The Hidden Risks Lurking in Your Compliance Process
Global trade moves fast, and so do the regulations that govern it. If you’re a shipper (particularly one that ships internationally) compliance isn’t just another task on your to-do list—it’s the backbone of a seamless supply chain. Yet even businesses that think they have compliance under control can find themselves blindsided by unexpected regulatory hurdles.
Recently, several Chinese companies were added to the U.S. government's blacklist due to alleged involvement in forced labour practices concerning Uyghur minorities. Despite these sanctions, Australia reportedly continued to import products from these blacklisted firms, leading to significant scrutiny and criticism. They were caught off guard without real-time compliance monitoring, leading to weeks of delays and financial losses. Situations like these highlight how easily ever-changing regulations can blindside businesses.
This situation offers a clearcut example: how underscoring business challenges in maintaining compliance can be detrimental to supply chain growth and sustainability.
It’s easy to assume that once a compliance program is in place, the job is done. But regulations shift, new trade policies emerge, and what worked yesterday might not be enough today. Companies are discovering this the hard way; compliance audits can lead to unexpected fines and costly shipping delays. The consequences of missing a compliance update can be severe: halting shipments, incurring financial penalties, damaging relationships with partners, and even propagating long-term reputational harm. The risk isn’t just about avoiding fines—it’s about keeping your shipping operation moving.
The Cost of Overlooking Compliance Gaps
Even organizations with robust compliance programs often overlook critical gaps in their supply chain operations. These gaps can leave businesses exposed to risks that can hinder performance and increase operational costs. Some of the key issues include:
Inconsistent Screening: While companies may conduct screening at certain points in their operations, a lack of consistency means some transactions or shipments may slip through the cracks. Failing to identify restricted parties or flagged entities can expose businesses to fines and prolonged reputational damage.
Manual Processes: Relying on manual processes for tasks like data entry, screening, and reporting can significantly slow down operations. These processes are prone to human error, leading to inefficiencies, delays, and unnecessary costs that impact overall business performance.
Disconnected Compliance Workflows: Compliance workflows that operate in silos or lack integration across systems can create communication breakdowns and delays. When compliance efforts aren’t fully integrated into the entire supply chain process, it can lead to missed deadlines, non-compliance with updated regulations, and ultimately, a loss of control over the supply chain.
One of the biggest missteps? Failing to rescreen customers and partners as regulations evolve.
Many businesses are still performing manual, one-time checks on their items, customers, and suppliers. With trade laws growing in complexity, and international shipping regulations constantly changing, a missed update could put your entire supply chain operation and revenue at risk. As a result, many shippers are investing in automated screening technology as a means for proactively mitigating shipping risks associated with unpredictable and costly compliance regulations.
Why Proactive Compliance Matters
Taking a proactive approach to compliance isn’t just about avoiding penalties; it’s about staying ahead of potential disruptions. With a real-time, automated screening process, supply chain operators can continuously monitor transactions, suppliers, and customers against global compliance lists.
Automation does more than speed up the process—it reduces manual errors, eliminates bottlenecks, and helps prevent regulatory missteps. A centralized compliance dashboard provides real-time insights, allowing you to identify risks early and act before they become a problem.
The Growing Complexity of Global Trade Compliance
Trade regulations aren’t getting any simpler. Governments worldwide are cracking down with stricter enforcement of export controls, increased scrutiny on supply chain transparency, and harsher penalties for non-compliance. For instance, the U.S. has expanded its restrictions on technology exports to certain countries, while major economies are introducing more stringent due diligence laws to combat forced labour in supply chains.
Recent updates to U.S. export controls and shifting tariff policies have introduced new challenges for US-based businesses shipping globally. With ongoing trade disputes and unpredictable tariff adjustments, companies face mounting uncertainty. A single policy change can mean higher costs, restricted trade routes, or sudden compliance violations. Relying on outdated compliance methods (like periodic checks or manual reviews) is no longer a sustainable business practice; especially for high-volume shippers moving large amounts of product. Businesses need a dynamic, automated compliance strategy that continuously adapts to regulatory changes and provides real-time insights into evolving risks.
How NMB Gateway for RPS Eliminates Hidden Risks with Practical Solutions
For companies using Microsoft D365 Finance and Supply Chain, NMB Gateway for Restricted Party Screening (RPS) offers a seamless, automated compliance solution that integrates directly into business workflows. Rather than relying on manual processes or external tools, RPS embeds compliance screening at every critical checkpoint, from customer onboarding to order fulfillment, ensuring real-time risk assessments are performed throughout the sales cycle.
By leveraging the power of state-of-the-art screening partner platforms (Descartes Visual Compliance and e2open), every transaction—whether a shipment, customer order or supplier contract—is automatically cross-referenced against global restricted party lists, ensuring that no high-risk entities slip through the cracks. This proactive approach prevents compliance violations before they impact business operations, preventing costly delays and potential fines.
Beyond just screening, NMB Gateway for RPS maintains a comprehensive audit trail that records every compliance check and authorization – leveraging D365’s user security roles to govern and track essential screening user data. It’s an essential component for businesses that need to demonstrate due diligence during audits, as it provides a transparent, accessible history of compliance actions taken. With configurable screening thresholds, shippers can adjust compliance sensitivity levels based on their industry, risk tolerance, and regulatory requirements.
Whether dealing with high-risk markets or low-risk domestic transactions, companies can fine-tune parameters to align with their operational needs without creating avoidable bottlenecks. By eliminating manual screening delays, NMB Gateway for RPS accelerates supply chain operations, ensuring shipments move quickly while remaining compliant. The system’s integration with D365 means that compliance is no longer a separate step—it’s an embedded, automated safeguard that protects businesses, allowing them to focus on growth and efficiency.
Secure Your Global Operations
Compliance risks don’t just disappear—they evolve. Successful businesses apply proactive, tech-driven approaches to restricted party screening. Investing in a smart compliance solution protects against regulatory pitfalls, streamlines operations, and strengthens supply chain reliability.
Don’t let hidden risks catch you off guard. With NMB Gateway for RPS, you can stay ahead of compliance challenges and safeguard your global operations.
Schedule a demo today: https://www.nmbsolutions.ca/contact-us
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Sources:
U.S. Department of Commerce Establishes Export Control Framework Limiting the Diffusion of Advanced Artificial Intelligence and Expands and Clarifies Advanced Computing Controls. Covington & Burling LLP, 2025. https://www.cov.com/en/news-and-insights/insights/2025/01/us-department-of-commerce-establishes-export-control-framework-limiting-the-diffusion-of-advanced-artificial-intelligence-and-expands-and-clarifies-advanced-computing-controls
Forced Labor Law Compliance Ramping Up in 2025. Assent, 2025. https://www.assent.com/blog/forced-labor-and-child-labor-laws-compliance/
EU Forced Labour Regulation Enters Into Force. Covington & Burling LLP, 2024. https://www.cov.com/en/news-and-insights/insights/2024/12/eu-forced-labour-regulation-enters-into-force
U.S. Strengthens Export Controls on Advanced Computing Items. Holland & Knight LLP, 2024. https://www.hklaw.com/en/insights/publications/2024/12/us-strengthens-export-controls-on-advanced-computing-items
US tightens its grip on AI chip flows across the globe. Reuters, 2025. https://www.reuters.com/technology/artificial-intelligence/us-tightens-its-grip-ai-chip-flows-across-globe-2025-01-13/
EU Adopts Forced Labour Regulation, Banning Products Made by Forced Labor. Paul, Weiss, Rifkind, Wharton & Garrison LLP, 2024. [https://www.paulweiss.com/practices/sustainability-esg/publications/eu-adopts-forced-labour-reg
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