US Departments of Treasury, Commerce, and Justice have jointly released a Tri-Seal Compliance Note, which focuses on the voluntary self-disclosure (VSD) of potential violations of US sanctions, export controls, and other national security laws. This note aims to provide a comprehensive overview of the VSD policies implemented by each respective agency and highlights recent updates made to certain policies. It is important to note that the VSD Note does not introduce any changes to these policies and treats each VSD regime independently.
The VSD Note underscores the significance of companies promptly disclosing and remedying any potential violations in order to benefit from the VSD policies. Notably, the Bureau of Industry and Security (BIS) has recently updated its VSD policies for potential violations of US export controls laws, introducing a dual-track system. On the other hand, the Office of Foreign Assets Control (OFAC) has not made any recent updates to its VSD policies for potential violations of US sanctions laws, and continues to incentivize the submission of VSDs. Additionally, the Department of Justice National Security Division (DOJ NSD) has recently updated its VSD policies for potential criminal violations of US export controls and sanctions laws, as part of the DOJ’s ongoing efforts to establish consistent VSD policies across the department.
The release of this Tri-Seal Compliance Note signifies the collaboration between these three key US departments in addressing potential violations of US sanctions, export controls, and national security laws. By providing clarity on the VSD policies and recent updates, the note aims to assist companies in understanding the requirements and benefits associated with voluntary self-disclosure. This collaboration further emphasizes the importance of compliance with these laws and the government’s commitment to enforcing them.
The BIS’s recent update to its VSD policies introduces a dual-track system, which offers companies two options for addressing potential export control violations. Under the first track, companies can submit a VSD to the BIS, disclosing the violation and providing all relevant information. In return, the BIS may offer certain benefits, such as reduced penalties or mitigated enforcement actions. The second track allows companies to address the violation through an internal investigation and subsequent remedial actions, without submitting a VSD to the BIS. However, it is important to note that choosing the second track does not guarantee immunity from enforcement actions.
Meanwhile, the OFAC’s VSD policies for potential violations of US sanctions laws have not undergone recent updates. These policies continue to encourage companies to voluntarily disclose any potential violations to the OFAC. By doing so, companies may benefit from certain mitigating factors, such as reduced penalties or a decreased likelihood of receiving a monetary penalty.
The DOJ NSD’s recent updates to its VSD policies for potential criminal violations of US export controls and sanctions laws reflect the department’s ongoing efforts to establish consistent VSD policies across the DOJ. These updates aim to streamline the VSD process and ensure a more uniform approach to addressing potential criminal violations. By implementing consistent policies, the DOJ seeks to provide clarity and predictability for companies considering self-disclosure.
In conclusion, the release of the Tri-Seal Compliance Note by the US Departments of Treasury, Commerce, and Justice highlights their collaborative efforts in addressing potential violations of US sanctions, export controls, and national security laws. The note provides an overview of the VSD policies implemented by each respective agency and recent updates made to certain policies. It emphasizes the importance of voluntary self-disclosure and remediation, while also outlining the specific benefits and requirements associated with each agency’s VSD regime. This collaborative approach demonstrates the government’s commitment to enforcing these laws and encourages companies to prioritize compliance and transparency in their operations.