| Next to willful violation, self blinding (refusing to | | | | 1. Whether the company has performed a meaningful |
| accept information about an export) is the most | | | | risk analysis. |
| significant aggravating factor in increasing an | | | | 2. The existence of a formal written compliance |
| exporter's chance of getting slapped with a major | | | | program. |
| civil penalty from the Bureau of Industry and Security | | | | 3. Whether appropriate senior organizational officials |
| (BIS). So, what is the best way to mitigate | | | | are responsible for overseeing the export compliance |
| administrative penalties? Effective compliance | | | | program. |
| programs, says BIS Assistant Secretary Darryl W. | | | | 4. Whether adequate training is provided to |
| Jackson. | | | | employees. |
| At a recent BIS Export Control Forum 2008 in | | | | 5. Whether the company adequately screens its |
| Newport Beach, CA, Secretary Jackson stated that | | | | customers and transactions. |
| "for effective compliance programs, we give 'great | | | | 6. Whether the company adequately meets |
| weight mitigation' - a reduction of 25 percent - in | | | | recordkeeping requirements. |
| assessing the penalties in administrative cases". He | | | | 7. The existence and operation of an internal system |
| continued by saying that the Department of Justice | | | | for reporting export violations. |
| is focusing more resources on export violations, so | | | | 8. The existence and result of internal / external |
| you should expect to see an increase in criminal | | | | reviews or audits. |
| prosecutions. | | | | 9. Whether remedial action has been taken in |
| Thus, compliance is more important than ever. | | | | response to export violations. |
| Compliance will help you avoid enforcement actions. | | | | Finally, Secretary Jackson mentioned that the burden |
| And, if you cannot avoid an enforcement action, | | | | is on you, the exporter, to demonstrate that your |
| having an effective compliance program will get you | | | | compliance program is effective. If you are seeking |
| great weight mitigation in our administrative cases if | | | | great weight mitigation you must clearly demonstrate |
| the program was in place before the violation | | | | that you are entitled to it. He continued that merely |
| occurred and you have taken steps to address any | | | | sending in your lawyers to do a 'document dump' will |
| compliance concerns raised by the violation. | | | | not demonstrate adequate burden of proof required |
| 9 Principles of Effective Compliance Programs for | | | | for great weight mitigation of administrative penalties. |
| Great Weight Mitigation in BIS's Administrative Cases: | | | | |