Bloomberg Law Feature: Voluntary Self-Disclosures: Recent Guidance From BIS, OFAC & DOJ
Diaz Trade Law is enthusiastic to announce Bloomberg Law published another one of our articles, “Voluntary Self-Disclosures: Recent Guidance From BIS, OFAC & DOJ”! Below is the article reproduced with permission for your reading pleasure. You can also read the article here.
If an individual or company believes it has violated US trade laws, proactively disclosing the potential violation can substantially reduce penalties. A system of disclosures, known as Voluntary Self-Disclosures (VSDs) and Prior Disclosures (PDs), exists for a wide array of federal agencies, including Customs and Border Protection (CBP), Bureau of Industry & Security (BIS), the Department of the Treasury’s Office of Foreign Assets Control (OFAC), and the Department of Justice (DOJ).
Self-Disclosure Process & Benefits of Disclosing
Each agency has different requirements and processes for submitting VSDs or PDs. However, the process generally includes an initial notification to the agency followed by a supplemental narrative. Regardless of the agency involved, an initial notification of a violation should be transmitted as soon as it is discovered. Delaying disclosure after an apparent violation is discovered can disqualify a VSD or PD or even lead to more severe penalties when an agency initiates an enforcement action.
Agencies encourage parties to submit VSDs and PDs if they believe they have violated US trade laws and regulations. According to BIS, doing so is an “excellent indicator of a party’s intent to comply with U.S. export control requirements.”
Parties who disclose may benefit from significantly mitigated penalties. For example, minor or technical violations disclosed to BIS can […]
