Justice Department Revises Export Control, Sanctions Enforcement Policy
The Justice Department announced three “key changes” for companies that submit voluntary disclosures of export controls and sanctions violations, the agency said in a Dec. 13 press release. The changes emphasize voluntary disclosures and lean toward rewards for companies that cooperate with the Justice Department through non-prosecution agreements and “significant” reductions in penalties, the press release said.
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One change clarifies the benefits available to companies that voluntarily disclose violations, cooperate with the Justice Department and “timely and appropriately” introduce remedial measures, the Justice Department said. If there are no aggravating factors, there is a “presumption” the company will receive a non-prosecution agreement and will not be given a fine. But if aggravating factors “warrant an enforcement action” beyond a non-prosecution agreement and the “company satisfies all other criteria,” the Justice Department will recommend a fine at least 50 percent “lower than what would otherwise be available under the alternative fine provision,” the press release said, and will “not require the imposition of a monitor.” The previous guidance did not “provide a presumption of any kind” and did not promise any “concrete benefits.”
The changes also clarify that disclosures of “potentially willful conduct made to regulatory agencies,” but not to the Justice Department, will not qualify for these benefits. The Justice Department also said the voluntary disclosure policy was “drafted” to “more closely resemble existing and analogous guidance from other [Justice Department] components” to standardize the agency’s voluntary disclosure policies. Specifically, the agency amended the definitions for “Voluntary Self-Disclosure,” “Full Cooperation,” and “Timely and Appropriate Remediation” to “closely mirror” those in the Foreign Corrupt Practices Act Corporate Enforcement Policy.
The changes took effect Dec. 13 and apply only to export controls and sanctions matters brought by the National Division’s Counterintelligence and Export Control Section. The policy does not apply to any other section in the National Security Division or “any other agency,” the press release said.