The U.S . Department of Commerce, the U.S . Department of the Treasury and the U.S. Department of Justice have issued a joint "Compliance Note" focusing on the obligations of non-U.S. persons and companies to comply with U.S. sanctions and export control laws and recent enforcement actions (as of March 6, 2024).
The above-mentioned US authorities' information paper summarizes the many ways in which non-US persons and companies may come into conflict with US sanctions and export control laws. US (re-)export control law claims a so-called extraterritorial effect, i.e. foreign transactions taking place outside the USA can also be subject to US export control regulations.
In the "Compliance Note", the US authorities emphasize that the impact of US sanctions and export control laws on the business activities of non-US companies must be taken very seriously. Global companies and companies participating in international trade should have robust compliance measures in place to avoidviolations of US sanctions or export control laws, the note states.
In particular, companies should ensure, for example, that subsidiaries and affiliates are trained on US sanctions and export controls.
In addition, strict internal controls and procedures should be in place for payments and movements of goods involving multiple parties, such as affiliates, subsidiaries or agents. Companies that believe they may have violated U.S. sanctions or export control laws are advised in the Compliance Note to voluntarily report the possible violation to the appropriate authority.
Link:
Obligations of foreign-based persons to comply with U.S. sanctions and export control law
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