Regulations

Foreign Customers Identification Program

Financial and Business transactions with any foreign individual or company on one of many government watch lists pose significant risk. You could be committing violations right now, or they could be hidden in your books, or those of companies you have acquired or are considering purchasing.

You must ensure your business processes are insulated against parties listed as:

  • Specially Designated Nationals (SDN)
    • These are parties listed by OFAC as owned, controlled by, or acting on behalf of targeted countries, or parties, such as narcotics traffickers and terrorists, designated under programs that are not country-specific.
  • Politically Exposed Persons (PEP)
    • The Foreign Corrupt Practices Act (FCPA) was enacted to ensure that American businesses conduct their foreign operations scrupulously, sans bribery, money laundering or dealings with corrupt officials.
  • Excluded Parties (EPLS)
    • Organization pursuing Federal Governmental Service Administration (GSA) contracts cannot have dealings with individuals listed under the Excluded Parties List System.

The truth is, every transaction with a Foreign Customer is a Potential Trade Compliance Violation.

The severe penalties of violating the regulations, including fines, restrictions on business activities, incarceration, and damage to personal and corporate reputations invite appropriate due diligence measures to protect your staff, executives and the corporation.

A key challenge is finding solutions that add incremental transaction costs.