The U.S. Government, through the Department of Justice, Department of Commerce’s Bureau of Industry and Security (BIS), and the Department of the Treasury’s Office of Foreign Assets Control (OFAC), has issued a joint compliance note emphasizing the significance of voluntary self-disclosures regarding potential violations of U.S. sanctions, export controls, and other national security laws. The note also highlights recent updates to the voluntary self-disclosure policies of these agencies.
The compliance note specifically outlines the voluntary self-disclosure policies of BIS, the Department of Justice’s National Security Division, and OFAC, underlining recent changes to these policies. Additionally, it draws attention to the Financial Crime Enforcement Network (FinCEN)’s Anti-Money Laundering and Sanctions Whistleblower Program, designed to incentivize individuals within and outside the U.S. to report information about violations of U.S. trade and economic sanctions, as well as the Bank Secrecy Act.
In a press release, the federal agencies responsible for export control enforcement stated, “The note underscores the importance of having an effective and robust compliance program. In the event a company identifies a potential violation, whether administrative or criminal, the company must promptly disclose and address it. Not only does such reporting make the disclosing company potentially eligible for significant mitigation, but it also alerts national security agencies to activities that may pose a threat to the national security and foreign policy objectives of the U.S. Government.”
Freight forwarders are advised to review their compliance programs to ensure they include clear procedures for escalating potential violations and other compliance concerns internally. Moreover, it is crucial to ensure that all employees at different levels within the forwarding company are aware of the internal escalation process.
For further details, the U.S. Government’s complete six-page compliance note can be found here.
Furthermore, OFAC has launched the first episode of its “Introduction to OFAC” web series, which consists of short videos offering viewers a high-level introduction to the fundamentals of OFAC and sanctions implementation. The inaugural episode, available here, introduces viewers to OFAC, its role within the U.S. government, its history, mission, and its relationship with the public.
