Why Vendor Validation Matters More Than Ever for AP Teams (And How to Protect Yourself from Enforcement Penalties)
Tariffs and sanctions and trade wars, oh my! Accounts Payable can be complicated in the best of times, but when the regulatory landscape starts shifting like a moving sidewalk, staying upright takes some focus. With evolving trade laws, changing compliance standards, and tariff adjustments, managing vendor data is more complex than ever.
These changes and challenges may bring stress or anxiety, so let’s slow down, take stock, and find the best way forward.
In this blog post, we’ll unpack what’s changed, what the changes mean for AP, and how Mekorma can help lighten the compliance load.
What’s Changing and Why It Matters
As of 2025, several U.S. policy updates are reshaping how AP teams need to manage vendor validation and compliance. Especially if your organization works with international vendors or suppliers, staying current with these rules is crucial to avoid unintended penalties.
Here’s What to Keep an Eye On:
Expanded Sanctions Enforcement: Since 2020, the Office of Foreign Assets Control (OFAC) has continued to step up enforcement efforts. In the first few months of 2025, OFAC has already introduced or updated sanctions related to Iran, Russia, Hong Kong, Venezuela, and other regions. Even a single oversight in your vendor records could lead to serious consequences. Ensuring you are checking the OFAC sanctions list regularly is extremely important for vendor management. A recent article from Morrison Forrester emphasized “the importance of implementing and maintaining risk-based sanctions compliance programs for companies of all sizes and operations.”
Stricter Liability for Violations: OFAC doesn’t require “intent” to impose civil penalties. Under strict liability rules, you can be held accountable for prohibited transactions, even if you didn’t know a vendor was sanctioned. So yes, “We didn’t realize” is not a valid defence. To avoid penalties, it’s important to have an audit trail that proves you have been diligent in checking the sanctions list.
Tariffs on Key Trade Partners: Recent shifts in U.S. trade policy have introduced tariffs between 10% and 25% on imports from countries like China, Canada, and Mexico. These changes impact vendor pricing, procurement strategies, and ultimately your AP team’s day-to-day responsibilities.
What this Means for Vendor Validation and Compliance:
All of these changes put more responsibility on AP teams to monitor vendor risk, verify compliance, and adapt quickly. That might sound like a lot, but here’s where to focus:
Reassess Cost Impact: With new tariffs, invoices could arrive higher than expected. The additional costs of importing internationally will likely affect vendor pricing and procurement budgets. Calculate the financial impact of the tariffs on imported goods and work with your purchasing department to review your vendor list.
Strengthen Your Vendor Management: Keeping your vendor data up to date and accurate is more important than ever before. Establish clear and thorough onboarding procedures and schedule regular reviews to make sure your data stays clean, consistent, and audit-ready. Having the right tools to support your vendor validation process will not only help protect your organization now and in the future.
Make Cash Flow a Strategic Advantage: In times of uncertainty, AP has the power to bring clarity and control. Take a closer look at your payment processes. Are you missing opportunities for early pay discounts, rebates, or technology that could ease the load on your team and strengthen your bottom line?
Let’s Make This Easier: Automate with Mekorma Vendor Validation
Let’s be honest, the current state of trade doesn’t make things any simpler for AP teams, CFOs, or businesses working with international vendors. Manual compliance checks are time-consuming, and it's easy to miss regulatory updates. That’s where Mekorma Vendor Validation steps in.
As part of the Mekorma Payment Hub, our Vendor Validation feature helps AP teams:
Simplify vendor onboarding and reduce manual errors
Automatically screen vendor records against OFAC lists
Validate Tax Identification Numbers (TINs) and street addresses
Flag potential compliance issues for follow-up, before they become problems
Mekorma Vendor Validation helps you stay ahead of any additions to IRS and OFAC databases by scheduling regular compliance checks. It can even hold payments automatically when risk is detected. With these safeguards in place, your vendor data stays accurate, secure, and audit ready.
This Is the Moment
Let’s be real: vendor validation has always mattered. But with tighter rules and faster changes, automating the process isn’t just helpful, it’s a smart way to protect your team and your business.
Mekorma Vendor Validation is available for:
Want to simplify compliance without the stress and stay audit-proof? You don’t need a machete to cut through the weeds, just the right tool.
Ready to learn more? Check out our brochure here.
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