The term “internal controls” is a loaded one – it morphs in various ways depending on the context.  Sometimes it is a shorthand for financial accounting controls; other times it encompasses a company’s compliance controls (i.e. policies and procedures). OFAC embraced the term to equate with a company’s policies and procedures for sanctions compliance.  OFAC recognized that OFAC compliance functions have to begin with the...

OFAC’s new framework guidance for sanctions compliance programs stretched into new territory with its risk assessment requirement.  This new approach reflects OFAC’s recent aggressive enforcement programs. In recognition of the importance of various economic sanctions programs, particularly Iran, North Korea and Venezuela, OFAC has laid out some important markers.  These enforcement actions, e.g. the Epsilon case (here), and the elf Cosmetics case (here), and the...

If you follow my blog, you know I am not one to embrace hyperbole.  So, forgive me for stretching a little here, but the OFAC Framework for Sanctions Compliance Programs is a game changer.  Let me explain why I am saying that. When it comes to sanctions compliance programs, most companies are well behind the curve; I am not saying they do nothing, but most...

OFAC’s new  Framework for Sanctions Compliance Programs is a game changer.   When it comes to sanctions compliance programs, most companies are well behind the curve.  OFAC’s new framework raises the bar by creating a well-crafted framework for companies to assess their current program and then re-design important elements to meet OFAC’s standards.    To the extent that a company’s sanctions compliance program operates as part of an overall...

As an initial step, an audit of an internal investigation program requires a detailed understanding of the operation of a company’s internal investigation program.  In crafting the audit, the first step is to define the relevant universe of investigations.  The audit scope will depend on the number of investigations to be review based on the number of investigations and the years to be reviewed.  Assuming...

Companies are starting to understand that an effective internal investigation program is a critical function to promote a speak up culture.  A company that has a dysfunctional internal investigation program will find it difficult to prevent and detect misconduct.  To this end, companies have to commit to a multi-step review and improvement process for its internal investigation program.  This is an exercise that is limited...

Webinar: ITAR Compliance — Navigating Complex Risks June 5, 2019, 12 Noon EST Sign Up HERE Companies subject to the International Traffic in Arms statute and regulations, face increasing enforcement and compliance risks. The US Department of Justice and the State Department have increased enforcement and demanded greater compliance efforts. Companies that are involved with “defense articles” and “defense services” have to be vigilant in...