Restricted or Denied Parties Lists (RPLs/DPLs)

Restricted or Denied Parties Lists (RPLs/DPLs) are compilations of individuals and entities that companies are restricted from doing business with or are required to conduct enhanced due diligence on. These lists are issued by various government agencies and international organisations to combat a range of threats, including:

• Money laundering and terrorist financing
• Foreign policy concerns
• Export control violations
• Reputational risk

By screening potential and existing customers, vendors, and other business relationships against these lists, organisations can mitigate the risk of:

• Violating sanctions
• Doing business with criminals or terrorists
• Damaging their reputation by association

Types of Restricted or Denied Parties Lists

There are various types of RPLs/DPLs, each focusing on specific risks:

• Sanctions Lists: These lists identify individuals and entities sanctioned by governments or international bodies, such as the UN Security Council. Dealing with sanctioned parties is often prohibited or requires a special licence.
• Foreign Policy Lists: These lists may include individuals or entities associated with foreign governments that pose a risk to national security or foreign policy interests.
• Export Control Lists: These lists restrict the export of certain goods and technologies to specific countries or entities to prevent their misuse. Individuals or entities on these lists may require additional checks before exports can be authorised.
• Internal RPLs: Companies may also create their internal restricted parties lists based on specific risk assessments or reputational concerns.

How Restricted or Denied Parties Lists Are Used

Organisations typically use specialised software to screen potential and existing business relationships against RPLs/DPLs. This screening process helps identify potential matches and allows companies to take appropriate action, such as:

• Rejecting business
• Obtaining additional information
• Conducting enhanced due diligence
• Reporting suspicious activity to authorities

Smile ID and Restricted Parties List Screening

Smile ID's AML Check solution enhances the screening process for RPLs/DPLs by providing:

• Comprehensive Screening: Our AML Check solution screens against 1100+ global and African sanctions, PEP, and adverse media watchlists, and 170k+ news sources, ensuring thorough coverage.
• Identification of Political Risks: We identify political risks and associations, providing a clearer understanding of the individuals or entities involved.
• Complete User Profiles: Building comprehensive user profiles with verified personal information and AML results, enabling accurate assessments.
• Daily Watchlist Updates: Ensuring the most current information with daily updates to all watchlists.

In addition to these features, Smile ID supports restricted parties list screening by:

• Verifying Customer Identities: Accurate identity verification helps ensure matches against RPLs/DPLs are based on reliable information.
• Streamlining Due Diligence: Our solutions can help expedite KYC/CDD processes for flagged individuals or entities, allowing for efficient risk assessment.

Conclusion

Restricted or Denied Parties Lists (RPLs/DPLs) are essential tools for organisations to comply with regulations, mitigate risk, and protect their reputations. By screening against these lists and implementing appropriate due diligence procedures, companies can make informed decisions about business relationships and avoid association with sanctioned entities or criminals. Smile ID contributes to a stronger compliance environment by providing identity verification solutions that support efficient due diligence processes. With on-ground experts across Africa, we easily deal with regulatory complexities and keep tabs on the ever-changing requirements, ensuring you are compliant at every step.

Book a free demo today to learn more about our solutions.