Denied Party Screening is used to identify and avoid illegal or risky transactions by screening against sanctions/restricted lists.

• A. To speed up shipments
• B. To identify and avoid illegal or risky transactions by screening against sanctions/restricted lists
• C. To ensure timely payment
• D. To optimize routing

Answer: (B)

Denial of access to sanctioned or restricted parties is a compliance practice. The main aim is to protect the business from engaging with individuals or entities that are prohibited or flagged as risky, by checking them against sanctions and restricted lists before a transaction proceeds. This proactive screening helps prevent illegal or sanctioned activities, reduce legal and financial exposure, and maintain ethical trade practices.

The described purpose directly captures this by stating that screening against sanctions/restricted lists is used to identify and avoid illegal or risky transactions. In contrast, aims like speeding shipments, ensuring timely payments, or optimizing routing relate to logistics efficiency or cash flow rather than preventing prohibited dealings through screening.