On July 26, 2023, the bond between law enforcement and the corporate world saw further strengthening. This comes as the U.S. Department of Justice (DOJ), the U.S. Department of Commerce’s Bureau of Industry and Security (BIS), and the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued a joint compliance note.
This compilation is not an imposition but rather an aid. It specifically focuses on the voluntary self-disclosure (VSD) policies. In detail, these policies apply to U.S. sanctions, export controls, and other national security laws. The collaboration didn’t stop there, as further updates across these policies also formed part of the noteworthy distribution.
As one may expect, these developments intend to guide companies to adhere to regulations more effectively. VSD allows firms to ‘own up’ to possible violations of the abovementioned laws in a controlled, non-crisis environment. Not only does this constitute a best practice for regulatory compliance, it can also favourably influence any potential enforcement outcomes for the disclosing entities.
Evidently, businesses are already under a multifaceted regulation microscope. This compliance note, jointly issued by three significant departments, vouches for the importance of transparency and cooperation in legal compliance. Seeing a move towards encouraging voluntary disclosure marks a shift in the traditionally perceived opposing roles of regulator and corporate player. The effect of this shift is undeniably beneficial for these entities and the integrity of the regulatory landscape at large.
Corporate legal teams and their advisors will do well to familiarize themselves with the new policies and updates encompassed in this joint compliance note. It reinforces the role that self-regulation plays in today’s business world, encouraging a more proactive and transparent approach to meeting, and potentially exceeding, legal compliance expectations.