The Commerce Department’s Bureau of Industry and Security (“DOC-BIS”) is adopting procedures to generate voluntary self-disclosures for violations of export controls laws.  Companies have to weigh carefully the risks when deciding whether to make such a disclosure. The Justice Department and DOC-BIS are building joint prosecutions — criminal and civil — against companies for export control violations.  This new era is coming and companies have...

The Justice Department announced yet another version of its Evaluation of Corporate Compliance Programs.  As everyone knows, the Justice Department’s guidance carries talismanic significance — it is an important document that provides valuable direction on the design and implementation of an effective compliance program.  DOJ understands the importance of this document.  In recognition of evolving technology and compliance program innovations, DOJ updated its guidance to...

The Group of Seven (“G7”) has taken a critical step in bolstering its collective enforcement of export controls and sanctions against the Russian Federation by issuing a historic joint industry guidance document. This move is not merely a procedural update; it represents a concerted effort by the G7—comprising the United States, Canada, France, Germany, Italy, Japan, and the United Kingdom—to address the sophisticated evasion tactics...

Foreign companies with U.S. operations are struggling to navigate the landscape of sanctions compliance.  OFAC has expressed its concern that foreign companies need to deploy U.S. based expertise and resources to ensure compliance with sanctions. OFAC’s concern was expressed in the context of its settlement with Murad LLC, a U.S. cosmetics company.  Over an eight-year period ending in 2018, Murad illegally exported goods and services...

Global companies face significant risks in their supply chains of compliance with OFAC’s economic sanctions regime.  OFAC has emphasized the importance of conducting supply chain risk assessments and audits.  A supply chain audit (akin to UFLPA and conflict minerals) is essential to assess, monitor and manage risks.  Even though parties are not in direct privity, a company that sources materials from a prohibited party or...

“This is a very complicated case, Maude. You know, a lotta ins, a lotta outs, a lotta what-have-yous. And, uh, a lotta strands to keep in my head, man. Lotta strands in old Duder’s head.” — The Big Lebowski We are all familiar with — over and over — third-party risks and FCPA risks.  It is drilled in our collective heads — third-party risks and...