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