Why Vendor Validation is Crucial for AP Teams (And How to Protect Yourself from Penalties)
With shifting trade laws, compliance standards, and tariffs, managing vendor data is more complex than ever. The constantly evolving landscape can be overwhelming, but taking a moment to assess the situation will help AP teams navigate the changes more effectively.
In this post, we break down the key changes and how Mekorma can ease the burden of compliance.
Key Changes Impacting AP Teams:
Expanded Sanctions Enforcement:
Since 2020, the Office of Foreign Assets Control (OFAC) has ramped up enforcement. New sanctions have been introduced or updated in 2025, affecting countries like Iran, Russia, Venezuela, and Hong Kong. Failing to regularly check your vendor records against these lists could lead to significant penalties.
Stricter Liability for Violations:
OFAC's strict liability rules mean that even if you weren't aware a vendor was sanctioned, you can still be held accountable for prohibited transactions. Keeping a clear audit trail is critical to show you’ve been diligent in compliance.
Tariffs on Key Trade Partners:
New tariffs on imports from countries like China, Canada, and Mexico can increase vendor pricing and impact procurement strategies. AP teams need to prepare for higher invoices and adjust budgets accordingly.
What This Means for AP Teams:
Reassess Cost Impact:
New tariffs can lead to unexpected invoice increases. Work with your purchasing department to review your vendor list and assess the financial impact.
Strengthen Vendor Management:
Ensure vendor data is accurate and up-to-date. Establish solid onboarding procedures and schedule regular reviews to maintain compliance and audit readiness.
Leverage Cash Flow:
AP teams can drive clarity and control in uncertain times by optimizing payment processes, seeking early pay discounts, and exploring technology that reduces the compliance burden.
Simplify with Mekorma Vendor Validation
Manual compliance checks are time-consuming and prone to errors. Mekorma Payment Hub's Vendor Validation tool automates the process, helping AP teams:
- Screen vendors against OFAC lists
- Validate Tax Identification Numbers (TINs) and addresses
- Flag potential compliance issues before they become problems
- Hold payments automatically when risks are detected
By automating these tasks, your vendor data remains accurate, secure, and audit-ready.
Ready to Take Action?
Vendor validation has always been important, but with tightening regulations, automating the process is essential to protect your business. Mekorma Vendor Validation is available for Microsoft D365 Business Central and Dynamics GP.
Stay ahead of the changes and ensure your AP processes are compliant without the stress. Ready to learn more? Check out our brochure, or reach out to one of our experts today.