Trade and commerce on an international level have always been accompanied by various complexities and legal hurdles, ones that are constantly changing and mutating as various nations adjust their regulations and enforcement measures. This week has proven particularly noteworthy, with an array of developments that demand the attention of corporations and law firms engaged in international affairs.
One of the paramount developments includes an increasing enforcement of the Foreign Corrupt Practices Act (FCPA). As a law aimed at prohibiting U.S. firms and individuals from making payments to foreign officials for the purpose of obtaining or retaining business, it’s significant to note that enforcement has intensified. This upward trend serves as a stern reminder for corporations and law firms to give heightened attention to their compliance practices and trainings.
Additionally, the Office of Foreign Assets Control (OFAC) has imposed a record economic sanctions penalty this week. The OFAC administers and enforces economic sanctions programs primarily against countries and groups of individuals, such as terrorists and narcotics traffickers. With this record penalty in play, it indicates that the OFAC is becoming more assertive and unforgiving in its enforcement, which necessitates that entities conducting international business become more diligent and aware of their compliance with such sanctions.
To add to the week’s eventful happenings, a large customs penalty for willful failure to correct known customs errors has been slammed. This indicates the Customs and Border Protection agency’s increasing impatience and penal severity towards entities who knowingly refuse to amend their customs errors. Corporations are hereby propelled into paying more attention to their formalities concerning the import and export of goods, and ensuring that all customs information is accurate and updated.
In conclusion, these recent shifts shed light on how imperative it is for corporations and law firms to ensure that they are not merely compliant, but are also abreast of the latest developments in the enforcement of international trade. Penalties for non-compliance are increasing, and the cost of ignorance or non-compliance can be financially ruinous, not to mention the reputational damage for the companies involved.
For more detailed information on these recent developments, please see the full report provided By: Foley & Lardner LLP.