Transactions With Restricted Parties

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DOCUMENT TYPE:

Policy

PURPOSE:

The purpose of the policy is to ensure compliance with applicable U.S. regulations that prohibit export and other transactions with listed entities.

APPLIES TO:

The University of Kansas and all of its controlled affiliated units.

CAMPUS:

Edwards, Lawrence, Juniper Gardens, Parsons, Yoder, Topeka, Medical Center, Kansas City, Salina, Wichita

POLICY STATEMENT:

Restricted Party Screening (RPS) is an essential component of the University of Kansas (KU) Export Compliance Program. The RPS checks persons or entities against various U.S. government lists of individuals, companies, and organizations, both foreign and domestic, where export regulations or sanctions block or restrict any export or prohibited transaction. [i] Regulators and enforcement authorities have made it clear that all organizations are obligated to conduct RPS on employees, contractors, vendors, business associates, and customers prior to any export or prohibited transaction.

An export is an actual shipment or transmission out of the U.S. in any manner or the release of technology to a foreign person in the U.S. (deemed export).  A prohibited transaction is broadly defined as “trade or financial transactions and other dealings in which U.S. persons may not engage.”  Because each program is based on different foreign policy and national security goals, prohibitions may vary between programs.  A prohibited transaction may include the exchange of goods or services.  The Office of Foreign Assets Control (OFAC) Compliance Services Guidance does not describe every allowable service relating to the requirements of U.S. sanctions laws.  Because of these complex and broad regulations, it is essential to conduct an RPS prior to any export or transaction and consult with the Office of Global Risk & Security (GRS).

All U.S. and foreign persons and entities subject to U.S. jurisdiction are restricted or prohibited from exporting or conducting transactions of any kind to any person or entity on these lists.  In addition, U.S. persons are expected to exercise diligence against transacting any business with a sanctioned country, group, entity, or individual. To ensure compliance with the regulations and laws, KU will not engage in exports or transactions with such entities or their representatives, employees, or agents.

The burden on KU is significant, but regulators expect organizations to leverage technology like KU’s use of Amber Road, to conduct our due diligence RPS.

Therefore, Restricted Party Screenings shall be completed for all but not limited to the following:

• Visitors, visiting professors, researchers, and scientists (both international and U.S.)
• New employees and affiliates
• Recipients of international shipments (sending or hand-carrying)
• International travel destination, host, sponsor, and/or collaborator
• Research collaborators
• Participants in short-term educational programs
• All sponsors
• All vendors
• Recipients of transfers of items including technology
• Gifts to the University
• Professional and Continuing Education registrants
• Consortia supporters and members
• All transactions (to include but not limited to the transfer of goods and services) with a foreign person or entity
• International Agreements

Procedure: 

1. All KU units and affiliates are obligated to conduct the RPS, as the KU party engaging in the export or other transaction and are the source of the information required for screening.
2. The RPS must be completed prior to any export or transaction
3. If the screening produces an alert, temporarily hold the transaction until the alert is either confirmed or distinguished by GOS.
4. The export or transaction must be approved by GOS before continuing with the transaction.
5. If necessary, GOS will seek U.S. government authorization to continue the export or transaction through a license or license exception.
6. On the rare occasion authorizations are not available, GOS may recommend terminating the export or transaction.
7. Alternatively, KU units and affiliates can send the RPS request directly to GOS via the GOS website.  If a KU unit or affiliate needs an account or training to conduct the screening, contact GOS.

CONTACT:

Office of Global Risk & Security
gos@ku.edu

APPROVED BY:

Chancellor

APPROVED ON:

2018-12-20

EFFECTIVE ON:

2018-12-20

REVIEW CYCLE:

Annual (As Needed)

BACKGROUND:

Executive Order 13224, Department of Commerce Know Your Customer Guidance 15 CFR 732 Supplement 3.

RELATED PROCEDURES:

Export Screening

RELATED FORMS:

Amber Road Request Form

RELATED RESOURCES:

Office of Export Compliance

DEFINITIONS:

U.S. Person.  As defined in export regulations, a U.S. person is a citizen, permanent resident alien of the U.S., or a protected individual as defined by 8 USC 1324b(a)(3).[ii] The ITAR includes any entity incorporated to do business in the U.S. [iii]  Additionally, OFAC and Department of Commerce regulations include all persons actually within the U.S. as U.S. persons.[iv]

Foreign person. As defined in export regulations, a foreign person is a person or entity that is not a U.S. person. It also means any foreign corporation, business association, partnership, trust, society or any other entity or group that is not incorporated or organized to do business in the United States, as well as international organizations, foreign governments and any agency or subdivision of foreign governments (e.g., diplomatic missions).

Endnotes:
ⁱ  The RPS searches against more than 300 U.S. government lists.
ⁱⁱ  The Export Administration Regulations (EAR) are administered by the Department of Commerce.  15 CFR 730-774.
ⁱⁱⁱ The International Traffic in Arms Regulations (ITAR) are administered by the Department of State.  21 CFR 120-130.
^iv The Office of Foreign Assets Control (OFAC) administers and enforces economic and trade sanctions 31 CFR 500-599.

CHANGE HISTORY:

04/17/2025: Updated links
03/25/2025: Migration to TeamDynamix from Drupal.
06/01/2023: Updated Global Operations and Security to Global Risk and Security. 
12/20/2018: New policy developed in order to comply with Federal laws and regulations.