BIS and OFAC Embargo Monitoring

The United States Department of Commerce, Bureau of Industry and Security (BIS), and the United States Department of Treasury, Office of Foreign Assets Control (OFAC), have published regulations implementing the Trade Sanctions Reform and Export Enhancements Act of 2000. Both agencies have instituted procedures for all US exporters in other countries.

BIS maintains control over US exports to prevent commercial items from being shipped to certain countries. The BIS has regulatory jurisdiction over "dual-use" items – items which have predominantly commercial uses, but which can also have military applications. Likewise, OFAC maintains control over US exports to prevent agricultural commodities, medicines and medical devices from being shipped to select countries.

Effective BIS and OFAC Embargo Monitoring Program

All US companies that export must maintain an effective BIS and OFAC embargo monitoring compliance program. This includes:

• Adequate screening of customers and transactions
• Adequate record keeping
• Internal and external audits

In addition to embargos against specific countries, the BIS and OFAC also maintain lists of individuals who should not receive these sanctioned items. Shipments to persons on these BIS and OFAC lists pose particular risks of non-compliance with embargo regulations.

Mitigating Risks

If you do not regularly check your customers and receiving names and addresses, you risk being non-compliant with BIS and OFAC regulations. Moreover, if an embargoed company or person attempts to make a purchase or take receipt of your dual-use products, you also risk being non-compliant. Risks of non-compliance with the BIS and OFAC regulations include fines and penalties for civil and criminal violations.

Bosch Software Innovations' BIS Embargo Monitoring Solution mitigates these risks by:

• Conducting a check and comparison of the entire client database periodically against the latest version of BIS lists
• Conducting a check and comparison of a single name before shipping
• Tracking the strength of a match with the embargo list ("hits") on these lists

Name Matching Customer

At the heart of the BIS and OFAC Embargo Monitoring Solution is Bosch Software Innovations' proven and widely used Name Matching Customer software. The solution compares:

• Similar names and addresses
• Aliases
• Spelling variations

The BIS and OFAC Embargo Monitoring Solution can also manage internal "black lists" of unwanted customers.

When a Hit Is Found

When a "hit" on the list occurs, the solution scores and reports the hit, and provides a workflow for reviewing, evaluating and validating the hit. An electronic entry is made in the work list, including information about the degree of the match (hit quality) and the parameter of the matching (hit category).

Features

The BIS and OFAC Embargo Monitoring Solution:

• Integrates with internal databases so that analyses can be performed in-house and no data leaves the company
• Processes efficiently due to well-structured comparisons and non-recurrent clarification of hits
• Uses fuzzy matching to identify different spellings, in the case of international names and possible spelling errors
• Supports teams operating in multi-tiered, flexible workflows
• Delivers an auditable documentation