Explore UAB

Colleges & Schools

Export Control Office of Research

Regulatory Restricted Party Screening

Introduction

The process of conducting ongoing restricted party (or denied party) screening is a critical component of the UAB Export Control Compliance Program. Such screening processes help to determine whether or not an individual or entity is named on a restricted, denied, debarred, designated, or blocked party list. If the individual or entity is named on one or more of these lists, we may be prohibited from doing business with them or providing services to them. Further analyses of the screening results would be warranted.

As a premier research institution and academic medical center, UAB uses the Visual Compliance Research EditionTM software to screen individuals and other entities against mandatory "Restricted" and "Denied Parties" lists maintained by the various U.S. government entities; foreign allies; world organizations; and law enforcement agencies. Visual Compliance is licensed by DecartesTM, formerly known as eCustomsTM.

The Visual Compliance software features a “dynamic screening” processing capability. This allows for an individual to perform a one-time regulatory screening of an exact party, to then receive automated notifications of any later changes to the initial screening results. Visual Compliance is widely referred to as the industry standard regulatory screening software within the U.S. research community and in higher education overall.

 

Export Control Regulatory Governance

U.S. Export Control regulations across various Federal governing agencies broadly restrict a U.S. person from conducting or facilitating an export, re-export, or deemed export, with watch-listed persons or entities who have been flagged because of national security, nuclear, chemical/biological, economic sanctions, or other federal concerns. Federal governing agencies include, but are not limited to, the Departments of State, Commerce, and Treasury. Also note that for export control purposes, an “entity” includes U.S. institutions as well, such as UAB.

Restricted Party Screening (RPS) restrictions further extend to engaging in financial and service transactions with “blocked” or “prohibited” persons or entities identified as Specially Designated Nationals List (SDNL) by the Office of Foreign Assets Control (OFAC) within the U.S. Department of the Treasury.

These restrictions are widely interpreted by industry, higher education, and research institutions to mean “not conducting business with,” to avoid engaging in any unauthorized activity subject to these restrictions.

 

“U.S. Person” and “Foreign Person” under U.S. Export Control Regulations

Under the U.S. export control regulations, a “U.S. person” includes any individual who is:

    1. a U.S. citizen;
    2. a lawful permanent resident alien of the United States (e.g., “green card” holder); or
    3. a protected individual as defined by 8 U.S.C. § 1324b(a)(3) (e.g., foreign persons, such as refugees and asylees, who are protected persons and considered U.S. persons for export control purposes).
    4. Corporations incorporated in the United States are U.S. persons for purposes of the ITAR and EAR.

Conversely, the export control regulations define a “Foreign person” to mean any individual who is not a “U.S. person” as defined above, including the following:

    • any foreign person who is physically located in a foreign country, or
    • any foreign person who is physically located in the United States on a temporary work visa, who does not have lawful permanent resident alien status (e.g., a green card holder); or
    • any foreign person who is not legally authorized to live in the United States as a refugee or asylee.
    • A “foreign person” also includes any foreign corporation not legally incorporated or organized to conduct business in the United States; international organizations; and foreign government entities.
 

Identifying Restricted Parties

Restricted party listings identify persons and entities based both in the United States and internationally. Currently, a considerable number of international institutions are Restricted parties, including research universities and institutes. Conducting UAB transactions with such persons or entities may be subject to license approval or a presumption of license denial, depending on the person, entity, and basis of agency control. Acting without a required license may result in significant personal as well as institutional sanctions and penalties.

There are several reasons why a person or company may be added to a restricted party list. For example, they may be a terrorist organization or affiliated with such an organization; they may have a history of corrupt business practices; or they may otherwise pose a threat to U.S. national security or economic stability.

 

PLEASE NOTE: International Institutions of Higher Education may also be Listed as Restricted Parties

All institutions (as well as other entities) located in a Comprehensively Sanctioned Country (currently Iran, Syria, Cuba, and North Korea) are Restricted Parties. Likewise, China is home to well over two hundred restricted institutions (a number of which are research and teaching entities). 

 

Updates to the Lists of Restricted Parties

U.S. government agencies routinely update their lists, which are consolidated in the Consolidated Screening List (CSL) to help avoid prohibited transactions. The CSL is a list that U.S. governing agencies, including Departments of State, Commerce, and the Treasury, maintains restrictions on certain exports, reexports, or transfers of items. UAB uses the Visual Compliance Research EditionTM software for this purpose. Each of the governing Federal agencies specifies their respective prohibited parties (persons and entities) through publication in the Federal Register.
 

Restricted Party Regulatory Screening Resources

  • Please contact the Director of Export and International Compliance at exportcontrol@uab.edu
    • To register for access to use the Visual Compliance software;
    • Seek answers to regulatory screening questions;
    • Gain assistance in determining who should be screened and/or when to perform regulatory restricted party screening;
    • To discuss other UAB export control-related issues or questions.
  • Additional test Resource: Bureau of Industry and Security (BIS):
    Know Your Customer Guidance (doc.gov)