The United States Department of Justice, in collaboration with the Departments of Commerce and Treasury, have taken a crucial step that will impact global businesses. Affecting specifically companies with potential sanctions and export control violations, a joint voluntary disclosure program has been announced. Devised as a new tool to manage coordinated prosecutions of these violations, the announcement signifies a new approach to civil and criminal enforcement of such offences.
The full audio episode revealing this can be found in detail here: Episode 289 — Justice, Commerce and Treasury Issue Joint Notice on Voluntary Disclosure.
At the core of the new effort is the Joint Compliance Note (JCN). The JCN urges companies to disclose potential offences proactively, thus highlighting an aspect of law enforcement that has become increasingly emphasized – the need for businesses to cooperate fully in investigations. The Volkov Law Group, renowned practitioners, provide a detailed analysis of the announcement.
The program illustrates another significant stride towards notifying international corporations of the altering enforcement landscape. The implications are wide – with this revised approach, companies may face aggressive prosecutions for sanctions and export control violations.
The collaborative effort indicated by the joint disclosure program suggests inter-agency alignment could be a primary governance strategy moving forward. For many businesses operating in this environment – particularly those with potential sanctions and export control violations – the path towards compliance will require transparency, robust mechanisms of internal control and potentially, a re-evaluation of existing corporate governance strategies.