The U.S. Department of Justice (DOJ), Bureau of Industry and Security (BIS), and Office of Foreign Assets Control (OFAC) published their second Tri-Seal Compliance Note on July 26 summarizing their voluntary self-disclosure procedures for export control and sanctions violations. The Note highlights the potential benefits of self-disclosure, including significant mitigation of civil and criminal liability.
Earlier this year, BIS and the DOJ’s National Security Division updated their policies to further incentivize companies to self-disclose potential violations. Under the new BIS policy, failing to self-disclose significant violations is now considered an aggravating factor when assessing potential penalties. Conversely, the National Security Division’s self-disclosure policies afford companies the ability to reduce—and in some cases, completely avoid—potential criminal liability.
The Note complements the U.S. government’s increased focus on export control and sanctions enforcement. The National Security Division recently hired a Chief Counsel for Corporate Enforcement and added 25 new prosecutors focused on export control violations, sanctions evasion, and similar economic crimes. The assistant attorney general for the National Security Division and BIS’s assistant secretary for export enforcement also lead the recently created Disruptive Technology Strike Force.