Export Compliance Management Seminar 29 & 31 May 2012: International Trade and Compliance


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Richard Hoff - The Eagle Compliance Company


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Export Compliance Management Seminar 29 & 31 May 2012: International Trade and Compliance

  1. 1. International Trade & Compliancedr. Richard Hoff 3 juni 2012
  2. 2. The compliance challenge $ Bank A Bank B Importer Exporter goods/ information 2
  3. 3. The compliance challenge licenses sanctions & export AML/ CFT embargoes controls $ Bank A Bank B registration & licenses Importer Exporter goods/ information export taxes & internationalcontrols anti tariffs law corruption sanctions & embargoes 3
  4. 4. International complexity every trade transaction is governed by a different set of rules… 4
  5. 5. What would you expect? 5
  6. 6. However, from practice…. the compliance officer/ department: prevents business does not understand business needs to fix ad hoc issues, TODAY! always asks for too much budget business overrules? does compliance add value? 6
  7. 7. Business case for compliance Distortions supply Bad performance Reputation risk, chain towards OEMs, market position, suppliers, … financial loss,…Non-compliancewith EU, US and Delays in licensing Black listing, excluded Legal risk,local sanction & procedures, from access to export businessexport control laws suspension, controlled items, export continuity,…and regulations debarment, non- privileges, banking payment Prosecution under criminal, Legal costs, claims, administrative or reputational loss,… civil law 7
  8. 8. Drivers for compliance laws & regulations enforcement reputation supply chain demands banks are starting to ask questions cost of non-compliance 8
  9. 9. Compliance takes position… 9
  10. 10. Example conversationThis deal means a great opportunity Did we check all regs & licenses? Come on! We need this one! But we need to make sure that…My people tell me that it is OK And if we don’t do it our competitors will We’ll go for it. Next item. 10
  11. 11. The compliance challenge how can my organization export be certain that our trade compliance transactions meet all framework & regulatory requirements? organization how can I be sure that this transaction specific transaction can be due diligence executed? 11
  12. 12. What is needed to comply? superior knowledge of regulations (& why) full understanding of: business processes the way risks & regulations impact business a system to get a grip on a complex and changing ‘universe of transactions’ a positive business culture (& why) the people to do it 12
  13. 13. Compliance arena people regulations input/ business business output/ transaction process process transaction culture keeping track of license management training regulations, red flags product classification risk analysis list management transaction screening reporting employment checks communication post-transaction 13
  14. 14. Software system as KSF people regulations software system: ‘E&E’ – track regulations – screening, alert handling – list management – license management – product classification – transaction due diligence input/ business business output/ transaction process process transaction culture 14
  15. 15. Compliance has position! knowledge regulations the way risks & regulations impact business clear framework fit with business culture operational compliance right people adequate support connected with business processes 15
  16. 16. The next step… identify key risk areas/ trade transactions export compliance framework, including role of compliance implement concrete measures with a view to the 5 key elements operate 16
  17. 17. 17