DOJ Releases Guidance For Voluntarily Disclosing Willful Violations of Export Regulations and Sanctions Programs | Practical Law

DOJ Releases Guidance For Voluntarily Disclosing Willful Violations of Export Regulations and Sanctions Programs | Practical Law

The Department of Justice's (DOJ) National Security Division has released guidance for businesses regarding voluntary self-disclosures, cooperation, and remediation in export control and sanctions investigations. This new guidance relates to willful violations of the Arms Export Control Act and the International Emergency Economic Powers Act.

DOJ Releases Guidance For Voluntarily Disclosing Willful Violations of Export Regulations and Sanctions Programs

by Practical Law Commercial Transactions
Law stated as of 20 Oct 2016 • USA (National/Federal)
The Department of Justice's (DOJ) National Security Division has released guidance for businesses regarding voluntary self-disclosures, cooperation, and remediation in export control and sanctions investigations. This new guidance relates to willful violations of the Arms Export Control Act and the International Emergency Economic Powers Act.
The Department of Justice's (DOJ) National Security Division (NSD) has recently released guidance to provide greater transparency about what the NSD requires from companies that seek credit for voluntarily self-disclosing potential criminal conduct, fully cooperating with an investigation, and remediating bad acts. This guidance formalizes the NSD's policy of encouraging businesses to voluntarily self-disclose criminal violations of the Arms Export Control Act (AECA) and the International Emergency Economic Powers Act.
This new guidance:
  • Describes the criteria that the NSD uses in exercising its prosecutorial discretion and determining possible benefits for self-reporting, including by:
    • explaining what constitutes voluntary self-disclosure, full cooperation, and timely and appropriate remediation;
    • providing examples of aggravating factors that, if present to a substantial degree, could limit the credit an organization might otherwise receive;
    • explaining the possible credit that a business might receive for complying with this guidance; and
    • providing sample scenarios that demonstrate the application of the NSD's policy.
  • Implements the Deputy Attorney General's September 9, 2015 memorandum promoting greater accountability for individual corporate defendants (DAG Memo on Individual Accountability).
  • Implements the November 2015 revisions to the Principles of Federal Prosecution of Business Organizations described in the US Attorneys' Manual.
However, it should be noted that this guidance applies only when a business makes a voluntary self-disclosure of willful violations to the NSD's Counterintelligence and Export Control Section. This guidance does not impact voluntary self-disclosures to other appropriate agencies under the procedures described in those agencies' regulations. Businesses should continue to submit voluntary self-disclosures to the:
  • Department of State, Directorate of Defense Trade Controls (DDTC) for violating the International Traffic in Arms Regulations (ITAR).
  • Department of Commerce, Bureau of Industry Security (BIS) for violating the Export Administration Regulations (EAR).
  • Department of the Treasury, Office of Foreign Assets Control (OFAC) for violating US sanctions regulations.
For more information on complying with US export laws and reporting violations, see Practice Notes, Export Regulation: OFAC Economic and Trade Sanctions and Export Regulations: EAR, ITAR, and FTR.