SAP Global Trade Services (SAP GTS) Sanctioned Party List Screening
Key Takeaways
⇨ When dealing with foreign entities, many companies believe that a screening method is not required for their sales and purchase orders against the sanctioned party lists.
⇨ SAP’s Global Trade Services (GTS) has world class screening capabilities that mitigate the risk involved in trading with the sanctioned parties.
⇨ The SPL screening within GTS is extremely robust and can screen large numbers of business partners and documents quickly and accurately and provides a user-friendly screen where users can review the results and release false positives.
Many companies believe they can skip screening their sales and purchase orders against sanctioned party lists when dealing with foreign entities. Some argue that they either know their business partners or don't want to invest in a systematic screening process. Others claim to rely on manual screening or conduct it after orders have already been processed and shipped. However, these companies often face fines when they realize they have shipped to prohibited entities. As of 2020, violating the Trading with the Enemy Act results in fines of $90,000 per violation, while violating the International Emergency Economic Powers Act carries a fine of approximately $308,000 per violation. This article discusses SAP’s Global Trade Services (GTS) which has screening capabilities that mitigate the risk involved in trading with the sanctioned parties. The solution allows for screening in real time as purchase and sales orders, and deliveries are entered into the system. The system also checks business partners and documents against the sanctioned lists and determines the future disposition of the partner/document based on system configuration.
