Rules that travel with the business
U.S. sanctions administered by OFAC can bar dealings with certain countries, entities, and people, and they can reach transactions that pass through the U.S. financial system even when no American company is on either side. Export controls govern where certain goods, software, and technology can go and who may receive them, which can include something as simple as sharing technical files with a foreign national employee. Paying foreign officials to obtain business is barred by the Foreign Corrupt Practices Act, and many other countries have their own anti-bribery laws. Data protection rules in places such as the European Union can restrict how personal information moves across borders. Cross border compliance means knowing which of these apply to your operations, not just which exist.
Building the program
A useful program starts with a risk assessment: where you do business, who your customers and intermediaries are, and what you sell. Screening tools for restricted parties are only as good as the data fed into them, so ownership information about customers and distributors matters. Distributors, agents, and consultants abroad deserve particular attention, because many bribery matters involve payments routed through third parties. Classify your products and technology for export purposes before an order comes in, not after. Training works when it is aimed at the roles that actually face these risks, and employees need a clear way to raise concerns internally.
When we get involved
Some companies come to us to design a program before expanding abroad, while others call after a bank flags a payment or a shipment is held at the border. In the first case, we review your operations and recommend controls sized to the risk. In the second, we look at what happened, what records exist, and whether a voluntary disclosure to a government agency should be considered, a decision with real trade-offs that deserves care. Either way, we start by understanding the business model and where the money and goods actually flow. Preserve documents related to any issue already raised, and route questions from the government or a bank through counsel.
