Conducting Voluntary Disclosures for Export Control Violations

Challenge

One of our technology clients proactively identified potential export control violations and sought our guidance in conducting a comprehensive internal review and submitting the appropriate voluntary disclosures to the relevant government agencies.

Approach

Our export compliance team worked closely with the client to:

• Thoroughly investigate the root causes of the potential violations, including an in-depth analysis of the company's export-controlled products, transactions, and internal procedures
• Prepare and submit detailed voluntary self-disclosures to the Bureau of Industry and Security (BIS) and the Directorate of Defense Trade Controls (DDTC), as applicable
• Develop and implement corrective action plans to address the identified issues and enhance the company's export compliance program
• Coordinate with government officials to provide any additional information or clarification during the review process

Result

Through our proactive and transparent approach, the client was able to resolve the export control issues without facing any enforcement actions or monetary penalties. The successful voluntary disclosure process enabled the client to:

• Avoid potential denial of export privileges or debarment from government contracts
• Demonstrate a commitment to compliance and strong corporate governance to both regulators and customers
• Strengthen the company's export compliance program, resulting in improved internal controls and risk mitigation
• Maintain uninterrupted access to critical international markets, preserving revenue and growth opportunities

Industry Benchmark:

According to a recent study by the Export Compliance Training Institute, companies that proactively address potential export control violations through voluntary disclosures experience a 75% reduction in the likelihood of facing severe penalties compared to those that do not self-report.