RESTRICTED PARTY SCREENING

Effective: August 15, 2024

Purpose: As a companion to the University’s export control policy, and pursuant to Kansas Board of Regents’ (KBOR) policy mandates and expectations, and with a commitment to reduce risk and to ensure compliance with applicable federal regulations that prohibit export and other transactions with listed entities with restrictions or prohibitions as determined by multiple U.S. federal agencies, this policy is intended to recognize and provide appropriate directives to authorize and implement restricted party screening (RPS) procedures and best practices.

Scope: This policy applies to the University campus wide.

Responsible Office: General University

Policy Statement: 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 other prohibited transaction or engagement. Individuals, companies, and organizations on those lists are considered to be “restricted parties”. Accordingly, the University has an obligation to observe any red flags or indicators and potentially restrict or prohibit interacting with entities entirely.

Absent "red flags" (or an express requirement in the Export Administration Regulations), there is no affirmative duty upon the University to inquire, verify, or otherwise validate a third party’s representations. However, when red flags are raised in the information that comes to the University, the University has a duty to exercise due diligence to inquire regarding the suspicious circumstances and ensure appropriate end-use, end-user, or ultimate country of destination in the transactions university personnel or units propose to engage in.

All University employees are expected to act under the following standards regarding red flags:

• Take into account any abnormal circumstances in a transaction that indicate that an export, transaction, or other engagement may be destined, or intended, for an inappropriate end-use, end-user, or destination.
• When proposing to engage in exports, transactions, or other interactions university employees are expected to obtain documentary evidence concerning the proposed transaction; misrepresentation or concealment of material facts is prohibited, both in the licensing process and in all export control or transactional documents. Employees may rely upon representations from the other party and repeat them in the documents evidencing the export or transaction, unless red flags obligate further verification steps.
• University employees may not affirmatively “avoid” information that might otherwise prohibit a proposed export, transaction, or other interaction with a third party.
• If a red flag cannot be legitimately explained, no university employee is then authorized to undertake the proposed export, transaction, or other interaction with the third party.

Exports, transactions, or other engagements may include:

• Any activity as described in the University’s export control policy
• Speaking engagements
• Research collaboration
• Internship coordination, supervision, collaboration, or placement
• Providing or receiving continuing education
• Receipt of an honorarium
• Partnership, consortium, joint venture, affiliation, or vendor negotiation
• Provision of any educational program or service
• Any event hosting or sponsorship
• Any employment visa sponsorship; and/or
• Any other export, transaction, engagement, or interaction as described or anticipated by applicable law, regulation, Board policy, or University policy.

The University shall establish and implement restricted party screening procedures.

All University employees shall be required to utilize appropriate restricted party screening procedures prior to exporting, transacting, or otherwise engaging with any person, entity, or other organization which potentially may be categorized as a restricted party.

The University shall provide or facilitate appropriate training as deemed necessary to accomplish the purpose and intent of this policy.

Definitions: All words and phrases shall be interpreted utilizing their plain meanings unless otherwise defined in another University or Board of Regents policy or by statute or regulation.

Prohibited Transaction - broadly defined as “trade or financial transactions and other dealings in which U.S. persons may not engage.” A prohibited transaction may include the exchange of goods or services.

Red Flag - an anomaly or other indicator of a potential issue concerning U.S. laws or regulatory requirements. The U.S. Bureau of Industry and Security (BIS) provides guidance about red flags that informs this policy.

Restricted Party - an individual or entity (academic institutions, government, business, etc.) that the U.S. government prohibits or restricts transactions with. Restricted parties may include:

• Visitors, visiting professors, researchers, and scientists (foreign and domestic)
• New employees and affiliates
• Recipients of international shipments (sending or hand-carrying)
• International travel destination, host, sponsor, and/or collaborator
• Research collaborators (foreign and domestic)
• Participants in short-term educational programs
• Research sponsors
• Vendors/suppliers (foreign and domestic)
• Recipients of transfers of items including technology
• Donors
• Professional and Continuing Education registrants; and/or
• Consortia supporters and members.

Procedures: All procedures linked and related to the policies above shall have the full force and effect of policy if said procedures have first been properly approved by the University’s administrator in charge of General University procedures.

[General University procedures - coming soon]

Related Policy Information: [coming soon]