Foreign Corrupt Practices Act FCPA

The payment of bribes to influence the acts or decisions of foreign officials, foreign political parties or candidates for foreign political office is unethical. It is counter to the moral expectations and values of the American Public. But not only is it unethical, it is bad business as well. It erodes public confidence in the integrity of the free market system. It short-circuits the marketplace by directing business to those companies too inefficient to compete in terms of price, quality or service, or too lazy to engage in honest salesmanship, or too intent upon unloading marginal products. In short, it rewards corruption instead of efficiency and puts pressure on ethical enterprises to lower their standards or risk losing business. Bribery of foreign officials by some American companies casts a shadow on all U.S. companies.

Need controls related in Export and Import activities.

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ITAR Compliance Manual and effective control

https://www.pmddtc.state.gov/compliance?id=ddtc_kb_article_page&sys_id=384b968adb3cd30044f9ff621f961941

FLIR case

ITAR Compliance Program failure (s)

Significant compliance program and internal control deficiencies that directly contributed to the violations.

Deficient ITAR expertise and senior leader oversight during violation period.

Failure to effectively investigate and discover uncover and disclose violations.

Frequency and repetitive nature of same violations.

Failure to implement remedial compliance measures represented to the department.

Need to have an effective compliance program and effective administration including review.

Avoid penalties ($30,000,000) and controls by having effective control.

Factors to consider in a strong compliance system.

  1. Whether the company has performed a meaningful risk analysis.
  2. The existence of a formal written compliance program.
  3. Whether appropriate senior organizational officials are responsible for overseeing the export compliance program.
  4. Whether adequate training is provided to employees.
  5. Whether the company adequately screens its customers and transactions.
  6. Whether the company meets recordkeeping requirements.
  7. The existence and operation of an internal system for reporting export violations.
  8. The existence and result of internal/external reviews or audits.
  9. Whether remedial activity has been taken in response to export violations.

https://www.sbir.gov/tutorials/itar/tutorial-1#

ITAR technology export violation

ITAR compliance risks

Unauthorized exports included the transfer of technical data

Significant improvements to its export compliance program that reduce the likelihood of future violations, including conducting internal and independent audits, conducting staff training on the ITAR (including more extensive training for personnel directly involved in export compliance), creating a fully documented compliance program (with formal procedures, checklists, and a compliance manual), and significantly increasing staff resources devoted to day-to-day compliance (including retaining an outside consultant to provide expert advice where needed). These steps were taken after the fact and should have been in place to prevent.

Posting drawings on website or sending to foreign supplier for quote can constitute an export without a license and bring penalties. Bright Lights USA

https://www.pmddtc.state.gov/sys_attachment.do?sysparm_referring_url=tear_off&view=true&sys_id=715d7289db99db0044f9ff621f961939

training tutorial

https://www.sbir.gov/tutorials/itar/tutorial-1#