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Understanding Restricted Parties and Its Purpose

April 21, 2022 Author: The Global Wizard Team

Some Perspective & History of Restricted Parties

As we know from our blog, "A Brief History of Denied Persons Screening”, Restricted Parties Screening began in the 1970s after the Export Administration Act of 1969 was enacted as an official government function when processing exports.

Because of this Act, government agencies worldwide have created restricted parties lists that they add entities to (individual people, companies, organizations, and countries) when those entities have violated that agency’s export rules and regulations (e.g. political unrest, repeated regulation violations, trade sanctions, ties to terrorism, etc.).

Restricted Parties lists can change at any time; from once a month to multiple times in a day under certain conditions. The Global Wizard Restricted Parties module is updated, in real-time, whenever there are changes made to any of the source lists.

Who Puts the Who in Restricted Parties?

Here are just a few of the databases that Global Wizard accesses to provide you with a real-time, centralized resource for your restricted parties screenings:

  • Consolidated Screening Lists
  • Office of Foreign Assets Control - OFAC
  • U.S. Department of State
  • European Union Sanctions List
  • US Commerce Department's Denials List
  • United Nations (Security Council) Sanctions

“What if I want to include my own restricted parties entities?”

Your company might have a history with specific entities that makes you just not want to do business with them.

  • Non-payment or slow payment of previous transactions
  • Constantly returns product, disputes warranty, or service terms
  • Filed litigation against the company
  • Has a public history of unethical or immoral practices

While many RPS (Restricted Party Screening) services do not allow you to add your own entities or create your own restricted parties list, Global Wizard offers this useful feature. Check out our blog on using this innovative tool within the Restricted Parties module to create a custom restricted parties list.

Additional Resources

The Bureau of Industry and Security (BIS) website offers a useful resource on how to avoid dealing with unauthorized parties. 

Our blog, “Denied Parties Screening: Red Flags to Watch for in Export”  provides helpful advice on what to watch for when conducting international business transactions. 

Are you interested in Global Wizard?

Get started today with the new Global Wizard Restricted Parties application.

We use Denied Screening and Restricted Screening interchangeably. They have the same meaning.