Export Compliance and Audits: How to Minimize Risks in 2016 and Beyond
Overview:
Exporting today is complicated, highly regulated, and often risky. The regulations continue to change, enforcement increases, and the risk of non-compliance, fines, and litigation grows each year. The largest fines are for willful, criminal convictions currently are up to $1 million, but will increase to $10 million, or ten times the value of the export, when the new Export Administration Act is passed.
In 2014, a number of firms and individuals were convicted of export violations including, a) Wind River Systems which agreed to pay $750,000 to settle allegations that it had transferred encryption software to those on the BIS Entity List, b) Robbins & Myers Belgium S.A pled guilty to the illegally exporting drilling equipment to Syria, paying $1,000,000 in criminal fines for $31,716 in equipment; and c) an individual pled guilty to conspiracy to illegally export laboratory equipment from to Syria and is facing up to five years in prison and a fine of as much as $250,000. The Justice Department and State Department pursued similar cases against companies and individuals in 2014 -- raising awareness within these organizations regarding the need to understand how companies conduct their business.
To cope with the increasing complexity and changeability of the export industry, companies need to develop, implement, and maintain effective Export Compliance and Audit management policies and procedures. Staff should be trained, monitored, and evaluated; risk analysis models should be reviewed and evaluated annually as well as on an as needed basis; and all programs should be audited to ensure compliance. The complexity and variability of restricted export lists counsels that entities consider using automated databases.
The Knowledge Group has assembled a panel of key thought leaders and professionals who will review recent export violations and help the audience understand the most important aspects of Export Compliance and Audits: How to Minimize Risks in 2016 and Beyond. The speakers also will share their best practices for maintaining an efficient and effective export compliance strategy and auditing process.
Key topics include:
- Export Administration Act and the Arms Export Control Act
- Export Compliance Program and Auditing Process – An Overview
- Developing an Export Auditing Program
- Performance Indicator (KPI) Monitoring Techniques
- Effective Export Compliance Monitoring and Auditing
- Automation of Export Compliance
- Identifying Risk Factors based on Export Reform
- Export Risk Models
- Policies and Procedures of Export Compliance & Auditing Program
- Safeguards and Standards of Conduct in Export Compliance
- Sanctions for Violation of Export Controls
- Export Compliance Security
- Best Practices
Agenda:
Fragomen, Del Rey, Bernsen & Loewy, LLP
- Audit types, approaches and frequency
- Understanding your business and how this impacts scope
- Developing audit responses and corrective actions
KPMG
- Leveraging data to effectively conduct export risk assessments and audits
- Process reviews and identification of manual/systematic gaps that lead to export control risk
- Assessment of controls related to authorizations, blanket licensing, government reporting
- Re-exports controls
- Effectively communicating risk to management
- Health checks and auditing of automated systems for export control management
Dentons US LLP
- Objectives of an effective export audit - scope of objectives
- Choosing the correct auditor is fundamental to an effective audit -- factors to consider
- Protecting export audit results and/or reports under the attorney client privilege or attorney work product protections - how to protect the results and recent case law that affects the analysis; and
- Addressing export (or other) violations uncovered by the audit.
Covington & Burling LLP
- Best practices for oversight of third parties (e.g., suppliers, distributors and freight forwarders)
- Types and frequency of audits of third parties
- Audits of compliance with U.S. export controls by non-U.S. companies
- Reexport controls and considerations
Who Should Attend:
- Export Compliance Counsel
- Export Control Consultants
- Export Control Vice Presidents, Directors and Managers
- Exporters
- Private and Public Companies
- Other Related/Interested Professionals and Organizations
Steven Brotherton manages Fragomen's Export Controls Practice Group. He counsels clients on export control regulations and handles matter ranges from …
George is a principal with KPMG LLP’s U.S. Trade and Customs Practice based in the firm’s Atlanta office and KPMG’s …
Giovanna M. Cinelli is a partner at Dentons US LLP in their Tysons Corner, Virginia office where she chairs the …
Damara Chambers is a special counsel in the Washington, D.C. office of Covington & Burling LLP. Her practice focuses on …
Course Level:
Intermediate
Advance Preparation:
Print and review course materials
Method of Presentation:
On-demand Webcast (CLE)
Prerequisite:
NONE
Course Code:
145012
NASBA Field of Study:
Specialized Knowledge & Applications
NY Category of CLE Credit:
Skills
Total Credits:
2.0 CLE
2.0 CPE (Not eligible for QAS (On-demand) CPE credits)
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SPEAKERS' FIRMS:
About Fragomen, Del Rey, Bernsen & Loewy, LLP
Fragomen's Export Controls Practice Group provides a wide range of export control services to companies of all sizes in all industries. These services include development and implementation of global export control management systems, preparation of EAR, ITAR and OFAC export license applications, deemed export reviews, training, representation in government investigations and enforcement actions, and preparation of voluntary self-disclosures and related mitigation plans.
Website: https://www.fragomen.com/
About KPMG
KPMG LLP provides assurance, tax, and financial advisory services. The firm offers accounting, auditing, internal audit, regulatory and compliance, corporate recovery, forensic accounting, and risk management services. It also provides transaction advisory services such as due diligence, target risk assessment, acquisition accounting and tax advisory, and divestiture accounting. KPMG’s Trade and Customs practice’s dedicated professionals in over 10 cities in the U.S., and over 350 professionals globally serve multinational companies with their export risk management and improvement through internal audit services, export strategic planning, process development, and export management technology implementation.
About Dentons US LLP
Dentons is a global law firm organized to provide you with a competitive, legal and policy edge in an increasingly challenging and complex environment. As a market leader in multiple jurisdictions, Dentons was formed in 2013 through a combination of Salans LLP (Dentons in Europe), Fraser Milner and Casgrain LLP (Dentons in Canada) and SNR Denton (Dentons US). In June 2015, McKenna Long and Aldridge merged with Dentons US to further expand its geographic reach and capabilities.
Dentons spans over 80 locations in 50-plus countries across the United States, Europe, Asia Pacific, Canada, Africa, the Middle East, Central Asia, Russia, the CIS and the Caucuses, and the United Kingdom. The Firm provides access to top-tier legal talent with experience in over 24 sectors, including, but not limited to: Aviation and Aerospace, Defense, Software, High Technology, Telecommunications, Real Estate and Banking. The Firm maintains expertise in over 39 practice areas covering mergers, acquisitions, divestitures, export controls, national security, government contracts, litigation, financing, immigration and cross-border requirements (such as CFIUS and other foreign direct investment laws). With a global reach and in-depth experience, Dentons helps clients across the globe expand their opportunities and remain competitive.
Website: https://www.dentons.com/
About Covington & Burling LLP
Covington & Burling LLP is a full-service firm with approximately 850 lawyers in offices in Beijing, Brussels, London, New York, San Diego, San Francisco, Seoul, Shanghai, Silicon Valley and Washington. Covington practices as one firm, holding closely to core values that start with a deep commitment to our clients and the high quality of our work on their behalf, and that include an emphasis on teamwork among our lawyers and other professionals and a belief in the obligation of lawyers to make legal services available to all who need them.
Website: https://www.cov.com/