Note Issued on Voluntary Self-Disclosure Policies

The July 26 note marks the second collective effort by the three agencies to inform the private sector about enforcement trends and provide guidance to the business community on compliance with US sanctions and export laws.

The compliance note describes the voluntary self-disclosure policies of Commerce’s Bureau of Industry and Security, the Justice Department’s National Security Division and Treasury’s Office of Foreign Assets Control, and highlights recent updates related to these policies.

It also highlights the Financial Crime Enforcement Network’s Anti-Money Laundering and Sanctions Whistleblower Program, which incentivizes individuals in the United States and abroad to provide information to the government about violations of US trade and economic sanctions, in addition to violations of the Bank Secrecy Act.

The note underscores the importance of an effective and robust compliance program, the agencies said. If a company discovers a potential violation, whether it is an administrative or criminal violation, that company must promptly disclose and remediate. 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 US government.

“American businesses play a vital role in defending our national security, because they are gatekeepers for sensitive technologies and key participants in the financial system,” said Assistant Attorney General for National Security Matthew Olsen. “Responsible companies that come forward as soon as they learn of potential sanctions and export control violations will benefit from the protections of these self-disclosure policies.

Tri-Seal Compliance Note: Voluntary Self-Disclosure of Potential Violations  [link]