, Denied Persons List, and Unverified List. The State Department maintains the AECA Debarred List. All of these must be checked.
The SDN List
The SDN List contains individuals and entities owned or controlled by, or acting for or on behalf of, sanctioned countries and regimes, as well as specially designated narcotics traffickers, terrorists, and those engaged in activities related to the proliferation of weapons of mass destruction. U.S. persons are generally prohibited from dealing with anyone on the SDN List, and their assets within U.S. jurisdiction are blocked.
The Entity List
The Entity List (Supplement No. 4 to Part 744 of the EAR) identifies foreign entities — including businesses, research institutions, government organizations, and individuals — for which there is reasonable cause to believe they have been involved in activities contrary to U.S. national security or foreign policy interests. Exports to Entity List parties require a specific license, and applications are generally reviewed under a presumption of denial.
Building a Screening Program
Effective screening requires checking all parties at multiple touchpoints: when an order is received, before shipment, and when payment is processed. Automated screening software can match against consolidated lists, but manual review is essential for potential matches. False positives are common — names must be evaluated in context, considering aliases, transliterations, and organizational affiliations.