Exclusion lists screening: What is it and Why does it matter?

May 12 2021
6 min read

Government Data Searches are specialized searches are specialized searches of domestic, international, government, law enforcement and regulatory databases that store information on individuals who are on a criminal list or prohibited in certain industries such as finance and healthcare. These searches can include specific datasets or exclusion lists and may be reported wholly or individually.

What is the difference between an exclusion and a sanction?

A sanction is the result when an individual is found to be in violation of an administrative rule, civil law, or criminal offense. These types of actions can result in restrictions, license revocation, suspension, or voluntary surrender of license, or an exclusion from participation in any federal or state funded program, such as Medicare or Medicaid.

An exclusion is severe form of administrative sanction that results in an individual being placed on an exclusion list. For example, individuals on the F.D.A. debarment list may have committed fraud in a health care or medical setting, submitted or assisted in the submission of a falsified or otherwise fraudulent drug application, imported a non-FDA approved food or drug into the United States, or other activity relating to 21 U.S.C. § 335a of the FDCA.

Why should you perform exclusion list checks?

Certain safety-sensitive positions require this search to be performed to ensure that the applicant is not a known or suspected terrorist and will provide employers with information pertaining to any individuals who are listed on government watch lists. Common industries that perform these types of checks include healthcare, financial services, oil and gas, and government contractors.

This search helps to identify criminal activities, such as terrorism, weapons proliferation, narcotics trafficking, human rights violations, violation of international treaties, and money laundering. Exclusion lists checks are often required in regulated industries such as healthcare and financial services to maintain compliance with state and federal hiring regulations.

Examples of individual exclusion lists are:

Office of Inspector General List of Excluded Individuals/Entities (OIG)

The List of Excluded Individuals/Entities (LEIE) is a database of individuals that are not allowed to receive payment by specified federal healthcare programs (including but not limited to Medicare and Medicaid). This list is maintained by US Department of Health and Human Services (HHS), Office of Inspector General (OIG).

This list will uncover if your candidate is excluded or sanctioned due to:

  • Program-related fraud
  • Patient abuse
  • Some licensing board actions
  • Default on Health Education Assistance loans
  • And more.

General Services Administration Excluded Parties List (GSA)

The Excluded Parties List System (EPLS) is a single comprehensive list of individuals excluded by federal government agencies from receiving federal contracts or federally approved subcontracts, and from certain types of federal financial and non-financial assistance benefits. The EPLS is maintained by the System for Award Management (SAM) site of the federal government.

Federal Drug Administration Debarment List (FDA)

The Federal Drug Administration (FDA) Debarment List service searches the debarment list maintained by the US Food and Drug Administration (FDA).

This search will uncover if your candidate is convicted of a felony under federal law for conduct relating to development or approval of any drug product or otherwise relating to any drug product under the federal Food, Drug and Cosmetic Act.

Office of Foreign Asset Control, Specialty Designated Nationals List (OFAC)

The OFAC service searches the Specially Designated Nationals (SDN) List, maintained by the United States Department of Treasury, Office of Foreign Assets Control (OFAC).

This search will uncover if individuals are owned, controlled by or acting for or on behalf of targeted countries. It also lists individuals such as terrorists and narcotics traffickers designated under programs that are not country specific.

Individuals included on the SDN list have had their assets blocked and US persons are generally prohibited from employing or doing business with them.

United States Department of State Terrorist Exclusion

The United States Department of State Terrorist Exclusion List (TEL) is a single comprehensive list of individuals and firms identified under Section 411 of the USA Patriot Act of 2001 were the Attorney General has designated organizations and individuals as terrorist organizations for immigration purposes.

Orange Tree provides the following combined exclusion lists services

Global Terrorist Watch

The Global Terrorist Watch services searches for individuals on a proprietary database of more than 60 national and international watch lists, including but not limited to: terrorist and suspected terrorist watch lists, denied, debarred and blocked parties lists, wanted, fugitive and known criminal lists, and sanction and exclusion lists.

  • Includes: OIG, FDA, OFAC, and GSA

World Watch

The World Watch services searches for individuals on a proprietary database of more than 1400 national and international watch lists, including but not limited to: terrorist and suspected terrorist watch lists, denied, debarred and blocked parties lists, wanted, fugitive and known criminal lists, and sanction and exclusion lists.

World PEP

The World PEP services searches for Politically Exposed Persons on a proprietary database of more than 1000 national and international watch lists, including but not limited to: World Leaders List, Parliament Directory, World Statesman, Rulers and over 1,000 others to identify past subjects along with the most current and active individual lists.

Consolidated Screening List

The Consolidated Screening List (CSL) is a comprehensive list of the following government agencies:

  • Department of Commerce - Bureau of Industry and Security (BIS)
  • Denied Persons List - Individuals and entities that have been denied export privileges. Any dealings with a party on this list that would violate the terms of its denial order are prohibited.
  • Unverified List - End-users who BIS has been unable to verify in prior transactions. The presence of a party on this list in a transaction is a “Red Flag” that should be resolved before proceeding with the transaction.
  • Entity List - Parties whose presence in a transaction can trigger a license requirement supplemental to those elsewhere in the Export Administration Regulations (EAR). The list specifies the license requirements and policy that apply to each listed party.
  • Department of State – Bureau of International Security and Non-proliferation
  • Nonproliferation Sanctions - Parties that have been sanctioned under various statutes. The linked webpage is updated as appropriate, but the Federal Register is the only official and complete listing of nonproliferation sanctions determinations.
  • Department of State – Directorate of Defense Trade Controls
  • Arms Export Control Act (AECA) - Entities and individuals prohibited from participating directly or indirectly in the export of defense articles, including technical data and defense services. Pursuant to the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR), the AECA Debarred List includes persons convicted in court of violating or conspiring to violate the AECA and subject to “statutory debarment” or persons established to have violated the AECA in an administrative proceeding and subject to “administrative debarment.”
  • Department of the Treasury – Office of Foreign Assets Control
  • Specially Designated Nationals List - Parties who may be prohibited from export transactions based on OFAC’s regulations. The EAR requires a license for exports or reexports to any party in any entry on this list that contains any of the suffixes "SDGT", "SDT", "FTO", "IRAQ2" or "NPWMD".”
  • Foreign Sanctions and Evaders - Foreign individuals and entities determined to have violated, attempted to violate, conspired to violate, or caused a violation of U.S. sanctions on Syria or Iran, as well as foreign persons who have facilitated deceptive transactions for or on behalf of persons subject to U.S. Sanctions. Transactions by U.S. persons or within the United States involving Foreign Sanctions Evaders (FSEs) are prohibited.
  • Sectoral Sanctions Identifications (SSI) - Individuals operating in sectors of the Russian economy with whom U.S. persons are prohibited from transacting in, providing financing for, or dealing in debt with a maturity of longer than 90 days.
  • Palestinian Legislative Council (PCL) - Individuals of the PLC who were elected on the party slate of Hamas, or any other Foreign Terrorist Organization (FTO), Specially Designed Terrorist (SDT), or Specially Designated Global Terrorist (SDGT).
  • Foreign Financial Institutions Subject to Part 561 - The Part 561 List includes the names of foreign financial Institutions that are subject to sanctions, certain prohibitions, or strict conditions before a U.S. company may do business with them.
  • Persons Identified as Blocked (PIB) Solely pursuant to E.O. 13599 Treasury Department. - The PIB List includes persons identified by OFAC as meeting the definition of the term Government of Iran or the term Iranian financial institution as set forth in, respectively, sections 560.304 and 560.324 of the ITSR. Pursuant to Executive Order 13599, the property and interests in property of persons included on this list, as well as property such as vessels identified on this list, must be blocked if they are in or come within the United States or if they are in or come within the possession or control of a U.S. person, wherever located.  

How the right background screening partner can help

Orange Tree provides individual and combined exclusion list checks for a range of positions and industries. We can help ensure that your hiring practices are compliant with federal and regulatory requirements with our full range of exclusion list servicers.

Want to learn more about how our team can be of service to your organization? Schedule a call today.