What is a Restricted Party?
A restricted party (or denied party as they are sometimes referred to) is an entity or individual that is placed on a denial list by the U.S. government or any other country’s government. An export license from one, or more, of the federal agencies may be required if you plan on conducting any business or research with a restricted party, even if you are conducting Fundamental Research.
Who Can be a Restricted Party?
Anyone! Restricted parties are not limited to foreign persons and can include U.S. persons. Restricted parties are subject to change and are updated routinely. Restricted party designation is not based upon nationality but instead is based upon previous behavior or action.
Who should be screened and who should conduct the screening
How to conduct a Restricted Party Screening (RPS)
Government Restricted Parties Lists
There are over fifty lists issued by U.S. governmental agencies that restrict transactions with specific individuals, groups and entities which include the following:
Department of Commerce
Denied Persons List is a list of individuals and entities that have been denied export privileges. Any dealings with a party on this list would violate the terms of its denial order and is prohibited;
Entity List is a list of parties whose presence in a transaction can trigger a license requirement under the EAR. The license requirements are in addition to any license requirements imposed on the transaction by other provisions of the EAR;
Unverified” List is a list of parties where the Bureau of Industry and Security has been unable to verify the end-user in prior transactions.
Department of State
Debarred List is a list of parties who are barred by 22 CRF §127.7 (ITAR) from participating directly or indirectly in the export of defense articles, including technical data or in the furnishing of defense services for which a license or approval is required by ITAR;
Nonproliferation Sanctions is a list of parties that have been sanctioned under various statutes.
Department of Treasury
Specially Designated Nations and Blocked Persons is a list of individuals and organizations deemed to represent restricted countries or known to be involved in terrorism and narcotics trafficking.