The U.S. Bureau of Industry and Security (BIS) has announced that the “Five Eyes” countries—Australia, Canada, New Zealand, the United Kingdom, and the United States—have committed to formally coordinate on export controls enforcement. In particular, they hope to restrict access to sensitive technologies to Russia and Belarus.
Increasing export control coordination between the U.S. and its trading partners is likely to augment enforcement action and lead to a variety of compliance risks for multinational companies. U.S., UK, and EU regulators are warning companies that even seemingly innocent activities can result in sanctions enforcement and penalties under widening theories of evasion and circumvention.
Companies should take such enforcement coordination into account when assessing potential export compliance violations of cross border activities. Exporters should review their compliance policies and procedures to ensure they meet the 8 key BIS compliance elements:
- Management Commitment
- Risk Assessments
- Export Authorization
- Record keeping
- Training
- Audits
- Handle Compliance Issues
- Maintaining an Export Compliance Procedure (ECP)
If you have questions, reach out to Mohawk Global Trade Advisors.
By Clarissa Chiclana